As noted earlier, companies benefit from having good reputations and are penalized by having bad ones; the same is true for individuals. Reputations reflect the
extent towhich firms and people are ethical. Ethics is defined in Webster’s Dictionary as“standards of conduct or moral behavior.” Business ethics can be thought of as a
company’s attitude and conduct toward its employees, customers, community, and
stockholders. A firm’s commitment to business ethics can be measured by the
tendency of its employees, from the top down, to adhere to laws, regulations, and
moral standards relating to product safety and quality, fair employment practices, fair
marketing and selling practices, the use of confidential information for personal gain,
community involvement, and illegal payments to obtain business.