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What is the difference between business ethics and corporate ethics?

Published in Business Ethics 2 mins read

While often used interchangeably, business ethics and corporate ethics have distinct meanings.

Business Ethics

  • Focuses on individual behavior within a business context.
  • Deals with moral principles and values that guide the decisions and actions of individuals in a business setting.
  • Applies to all levels of a business, from employees to executives.

For example, a salesperson who refuses to lie to a customer about a product's features is demonstrating business ethics.

Corporate Ethics

  • Refers to the ethical principles and values that guide a company's overall operations and decision-making.
  • Involves creating a culture of ethical behavior within the organization.
  • Covers a broader range of issues, including environmental sustainability, social responsibility, and compliance with laws and regulations.

For example, a company that implements a policy of ethical sourcing for its products demonstrates corporate ethics.

Key Differences

Feature Business Ethics Corporate Ethics
Focus Individual behavior Organizational behavior
Scope Narrower Broader
Examples Honesty, integrity, fairness Sustainability, social responsibility, compliance

In summary, business ethics focuses on individual behavior within a business, while corporate ethics focuses on the ethical principles and values that guide a company's overall operations.

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