Ethical behaviour is doing things that are morally right. Ethics (countable noun) are moral beliefs about what is right or wrong. Ethics (uncountable noun) is the study of this. Ethically responsible companies want to do the right thing in areas such as:
Employment and community: they want to pay attention to things that affect all people, not just their employees, in the areas where the company has its offices, factories and activities.
the environment: they want to conduct business in ways that protect the environment to ensure that the air, rivers etc. are not polluted and plant and animal life are not endangered.
winning new business: they want to get business without engaging in corrupt behaviour, for example offering bribes – money given to someone so that they behave unethically.
Companies want to be seen as good corporate citizens, with activities that are beneficial not only for their stakeholders – their employees, shareholders and so on – but for the community and society as a whole.
Accountability and transparency
Ethical corporate behaviour includes accountability – the idea that companies are completely responsible for what they do and that people should be able to expect them to explain their actions. Transparency is explaining this behaviour in a way that can be understood by outsiders, and not trying to hide anything. Companies may say that they demand high levels of probity and integrity – complete honesty – from their employees, and that they do not tolerate any form of misconduct.
Corporate social responsibility
Companies have long had codes of ethics and codes of conduct saying how their managers and employees should behave. Now they are looking at these issues in more systematic ways. They are designating executives to oversee the whole area of corporate social responsibility (CSR).