What is the essence of business ethics?

The essence of business ethics lies in providing guidance principles for behavior in business. This encompasses the values and norms that guide individuals and organizations in determining what is right or wrong in their business practices. Business ethics involves considering the impact of decisions on various stakeholders, including employees, customers, suppliers, and the community, and promotes integrity, fairness, and honesty in all business dealings.

This approach encourages organizations to go beyond merely following laws or regulations, which is more focused on compliance. While maximizing shareholder profits is a common business goal, it is not the exclusive measure of ethical behavior; ethical considerations often require balancing profit-making with social responsibility. Similarly, avoiding risks is a part of strategic business decision-making, but it does not inherently encompass the moral principles guiding those decisions. Thus, the correct answer highlights the importance of ethical frameworks that shape behavior in a manner that is conscientious and responsible within the business environment.