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Chapter 2 Business Ethics and Social Responsibility Any organization, including nonprofits, has to manage the ethical behavior of employees an participants in the overall operations of the organization. The ethical conduct of employees creates a culture of trust and respect that makes a business productive. Business Ethics and Social Responsibility We define business ethics as the principles and standards that determine acceptable conduct in business organizations. Personal ethics, on the other hand, relates to an individual's values, principles, and standards of conduct. The acceptability of behavior in business is determined by not only the organization but also stakeholders such as customers, competitors, government regulators, interest groups, and the public as well as each individual's personal principles and values. Many experts agree that ethical leadership, ethical values, and compliance are important in creating good business ethics. Many consumers and social advocates believe that businesses should not only make a profit but also consider the social implications of their activities. We define social responsibility as a business’s obligation to maximize its positive impact and minimize its negative impact on society. Business ethics relates to an individual's or a work group's decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire business's activities on society. Recognizing Ethical Issues in Business Recognizing ethical issues is the most important step in understanding business ethics. An ethical issue is an identifiable problem, situation, or opportunity that requires a person to chose prom among several actions that may be evaluated as right or wrong, ethical or unethical. In business, such a a choice often involves weighing monetary profit against what a person considers appropriate conduct. Many business issues seem straightforward and easy to resolve on the surface but are in reality very complex. A person often needs several years of experience in business to understand what is acceptable or ethical. For example, it is considered improper to give or accept bribes, which are payments, gifts, or special favors intended to influence the outcome of a decision One of the principal causes of unethical behavior in organizations is overly aggressive financial or business objectives. Many of these issues relate to decisions and concerns that managers have to deal with daily Many ethical issues in business can be categorized by the context of their relation with abusive and intimidating behavior, conflicts of interest, fairness and honesty , communications, misuse of company resources, and business associations. Misuse of Company Time 
