Business Ethic - Scope Towards Society

Business Ethics: scope towards society
A
REPORT ON
Business ethic - scope towards society

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTAL COMPLECTION OF THE DEGREE OF
BACHELOR OF MANAGEMENT STUDIES
UNDER THE FACULTY OF COMMERCE
BY
MR. BALA SANTOSH RAUT
UNDER THE GUIDANCE OF
ASST. sonali angchekar

SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
DIST: - SINDHUDURG (416510)
(MARCH 2020-2021)
pg. 1 Sant Rawool Maharaj

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Declaration
I undersigned Mr. Bala Santosh Raut declare that the work embodied in this project work
titled “Business ethic - scope towards society
” forms my own contribution to the research work carried out under the guidance of Ass. Prof
sonali angchekar is a result of my own research work and has not been previously submitted
to any other university.
Whenever reference has been made to previous works of other. It has been clearly indicated
as such and included in the bibliography.
I hereby further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.
Bala Santosh Raut
Certify by
Asst. Prof sonali angchekar

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CERTIFICATE
THIS IS TO CERTIFY THAT Mrs. BALA SANTOSH RAUT HAS WORKED AND DULY
COMPLETED HIS PROJECT WORK FOR THE DEGREE OF BACHELOR IN MANAGEMENT
STUDIES UNDER THE FACULTY OF COMMERCE IN THE SUBJECT OF FINANCE AND HIS
PROJECT IS ENTITLED “A STUDY OF CORPORATE WRONG DOING CORRUPTION”
UNDER MY SUPERVISION.
I FURTHER CERTIFY THAT THE ENTIRE WORK HAS BEEN DONE BY THE LEARNER
UNDER MY GUIDANCE AND THAT NO PART
Of IT HAS BEEN SUBMITTED PREVIOUSLY FOR ANY DEGREE OR DIPLOMA OF MY
UNIVERSITY.
IT IS HIS OWN WORK AND FACTS REPORTED BY HIS PERSONAL FINDING S AND
INVESTIGATIONS.
ASST. PROF. SONALI DNYANESHWAR ANGCHEKAR

(PROJECT GUIDE)
DATE OF SUBMISSION:

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ACKNOWLEDGMENT
TO LIST WHO ALL HAVE HELPED ME IS DIFFICULT BECAUSE THEY ARE SO

NUMEROUS AND THE DEPTH IS SO ENORMOUS.
I WOULD LIKE TO ACKNOWLEDGE THE FOLLOWING AS BEING IDEALISTIC CHANNEL
AND FRESH DIMENSIONS IN THE COMPLETION OF THIS PROJECT.
I TAKE THIS OPPORTUNITY TO THANK THE UNIVERSITY OF MUMBAI FOR GIVING ME
CHANCE TO DO THIS PROJECT.
I WOULD LIKE TO THANK MY PRINCIPAL DR. S.D. DISALE FOR PROVIDING THE
NECESSARY FACILITIES REQUIRED FOR COMPLETION OF THIS PROJECT.
I TAKE OPPORTUNITY TO THANK OUR COORDINATOR ASST. PROF. P.S.
KERAVADEKAR FOR HIS MORAL SUPPORT AND GUIDANCE.
I WOULD ALSO LIKE TO EXPRESS MY SINCERE GRATITUDE TOWARDS MY PROJECT.
GUIDE ASST. PROF. SONALI DNYANESHWAR ANGCHEKAR WHOSE GUIDANCE AND
CARE MADE THE PROJECT SUCCESSFUL.
I WOULD LIKE TO THANK MY COLLEGE LIBRARY FOR HAVING PROVIDED VARIOUS
REFERENCE BOOKS AND MAGAZINES RELATED TO MY PROJECT.
LASTLY. I WOULD LIKE TO THANK EACH AND EVERY PERSON WHO DIRECTLY OR
INDIRECTLY HELPED ME IN THE COMPLETION OF THE PROJECT ESPECIALLY MY
PARENTS AND PEERS WHO SUPPORTED ME THROUGHOUT MY PROJECT

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INDEX
CHAPTER
TITLE OF THE CHAPTER PAGE NO.
NUMBER
1 INTRODUCTION 6
2 concept and Definition of Business Ethics 7-8
3 Nature of Business Ethics 9
4 Importance of Business Ethics 10-11
5 Characteristics of Business Ethics 12-13
6 Scope of Business Ethics 14-15
7 Types of Business Ethics 16-17
8 Needs for Business Ethics 18-19
Advantages and Disadvantages of Business

