Business Ethics

Business ethics is based on legal compliance:

This myth represents the misunderstanding about business ethics in a way that in some circumstances, a company strictly complies with legal regulations, and yet it still considered as an unethical business. An example is a project of setting up an electricity factory in a highland of Vietnam. The reason for disapproval of the project is by setting that factory, there would be no more water and fishes can be alive. In fact, the project would not against the laws, but it would damage the natural environment and resource of food and income for that highland people who are living nearby. Therefore, when talking about business ethics, it should not only concern about legal compliance, but the impacts to all stakeholders if the company carries out its business.

Business ethics cannot be managed by company supervisors and executives:

Business ethics can be managed by the management team of a company through several procedures. The most important one is decision making process whereby supervisors and executives are key persons who firstly strictly comply with business ethics set forth by the company such as internal control compliance policies, standard operating procedures, etc and then teach or guide their staff to comply the same. Training session about business ethics or establishing an effective control process or creating ethical culture within company are also very useful tools that the management team can do to encourage employees. Doing by that way, the company supervisors and executives can manage business ethics, and help prevent unethical behaviors happened up to a certain level.

Because the company does not have any criminal investigations pending, the company is ethical:

This is not right because in some cases, a company can carry out unethical behaviors, but this has not yet discovered by respective