1. Introduction
Business ethics refers to the moral principles that guide professional behavior and decision-making. It distinguishes right from wrong in commercial conduct, ensuring that firms and employees act fairly and honestly. Business ethics also includes the responsibilities and duties of producers, consumers, employees, and investors, each affecting the accountability of corporations in unique ways [1]. Business ethics is a broad and complex field that connects business strategies with ethical values, while managing differences and helping organizations achieve their goals and act responsibly [2]. Ethics in business is not new; it forms the foundation of business and has roots in religion and philosophy, where fairness, responsibility, and honesty were emphasized. With the passage of time, the field has evolved significantly into a multidisciplinary area, attracting the attention of scholars in the management, business, philosophy, law, economics, and social sciences to solve various complex issues [3]. This growth proves that business cannot be separated from ethical considerations. Ethical behavior improves trust, which is vital for the credibility and ethical reputation of businesses by respecting the interests of all stakeholders. Moreover, it also promotes justice, equality, and respect for rights and contributes to the welfare of society and the long-term success of business [4]. In today’s economic landscape, business ethics has become even more important than before, because unethical practices are spreading widely and can severely damage the reputation of a business, as well as loss of stakeholder confidence. This paper provides a conceptual review of the fundamentals of business ethics, focusing on the core principles, classical theories and their relevance in the modern business era.
2. Methodology
This conceptual review approach is based entirely on secondary data. Relevant literature was collected from online academic databases such as Google Scholar and Scopus by using relevant keywords, including business ethics, ethical principles, and ethical theories, etc. Literature published primarily between 2010 and 2025 was included to ensure coverage of updated studies, whereas a few foundational theoretical works were considered regardless of publication date. Studies were included if they directly examined ethical principles, classical theories, or business applications of ethics, and were published as peer-reviewed articles in English. Works that were purely technical, unrelated to the topic, opinion-based, available only as preprints, or written in languages other than English were excluded. To organize the literature, recurring ideas were grouped into three main themes: core ethical principles, classical ethical theories, and contemporary relevance of ethics in business. Within each theme, studies were compared and synthesized to highlight converging insights and differing viewpoints. This thematic grouping provided an analytical structure that went beyond simple summarization, allowing for a clearer integration of both foundational works and recent developments. Instead of applying a systematic or statistical evaluation, the analysis is descriptive and integrative, aiming to summarize central themes from the literature. This approach provides a clearer understanding of the fundamental concepts of business ethics and their application within organizational settings.
3. Core Principles of Business Ethics
Business ethics originates from the universal moral principles such as honesty, fairness, responsibility, integrity, and respect, which provide a framework to regulate conduct within the corporate environment. They assist firms and businesspeople to resolve complex dilemmas, where following the law is not enough, providing principles that cross national, cultural, and religious boundaries comparable to the professional codes of ethics in medicine and law [5]. Moreover, the broader ethical values like autonomy, dignity, and vulnerability are also applied in business ethics to promote human rights and support economic growth [6]. This section explains each principle in depth, along with concise examples in the business context to show their practical relevance.
3.1. Five Main Principles
3.1.1. Honesty
Honesty has traditionally been considered a fundamental aspect of ethical behavior [7]. Honesty within business contexts refers to transparency and truthfulness in all interactions and transactions. It involves providing accurate information, avoiding deception, and maintaining openness to stakeholders, which are essential for building effective business relationships and improving business growth [8]. It shouldn’t be seen as just a personal virtue, but must be applied practically and made part of their corporate standards [9]. For instance, a skincare company that openly lists all product ingredients and potential side effects in its marketing materials and advertisements, allowing customers to make informed decisions instead of exaggerating or misrepresenting the product. This approach not only safeguards the brand’s reputation but also protects the health of customers.
3.1.2. Fairness
Fairness is a core virtue and encouraged from a young age and practiced continuously through life experiences [10]. In the realm of business, fairness means treating all constituents, such as investors, customers, employees, competitors, and suppliers, impartially, consistently, and equitably without any form of prejudice. This principle is a key factor that significantly improves a company’s reputation and enhances the satisfaction of both customers and employees [10]. For example, the human resources department of a company recruits employees based merely on merit, skills, and qualifications, providing them equal wages for the same job with equal responsibilities, regardless of race, gender, or background. On the other hand, favoritism and discrimination in hiring and promotions create unfairness, leading to ethical violations and workplace conflicts.
