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Business ethics are the rules and procedures for managing business actions for employees or executives within a company. Business ethics training teaches managers how to handle sensitive information, interactions with clients and co-workers, and gifts from vendors to ensure the company does not have an unfair advantage in the marketplace. This training typically includes standard rules on gifts, stock purchases, and travel restrictions.
A conflict of interest is a situation that occurs when a vendor has an unfair advantage for services, products, or employment with a company. This is most often based on relationships with friends, relatives, or families who own a company. Business ethics training teaches employees how to detect and resolve conflict of interest situations.
Business ethics training attempts to teach employees how to react to specific business decisions that may appear to be unethical. Many times this will require the individual to remove himself from the decision that may be considered an ethics violation. Most companies include a legal and ethics division that is designed to support employees with ethical questions. The group provides ethical guidance for the business.
Political contributions are often discussed within business ethics training classes. Most governments have specific rules on what and how an individual can contribute to a political party. This typically includes restrictions on gifts, campaigning, and financial contributions. It is important to teach political ethics within business because most governments regulate and tax businesses.
The environment is a business ethics consideration for the many production and manufacturing companies throughout the world. Some business ethics training includes instructions on proper disposal of waste products. This type of ethics is commonly referred to as environmental ethics training.
Financial and accounting ethics is a special business ethics training that teaches employees how to engage in financial activities. This training is important for managers and executives who make financial decisions for an organization. Some examples of topics in this type of training include insider trading rules, earnings management, creative accounting, and employee gift rules.
Insider trading is an illegal activity that is monitored closely in the United States by the Securities and Exchange Commission. Insider trading refers to a trade in which an individual trades stocks based on non-public information, which may affect the cost of the stock. Insider trading is an unfair practice because the insider can make substantial financial gains based on the information he has obtained. This is typically more prominent within executive positions that have information on the strategic direction of an organization.
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