9 20-22
Ethics
10 Business Ethics of Features 23-24
11 Finding 25
12 Suggestions 26
13 Conclusions 27
INTRODUCTION
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Business ethics refers to moral principles and social values that business should adopt in its
code of conduct. These are ruling that business must accept and follow in its day to day
operations for the welfare of society and all its stakeholders. Business is termed as social
organ and therefore it should not indulge in any activity that is harmful for the interest of all
its stakeholders. It should not only focus on objectives like profit maximisation, higher
growth but should work for upliftment of its surrounding also. These ethics helps the business
in deciding what is right and what is wrong for the business taking into account its
circumstances.
Business ethics helps the business to maintain better and harmonious relations with society,
customers, employees and concerned industry sector. Ethics adopted by the business should
be followed strictly by each and every person working with the business. There should be a
reward-punishment system linked with business ethics for those violating these ethics and
one who properly abide by these ethics. Business ethics have an important role in raising the
profitability and productivity of a business and improves its goodwill in the market. Scope of
business ethics can be described as given below:

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Business Ethics – Concept and Definitions of Business

Ethics
Concept
The nature and concept of Ethics, we can say that Business Ethics is nothing but the
application of Ethics in business. Business Ethics proves that businesses can be, and
have been, ethical and still make profits. Business Ethics was thought of as being a
contradiction of terms. Thankfully, not any more. Today, more and more interest are
being given to the application of ethical practices in business dealings and the ethical
implications of business.
Human beings have been endowed with the freedom of choice and the means of free
will. He can distinguish between good and evil, right and wrong, just and proper. He
can distinguish between the end he wishes to pursue and the means to gain that end.
Now, what is true for human beings is also true for business, because business are
carried on by human beings only, and business organisations are nothing but formal
structures for human beings to carry on their businesses. Moreover, businesses are
thought of as being living, growing entities. Thus, businesses also have choices-a
choice to maximise their profits and a choice to do good for the society in which they
live and operate.
However, at most times, profit maximisation and discharging of social
responsibilities at the maximum limit, cannot be carried on simultaneously. One is
bound to affect the other. For example, Concern for Task (Productivity) and Concern
for Human Beings (workers) are bound to pull each other in opposite directions. It is
difficult, if not impossible, to maximise both together.
A conflict arises in trying to achieve both simultaneously. Hence, many managerial
choices represent Managerial Dilemmas, between the profit consideration
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(commercial concern) and the social consideration (welfare concern) of the

organisation. Many managerial decisions have ethical implications and these
decisions give rise to Managerial Dilemmas.
For example, ruining occupations of age-old inhabitants in a particular locality and
their ethical way of life, by using advanced technology, is an ethical dilemma.
Technological advancements have to come, have to be used; however, what to do
with the people whose life and earnings are affected by the utilisation of advanced
technology, is a question which is difficult to answer.
Recently an award-winning regional language file of India, depicted the plight of an
aged boatman whose occupation was to transport people and goods across the local
river, as there was no bridge over the river. However, his occupation gets threatened
when a bridge is built over the river.
Definitions:
The word ‘ethics refers to principles of behaviour that distinguish between good and
bad; right and wrong. It is a person’s own attitude and beliefs concerning good
behaviour. Ethics reside within individuals and as such are defined separately by
each individual in his/her own way. What may be ethical behaviour to ‘X’ may be
unethical to ‘Y’.
Principal Components of ‘Ethics’:
I. Ethics are principles, values and beliefs that define what is right and wrong
behaviour.
ii. Ethics are broader than what is stated by law, customs and public opinion. For
example, accepting gifts from father-in-law might be socially acceptable but not
ethical; owners pocketing profits without sharing the gains with workers might be
legally permissible but not ethical.
iii. Ethical behaviour may differ from society to society. For example, birth control is
mandatory in Communist societies but not in Catholic Christian societies.
iv. Ethical standards are ideals of human conduct. Defining ethical standards is not
an easy task.

