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Ethical business identity is becoming an important feature of intrinsic value to business. The
reforms in government regulation, increasing scrutiny by the media and the mounting stress
of different stakeholders have brought business ethics on strategic agenda of all sections of
society. Business ethics refers to moral demands regarding the business and is based on the
theory of the relationship between business and society at large. A major responsibility of
business ethics focuses on identifying ways to reconcile strategic issues of the company with
the moral responsibility and commitment to stakeholders. Ethics is a good business investment
that generates trust and confidence between the parties and in turn guarantees long-term
performance (Hosmer, 1994).
Ethics covers moral, social and legal issues and using ethical analysis as a component of the
decision would result in better use of company resources as well (Areal and Carvalho, 2012).
If the business houses want to exist in the long term, they have to follow sound, rational and
logical basis for ethical decision making. The companies those follow business ethics responsibly
would be able to achieve ultimate success than those that are only motivated by immediate profits. When the only objective of a business is to make profit, it may be able to achieve its
short-term objectives, but may lose its advantage and goodwill in the long-term.
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