What is business ethics? Business ethics is the ability to distinguish right from wrong in a business setting regarding products and relationships with stakeholders (Giacalone & Thompson, 2006). It entails the study of business activities and moral decision making. Why is business ethics important today? Business ethics improve a firm’s reputation, thus increasing the chances of growth. Consumers often want to associate with firms that have a good reputation. The success of a business today is determined by the ethics upheld. Companies adhering to business ethics attract investors, thus boosting the economic growth of the business. It also protects the business from takeover as the prices of their shares remain high. Does business ethics differ from personal ethics? Yes. Whereas business ethics is constructed by an organization and introduced to its employees, personal ethics is made by an individual and is drawn from family and parents. People choose whether to adhere to their personal ethics or not depending on their situation. Business ethics must be followed by their respective employees. Why is it often difficult to behave ethically in business? The business sector is intensely competitive. Those involved often can do anything to achieve success. Consequently, the tendency to compromise becomes high as people overlook ethics and focus on profits. There is a reduction in people’s sensitivity to morality due to individualism in business. Employees and employers may hold different opinions about business ethics. Discuss the relationship between ethics and the law Business ethics and the law can exist independently, but they are interrelated under crucial circumstances. Ethical considerations in a workplace can be enforced through the law despite the fact that ethics can be at times unwritten (Kutz, 2007). What is meant by the term “globalization”? Globalization is the worldwide integration of all sectors of life, including financial, trade, and communication. It is the change of business boundaries from local to international. What are the two main causes of increasing globalization over the past 50 years? Advanced technology has contributed immensely to globalization. Cheap and readily available means of transport and communication aid in international interactions (Scholtens & Dam, 2007). Most rich countries allow free trade agreements, which make it easy for international integration. People can now freely invest and transact worldwide efficiently. Discuss the ethical challenges raised by globalization According to Crane and Matten (2007), global products erode the cultural identity of a particular region due to the effects of westernization and imperialism. Some products may impose the western culture on local people that may be unacceptable in that region. Globalization has increased risks and financial instability for the stakeholders. Lack of regulation of the global market capital has contributed to these outcomes. Companies may choose to outsource their products from developing countries to cut on the local market cost, which could be an opportunity to exploit workers through unfavorable working conditions. What is “sustainable development”? Sustainable development refers to economic gr