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Business Ethics – Nature of Ethics in Business
In business activities, most ethical questions could be of two types – Overt and
Covert. Overt ethical problems like bribery, theft, sabotage, collusion, etc. are clear
for everyone to see and are generally considered reprehensible. Most people deplore
it and most businesses take care not to be so openly unethical.
Hence, most problems in the business sphere are covert ethical problems. Covert
ethical problems are more complex, not so transparent and generally defy ethical
solutions. These types of problems occur in corporate acquisitions, marketing and
personnel policies, capital investment, market war, etc. They are difficult to locate, to
eliminate and are consequently much more dangerous and threatening to business.
For a decision to be ethical, it should possess the following characteristics. It should

be –
a. Right – that which is morally correct and due;

b. Equitable – that which is just and equal;
c. Good – that which brings in the highest good for all concerned;
d. Proper – that which is appropriate and acceptable;
e. Fair – that which is honest and due;
f. Just – that justice is not only done, but is also seen to have been done.
Ethics is unstructured, i.e., it does not have a structured format or framework. It is

abstract in concept. Hence, it does not have universal acceptance, mainly because-
a. Ethics depend upon our moral standards;

b. Moral standards depend upon our value system;
c. The value system of people depends upon their background and childhood
experience; and
d. The background and experience of people are vastly different. Hence the ethical
practices of people are also different.
Ethical decisions should express some obligations to others. If a decision merely

results in benefits only to oneself, then that is not an ethical decision. The very
concept of being ethical means that it results in some good for the larger society and
not just for oneself.

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Importance of Business Ethics
Ethics concern an individual's moral judgements about right and wrong. Decisions
taken within an organisation may be made by individuals or groups, but whoever
makes them will be influenced by the culture of the company. The decision to behave
ethically is a moral one; employees must decide what they think is the right course of
action. This may involve rejecting the route that would lead to the biggest short-term
profit. Businesses around the world are designing and implementing business ethics
programs to address the legal, ethical, social responsibility, and environmental issues
they face. By addressing these issues in a systematic way, enterprises can improve
their own business performance, expand opportunities for growth, and contribute to
the development of social capital in their markets. They can realize specific business
benefits, such as:
1. Enhanced reputations and good will
2. Reduced risks and costs
3. Protection from their own employees and agents
4. Stronger competitive positions
5. Expanded access to capital, credit, and foreign investment
6. Increased profits
7. Sustained long-term growth
8. International respect for enterprises and emerging markets Enterprises that
excel in these areas create a climate of excellence for their employees,
shareholders, and communities, and contribute to the economic wellbeing of
their countries.

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Ethical behaviour and corporate social responsibility can bring significant benefits to
a business. For example, they may:
attract customers to the firm's products, thereby boosting sales and profits  make
employees want to stay with the business, reduce labour turnover and therefore
increase productivity  attract more employees wanting to work for the business,
reduce recruitment costs and enable the company to get the most talented employees
 attract investors and keep the company's share price high, thereby protecting the
business from takeover
Unethical behaviour or a lack of corporate social responsibility may damage a firm's
reputation and make it less appealing to stakeholders. Profits could fall as a result.
Several factors play a role in the success of a company that are beyond the scope of
financial statements alone. Organizational culture, management philosophy and
ethics in business each have an impact on how well a business performs in the long
term. No matter the size, industry or level of profitability of an organization, business
ethics are one of the most important aspects of long-term success.

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Characteristics of business ethics

The nature of business ethics refers to the standard characteristics of human
behaviour in its definition as its core concept. The characteristics of business ethics
are as follows:
Code of Conduct:
A code of business ethics behaviour. What is to be done for the welfare of society
and what to do. All traders must follow this code of behaviour.
Based on moral and social values: Business ethics is based on moral and social
evaluation. It has moral and social norms for doing business.
This includes self-control, consumer protection, and welfare, community service, fair
treatment of social groups, exploitation of others, etc.
Protects the social group

Business ethics protects the various social groups of consumers, employees, small
businesses, governments, shareholders, creditors, etc.
Provides basic structure:

Business ethics provides a basic framework for business. It gives social, cultural,
economic, legal, and other business limits. Businesses must be managed within
these limits.
Volunteer:
business ethics should be a volunteer. Traders need to adopt the ethics of their own
business. Business ethics will be like self-discipline. It should not be enforced by law
Education and Guidance Required:

before the introduction of business ethics, businessmen must provide proper
education and guidance. Traders must be sent to use business ethics. They must be
informed about the advantages of using business ethics. Trade associations and
commerce chambers also have to play an active role in this regard.

