Ethics and business

This chapter discusses the connection between ethics and business. Despite scepticism amongst some scholars about their interconnectivity, their connection is firmer than ever before. This is arguably because of the urgent global problems the world faces and public opinion of the many business scandals that have come to light in recent times, and a consequent low level of trust in business. Ethics fundamentally deals with the question of ‘how we should live our lives’ and studies the ways in which human beings could flourish and live a good life. Business is fundamentally a socio-economic activity, and depicts the exchange of goods and services for money. It aims to make profits for the owners of a company and satisfy the needs of its customers and also of society. The connection between ethics and business has been expressed in the construct ‘ business ethics ’, which, as a field of study, has grown into an accepted academic discipline and is thriving. It is a form of applied, some would say ‘practical’, ethics, which studies the ways in which ethical principles and standards support (the impacts of) the business decisions and behaviour of people and organisations. It has been concluded that ethics and economic activity (business) can never be separated. Their foci – well-being and welfare respectively – are two sides of the same coin.