business ethics in professional ethics ppt

1. BUSINESS ETHICS

3. Definition of business ethics
• Business ethics refers to the application of ethical principles and moral values
while conducting business. A company must demonstrate ethical behaviour in all
internal matters as well as in dealings with the external environment.
• All stakeholders must ensure that ethical standards are adhered to while handling
business transactions.
• Business ethics is the study of appropriate business policies and practices
regarding potentially controversial subjects including corporate
governance, bribery, discrimination, corporate social responsibility.

5. INTRODUCTION OF BUSINESS ETHICS
• The term ‘ethics’ has been derived from the Greek word ‘ethos’ which implies
character, ideas and standards of behavior practiced within a society.
• Personal ethics define right and wrong behaviour for an individual. In the business
sense, ethics describe what constitutes good or bad in human conduct in
organizational context.
• We can also say that business ethics are concerned with making life, not just
living. business ethics are moral ideas that guide the way a business acts. It is the
application of ethical reasoning to certain business situations and activities, so that
any moral issue emerging in business can be resolved or clarified.

6. FEATURES
• It is considered both as science and art.
• It tests the rules and moral standards and is dynamic in nature.
• It is based on theological principles such as sincerity, human welfare, service etc.
• It is based on reality and social customs prevailing in business environment.
• It studies the activities, decisions and behaviour which are related to human being.
• It helps in developing personal dignity.
• It keeps harmony between different roles of businessman, with every citizen,
customer, owner and investors.

7. IMPORTANT AND NEED OF BUSINESSS ETHICS
• .
• In general, It refers to a set of principles that need to be followed by employees
working in an organization. It plays a key role in the functioning of an
organization in the corporate world. It establishes a code of conduct, rules &
regulation and standard processes that need to be followed by employees. It sets
standards within which an organization regulates its operations and behavior. It
facilitate businesses to find the right and wrong path in business and forge towards
growth.
• It has some rules at different levels in order to have secure growth in the
organizations.

8. Personal Level
• In an organization, individuals should not misuse organizational or
individual properties at a personal level. The employees should mutually
help each other in the accomplishment of goals rather than looking for
profits or getting indulged in politics.
Stakeholder Level
• For the success of an organization, stakeholders play an important role.
Thus, it must ensure proper care of stakeholders. All employees should
properly follow ethics concerned with suppliers, financial institutions,
shareholders, etc.

9. Internal Policy Level
• The internal policy level of the organization ensures fair dealings of the business
with its stakeholders. There has to be a proper formal communication at all the
three levels of the organization. Furthermore, the department leaders must be fit
enough to motivate the employees for enhanced productivity and betterment of the
organization
Societal Level
• Under the societal level, there must be no discrimination within the organization
and the workers must not be treated harshly by the people in power. In the internal
policies, the organization must seek for optimum utilization of resources so as to
induce a better living and clean environment for employees and stakeholders.

10. PRINCIPLES OF BUSINESS ETHICS
1. Be Trustful
• Recognize customers want to do business with a company they can trust; when
trust is at the core of a company, it’s easy to recognize. Trust defined is assured
reliance on the character, ability, strength, and truth of a business.
2. Keep an Open Mind
• For continuous improvement of a company, the leader of an organization must be
open to new ideas.
• Ask for opinions and feedback from both customers and team members, and your
company will continue to grow..

11. 3. Meet Obligations
• Regardless of the circumstances, does everything in your power to gain the trust of
past customers and clients, particularly if something has gone awry.
• Reclaim any lost business by honoring all commitments and obligations.
4. Have Clear Documents
• Re-evaluate all print materials, including small business advertising, brochures,
and other business documents, making sure they are clear, precise, and
professional.
• Most importantly, make sure they do not misrepresent or misinterpret.

12. 5. Become Community Involved
Remain involved in community-related issues and activities, thereby
demonstrating that your business is a responsible community contributor. In other
words, stay involved.
6. Maintain Accounting Control
Take a hands-on approach to account and record-keeping, not only as a means of
gaining a better feel for the progress of your company but as a resource for any
“questionable” activities. Gaining control of accounting and record-keeping allows
you to end any dubious activities promptly.

13. 7. Be Respectful
• Treat others with the utmost respect. Regardless of differences, positions, titles,
ages, or other types of distinctions, always treat others with professional respect
and courtesy.
• Recognizing the significance of business ethics as a tool for achieving your
desired outcome is only the beginning.

14. SOCIAL RESPONSIBILITY
• Social responsibility means that businesses, in addition to
maximizing shareholder value, must act in a manner that benefits society. Social
responsibility has become increasingly important to investors and consumers who
seek investments that are not just profitable but also contribute to the welfare of
society and the environment.
• Socially responsible companies should adopt policies that promote the well-being
of society and the environment while lessening negative impacts on them.

15. • Companies can act responsibly in many ways, such as promoting volunteering,
making changes that benefit the environment, and engaging in charitable giving.
• Consumers are more actively looking to buy goods and services from socially
responsible companies, hence impacting their profitability.

17. • Ethics are important not only in business but in all aspects of life because it is an
essential part of the foundation on which of a civilized society is build. A business
or society that lacks ethical principles is bound to fail sooner or laterIi
• It is coming to know what is right or wrongs as well as what is fair or not fair in
the workplace.
• The real answer to business ethics is how a business conducts itself. All marketers
has to have moral values with dealing with others. The finance area has to have
business ethics. Marketers should be aware of how their behavior may influence
or affect the behavior of others in organizational relationships.