Business Ethics : Definition And Nature

INTRODUCTION

The term "ethics" is derived from the Greek word "ethos" which refers to character or customs or accepted behaviour’s. The Oxford Dictionary states ethics as "the moral principle that governs a person's behaviour or how an activity is conducted". The synonyms of ethics as per Collins Thesaurus are - moral code, morality, moral philosophy, moral values, principles, rules of conduct, standards.

Ethics is a set of principles or standards of human conduct that govern the behaviour of individuals or organizations. Using these ethical standards, a person or a group of persons or an organization regulate their behaviour to distinguish between what is right and what is wrong as perceived by others

DEFINATION

Business ethics is the study of moral principles and values that should guide the behavior of individuals and organizations involved in business. It covers a wide range of topics, including corporate responsibility, environmental sustainability, human rights, and the treatment of employees, customers, and other stakeholders. Business ethics helps to ensure that companies act in a way that is fair, transparent, and accountable, and that they respect the rights and interests of all parties affected by their activities. It is an important field because it helps ensure that businesses operate in a way that is fair, responsible, and transparent, and that they contribute to the overall well-being of society.

EGOISM – is a theory that suggests that an action is morally right if in a given situation all decision makers freely decide to pursue their own self interests. In such it is okay to make a decision that bene ts oneself. Important to ensure oneself does not confuse self-interest with selfishness. Enlightened self-interest, we are well aware that any act of self-interest willreap future benefits for self-interest. 

EGOISM LIMITATIONS – Relies on an external mechanism to control individual egoists, it can result in significant short-term harm, an egoist persona may know what they want but not what they need.

UTILITARIANISM – is a theory that seeks the greatest happiness for the greatest number, the maximum pleasure with the minimum pain. The ultimate consequentialist theory, as it focuses clearly on the consequences of a decision.

NATURE

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  1. ENSURE LEGALITY OF BUSINESS ACTIVITIES : Business activities must be legal and a business man should not do any kind of illegal activity.
  2. CUSTOMER ORIENTATION : All of his operations must be customer oriented. He must bear in his mind that the “customer is the kinds” So, he should produce and distribute that types of goods and services which can satisfy the customers.
  3. SUPPLYING GOOD QUALITY PRODUCT : A businessman must have to ensure the supply of good quality products and services. He has to maintain minimum standard of his product and service.
  4. PRICE : Businessman has to claim a reasonable price for has products or services that is under buying capacity of the customers.
  5. FOLLOWING RULES AND REGULATIONS : A businessman must have to follow all business related rules and regulations that is formulated by the government.
  6. EMPLOYER-EMPLOYEE RELATIONSHIP : This is an important issue to build up a friendly relationship between employer and employees in an organization because a success of the organization largely depends on it.
  7. AVOIDING FRAUD AND CHEATING : A businessman has to avoid unfair means. He should not try to cheat or fraud the customers or general public. He should always practice honesty and sincerity in his activities.
  8. ENVIRONMENTAL ISSUES : in the present world, environmental issues are considered a vital matter. A businessman ensures healthy environment for the insiders as well as the outsiders for running the organization smoothly.
  9. AVOIDING ARTIFICIAL SHORTAGE : Some dishonest businessmen create artificial shortage of products and thereby they want to gain more profit. This is not acceptable.
  10. AVOIDING HARMFUL COMPETITION : In order to survive in the market successfully, each and every business organization should co-operate with each other. They should avoid harmful competition.

BOOK REFRENCE ( CLICK TO BUY ) 

  1. Velasquez , M.G. : Business Ethics 
  2. R.C. : Ethical Choices in Business