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Relative term:
Business ethics is a relative term. In other words, it changes business from one
business to another. It changes from one country to another country. It can be
banned in other countries in a country which is considered as good.
New concept
Business ethics is a new concept. It is strictly followed in developed countries only. It
is not poorly followed in developing countries.
Long-term growth:
Stability comes from a moral long-term perspective that takes into consideration all
the partners. Small but sustainable profits should be better than long-term higher but
risky short-term profits.
Costs and Risks Reducing:

Businesses that recognize the importance of ethics should spend less on protecting
internal and external behavioural risks, especially when supported by the Sound
Governance System and independent research.
Anti-capitalist sentiment:
Financial crisis Another hit due to the frustration of the bank’s bailouts at the
expense of fundamental rights related to capitalism’s credibility, education, and
healthcare.
Limited resources:
The planet has limited resources but has a growing population; Apart from ethics,
both of the current and future generations of wealth are purely paid for personal
profits.

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Scope of business ethics
Ethics in Compliance
Business ethics play an efficient role in the compilation of business activities with
legal rules and regulation. It ensures that business adheres to all established laws
and any of its operations don’t go unlawful. It reduces any chance of facing any
unfavourable action by authorities like payment of fines and penalty. Business
following ethics in their operations frames strategies and policies in accordance with
established rules and regulations. All activities are monitored and ensured that they
go in accordance with framed policies.
Ethics in Human Resource
Human resources are the key element of every business and have an important role
in its success. Ethics helps in improving the employer-employee relations and overall
productivity of the business. Ethics related to human resource are introduced and
implemented by Human resource management in business. HRM covers all ethical
issues related to employer-employee affecting their relationship.
The various issues covered are Discrimination issues, sexual harassment,

employee’s privacy issues, salaries and wages issues, safety and health issues.
Ethics aims at overcoming all these issues so that employees are happy and
motivated towards their roles. This booms the overall performance and reduce the
risk.

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Ethics in Finance
Finance is a crucial part of every business and is needed for its successful
operations. Finance should be properly managed by every business otherwise it may
have adverse effects. Ethics aims at controlling and handling all finance issue faced
by companies and employees. The various ethical issues included are accounting
related like window dressing and improper window dressing, insider trading, fake
reimbursements, overbilling, bribery, kickbacks etc.
Ethics in Production
Ethics in business helps in monitoring and controlling the overall production

activities. It ensures that production processes do not adversely affect the business.
Ethics frames production policies by considering organisation goals, objectives and
various environmental factors.
Attempts are made to minimise the degree of risk and danger. The various ethical
issues covered are defective and dangerous products, environmental ethics and
pollution issues, Issues arising out of new technologies and product testing issues.
Implementation of ethics controls these issues and fosters overall productivity.
Ethics in Marketing
Marketing is an important part of every business organisation. It is the means

through which it improves the sales and profitability of the business. Marketing
practices should be ethical and should avoid the adoption of any unfair means.
Implementation of ethics ensures that all marketing programmes are moral-ethical.

The various ethical issues covered are pricing issues like price discrimination and
price skimming, misleading advertisements, black marketing, anti-competitive
practices, wrong advertisement content etc.

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Types of Business Ethics
Loyalties of a subordinate to his superior:

If a subordinate has strong personal loyalty towards their superior, they turn a blind
eye towards the blunders committed by their superiors and attempt to defend their
omissions and commissions. For example, if the branch manager of a bank is
sanctioning loan without any security and this act on his part may bring disastrous
financial troubles to the organization, his subordinates who were men of high moral
character and who had close connections with the head office did not inform them of
the financial irregularities because of strong personal loyalty towards their branch
manager.
Superior's loyalty towards his subordinate:

If a superior has strong personal loyalty towards their subordinates, they turn a
blind eye towards the mistakes committed by their subordinates. This is done
because the superior does not want to hurt the feeling of his subordinates because
of their close personal contact. For example, if the subordinates who are close to
the manager do not do their work properly, the manager may not reprimand
(rebuke or scold) them for their poor performance. He may rather defend their
poor-quality work with his superiors because of his personal attachment towards
his subordinates.
Corporate Responsibilities
Every individual living in society has a moral obligation towards it. Corporations are
entities which are "artificial persons", therefore they too have moral responsibilities
towards the society. There moral responsibilities are not necessarily identical with
the personal moral codes of the executives who run them. Every corporation must
have moral codes which help it in deciding matters connected with shareholders,
employees, creditors, customers, government and society.
Organizational Loyalties:

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Some employees have a deep sense of loyalty to the organization. Their loyalties to
their organization are so strong that they even neglect their own self-interest for the
sake of the organization.

