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What is business ethics? Why they are important to business?

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Ethics are the moral values or qualities that govern and affect the behavior of the people. They differ from person to person. They provide the sense to a person about what is right or wrong, good or bad etc. Business ethnics are moral guidelines and principles that helps it to implement policies and the way business will behave and respond to its environment. Business ethics are important factor in decision making. Business ethnics ensure that there exist trust between between consumer and business therefore attract new consumers and build consumer loyalty. They also help in making positive image of business in the market. Running business ethically helps to create stability and  cam increase long term survival of the company. With these the following are the importance of business ethics: 

  1. Employees ethics - an organization can work in a ethically when its employees follow business ethics of the organization and take better decisions as and when required and helps in building better coordination between employees and management of the company.
  2. Positive image - ethics play an important role in creating positive public image. Image of the company helps it to attract investors, customers etc.

So an entrepreneur should consider the importance of business ethics for running a successful business.