Ethical and environmental influences on business:1. Business ethics are generally accepted principles that cover the business' interaction with customers, the treatment of its employees, its interaction with other businesses and the Government, and how it deals with negative publicity. 2. The business environment refers to everything that is happening around the business. It provides inputs in the form of either regulations, reviews, or needs to the business, and the business, in turn, provides outputs to the environment in form of its products or other services.