When one is able to differentiate right from wrong in a business setting, that person is ethical. Ethics is an important aspect of a business behaviour. It determines how far a business can survive in the long run.

You may have heard much about the basics of ethics, morality and values and have most likely formed a good understanding of them based on your experiences and thoughts

Ethical issues often arise in business settings, whether through business transactions or forming new business relationships.

However, most people do not really take the time to understand the concepts of ethics, morality and values.

Ethics simply means the ability to determine right from wrong, good from bad, moral from immoral and just from unjust actions, conducts and behaviour.

Morals are judgments, standards and rules of good conduct in the society. They guide people toward permissible behaviour with regard to basic values.

Values are core beliefs or desires that guide or motivate our attitude and actions.

With an understanding of ethics, morals and values while using ethical principles, a business owner can develop a framework for effective decision-making with formalized strategies. The ability to include ethical principles to the decision-making structure shows a desire to promote fairness, as well as prevent potential ethical problems in the business.

To be ethical means to follow standards, policies, rules and regulations
To be ethical means to be socially responsible to the society and the environment
To be ethical means to stop bribery and corruption

See more: http://www.hillscope.com/important-business-ethics/