Final answer:
Business ethics pertains to the moral guidelines for right and wrong conduct in business, and a company's code of ethics helps in guiding employees in ethical decision-making and corporate responsibility.
Step-by-step explanation:
Definition of Business Ethics
Business ethics refers to the application of moral principles and standards to business activities, decisions, and conduct. It involves establishing what is right and wrong in a business setting and providing a framework for ethical behavior within an organization. A company's code of ethics outlines acceptable behaviors and guides the ethical decision-making process for employees and the organization as a whole.
Importance of Codes of Ethics in Business
Codes of ethics are crucial as they help to foster a culture of integrity and responsibility. They serve as a reference point for corporate responsibility, ensuring that both the business and its employees act in accordance with legal requirements, societal expectations, and the organization's own values. These codes often address issues such as bribery, discrimination, and environmental sustainability, with the larger goal of maintaining public trust and achieving a balance between profitability and social good.