Summary
Business ethics encompass following social norms and legal regulations in areas such as bribery, discrimination, fraud, and environmental protection. Companies may need to invest more resources to uphold ethical standards, especially in high-income countries with strict environmental laws. Consumer behavior is influenced by environmental concerns, and companies like Twitter and Facebook face scrutiny for their data practices. Business ethics can change with evolving laws and societal expectations, impacting companies across various industries. The handling of consumer information is not just a technological issue but also a significant ethical concern for businesses.
Definition of Business Ethics
Business ethics refer to appropriate business practices in terms of abiding by social norms and legal rules and regulations. It covers issues like bribery, discrimination, insider trading, fraud, and environmental protection.
Engaging in Ethical Business Practices
Ethical business practices are based on social norms even if not codified in law. Companies may need to expend more resources compared to competitors to do ethical business.
Differences in Environmental Protection Regulations
High-income countries like the United States have more extensive legal rules for environmental protection compared to developing countries. Consumer behavior also varies based on environmental concerns.
Scrutiny of Companies
Tech companies like Twitter and Facebook face heavy scrutiny for their data management practices, while companies in extractive industries are not as frequently scrutinized.
Evolution of Business Ethics
Business ethics can evolve with changes in laws and social expectations, exposing companies to different risks. The collection and management of consumer information are not solely technology-related.
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