ETS Business Practice Exam 2025 - Free Business Practice Questions and Study Guide

Business ethics serves as a fundamental principle guiding acceptable conduct in the business environment. It involves the application of moral standards and principles in business practices, helping organizations determine what is right or wrong in various situations. Business ethics encompasses a wide range of issues, including honesty, integrity, fairness, and respect for stakeholders, such as employees, customers, suppliers, and the community.

This principle is essential because it shapes corporate culture, builds trust with consumers, and can significantly impact a company's reputation. Ethical behavior can lead to better decision-making, enhance employee morale, and ultimately contribute to long-term business success. Unlike labor law, consumer protection law, and antitrust law, which are specific legal frameworks that govern certain aspects of business conduct, business ethics provides a broader moral foundation for how businesses should operate in society.