Business ethics is about managing ethics in an organizational context and involves applying principles and standards that guide behavior in business conduct. Business ethics applies to all aspects of business practices—from how organizations develop, produce, and deliver products and services, to interactions with customers, suppliers, employees, and society. It encompasses human rights; labor and employment practices, and bribery and corruption. In the lead article entitled “The role of professional accountant in ensuring business ethics at the work place” the writer highlighted how unethical business practices harm organizations and economies. The business f a i l u r e s o f E n r o n , Wo r l d C o m , Ty c o International, Parmalat, and Arthur Andersen, as well as the more recent failures related to the g l o b a l fi n a n c i a l c r i s i s , h i g h l i g h t t h e consequences of unethical business practices and amoral management. Business ethics is increasingly part of a wider trend that recognizes corporate social responsibility as a driver of sustainable organizational success. A growing number of organizations go far beyond viewing ethical practices as a means to avoid penalties or fines; they believe that corporate responsibility and ethical practices lead to sustainable value creation.

It is in the public interest for the Code of Ethics for Professional Accountants (the Code) to be understandable and usable. In restructuring the Code, the IESBA is aiming to enhance the understandability and usability of the Code, thereby facilitating its adoption, effective implementation, consistent application, and enforcement. This ED sets out a substantial part of the proposed restructured Code. It responds to input from a variety of stakeholders who suggested restructuring to improve understandability and usability of the Code. Feedback from an IFAC Small and Medium Practices (SMP) Committee (SMPC) survey noted that the biggest barrier faced by SMPs in complying with the Code is fully understanding the requirements of the Code. Some users, especially those whose first language is not English, reported difficulty in understanding the Code because of its complexity of language and construction. Others have commented on difficulties in translating some parts of the Code, and understanding complex and long sentences. The IESBA has also received feedback from some regulators regarding the usability of the Code from the perspective of enforceability. These issues may be impacting adoption and implementation.