Chapter 07
Business Ethics
• Business ethics are foundational principles that guide the
behavior and decision-making of companies and individuals,
promoting trust and fairness in business operations. It involves
doing what is right, fair, and responsible, not only to maximize
profits but also to respect employees, customers, society, and
the environment.
• Ethical Business - Ethical businesses follow honesty,
transparency, accountability, and fairness in their operations.
They avoid practices such as fraud, exploitation,
discrimination, and environmental harm. Strong business
ethics build trust, enhance a company’s reputation, improve
employee morale, and contribute to long-term success.
Corporate Social Responsibility (CSR)
• Corporate social responsibility (CSR) refers to the
responsibility of enterprises for their impacts on society,
making companies socially accountable to themselves,
stakeholders, and the public. It involves practices and policies
intended to have a positive influence beyond legal obligations
and profit maximization. CSR initiatives often involve
environmental sustainability efforts, ethical labor practices,
philanthropy, responsible sourcing, transparency, supply chain
sustainability, and workplace diversity.
Sustainable Business
• A sustainable business is one that aims to create long-term
value without depleting the natural, social, or economic
resources it relies on. It operates in a way that balances the
needs of the present with those of future generations.
Sustainability in business is about making choices that respect
environmental limits, support human well-being, and promote
financial stability.