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Economic Responsibility:
According to Milton Fried man, "there is one and only one social responsibility of
business – to use its resources efficiently and engage in activities designed to
increase profits without deception or fraud". Therefore, every business must
contribute to the general welfare of the society by making efficient and economical
use of resource at their command. This type of morality guides individual action
towards economy in the use of resources put at his disposal.
Technical Morality:
In any country, the state of technology plays an important role in determining what
products and services will be produced. Technological environment influences
organizations in terms of investment in technology, consistent application of
technology and the effects of technology. A manager having technical morality will
refuse to compromise with quality. Every organization which is actively engaged in
technological advancement will create more challenging situations for the
organizations because they are not prepared to accept lower standards.
Legal Responsibility
Legal environment provides the framework within which the business is to function.
The viability of business depends upon the ability with which a business can meet the
challenges arising out of the legal framework.

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Need for Business Ethics
Stop business malpractices:

Some unscrupulous businessmen do business malpractices by indulging in unfair
trade practices like black-marketing, artificial high pricing, adulteration, cheating in
weights and measures, selling of counterfeit (duplicate) and harmful products, illegal
hoarding, etc. These business malpractices are harmful to consumers and the safety
of society. Business ethics help to stop these malpractices and safeguard society. It
creates a healthy business environment for everyone.
Improve customers' confidence:

Business ethics are needed to improve the customers' confidence about the quality,
utility, reliability, quantity, price, etc. of the products. The customers have more trust
and confidence in the businessmen who follow ethical business rules or principles.
They feel safe that such businessmen will not cheat them. Ethics binds businessmen
to maintain trust by offering quality products and services to customers.
Survival of business:
Business ethics are mandatory or compulsory for the survival of any business. The
businessmen who do not follow it will only have short-term success, but they will fail
in the long run. This is because they can cheat a consumer only once. After realizing
being cheated, the consumer will not buy goods or services from that businessman.
He will also tell others not to buy from that businessman. So, this will defame his
goodwill or image and provoke negative publicity in the market. This will result in
the failure and even closure of the business. Therefore, if the businessmen do not
follow ethical rules, he will fail in the market. So, it is always better to follow
appropriate code of conduct to survive in the competitive market. Hence, ethics is
essential for the survival of business.
Safeguarding consumers' rights:

The consumer has many rights such as the right to health and safety, right to be
informed, right to choose, right to be heard, right to redress, right to be satisfied, etc.
But many businessmen do not respect and protect these rights of their consumers.
Business ethics are must to safeguard these basic rights of the consumers. A business
who safeguards its consumers' rights, in fact, safeguards its own existence.

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Protecting employees and shareholders:

Business ethics are required to protect the interest of employees, shareholders,
competitors, dealers, suppliers, customers, government, etc. It protects them from
exploiting each other through unfair trade practices like cheatings or frauds. Ethics
compels each entity participating in the business activity to properly execute its role
by adhering the established code of conduct. Since everyone is disciplined and
function appropriately, business grows well in the long run.
Develops good relations:

Business ethics are important to develop good and friendly relations between
business and society. This will result in a regular supply of good quality goods and
services at low prices to the society. It will also result in good profits for the
businesses thereby resulting in the growth of the economy. If the economy keeps
growing, it ultimately improves the standard of living of the society.
Creates good image:

Business ethics create a good image for the business and businessmen. If the
businessmen follow all ethical rules, then they will be fully accepted and not
criticized by society. The society will always support those businessmen who follow
the necessary code of conduct and avoids engaging in unscrupulous activities. If the
business succeeds in creating and maintaining its goodwill in the society, it flourishes
well even in the most competitive markets.
Smooth functioning:
If the business follows all the business ethics, then the employees, shareholders,
consumers, dealers, and suppliers will all be happy. So, they will give full cooperation
to the business. This will result in the smooth functioning of business activities. So,
the business will grow, expand and diversify easily and quickly. It will have more
sales and eventually more profits. If even one entity participating in the business
activities is unhappy and not fully satisfied then also the business will not function
smoothly. The satisfaction of all involved parties is necessary for the smooth
functioning of a business. Business ethics maintain this safe level of satisfaction and
protects the business from being dysfunctional.

