Business ethics training teaches employees and executives how to handle confidential information, conflicts of interest, and ethical business decisions. It also covers political contributions, environmental ethics, and financial and accounting ethics, including insider trading.
Business ethics are the rules and procedures for managing business actions for employees or executives within a company. Business ethics training teaches managers how to handle confidential information, interactions with customers and co-workers, and gifts from suppliers to ensure the company does not have an unfair advantage in the marketplace. This training typically includes standard rules on gifts, stock purchases, and travel restrictions.
A conflict of interest is a situation that arises when a supplier has an unfair advantage over services, products or employment with a company. This is usually based on relationships with friends, relatives or families who own a business. Business ethics training teaches employees how to detect and resolve conflict of interest situations.
Business ethics training attempts to teach employees how to react to specific business decisions that may seem unethical. Often this will require the individual to withdraw from the decision which may be considered an ethics violation. Most companies include a legal and ethics division designed to support employees with ethical issues. The group provides ethical guidance for business.
Political contributions are often discussed in business ethics training classes. Most governments have specific rules about what and how an individual can contribute to a political party. This typically includes restrictions on gifts, campaigns and financial contributions. It is important to teach political ethics in business, because most governments regulate and tax companies.
The environment is a business ethics consideration for many manufacturing and manufacturing companies around the world. Some business ethics training includes instruction on proper waste disposal. This type of ethics is often referred to as environmental ethics training.
Financial and Accounting Ethics is a special training on business ethics that teaches employees how to engage in financial activities. This training is important for managers and executives who make financial decisions for an organization. Some examples of topics in this type of training include insider trading rules, earnings management, creative accounting, and employee gift rules.
Insider trading is an illegal activity that is closely monitored in the United States by the Securities and Exchange Commission. Insider trading refers to a trade in which an individual trades stock based on non-public information, which may affect the cost of stock. Insider trading is an unfair practice because the insider can make substantial financial gains based on the information they obtain. This is usually most prominent in executive positions that hold insight into an organization’s strategic direction.
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