These ethical standards governing the existence of human life encompass diverse realms of endeavors including business entities. As businesses comprise a greater majority of the world’s human activities, the importance of studying ethics come as a necessity rather than a matter of natural occurrence.
During the 1990s, the study on business ethics have been clearly structured and formalized through acknowledging it as a necessary part of business operations. Ferrell, Fraedrich & Ferrell (2009, 6) define business ethics as “the principles and standards that guide behavior in the world of business”. In the field of accounting, for example, Smith & Smith (2010) indicated that ethical issues were clearly identified in its practice as evidenced by the book written by Michael Josephson describing the “Ten Universal Values, as follows: honesty, integrity, promise-keeping, fidelity, fairness, caring, respect for others, responsible citizenship, pursuit of excellence, and accountability” (Smith & Smith, 2010, par. 10).
Likewise, with organizations venturing in international markets, the tenets of moral and ethics need to encompass standards and guidelines which widen the jurisdiction of business ethics internationally. As averred by Enderle (1997), “business ethics is an emerging and dynamic field, depending strongly on economic factors, but also on political changes and a growing awareness of value conflicts and ethical and environmental demands” (1475).
Business ethics discusses the concepts on leadership and management where managerial responsibilities for the conduct of subordinates need to conform to ethical codes for guidance and compliance. The study of ethics give direction to promote the ethical behavior expected of stakeholders in the business setting. It assists individuals and groups in understanding the ways to cope and address conflicts