3.1.3. Responsibility
Nowadays, businesses do not just focus solely on profit but also face increasing pressure to behave responsibly toward the environment and stakeholders [11]. Business responsibility means being legally and ethically answerable for decisions and their consequences on individuals, society, and the environment. Responsible corporations address the outcomes of their choices, contribute to societal well-being, and improve the sustainable long-term growth of businesses [12]. A responsible food company discards expired products to protect customers’ health and trust, even in the face of financial setbacks. On the other hand, selling unsafe and expired edible items for short-term profit shows irresponsibility, not only risking consumers’ health but also eroding the long-term trust in the business.
3.1.4. Integrity
Integrity is an intrinsic quality and personal consistency that not only benefits businesses but also holds its own worth [13]. It means doing the right things consistently, even in the absence of authorities and without expectation of personal gain. Integrity inspires personal growth and learning, and avoids selfish shortcuts [14]. It enables companies to function effectively, earn trust in society, protect against rigid conformity, and guide stakeholders and firms to overcome complicated challenges [15]. A late-night cashier could easily steal money from the counter in the absence of supervisors, but he chose not to do so because of his ethical integrity. This not only prevents the company from financial loss but also increases the trust in the employee. In the business world, this type of integrity is much needed to promote responsibility, loyalty, and long-term reliability.
3.1.5. Respect
Among the core values that shape ethical business practices, respect stands out as a foundation for trust and cooperation. Respect means treating all the individuals within the company with dignity, valuing their viewpoints, and making sure that no one feels excluded. It plays a crucial role in business ethics by fostering a healthy work environment and building positive relationships [16]. A multinational company shows respect for employees’ diverse religious and cultural backgrounds by offering flexible holidays, celebrating their events, and ensuring inclusive policies. Such practices create a sense of belonging and reduce discrimination.
3.2. Interconnectedness of the Principles
Aforementioned core ethical principles do not function in isolation but are strongly interconnected, reinforcing one another to create a solid ethical base in business. For example, honesty strengthens fairness, integrity upholds responsibility, and respect boosts all other values. Together, these principles support organizational culture and contribute to the welfare of society while guiding ethical behavior in complex situations. Table 1 summarizes all the core ethical principles to provide a clear overview.
Ethical principles are interconnected, but sometimes in organizational behavior, they can come into conflict. For instance, honesty requires full disclosure, whereas respect for confidentiality demands protection of sensitive information. In terms of fairness, treating all employees strictly the same may conflict with the responsibility to support talented or long-serving workers. Similarly, respecting individual preferences may result in unequal treatment that challenges fairness. In such situations, managers should develop clear ethical codes that specify how to balance and interpret principles in practice, since this fosters cooperation and enhances organizational reputation [17]. Recognizing these conflicts does not weaken ethical principles; rather, it underscores the need for practical solutions and reflective decision-making in organizational settings.
Table 1. Core business ethical principles with business examples.
Principles |
Definition |
Commercial Examples |
Honesty |
Truthfulness and transparency in dealings. |
A skincare company openly lists product ingredients and side effects. |
Fairness |
Treating all the stakeholders equitably and impartially. |
HR recruits and promotes employees based on merit, not favoritism. |
Responsibility |
Being accountable for decisions and their impacts. |
A food company discards expired products to protect customers. |
Integrity |
Consistency in doing the right thing, even without oversight. |
A cashier refuses to steal money despite no supervision. |
Respect |
Valuing dignity, diversity, and inclusion. |
A multinational firm offers flexible holidays for cultural and religious practices. |
4. Theoretical Foundations
It is essential to understand the theoretical foundation of business ethics for evaluating and resolving complex dilemmas in organizations. Three major ethical theories, which are discussed below, provide diverse frameworks for analyzing the difference between wrong and right in business conduct.
