Business Ethics is defined as the study and examination of moral and social responsibility in relation to business practices and decision-making in business.[1]

But what is more important to understand is what ethics really are in order to comprehend the role they play in business in today’s time. Ethics are understood to be moral principles that preside over a particular person’s or group’s behavior, in society. Businesses are obliged to preserve ethical behavior in the corporate world in order to be deemed a trustworthy brand, which in turn, is profitable for a company.

It is believed that the most common practice related to business ethics, that is followed by most Multi-National Corporations around the world is Corporate Social Responsibility.

Corporate social responsibility or CSR, refers to business practices involving initiatives that benefit society. A business’s CSR can encompass a wide variety of tactics, from giving away a portion of a company’s proceeds to charity, to implementing “greener” business operations.[2]

These may include philantrophical work, ethical labor practices, volunteering, and the most widely followed, environmental efforts.

The basic idea behind CSR is to act as a protective shield for the reputation of the company it is practiced by. The practice of CSR has gained extreme popularity in the past decade as companies are embedding sustainability into their businesses and trying to merge business and society together to form a perfect mix so that the company can gain profit, and so can the society.

An example of business ethics in real life, particularly CSR is the case of Perdue Farms, one of America’s largest poultry companies. In response to the growing demand, particularly from millennials, for cruelty-free meat, Perdue is changing its chicken breeding operations. Perdue has made massive changes to its farming processes, including reducing the use of antibiotics, providing more natural light and changing the way animals are slaughtered.[3]

This goes to show how practicing CSR led to a rise in demand for the products of Perdue Farms, as well as an increase in profits, which brings me to the main point. The practice of ethical activities in business in this day and age benefits a company’s stand in their particular market.

Although, many companies still, including large Multi-National Corporations do not practice business ethics and are still doing particularly well, but then again there are companies that are shut down for their unethical behavior, although the governments in many countries around the world try to ensure that ethics in businesses are practiced and maintained.

[1] “business ethics”. Dictionary.com’s 21st Century Lexicon. Dictionary.com, LLC. 10 Sep. 2016. <Dictionary.com http://www.dictionary.com/browse/business-ethics>.

[2] Caramela, Sammi. “What Is Corporate Social Responsibility?” Business News Daily. Purch, 27 June 2016. Web. 10 Sept. 2016.

[3] http://www.npr.org/sections/13.7/2016/08/24/490811156/corporate-ethics-in-the-era-of-millennials