Business Ethics

A business is an entity, operation or activity created and engaged in for providing goods and/or services at profit. Most familiarly businesses are part of the Capitalist economy but they can be socially owned and run by the state, or by intermediary entities created by it for the purpose of avoiding direct political control. From an ethical point of view there are three sorts of issues raised by the existence, operations and conduct of business. The first concerns their place within society as a whole and relates to their ownership and control. For example, those extracting natural resources and those providing utilities such as power, communications, and transport have a direct impact on the environment and on the lives of individuals and groups. This raises questions of proper ownership, responsibility, and regulations. Second, the goods, services, and purposes with which a business is concerned may be problematic. The pornography industry in the USA is valued at about $12 billion and worldwide it reaches towards $100 billion. It responds to a demand, though it also increases it, and many regard its ‘product’ as exploitative, degrading and corrupting. On the other hand, many businesses contribute to the welfare of their employees and customers, bringing work, goods and services, and innovations and improvements, where they might not otherwise exist. Third, beyond the societal role of businesses, and the character of their products and services, there are ethical questions concerning their operations and practices. Advertising, terms and conditions of employment, competitive practice, pricing and so on may all have moral aspects, and this as well as consumer and other criticisms has led in this areas as in others to codes of ethical practice.From an ethical point of view there are three sorts of issues raised by the existence, operations and conduct of business. The first concerns their place within society as a whole and relates to their ownership and control. For example, those extracting natural resources and those providing utilities such as power, communications, and transport have a direct impact on the environment and on the lives of individuals and groups. This raises questions of proper ownership, responsibility, and regulations. Second, the goods, services, and purposes with which a business is concerned may be problematic. The pornography industry in the USA is valued at about $12 billion and worldwide it reaches towards $100 billion. It responds to a demand, though it also increases it, and many regard its ‘product’ as exploitative, degrading and corrupting. On the other hand, many businesses contribute to the welfare of their employees and customers, bringing work, goods and services, and innovations and improvements, where they might not otherwise exist. Third, beyond the societal role of businesses, and the character of their products and services, there are ethical questions concerning their operations and practices. Advertising, terms and conditions of employment, competitive practice, pricing and so on may all have moral aspects, and this as well as consumer and other criticisms has led in this areas as in others to codes of ethical practice.