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Criteria for Determining an Ethical Company

Criteria for Determining an Ethical Company

Business ethics is a very broad subject. There are very many actions that a business needs to integrate into its practices to be considered as an ethical organization. The following are some of the factors that must always be present in a given firm for it to qualify as an ethical organization.

Equality and Diversity

            An ethical organization is one that values all people in spite of their origin and personal characteristics. A company can be determined to be ethical if it provides an inclusive environment for all people. Whether by gender, age, race, ethnicity, or sexual orientation, all people should be valued by an ethical organization.


            An ethical organization is one that respects the values of honesty and integrity. It is important that a business is transparent with its actions. The financial performance, the business activities, and any other form of information that is relevant to stakeholders should be easily accessible for a business to be ethical.

Treatment of Stakeholders

            The way a business treats its stakeholders says a lot about its ethical standing. An ethical business is one that uses a values-based approach which respects and meets the needs of all the stakeholders equally (Weiss, 2014). The customers, investors, and employees should have their grievances well taken care of for a business to be ethical.

Corporate Social Responsibility Practices

            A business’s ethical characteristics are not only demonstrated within but also outside the business environment. The actions that businesses take to demonstrate social responsibility will show how ethical the business is. An ethical business is one that is accountable for its actions and the impacts it has on the communities. For instance, an ethical business will make an effort to utilize sustainable methods of production to minimize the negative effect it has on the environment.


Weiss, J. W. (2014). Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.


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Criteria for Determining an Ethical Company

Criteria for Determining an Ethical Company

Set Your Criteria

For this discussion, examine the criteria that should be considered when determining if a company is ethical. This discussion allows you to offer your opinion on the topic.

Explain what factors are important to you when determining the level of a company’s ethics. Justify why these are important criteria. Consider both corporate and personal values in listing your criteria. Examples may include the treatment of employees, compliance with laws, or treatment of the environment (such as air quality).

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