Business ethics is a difficult topic to explain. The wide range of categories and areas of public ethics that exist between any company and the consumer or the general public makes disciplining business ethics extremely difficult. Corporate offices, as well as local businesses for mothers and cooks, can set up business ethics. It must address business compliance and social obligations, as well as the rights of employers and employees. The ethics, responsibility, decisions, and actions of any company or business, from the grassroots to the highest levels of local or national government, are all aimed at directing ethics. (Alzoa, Miguel. 2012)

Consumer rights and expectations are gaining more attention in today’s culture. The rise of the Internet and the expansion of international trade have required the continuous development and planning of overseas business practices in a variety of cultural backgrounds. In the financial sector, business ethics play an important role, as evidenced by news reports of sales, domestic trade, and the growth of waste bonds.

Improving business ethics and infrastructure helps to close the economic, linguistic, and ethical or value values ​​between countries and their corporate practices. As a result, corporate ethics have had a profound effect on how businesses are conducted in the 21st century. (Dempsey, James, 2015)

Status, importance, ethics, and general meetings and expectations are the four key elements of a business ethic.

Illegal corporate practices have a detrimental effect on productivity and living conditions. Such behavior has a detrimental effect on social and environmental degradation, resulting in damage to many sectors of society and a lack of trust. Businesses have become increasingly competitive, and the value of goods and services has grown exponentially in excess of the price per unit or function.

Business ethics can be defined as learning about ethical conduct and practice, as well as reflecting social values ​​and values. There is no denying that business contributes to our lives, both individually and collectively. On the other hand, what is the role of business ethics in the way an employer treats employees and vice versa? How does corporate conduct affect the way competitors, customers, and the environment are treated?

People can meet ethical challenges by understanding integrated ethics, and gain respect for honesty, creating trust, a sense of fair play, and issues of human dignity. Employer and employee obligations are as important as following ethical guidelines in all aspects of a company, from sales and marketing to marketing and competition.


Business Behavior Models

  • Illumination theory

Consider the controversy over corporate human rights activities, where there has been a major debate over whether companies should use their power over other players in their areas of influence to promote respect for human rights. Where there are many factors, according to Wood (2012), reflection becomes a source of responsibility: The Organization has an important ethical relationship with the rights holder or infringement, the company can contribute to improving the situation, the company can do so at a lower cost, and the human rights threat is significant. Consider the dismissal of a worker as a second example. What makes a fair dismissal in terms of ethics? Experts and doctors agree that downsizing or reorganizing the company should end in kind, but what does that mean? There have been no complex behavioral studies of these problems. In the case of termination of non-compliance, Kim (2014) believes that compensation for dismissal is a retaliatory act that accurately reflects the agent’s remorse and, in many cases, demonstrates respect for the employee.

  • Different ways of thinking

The application of new theoretical ideas to problems that have previously been solved from competition or other assumptions is a second option. Some points of view can also be very powerful because they strive to overthrow the wisdom of doctrine and remove new ones. Jones and Felps (2013) defended another company use policy as an example of this bursary style. Depending on the shareholding of shareholders and the purpose of the company, these are fundamental differences in general financial and administrative subjects. Jones and Felps developed a one-purpose organization that they call “promoting stakeholder entertainment” in order to develop a revised stakeholder theory theory that addresses the issue that stakeholder opinion is inadequate. They say using this mindset will enable managers to make informed policy decisions in the event of a conflict of interest.

  • Integration Theory

Wettstein (2012) points out that researchers responsible for social cohesion have ignored the current discussion on business and human rights, including recent United Nations programs, as an example of this type of research. Indeed, CSR scholars were less involved in the negotiations that led to the formation and transformation of the United Nations framework for “Protecting, Respecting and Repairing” Business and Human Rights. At the same time, business and human rights books did not include student management in ways that would help understand how to effectively incorporate human rights protection into business policy. Wettstein argues for the consolidation of research streams in ways that could encourage continued focus on strong participation in the promotion and protection of human rights.


According to Linda Fisher Thornton’s book “7 Lenses,” there are six key elements that will determine the future of business ethics:

  1. Expanding project work Instead of focusing on local outcomes, ethical issues now require a broader approach. “Dealing with complex problems, full implementation, multiple business obligations, and disciplinary considerations will be required” (Thornton, 2017).
  2. Appearance has improved. Since the advent of the internet, business has become more visible to the public. As a result, there is a lot of attention and a lot of pressure on social work and accountability.
  3. Protecting human rights must be a priority. Individual ideas and cultural standards may vary greatly, but there has been a strong emphasis on fundamental rights. Businesses are under increasing pressure to treat employees and communities fairly.
  4. Companies giving back to the community. Organizations need to find ways to contribute to the betterment of society because corporate corporate responsibility becomes a competitive advantage.
  5. Managing ethics as an app. Companies can inculcate ethical and psychological values ​​by making ethics a part of employee management.
  6. Retraining skills to stay morally sound. Leaders will need to play a role in ensuring that their skills remain relevant and ethical leadership needs as ethical decisions become more complex (Thornton, 2017).

The company’s ethical benefits include:

  • Attracting and retaining top employees, customers, suppliers and investors
  • Building favors with members of the public and government officials
  • Reducing the amount of supervision required for staff (Collins, 2011)



Patagonia is a company that makes outdoor clothing and machinery. Its code of conduct is very similar to that of its customers. Patagonia considers itself to be “the greenest company in the world,” ensuring “complete openness” in its mission statement. When Patagonia faces a crisis that contradicts its ideology, it often chooses to make the issue public by examining the environmental impact. When Patagonia decided to switch from conventional cotton to 100 percent live cotton, they soon discovered that the material was not available. Patagonia has partnered with farmers and suppliers to promote organic farming. Patagonia eventually switched to organic cotton because there was enough cotton to meet their needs.


Apart from the excellent intentions that depend on this decision, Patagonia’s sales have dropped by 20% initially. Patagonia stood firm in their moral character and continues to make garments made of completely live cotton. Sales have returned to normal gradually as consumers begin to realize the negative effects of unnatural cotton. Moreover, as consumers sought a more environmentally friendly option, this quick action forced competitors to follow suit (Hollender, 2012).


The case of integrity in operating Patagonia’s systems can be taken as an example to other businesses that want to operate transparently and with strict ethical standards. When a problem arises with a company, it is best to look forward to the customer and resolve the issue as soon as possible – especially before the disaster strikes. In addition, companies should not lose their morale if society does not start to accept big changes. Sometimes it is better to wait for the community to participate. Long-term success is achieved by sticking to the company’s purpose rather than having a short-term profit.





Alzola, M. (2012). The Possibility of Virtue. Business Ethics Quarterly22(2), 377-404.

Dempsey, J. (2015). Moral Responsibility, Shared Values, and Corporate Culture. Business Ethics Quarterly25(3), 319-340.

Harrison, J., Felps, W., & Jones, T. (2019). Instrumental Stakeholder Theory Makes Ethically Based Relationship Building Palatable to Managers Focused on the Bottom Line. Academy Of Management Review44(3), 698-700.

Kim, T. (2014). Decent Termination: A Moral Case for Severance Pay. Business Ethics Quarterly24(2), 203-227.

Patagonia Outdoor Clothing & Gear. (2020). Retrieved 21 June 2021, from

Thornton, L. 7 lenses.