ABSTRACT

In a market economy, enterprises produce and sell products and services in order to meet the demand of customers, make a profit, and continue their existence. While producing, they make some flaws knowingly or unknowingly, and this, in turn, leads to socio-economic problems. Companies must ensure that employees are well trained in ethical business practices and establish confidential procedures for whistle-blowing. The ethical values are more likely to be heeded in socio-economically developed countries than in developing ones. One of the most powerful factors resulting in socio-economic problems is corporate tax evasion and manipulation of the tax code. Business ethics is about avoiding corporate collapse as a result of litigation or fraud. The main issues in ethics concerning an enterprise's internal environment relate to its shareholders. Other important internal ethical issues are as follows: the ethical issues of managers towards employees and the ethical issues towards the company.