Business Ethics

1. Ethics in Business

2. Ethics in business
• Business ethics is a set of moral principles which
should govern business activities.
• The purpose of business ethics is to guide
managers and employees in performing their job
• Eg: Institute of Business Ethics (IBE) :London
conducted an empirical study . The study
revealed that companies revealed clear
commitment and ethic in business performed
very well as compared to those companies did
not display ethical conduct .

3. Features of Business Ethics
• Application of Modern standards in business
affairs
• Covers all business practices that are desirable
from the society point of view
• Business ethics seeks to Make business
honest, fair and responsible citizens
• Just and Fair treatment to all stakeholders
• Self discipline

4. Elements of Business Ethics
• Ethical Imagination : Businessmen must have
ability to identify unfavorable situations
• Ethical Identification: Ability to judge relevance
of ethical issues and rank accordingly
• Ethical Evaluation : Develop clear guidelines
• Tolerance of Ethical disagreement : Differences
of opinion Businessmen must have high level of
tolerance
• Ethical Competence: Avoid unethical practices
• Ethical obligation: Truth, honesty , justice and fair
play

5. Relevance /Importance of Business Ethics
• Improvement of society : Improving social climate by
applying ethics into business
• Team work and productivity: Moral value at
workplace creates integrity ,transparency
• Facilitate change: Maintaining right course of action
• Cordial Employee Employer relations: Treats all
employees with kindness and justice
• Adherence to law: No Discrimination between
employees in matters of hiring, firing etc.
• Public Image: Public trust and goodwill
• Strategic advantage: In long Run , ethical behavior
provide an organization significant advantages over
the competitors which are not ethical

6. Factors Governing Business Ethics
• Social factors : Change in the value and norms of society
cause changes in business ethics
• Cultural factors: Religion, heritage , family, education
system, government good or bad behavior
• Political Factors: Legislations and law relating to working
conditions and safety in factories
• Economic Factors: Level of Economic development
influence the nature and level of business ethics
• Organizational Factors: Philosophy , polices and attitudes
of the management, superior subordinate relations,
perception , judgment and behavior of its employees
• Ethical Codes: Codes of conduct prescribed by trade
associations, chambers of commerce, professional bodies
guide and govern behavior of businessman and managers

7. Principles of Business Ethics
(How to Improve Standards of Business Ethics)
• Be trustful
• Be Respectful
• Keep an Open Mind
• Meet Obligation
• Keep Clear Documents
• Get Involved in Community
• Maintain Accounting control