Business ethics are moral and socially acceptable principles that guide the way a business behaves. These recognize that ethical conduct in all its functions and processes is the cornerstone of responsible business. In a volatile environment as businesses today, governing with Ethics, Transparency and Accountability can reap long-term benefits and value of an organization.
These set of principles acknowledge that businesses should develop governance structures, procedures and practices that ensure ethical conduct at all levels. Adequate emphasis is given on transparent communication assuring access to information about corporate’s decisions that impact relevant stakeholders. These ethics advocate that any engagement in practices which are abusive, corrupt, or anticompetitive must be strictly avoided and there should be a truthful discharge of responsibility on financial and other mandatory disclosures. Proper compliance with all the applicable governmental and regulatory rules should be ensured and any lapse or lack of proper understanding/interpretation of a guideline must be resolved with utmost priority.
Many companies in their endeavour to be responsible, form Ethics Committee directly at the Board level which is empowered to investigate all matters of suspected violation of ethical standards of the company, including decisions taken by its top management. A Code of Conduct and Ethics Manual is also formulated which helps employees understand key principles and commitments that is adhered in the business ethic of the concerned company. The manual helps maintain high standards of corporate governance while dealing with conflicts of interest.
Thus, concrete set of business ethics help corporate sector become responsible actor of the society by ensuring their operation leads to sustainable growth and economic development.