The concept of business ethics initially appeared in the United States of America in the early 1970s. International scholars and business ethics practitioners define this field of applied science as the combination of rules, regulations, and principles which establish passive and active actions of a business entity that shall be taken in order to ensure compliance with existing social and environmental legislation and declared corporate responsibility policy.
During the last three decades, concepts of business ethics as well as their interpretations have changed drastically. These changes can be primarily attributed to changes in production cycles and the nature of business. During the 1970s, the aim of business ethics was to promote integrity and solidarity among various business entities in order to accelerate the process of globalization and to address the need for environmental protection. It was conceived that production cycles of the majority of enterprises were polluting the environment, and business ethics were in place in order to ensure double protection as the environment is protected both by legal and by ethical standards. However, contemporary development of business ethics is more focused on the needs of society. To be more exact, business entities are required to prioritize community needs and to fulfill their social responsibility policy. In particular, companies are mandated by ethical standards to contribute to eradicating the monetary gap between the rich and the poor, to succor in educational campaigns, and to help cultivate professional skills among students.
As far as the biggest challenge to amplification of business ethics is concerned, it shall be asserted that current pecuniary interests of companies fundamentally collide with imposed business ethics. To be more exact, promoted business ethics trends are urging companies to spend more money on financing socially-oriented programs, while companies prefer to retain their revenues. Overall, it can be recapitulated that the development of business ethics is a vitally important aspect of international business evolution.