Business ethics
Business ethics refers to the moral principles and standards that guide how a business and its people behave, such as honesty, fairness and responsibility to others. It is a business and management concept rather than a legal term. Some ethical expectations are reinforced by law, but most ethical standards are voluntary or set by internal policies.
How BC law treats it
For a BC company, the most relevant legal point is that directors and officers must act honestly and in good faith with a view to the best interests of the company, and exercise reasonable care, diligence and skill (BCBCA s. 142).
What it means for your business
A written code of conduct and clear conflict of interest policies help a business meet its legal duties and set expectations for staff.
Risks and common mistakes
Treating ethics policies as paperwork that is never enforced can undermine a business's position if misconduct later leads to a dispute or investigation.
Fulcrum's corporate lawyers can help with these issues.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
