Chapter 3 j conducting business ethically and responsibility. Ethics are beliefs on what is right and wrong or good and bad. Ethical behaviour is behaviour that conforms to individual beliefs and social norms and what is right and good. Unethical behaviour is behaviour that individual beliefs and social norms that define as wrong or bad. Business ethics refers to ethical or unethical behaviour by a manager or employee of an organization. Because ethics are both personally and culturally defined, differences in opinion arise as to what is ethical and what is unethical. Managerial ethics are the standard of behaviour that guides managers in their work. It classifies behaviour in terms of three broad categories: Behaviour toward employees: this category covers such matters as hiring and firing, wages and working conditions, privacy and respect. Behaviour toward the organization: ethical issues can arise from employees towards employer, especially in areas as conflict of interest, confidentiality, and honestly.