4.1. Utilitarianism
Utilitarianism, defined by John Stuart Mill, is an ethical principle that emphasizes making decisions based on outcomes, intending to increase the happiness of all individuals equally [18]. Any business action taken to produce the greatest good for the greatest number is ethical. It is widely used as an ethical business approach because, as a moral framework, it guides businesses to act ethically with a strong focus on improving social, customer, and employee welfare [19]. However, the theory has also been criticized for the difficulty of precisely measuring the happiness of people and for ignoring key moral values such as justice, respect, and individual rights [20].
4.2. Deontology
Deontology was introduced by the German philosopher Immanuel Kant as an ethical belief that focuses on moral duties and rules rather than consequences [21]. It is considered a safeguard for individual rights. Deontology in business emphasizes professional duty and ethical codes over profit and short-term gain, as well as guides organizations to uphold honesty, justice, and fairness rather than focusing merely on outcomes [22]. However, strict commitment to rules can sometimes be rigid and create impractical results in complicated situations.
4.3. Virtue Ethics
Introduced by the great philosopher Aristotle, virtue ethics focuses on moral character, shared values, and virtues of the person rather than actions, adherence to strict rules, and outcomes [23] [24]. In a business context, it motivates employees and managers to promote virtues such as honesty, integrity, fairness, and respect [25]. By focusing more on good character, this theory tends to create a culture where ethical behavior becomes habitual and natural rather than externally enforced by rewards or punishments. However, this approach is flexible but can be subjective, because different people have unique ideas of what they consider a virtue.
5. Relevance of Ethics in Modern Business
In today’s rapidly evolving globalized business landscape, ethics has become a central pillar for the survival and success of organizations, attracting significant attention from multiple stakeholders [26] [27]. Globalization, rising competition in international markets, technological progress, and growing social demands have changed ethics from a voluntary choice into a moral duty and a necessity for modern companies [28] [29]. Unethical business practices such as corruption, false marketing, and privacy violations may provide short-term revenue but, over time, can lead to extreme financial losses, reputational damage, and legal fines [30]. For example, a privacy violation results in authorized penalties and loss of customer trust, corruption can block companies from markets and profitable deals, while unethical publicity can lead to boycotts. These drawbacks can damage the very existence of any business. Moreover, nowadays, due to a significant rise in digitalization and artificial intelligence, consumers are more aware of and concerned about the ethical behavior of organizations. There’s a growing preference for organizations that follow ethical principles in their operations, as it builds trust between workers and external parties, while also contributing to positive social, environmental, and economic outcomes [31]. It also improves organizational performance, encourages teamwork, attracts skilled employees, and builds a collaborative workplace culture [32].
6. Conclusion
This conceptual review has highlighted the central role of ethics in business by providing a comprehensive understanding of its foundations, principles, and applications. By highlighting real-world examples alongside theoretical perspectives, it demonstrates how core values such as fairness, honesty, responsibility, integrity, and respect provide ethical guidance for resolving dilemmas and enhancing organizational trustworthiness. Ethical theories such as utilitarianism, deontology, and virtue ethics, which focus on outcomes, duties, and character, respectively, provide a structured and evidence-based framework for distinguishing right from wrong. Together, these theories and principles revealed that ethical considerations are strongly interconnected with business success. To enhance the practical usefulness of ethics for practitioners, managers can implement several measures. Developing a clear code of ethics, which outlines organizational standards and expectations, provides a foundational guide for behavior across all levels. In addition to this, ethics training and workshops can raise awareness, improve understanding of ethical dilemmas, and help employees apply ethical reasoning in workplace contexts. Moreover, establishing confidential reporting mechanisms empowers employees to report misconduct without fear of retaliation, thereby promoting accountability and transparency. In the modern era, globalization and technological advancements have made business ethics a requirement for long-term survival. Companies that consistently follow ethical guidelines can be a better asset to society and the economic world. Moreover, this conceptual review solely relies on secondary literature and does not provide empirical validation. Future research should focus on cross-cultural analyses, corporate case studies, and empirical testing to explore how ethical frameworks are functional practically.
Conflicts of Interest
The authors declare no conflicts of interest.
NOTES
*Co-first authors: Iqra and Ahmad Isphahan contributed equally to this work.