Code of Ethics in Business Examples of Ethical Issues in Business 

1. Ethical Issues in Finance 

Definition of Ethics
Under the umbrella of finance and accounting, fairness in trading
The term Ethics is derived from the Greek word ethos which practices, trading conditions, financial contracting, sales practices, 
means “characteristic way of thinking”. Ethics, as a science, does consultancy services, tax payments, internal audits, external
not only evaluate the morality of our human conduct but also audits, and  executive compensation are included, whereas specific
provides us with a common understanding of the universal, corporate ethical/legal  abuse includes insider trading,
objective, and irreversible moral principles that should govern our bribery/kickbacks, misleading financial  analysis, and fraud on
human behavior and guide our moral decisions (Roa, 2011). securities. 
Ethics are moral principles that guide the conduct of the individual 2. Ethical Issues in Human Resource (HR) Management 
(Racelis, 2017). These are rules of behavior based on ideas about
what is morally good and bad (Merriam-Webster Dictionary). Human Resource Management 's tasks include hiring and
orientation, performance evaluation, training and
Why is ethics important in business? development, labor relations, and health and safety
Ethical conduct, whether at the corporate, professional, or concerns. Among the ethical issues are discrimination by age (the
personal level, is a direct reflection of the principles and young ones are preferred over the older ones), gender preference,
values which regulate the person and the institution he/she sexual orientation, race, ethnicity, disability, and physical
represents. Organizations establish their own culture that is appearance are all ethical issues that the HR oversees.
socially expressed as their ideals. Such principles or ideals have an 3. Ethical Issues in Sales and Marketing 
impact on the relationships within the company, efficiency,
prestige, performance and retention of employees, legalities, and Marketing ethics deals with the beliefs, standards and/or
the wider community they work in. morals that advertisers and marketing organizations will
operate upon. Ethical marketing issues include promotion of
As a result, most organizations generate a list of obsolete or harmful products/services; openness about
organizational values and codes of conduct to be recognized environmental threats; food ingredients (Genetically Modified
and adhered by all workers. Motivating and enhancing Organisms); possible health hazards or financial risks; protection
constructive actions, and at the same time building an atmosphere for the  privacy and autonomy of consumers; truthfulness in
that prevents unethical behavior are vital obligations on the part advertising; and honesty  in price and delivery. Some claim that
of both administrators and workers. advertisements can affect the views of individuals and their
relationships with others, suggesting an ethical  obligation to avoid
How to Apply Ethics
distorting those expectations and relationships.
At the individual level, organizations ought to concentrate
Ethics in marketing includes practices in pricing, which
on improving and encouraging every employee to respect
involves unlawful acts such as price manipulation and price
and adhere to ethical principles. Certain aspects of individual
skimming. According to Hayes (2020), price skimming is a product
ethics have their roots in the individual. Achieving a strong sense
pricing strategy by which a firm  charges the highest initial price
of professionalism and recognizing certain professional decisions'
that customers will pay and then lowers it  over time. On the other
ethical implications are the key components of education,
hand, advertising has raised concerns over offensive
individual reflection, and experience.
advertisements, objectification, and school marketing.
School marketing is the practice of influencing how people think 1. Adopt code of ethics (use the Code of Ethics of other companies
and feel about your district brand. Whether people voice it or not, as a reference and modify according to the needs of the
everyone already has an opinion about your schools. It could be company). 
good, bad, or neutral.

