Business ethics encompass a set of principles that guide the behavior and decision-making processes of individuals and organizations in the business world. These principles are fundamental to maintaining integrity, fairness, and responsibility in the business environment. Here are some key principles of business ethics:
principles of business ethics
Social responsibility
It refers to the awareness that a company has regarding the decisions it makes and that can directly affect society, whether in the short or long term. So you can also contribute to initiatives that benefit the community. An example is the donations of big brands to social causes.
2. Legal compliance
A company has to comply with a series of regulations and restrictions that are imposed by the government where it resides. So each of its processes, from production to sale to the final consumer, is planned and executed so that it does not violate any law. It also includes the payment of taxes.
3. Environmental ethics
It involves all the actions carried out by a company that have a positive or negative impact on the ecosystem. That is, consumption and use of renewable energies, carbon dioxide emissions, recycling, noise generation, waste management, biodegradable packaging and wrapping, among others.
4. Creating shared value
This occurs when a company designs a product or service that responds to a problem in society, which is why it has a more human than economic objective. It’s a great way for brands to step out of the box and really demonstrate their ethics.
5. Process transparency
It involves showing all the ingredients a product contains, its country of origin and other details; so that they are in the public domain. In this way, a company becomes accessible and transparent for all people and, therefore, more trustworthy.
6. Family values
When a company understands that the most important thing for a person is their family; encourages schedules and practices so that its workers’ quality time with their loved ones is respected. An example of this is companies that provide pregnancy, maternity and paternity leave.
7. Reputation and leadership
It falls on the people who are in charge of a company and contribute to good organizational development ; since the decisions and objectives agree with the values of the brand and, in turn, with those of society. This causes the company to be recognized and appreciated by consumers.
