Importance of Business Ethics

-Business ethics: a code which rules institutions' behaviour and also individual members' of an institution when their decisions affect others (inside and outside).

 

People tend to be extremely distrustful of corporations in market economies and the bigger they are, the worse that problem of trust usually gets. Business ethics are important for a company and its success.

 

For example talking about the public image of a company; each corporation has a particular public image, which represents the way in which the public views the corporation. Just as an example, Wal-Mart has a very bad public image while on the other hand, Toyota has a more positive one. These public images are the result of a number of different things, but they are primarily the result of the way in which a corporation acts with respect to the different things around it.

Since public image is largely a result of company behavior, business ethics play a large role in determining public image since they determine behavior. And public image is important to success in most cases, which is one of the reasons as to why business ethics are important to a company's overall success.

 

Free Dictionary.(2012) Recovered on August 22nd 2012 from http://ecyclopedia2.thefreedictionary.com/Ethical+business