Business ethics – Part One: Does it matter?

Purpose – The purpose of this paper is to provide an overview for senior managers of the strategic importance of ethical values in organisations working in the profit‐making and not‐for‐profit sectors.Design/methodology/approach – The paper examines the principles involved and contrasts them with examples of unethical behaviour in the news at present. The paper presents the practical application of ethical business values through case studies from different organisations where ethical values are part of a positive strategy to achieve competitive advantage. There is an analysis of the case against and for ethical values, a discussion of how business ethics can be part of an organisation's strategy, the evidence that non‐executive directors and others may find of ethical behaviour in business decisions, a discussion of ethics in an international context and a short checklist of questions to provide readers with a guide to the “ethical health” of the organisation.Findings – The arguments in favour of definin...