Ethical business practices are conduct standards related to moral judgments applicable to people engaged in commerce related positions (Gitman, 2012). The National Academy of Engineering cites example of how Texas Instruments’ leadership is focusing on ethical behavior on its on line ethics center (). The company has created a website for employees to visit which lists hundreds of articles which have been published in corporate magazine TINews.
Business ethics is a code or a set of standards that a business adheres to. This code essentially states what is considered ethical, and what is considered unethical in terms of how the business is conducted in relation to what is best for human beings, the community, the environment, and so on. Business etiquette, on the other hand, is essentially conducting business affairs in a polite manner.
However, as populations grew, the necessity for incorporating the best business practices into a company became somehow less important because there was always another customer around the corner and the owner of a business was rarely the focus of attention in a community the way he or she may have been in the past.
In the consequence-based approach, the manager would look at this event from a cost-benefits perspective and decide that most people in the community would enjoy this activity and that the organization would make more money from offering the program, and would have little financial risk due to injuries because of the waivers signed by participants.
In too many organizations “ethical issues are often positioned in opposition to the more important questions of organization profitability” (p. 4). However, in the new paradigm, shareholders cannot be seen as the only, or the most important stakeholder.