Business Studies

Ethics

Businesses can choose to work in a way that profits only the owners or in ways that benefit the community. Working ethically means acting in ways that are both fair and honest.

What is ethical behaviour?

A big business has a lot of power, which it can either use responsibly or selfishly. Many firms operate to meet the needs of owners. Ethical firms also carefully consider the implications of what they are doing and the effect it might have on the community and the environment.

Ethics is about doing the right thing. Ethical behaviour requires firms to act in ways that stakeholders consider to be both fair and honest. Managers making ethical decisions take into account:

• Impact: who does my decision affect or harm?
• Fairness: will my decision be considered fair by those…