Business ethics in the United States

To fully understand ethics and how it relates to business, its key components must first be defined. Ethics can be divided into three categories: social, organizational, and individual. Corporations are subject to a social ethic that challenges them to hold corporate officers, management and stakeholders who aspire to financial gain from traditional and unconventional economic activities accountable for their own actions. Organizational ethics involves a shared sense of pride and responsibility for employees, managers, and corporations. They are part of an overall business philosophy that is shared throughout the company. Individual ethics involves our conceptions of right and wrong that come from many different sources. Religious beliefs can often play a significant role in the ethical path that many choose to follow.

What drives a company to act ethically in business? What prevents companies from generating as much profit as possible, regardless of the ethical ramifications of their actions? The general public, as well as business stakeholders, expect corporations to conduct business ethically and with the highest regard for social responsibility. When companies fail to meet these expectations, the end result often involves punishment and damaging publicity. Companies that conduct business unethically run the risk of harming not only their stakeholders, but also the general public. Businesses that act ethically impart a sense of trust and responsibility in local and national communities; this type of trust can often foster strong business alliances.

Ethics problems occur in many forms for many different reasons during the course of business. Unfortunately, companies often unknowingly employ people whose moral values ​​fall short of those of a responsible corporate citizen. These employees often put their own greed and selfishness before the welfare and safety of others, simply for their own financial gain.