Unit 1: Ethics and Business
LESSON 1:
 The Nature of Business
 The Importance of Ethics in Business
 The Relationship between Ethics and
Business
 Business Ethics defined
Tony, a data analyst for a major casino, is
working after normal business hours to finish an
important project. He realizes that he is missing
data that had been sent to his co-worker Robert.
Tony had inadvertently observed Robert typing
his password several days ago and decides to log
into Robert's computer and resend the data to
himself. Upon doing so, Tony sees an open email
regarding gambling bets Robert placed over the
last several days with a local sports book. All
employees of the casino are forbidden to engage
in gambling activities to avoid any hint of conflict
of interest.
“A business that makes nothing but money is a
poor kind of business”
THE NATURE OF BUSINESS
 A business is an organization that strives
for a profit by providing goods and
services desired by its customers.
 Businesses meet the needs of consumers
by providing medical care, autos, and
countless other goods and services.
 Goods - are tangible items manufactured
by businesses, such as laptops.
 Services - are intangible offerings of
businesses that can’t be held, touched, or
stored. Physicians, lawyers, hairstylists,
car washes, and airlines all provide
services. Businesses also serve other
organizations, such as hospitals, retailers,
and governments, by providing
machinery, goods for resale, computers,
and thousands of other items.
THE IMPORTANCE OF ETHICS IN BUSINESS
 Ethics lays the strategic decision-making
 Business increases employee retention
 An ethical business attracts investors
 Ethical practices help in building and
maintaining reputation
 An ethically oriented company is bound to
avoid fines.
 Good Business ethics is the key to
enhancing productivity 
 Ethics creates customer loyalty 
 Ethics encourages teamwork
 A business that values ethics attracts
more suppliers
 Ethics reduces business risks
THE RELATIONSHIP BETWEEN ETHICS AND
BUSINESS
 Businesses that exhibit and promote
strong corporate codes of ethics are more
prosperous in the long run.
 The highly competitive environment in
today's global economy puts pressures on
company leaders to remain profitable and
to show a good return to stakeholders. 
 It's easy to blame "the system", yet many
fail to realise "the system" is comprised of
decision-making individuals.
 When companies make unethical
decisions, it can result in defective or
rushed products, unsubstantiated firing of
employees, and false presentations of
products to consumers.
 The establishment of higher levels of
ethical behaviour within a business
benefits the company in many ways.
 Economic rules dictate that the larger a
network, the more value is added to that
network.
 Ultimately implementing a strong ethical
policy is a win-win situation for all.
BUSINESS ETHICS

- Carries significant influence in the

corporate world. Not only does it change
how businesses operate on a day-to-day-
basis, but it also influences legislation
around corporate regulation.  

- The study of how a business should act in

the face of ethical dilemmas and
controversial situations.

- This can include a number of different

situations, including how a business is
governed, how stocks are traded, a
business' role in social issues, and more.

- Many businesses leverage business

ethics not only to remain clean from a
legal perspective, but also to boost their
public image. It ensures trust between
consumers and the businesses that serve
them.
BUSINESS ETHICS ARE IMPORTANT FOR A
VARIETY OF REASONS:
1. It keeps the business working within the
boundaries of the law, ensuring that they
aren't committing crimes against their
employees, customers, consumers at
large, or other parties.
2. Businesses can also build trust between
the business and consumers. 
3. Being an ethical business is also highly
appealing to investors and shareholders.
4. Following business ethics can also be
beneficial for the business' employees and
operations.