The first step in understanding business ethics is learning to recognize an ethical issue . Ethics is a set of moral standards for judging whether something is right or wrong.

An ethical issue is a situation where someone must choose between a set of actions that may be ethical or unethical. For example, Martin Shkreli , former CEO of Turing Pharmaceuticals , raised the price of a critical, life-saving drug by 4000 percent, defending the price increase as a “great business decision.” This act resulted in…

ethics — A set of moral standards for judging whether something is right or wrong. ethical issue — A situation where a person must choose from a set of actions that may be ethical or unethical. deontology — A philosophy in which a person will follow his or her obligations to an individual or society because upholding one's duty is what is ethically correct. justice — What is considered fair according to the prevailing standards of society; an equitable distribution of the burdens and rewards that society has to offer.