What Are Business Ethics?

Business ethics are the moral principles and values tꦚhat guide the operations of a company or business, and the behavior of management and employees.

Common issues that fall under this umbrella include employer-employee relations, discrimination, environmental issues, bribery, insider trading, and social responsibility.

Many laws exist to set basic ethical standards within the business community, but it is largely dependent upon the leadership of business to develop a 澳洲幸运5开奖号码历史查询:code of ethics.

While practic🐟ing strong ethics keeps a business within the parameters of the law, it can also serve to build goodwill and brand equity.

That's because popular 澳洲幸运5开奖号码历史查询:social is🦩sues often drive business ethics. When different issues come to the forefront, organizations respond by bringing their eth🔯ical tenets in line with new social norms.

Business Ethics in the 1960s

The 1960s brought the first major wave of changes in 澳洲幸运5开奖号码历史查询:business ethics. Cultural values were shifting, with individualism and fierce dedication to social issues such as environmentalism and world peace coming into vogue.

While young workers in the 1960s were idealistic and wanted to make the world a better place, employers found th🤡at their general work ethicꦕ, compared to that of previous generations, was lacking.

Drug use was rampant, and the new focus on individualism caused man𒉰y workers to look upon their employers with disdain.

Companies responded to the changing times by beefing up human resources 🀅departments, establishing mission statements, and outlining codes of conduct.

However, in response to the changing desires of their employees, businesses also began embracing social responsibility at a 🤪level not previously seen.

In fact, the 1960s saw businesses trumpet environmental friendliness for the first time and companies also looked for new ways to give back to their communities.

Major Events in the 1970s and 1980s

During the 1970s and 1980s, two events shaped changes in business ethics: 澳洲幸运5开奖号码历史查询:defense contractor scandals that became highly publicized during the Vietnam War and a heightened tension between employers and employees.

In response, the government implemente👍d stricter policies governing defense contractors, and compani🍸es revamped contracts with employees to focus less on rigid compliance and more on values.

Popular♒ management philosophy shifted from pure authoritarianism toward more collaboration with employees (and communi🐼ties) and working on an equal footing.

The 1990s and Environmentalism

The 1990s saw a rebirth of environmentalism, new heights in social r𒅌esponsibility, and graver legal ramifications for ethical missteps.

For example, tobacco companies and junk food manufacturers faced heightened scrutiny, along with several important lawsuits over the public health ramifications of their products.

Oil companies and chemical companies had to contend with increasing public pressure to answer for environmental damage. Class action lawsuits rapidly gained in popularity and, in response, businesses were forced to spend more on legal departments.

The Online Realm of the 21st Century

From the year 2000 onward, business ethics expanded to encompass the online realm. The big ethical dilemmas of the 21st century have centered on cybercrimes and privacy issues.

Crimes such as 澳洲幸运5开奖号码历史查询:identity theft,ꦦ almost unheard of 20 years before, are a threat to anyone doing b💎usiness online.

As a result, businesses face social and legal pressur🌳e to take every measure possible to protect sensiti👍ve customer information.

The rise in the financial value and popularity of data mining𝄹 and target marketing for businesses has forced companies to walk a fine line between prote🥀cting consumer privacy and using online activities to glean valuable marketing data.

Business Ethics in the AI Age

The emergence of artificial intelligence (AI) as a growing force in business has presented new chall�꧅�enges that people and companies are striving to deal with.

The many changes in business and society that could take place over the years as AI technology continues to develop may be highly consequent🙈ial for bu🅠sinesses.

Companies Developing AI

According to a 2023 study conducted by the Markkula Center for Applied Ethics at Santa Clara University, a vast majority of Americans care that AI be ethical.

Approximately 86% felt that AI companies should be regulated and 82% felt the U.S. government should clarify those regulations.

And despite some businesses involved in AI development (such as IBM and Microsoft) having some clear degree of AI ethics focus, over half of Americans believe that companies haven't been concerned with or by ethics as they've developed AI technology.

Companies Using AI

Business ethics must apply not just to the development of AI but also to its use by myriad businesses. Fairness, transparency, and accountability have become watchwords for such ethics.

Business ethics could play 🔴a large role in helping companies avoid business risks associated with AI and in creating positive social change, both ma🔴jor benefits for businesses.

The Bottom Line

Business ethics have evolved siﷺnce the 1960ඣs, as the important social and business issues that they address have changed.

The list of concerns has grown from such matters as workplace fairness, environmentalism, war, and social upheaval to include social🐟 responsibility, harassment, workplace and public safety, accounting transparency, and personal data prᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚivacy.