1.

Business ethics is a set of moral and ethical ideas that guide an organization's and its employees'
conduct and activities. A company's ideals and goals, as well as how it conducts its day-to-day
operations, are influenced by its business ethics. It consists of organizational principles, beliefs,
and norms derived from individuals, organizational declarations, or the legal system, which
largely govern individual and group conduct in business.
The significance of business ethics extends well beyond employee loyalty and satisfaction or the
depth of a management team connection. As with any business endeavors, a company's ethical
operation is strongly tied to profitability in both the short and long term. The reputation of a
firm among the surrounding community, other businesses, and individual investors is critical in
deciding if a company is a worthy investment. Investors are less likely to acquire shares or
support a company's activities if it is seen to be unethical.
2. The discipline of business ethics is fast evolving as more companies see the benefits of
enhancing ethical behavior and the relationship between business ethics and financial
performance. Among the benefits of becoming more ethical and socially responsible in company
include higher efficiency in everyday operations, stronger staff dedication, increased investor
readiness to contribute funds, improved consumer trust and happiness, and improved financial
success.