Businesses, wherever done, must follow certain Policies, Practices and Governance for Acceptance and Sustainability. Business Ethics is the study of such Policies, Practices and Governance. It includes Insider Trading, Bribery, Discrimination, Corporate Governance, Corporate Social Responsibility and many like that. Insider Trading refers to buying or selling of a publicly traded company’s stock by someone who has a non-public, material information about that stock.
Business Ethics provide a basic guidelines for doing business in order to gain public acceptance and approval. The Trust between Consumers and various forms of Market Participants like Suppliers and Associates must be established for a successful Business. Business Ethics ensure such basic Trust Level. Business Ethics also must ensure balancing of Marketing and Social Responsibility.
Ensuring Minimum Wages, Environmental Regulations, Anti-Bribery Policy, Healthy Competition between other Companies, Drug and Alcohol Policy etc. are keys to the success of every Business. Business Ethics are very important because they have lasting implications on several levels. Good Consumer Privacy policies ensures the Trust Levels between the Consumers and the Business.
Read more about Business Ethics and why it matters here