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Chapter 4 Ethical Finances

4.1 Business Ethics concept

The concept of business ethics began in the 1960s when companies struggled more with a growing
consumer-based society that displayed queries regarding social causes, the environment, and corporate
responsibility.

This concept has evolved over time and currently goes beyond a simple moral code of good and bad; trying
to reconcile what companies must legally do instead of maintaining a competitive advantage over other
companies.

Business ethics ensure that there is a certain basic level of trust between consumers and companies, guar-
anteeing fair and equal treatment to the public.

Business ethics is a type of applied ethics or professional ethics that analyses the ethical and moral
principles that are modified in the business world. It encompasses all aspects of business conduct and is
relevant to the individual conduct of individuals such as that of organizations as a whole

The companies that have endorsed all of these principles prepare an identified code of ethics document,
which is the ethics of business that brings social balance to the company’s social responsibility.
This document consists of a series of principles that guide the entity’s ethical actions.

So that the code of ethics does not become a mere declaration of intent, it is highly desirable to monitor
its application through an ethics committee. This committee will be responsible for disseminating its
content among all members of the organization, verifying compliance and holding regular meetings to
coordinate activities and review and update its content.