UNIVERSITY OF CENTRAL PUNJAB

Assignment No 1
Course title :
Business Ethics
Submited to :
Prof. M. Kamran

Submited by :
Shehar Bano

Roll no :
108

Section :
BBA-6B
 Importance of ethics in business?
Ethics serve as a guide to moral daily living and helps us judge whether our behavior can be
justified. Ethics refers to society's sense of the right way of living our daily lives. It does this by
establishing rules, principles, and values on which we can base our conduct. Most of us would
agree that it is ethics in practice that makes sense; just having it carefully drafted and redrafted in
books may not serve the purpose. Of course all of us want businesses to be fair, clean and
beneficial to the society. For that to happen, organizations need to abide by ethics or rule of law,
engage themselves in fair practices and competition; all of which will benefit the consumer, the
society and organization.

Primarily it is the individual, the consumer, the employee or the human social unit of the society
who benefits from ethics. In addition ethics is important because of the following:

1. Satisfying Basic Human Needs

2. Creating Credibility
3. Uniting People and Leadership
4. Improving Decision Making
5. Long Term Gains
6. Securing the Society

Difference between values and ethics?

Values and ethics in simple words mean principle or code of conduct that govern transactions; in
this case business transaction.

 Ethics
Ethics are a set of moral principles, especially ones relating to or affirming a specified group,
field, or form of conduct. Ethics are often professional. Ethics are influenced by different
professions, organization, institute, etc. Ethics can vary according to professions. The term ethics
is mostly related to professional context. They are also known as professional ethics or work
ethics. Honesty, integrity, punctuality, and loyalty are some examples of workplace ethics.

Ethics are often be codified into a set of rules or formal system; then they are openly adopted by
people in that profession. Medical ethics, legal ethics are some examples of such ethics.
Disclosing confidential information, using client/patient information in research without his or
her permission, misleading the client/patient, are some examples of breach of ethics. 

 Values
Values are principles or standards of behavior. Values are personal. Values are influenced by
family background, culture, religion, community etc. Values can vary according to individuals.
They describe personal standards of what is valuable or important. It is the values that help us to
make decisions about right and wrong, important and less important, etc. Values can be
comprised of likes, dislikes, perspectives, prejudices, and judgment.

What is business ethics?

Business Ethics refers to carrying business as per self-acknowledged moral standards. It is

actually a structure of moral principles and code of conduct applicable to a business. Business
ethics are applicable not only to the manner the business relates to a customer but also to the
society at large. It is the worth of right and wrong things from business point of view.

Business ethics not only talk about the code of conduct at workplace but also with the clients and
associates. Companies which present factual information, respect everyone and thoroughly
adhere to the rules and regulations are renowned for high ethical standards. Business ethics
implies conducting business in a manner beneficial to the societal as well as business interests.

Business ethics and value system?

 Business ethics:
Business ethics refers to implementing appropriate business policies and practices with regard to
arguably controversial subjects. Some issues that come up in a discussion
of ethics include corporate governance, insider trading, bribery, discrimination, social
responsibility, and fiduciary responsibilities. Business ethics (also known as corporate ethics) is a
form of applied ethics or professional ethics, that examines ethical principles and moral or
ethical problems that can arise in a business environment. It applies to all aspects of business
conduct and is relevant to the conduct of individuals and entire organizations. Example of
business ethics: honesty, respect, fair, keeping promise etc.

 Value system:

Value systems are proscriptive and prescriptive beliefs; they affect ethical behavior of a person

or are the basis of their intentional activities. Often primary values are strong and
secondary values are suitable for changes. A hierarchy of values that all moral agents possess,
demonstrated by their choices. Most people's value systems differ, making the imposition of a
singular value system by the state a source of constant social warfare. Value system represents a
basic belief that a particular conduct is personally or socially preferable or not. Example: Is
punishment is right or wrong. If a person likes power, is it good or bad. Values are important
because they influence our perception.

How we make ethical decision and business?

1. Develop a Code of Ethics. This Code will provide employees with a barometer to use
when making decisions. Whenever making a decision, review the alternatives and
compare them to the Code of Ethics to determine their compatibility with the Code.
2. Ask how the decision will affect all stakeholders. Decisions are often made to address a
small segment of the business; however, many other stakeholders could be affected, so be
sure to look at the big picture.
3. Explore industry standards and regulations. Industry standards and regulations are an
excellent place to start the decision making process. When making decisions, plan to not
only meet the standards, but to exceed them.
4. Don’t work in a vacuum. Getting other opinions will help provide a fresh perspective on
the decision. Get advice from knowledgeable resources both before and after
implementing decisions.
5. Take the time to review past decisions. If mistakes were made, learn from them, do what
is necessary to make amends, and move forward with new knowledge.
Suggestions:
Enforce your ethics policies and your employees will be motivated to work towards your
company's success. Practice every day and teach yourself to be self-disciplined. Learn to be
honest and ethical in every aspect of your life so that you can do the same when you are in your
working environment. A good ethical framework can help guide your company through times of
increased stress, such as rapid growth or organizational change, and decreases your firm's
susceptibility to misconduct. When we look at ethics as rooted in good decision making, it
becomes abundantly clear why good ethics are good for business: because doing the right thing
is about making the right decision. A company that has effective ethics training and robust
policies to promote ethical behaviors will make better decisions, period.
Conclusion:
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 later. b u s i n e s s e t h i c s i s a g r o w i n g
i s s u e o f c o n c e r n a s businesses continue to grow and our capitalist society
expand into a global environment. Business ethics both domestic and international is a
complex continuum of human rights, moral awareness, and a universal acceptance of duties
and responsibilities of corporations. Ethics is issues of right, wrong, fairness, and justice. It is
coming to know what is right or wrongs as well as what is fair or not fair in the workplace. In
times of changes, such as we go through people values are changing. It is important to practice
good ethical behavior. Leading by example ; teaching by example ;being a role model ; these are
all things that will come if you practice ethical behavior and chose to make the right decisions.
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https://pediaa.com/difference-between-ethics-and-values/