Business ethics refers to the various perceptions of the morally right way of carrying out business practices and procedures, which has some very generally applicable meanings and some that are more individual or specific to businesses located in a particular geographical area due to influences from the culture or particular manner of perceiving such ethical concepts in the area. The different types of business ethics concepts are those subjects that form the bulk of the thrust toward the application of ethical considerations in the conduct of business. Such business ethics concepts include the relationship between the management of the organization and the employees, the relationship between the company and the customers, distributors and suppliers, the issue of corporate responsibility, and the relationship of the company with the environment.
An inclusion in business ethics concepts is the way in which the management of the company relates to its employees. Such ethical concerns are often evident in the subject of equality at the workplace, the hiring practices of the company, the way in which the company handles issues relating to diversity, and other related issues like the treatment of the sexes and religion. The reason why these business ethics concepts are important is related to the fact that some companies treat some of their employees or prospective employees in a manner that might be considered not only morally wrong, but also illegal in some countries. For instance, a company that practices some form of discrimination against people based on criteria like looks, religion or disabilities may not only be wrong ethically, but they may also be opening the door for lawsuits based on employment discrimination.
Another application of the business ethics concepts is the issue of corporate responsibility of corporations toward their consumers, host communities and environment. In the case of the application of business ethics concepts in the practice of corporate responsibility, corporations owe some form of ethical, and sometimes legal duties, to their host communities. This form of business ethics concept is most common in the manner in which heavy pollution-producing industries located near human dwellings treat the issue of pollution from their various activities. An example of this can be seen in the manner in which oil extraction and refining companies treat the environment and affect the lives of those who live near to where such activities are carried out. For instance, in the case of oil spills, it would be ethical for the companies to clean up their own spills and to compensate the locals whose livelihood may have been affected by the harmful activities of the oil companies.
