How are ethics defined in the context of business?

In the context of business, ethics refers to a system of principles that guide personal behavior. This definition emphasizes the moral values and standards that influence how individuals make decisions and conduct themselves in a professional environment. Ethics in business involve assessing what is right or wrong and often considers the impact of business actions on various stakeholders, including employees, customers, and the community.

By framing ethics as guiding principles, it highlights that ethical behavior goes beyond mere compliance with laws or regulations. It involves a deeper reflection on values such as integrity, fairness, and accountability. This approach informs decision-making processes and helps create a culture of trust and respect within an organization.

The other options, while related to aspects of business, do not capture the essence of ethics accurately. Laws governing business conduct pertain to legal requirements, while performance evaluations focus on measurable outcomes rather than moral considerations. The profit margin reflects financial metrics, which are important for business success but do not address the behavioral standards that ethics encompasses.