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ADVANTAGES OF BUSINESS ETHICS
More and more companies recognize the link between business ethics and financial
performance. Companies displaying a “clear commitment to ethical conduct”
consistently outperform companies that do not display ethical conduct.
Attracting and retaining talent
People aspire to join organizations that have high ethical values. Companies are able
to attract the best talent and an ethical company that is dedicated to taking care of its
employees will be rewarded with employees being equally dedicated in taking care of
the organization. The ethical climate matter to the employees. Ethical
Organizations create an environment that is trustworthy, making employees willing

to rely, take decisions and act on the decisions and actions of the co-employees. In
such a work environment, employees can expect to be treated with respect and
consideration for their colleagues and superiors. It cultivates strong teamwork and
Productivity and support employee growth.
2. Investor Loyalty
Investors are concerned about ethics, social responsibility and reputation of the
company in which they invest. Investors are becoming more and more aware that an
ethical climate provides a foundation for efficiency, productivity and profits.
Relationship with any stakeholder, including investors, based on dependability, trust
and commitment results in sustained loyalty.
3. Customer satisfaction
Customer satisfaction is a vital factor in successful business strategy. Repeat
purchases/orders and enduring relationship of mutual respect is essential for the
success of the company. The name of a company should evoke trust and respect
among customers for enduring success. This is achieved by a company that adopts
ethical practices. When a company because of its belief in high ethics is perceived as
such, any crisis or mishaps along the way is tolerated by the customers as a minor
aberration. Such companies are also guided by their ethics to survive a critical
situation. Preferred values are identified ensuring that organizational behaviours are
aligned with those values. An organization with a strong ethical environment places
its customers’ interests as foremost. Ethical conduct towards customers builds a
strong competitive position. It promotes a strong public image.

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4. Regulators
Regulators eye companies functioning ethically as responsible citizens. The regulator

need not always monitor the functioning of the ethically sound company. The
company earns profits and reputational gains if it acts within the confines of business
ethics. To summaries, companies that are responsive to employees’ needs have lower
turnover in staff.
 Shareholders invest their money into a company and expect a certain level of return
from that money in the form of dividends and/or capital growth.
 Customers pay for goods, give their loyalty and enhance a company’s reputation in
return for goods or services that meet their needs.
 Employees provide their time, skills and energy in return for salary, bonus, career
progression, and learning.

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DISADVANTAGES OF BUSINESS ETHICS
1. Reduce Profits:
Business ethics reduces the profit earning ability of the organization by putting limits
to its operations. Companies working on ethical values can’t focus on profit
maximization by exploiting others. They need to give equal attention to the interest of
its stakeholders like customers, employees, society, creditors, and government.
Business running on an ethical path needs to forego extra profits which adversely
affect their growth and revenue.
Time Consuming
Implementation of ethics within the business practices is a time-consuming process.
It is a long process that requires large efforts on the part of the organization.
Businessmen need to properly learn about these ethics for their successful
implementation.
Not Ideal for Small Business:

Ethical standards are not suitable for small scale business as it lowers their profit.
Small business cannot afford to lose some profit for the sake of running their
operations ethically. It can hamper their growth and survival in today’s stiff
competition. Following these principles brings extra cost to the business which is not
feasible for small companies.
Instability:
Business ethics are not stable and are changed from time to time. Business owners revise
them as per the company needs and desires without considering whether they are ethical or
not. It becomes inconvenient to change these standards within the business practices many
times. Companies needs to educate and guide its employees each time it brings changes to its
standards.

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Business ethics features

The nature of business ethics refers to the standard characteristics of human
behaviour in its definition as its core concept.
1. Stakeholder balance
This is the first feature of business ethics and it means that business principles follow
two basic points, such as protecting the interests of shareholder values or enriching
the demands of multiple stakeholders.
Stakeholders include internal and external traders like employees, local

communities, and customers.
2. Mission and vision-driven
In these characters of business ethics, ethical business generally offers some more
attention than profits and values and beliefs. When these values are supported by
management and supported by valuable individuals, the profits become more
effective and unified by general goals rather than easily co-existent.
Such values and beliefs are well-educated for their relationships with their
employees and the public.
3. Process Integrity
It is the third characteristic of business ethics and its meaning is that organizational
culture performs regularly, producing hundreds of different processes. This process
can be effective, healthy, or unhealthy depending on the various factors involved.
For example, ‘Healthy’ competition is the start of success, management, and delivery
of equal treatment by foils. Unhealthy competition is completely different, they have
misaligned good performers of goal and outstanding treatment.

