What is Ethical Business Practice?

Why do we need Ethical Business Practice?

One answer is, simply, that it's the right thing to do.

But it's not just about how companies spend their profits but how they make them in the first place. It goes far deeper than being 'green' or paying third world suppliers fairly. It's about bringing honesty and integrity to everything they do. An important part of any ethical business policy is a dedication to corporate social responsibility. In real terms, this can be described as a company playing a meaningful role in the communities in which it operates. By recognising the impact they have on society, businesses are accepting the responsibilities this brings, and realising they're not just accountable to their shareholders, but to a wide range of stakeholders - including business partners, employees, customers, suppliers and community groups.

To put this into context, it helps to separate the different areas an ethical business policy touches. By exploring the three main elements affected - a business itself, its employees and the communities with which it comes into contact - you'll gain an insight into the range of effects it can have.