Buisness ethics

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Business ethics is the study of proper business strategies and exercise regarding potentially debatable issues, such as collective organisation, insider trading, corruption,bias, corporate social responsibility and fiduciary duty. Law often pilot business ethics, while other times business ethics provide a basic frame that businesses may choose to follow to obtain public taking.

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About Business Ethics by Gjergj kol mihilli Business ethics is the study of proper business strategies and exercise regarding potentially debatable issues such as collective organisation insider trading corruptionbias corporate social responsibility and fiduciary duty. Law often pilot business ethics while other times business ethics provide a basic frame that businesses may choose to follow to obtain public taking. Codes of behaviour The law is the key starting point for any business. Most leading businesses also have their own statement of Business Principles which set out their core values and standards. In Anglo American”s case this is called “Good Citizenship”. A business should also follow relevant codes of practice that cover its sector. Many companies have created voluntary codes of practice that regulate practices in their industrial sector. These are often drawn up in consultation with governments employees local communities and other stakeholders. Anglo American has played an active part in enterprise such as the Extractive Industries Transparency enterprise the United Nations Global Compact and the Global Reporting Initiative.

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BREAKING DOWN Business Ethics Business ethics ensure that a certain required level of trust live between consumers and various forms of market contributor with businesses. For example a portfolio manager must give the same deliberation to the portfolios of family members and small individual owner. Such practices ensure that the public receives fair treatment. The concept of business ethics arose in the 1960s as companies became more aware of a arise consumer-based society that showed concerns regarding the environment social causes and collective responsibility. Business creed goes beyond just a moral code of right and wrong it attempts to reunite what companies must do legally versus maintaining a competitive advantage over other businesses. Firms display business ethics in several ways. Case Studies In the case of a company that sells grain with all-natural ingredients the marketing department must temper fire for the product versus the laws the govern labeling practices. Some competitors advertisements tout high-fiber cereals that have the potential to reduce the risk of some types of cancer. The cereal company in question wants to gain more market share but the marketing department cannot make dubious health claims on cereal boxes or it risks facing litigation and fines. Even though competitors who have a larger market share of the grain industry use shady labeling practices that doesnt mean every manufacturer should engage in unethical behavior. Another case study involves quality control for a company that manufactures electronic components for computer servers. These components must ship on time or the parts manufacturer risks losing againful contract. The quality control department discovers a possible defect and every component in one shipment faces checks. Unfortunately the checks may take too long and the window for on-time shipping could pass and that in turn delays the customers product release. The quality control department has the option of shipping the parts hoping that not all of them are defective or the company can delay the shipment and test everything. If the parts are defective the company that buys the components might face a firestorm of consumer backlash which may lead to the customer to seek another more reliable supplier. Statistics The National Business Ethics Survey comes out every two years. In the 2013 edition respondents saw an all-time low in unethical behavior. Around 41 of employees saw misconduct on the job compared to 45 in 2011. The survey concluded that possibly an uncertain economic climate led to less risk-taking in for-profit businesses leading more managers and executives to act more ethically. The survey found that 60 of misconduct on the job occurred among managers and 25 of employees blamed senior-level managers for unethical behavior. Using ones ethical principles as the main filter for securities selection. Ethical investing depends

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on an investors views some may choose to eliminate certain industries entirely such as gambling alcohol or firearms also known as sin stocks or to over-allocate to industries that meet the individuals ethical guidelines. Ethical investing is sometimes used interchangeably with socially conscious investing but socially conscious funds typically have one overarching set of guidelines that is used to select the portfolio whereas ethical investing brings about a more personalized result. BREAKING DOWN Ethical Investing Ethical investing gives individuals the power to allocate capital toward companies that are in line with their personal views whether they are based on environmental religious or political precepts. Investors should keep in mind that "ethical" does not imply "outperform."

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