4. Ethical Issues in Production 

2. Offer training on ethics (for management and employees). 
Business ethics typically deals with company's duties to
3. Hire and foster individuals with ethical value.  
ensure its goods and industrial procedures do not inflict
unnecessary harm. Many products and services can be generated 4. Deal with immoral activities. Employees must know the
and used at zero risk and it can be  difficult to assess the ethical implications and effects of making unethical actions and should be
path. However, there are consumers who patronize products ready to accept consequences. 
that damage them, for example, tobacco products. Output can
have adverse effects on the environment like air pollution, 5. Take constructive measures. For example, give rewards to
destruction of habitats, and urban sprawl. employees who admit their mistakes. If the company is
conscientious and smart, it can encourage warehouse workers to
________________________________________________ take responsibility for their mistakes and even praise them for
coming forward, apologizing and ensuring that a faulty product is
not purchased by the customer. At first it seems counter-intuitive
A secret to success lies in recognizing the value of ethics in to reward an employee for a mistake, but in the end, it provides
industry. The customers, management, and staff value honest everyone with the best result. 
and ethical practices. Hence, business ethics is vital because it
6. Carry out a social audit. Conduct survey to employees
helps maintain a great reputation, helps to avoid significant
occasionally. 7. Cover all whistleblowers. These people detect
financial and legal issues, and ultimately benefits all involved.
illegal activities within organizations and disclose the actions to the
Therefore, it is highly suggested that each company formulates its
authority or managers. A  whistleblower who works sincerely,
own Code of Ethics to be  used as a guide in its business
correctly reporting an issue, should be  praised for his/her courage
operation. 
and integrity, as opposed to being disciplined and  ostracized. If an
What is Code of Ethics?  individual blasts the whistle, it is possible that the company  itself
has failed internally to motivate and improve fair and ethical 
Code of Ethics is a set of rules about good and bad behavior. It is conversations. 
a guide of principles designed to help professionals conduct
business honestly and with  integrity. A code of ethics document 8. Empower the defenders of integrity. Support those who work
may outline the mission and values of the business or organization, with honesty and integrity.
how professionals are supposed to approach problems, the ethical
9. Ensure executive commitment. The anonymity of those who
principles based on the organization's core values, and the
report the problems should be practiced. 
standards to which the professional is held.
10.Communicate the principles of conduct within the company and
Saucer and Sims (2013) offer recommendations for
across the industry. 
developing Code of Ethics in business organizations: 
11.Assign an officer who is clearly responsible for the enforcement
of ethical standards. He/she can be consulted for advice. 
12.Establish a procedure for violations of ethical standards, and 4. Principles- moral rules or beliefs that help you know what is
fully review any offenses reported.  right and wrong and that influence your actions (Merriam-Webster
Dictionary).
13.Ensure high perseverance by the company's board of trustees.
14.Lead by example, above everything else.  Examples: Customers must be respected. Make sure to deliver
quality product.
 It should be remembered that when faced with an ethical
situation, the outcome of the decision-making process Simplified Sample of Code of Ethics: XYZ Company
should be considered. One way to tackle ethical situations is
by using the four-way test to evaluate decisions.  Our Core Values

Our Vision:
This four-way test consists of asking four questions: 
1. Is my decision truthful?  To lead the car industry by giving our customers quality
2. Is my decision fair to all who are affected by it?  cars worthy of their money and unmatched customer services.
3. Will this build the organization's goodwill?  Our Values:
4. Will the decision benefit all parties with vested
interest in the outcome? We act with the highest standards of integrity. We respect
individuals and treat them fairly.
Code of Ethics contains the following:
Our Mission:
1. Vision means something that you imagine; a picture that you
see in your mind (Merriam-Webster Dictionary). The vision To work efficiently and enthusiastically to make XYZ
statement helps to ensure the alignment of the decisions to the Company the country’s top car dealer while serving our customers
company goals.  punctually and courteously.

Example: To make innovations that everyone could access and Our Principles:
adapt depending on their needs 
1st: XYZ Company shall adopt a zero-tolerance policy
2. Values (value means something thought of as important or towards bribery and corruption in whatever form;
useful) Values in business help to ensure that all of the employees
2nd: All company officers and employees shall conduct
work towards the company goals. 
business in accordance with Philippine laws and regulations; and
Example: We commit ourselves to serve our customers with quality
3rd: We shall act in good faith and observe sense of
service and utmost respect.
professionalism at all times.
3. Mission- a specific task with which a person or a group is
charged (Merriam-Webster Dictionary). The mission statement
clearly and effectively guides the business or the organization in its Code of Ethics aims to lessen conflicting issues as it explains
decision-making.  to what degree such conflicts can be avoided and what
parties could do if these conflicts happened. Professionals
Example: To inspire all the young athletes of the country… tell
therefore cannot say that they were ignorant of the immoral
them to dream and go for it!
nature of their improper behavior. Often relevant is the
possibility of disciplinary action (e.g., disbarment of a
lawyer) which helps minimize unnecessary disagreements
or offensive behavior where a confrontation is imminent or
is likely to happen.