Module-1: Introduction to Ethics: Nature/Features Business Ethics

 Although ethics, morals, values and justice are often used as synonyms, ethics seems more fitted to reflect conduct in a community while "morals" is sometimes more an individual’s moral compass, less related to accepted community standards of conduct. Justice is more associated with political philosophy (government action) as distinguished from moral philosophy. Business ethics is concerned with morality in business in today’s business world, a community firm is a large part of society, and its action is bound to have a direct impact on the wellbeing and welfare of the society. Business affects society in terms of what products it supplies as also what resources it takes from the society at large: Man, Money & Material. 

The concept of business ethics has come to mean various things to different authors, but generally, it’s coming to know what is right or wrong in the workplace and doing what’s right  with respect to products/services and in relationship with stakeholders. The nature of business ethics can be described as :


1.      Maintains Legality Of Business

2.      Reduce Risk And Cost

3.      Providing Quality Products

4.      Healthy Competition

5.      Profit Making

6.      Good Employer-Employee Relations

7.      Long Term Growth


Ethical issues can arise when companies must comply with multiple and sometimes conflicting legal or cultural standards, as in the case of multinational companies that operate in countries with varying practices. For example, United States law forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is customary, “accepted” way of doing business.

Similar problems can occurin child labor, employee safety, work hours, wages, discrimination, and environmental protection laws.


Business ethics generally are built upon four basic foundations: attitude, value, behavior, and normal customs and expectations. The study of business ethics may stray into fields of law, but more often than not deals with the behavior, expectations, and demands of common courtesy, manners, honesty, and integrity.


 It can also be defined as the written and unwritten codes of principles and values, determined by an organization’s culture, that govern decisions and actions within that organization. It applies to all aspects of business conduct on behalf of both individuals and the entire company. In the most basic terms, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right.


 

 

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