Also business activities are subject to the evaluation of society. Much of business is done on trust. Trust implies faith and confidence that another will meet their commitments and make good on promises. Yes, but usually only once ins a given relationship. Without trust and being able to rely on a person's promise, no relationships are possible.
Business ethics are formal and informal.
Employees look to organization leaders as ethical barometers, not only what is tolerated but also what is expected. More important than any statement or policy are the behavior of supervisors and managers. The perception among workers of unethical behavior of supervisors and executives was often used as justification for poor behavior on the part of workers. Absenteeism, petty theft, poor performance on the job were all sited as acceptable behavior based on what workers observed in organizational leadership. Among employees surveyed, the concern for ethics on the part of the organization is an important reason to remain with an organization.