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4. Long-term perspective
In these characteristics of business ethics, organizations follow long-term

mechanisms with their moral values and beliefs. This long-term scenario is not only
about wealth or profit, but it is related to the community and their criteria. It helps to
reflect self-reflection policy so that employees of an organization can decide
independently and improve themselves.
Thinking from a long-term perspective, businesses are allowed to implement the plan
for their future growth and development.
Moral problems and incidents arise across all functional areas of the company and
across all levels of the company.

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Suggestions
An integral first step is to formalize your expectations and make it clear about which
behaviours are and aren’t acceptable. If you haven’t done so already, create a code of ethics
section in your employee handbook that outlines proper business conduct. This should
eliminate any confusion and ambiguity about your company’s ethical practices and keep
everyone on the same page.
Behaviour often trickles down from top to bottom within an organization. It’s therefore
crucial that your leaders act virtuously and serve as examples for the rest of your staff. After
all, if managers demonstrate questionable ethical behaviour, why should anyone else be
expected to act with moral conviction? When leaders practice what they preach and uphold a
high standard of ethics, the rest of your staff will have a positive role model.
Let’s be realistic. Not everyone is going to uphold every single ethical expectation 100
percent of the time, and rules will inevitably be broken. It’s important that you don’t tolerate
unacceptable behaviour and show that there are consequences. Holding employees
accountable should prevent the perpetuation of any unsavoury behaviours and nip them
before they get out of control.

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Conclusion
In a contemporary business environment, where making profit appears to take precedence

over ethical behaviour, the importance of understanding ethical behaviour becomes crucial.
The ability of managers to recognize and deal with complex business ethical issues has
become a significant priority for every company regardless of its type and size. The aim of
this paper was to analyse the ethical behaviour of managers in a big company in Croatia.
Research results show that this company does not have developed business ethics. Managers
in everyday decision making tend to neglect ethics; it seems that they do not understand the
importance of ethical behaviour in business. Promoting ethical conduct and establishing and
implementing ethical values, creating ethical business policies and strategies in a company
needs to be implemented. Benefits of business ethics are extremely high, while lack of ethics
leads to a wealth of problems for a business. Ethical behaviour of managers is directly related
to company productivity and profitability through employee loyalty and morale, reputation of
business from surrounding environments, positive public image etc. Therefore, managers in
companies must understand and cherish business ethics, honesty and integrity; and make
decisions with consistent ethical behaviour. There is no doubt that the ethical behaviour of
decision makers is of strategic importance for successful business. Today, it is very
challenging to have a successful business without effective and well-respected leader/s. As
noted in the introductory part of this paper, this research is justified because there is a lack of
research into business ethics in Republic of Croatia, although this topic is a burning issue and
is presented daily to the public and in the media. Therefore, regardless of its limitations, this
research has provided some groundwork and opened up new issues in this area.
Findings
Based on moral and social values: Business ethics is based on moral and social values. It
contains moral and social principles (rules) for doing business. This includes self-control,
consumer protection and welfare, service to society, fair treatment to social groups, not to
exploit others, etc.
 Ethics, broadly, is concerned with the meaning of all aspects of human behaviour.
Theoretical/ normative ethics aims to differentiate right from wrong.
 An organization’s culture sets standards for determining the difference between good
and bad decision making. Ethics in business is about knowing the difference between
right and wrong and choosing to do what is right.
 There are three intricately related parts to the discipline of business ethics: personal,
professional, and corporate.

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Business Ethic - Scope Towards Society

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Business Ethics: scope towards society

Business ethic - scope towards society

ASST. sonali angchekar

pg. 1 Sant Rawool Maharaj

Bala Santosh Raut

pg. 2 Sant Rawool Maharaj

ASST. PROF. SONALI DNYANESHWAR ANGCHEKAR

pg. 3 Sant Rawool Maharaj

TO LIST WHO ALL HAVE HELPED ME IS DIFFICULT BECAUSE THEY ARE SO

pg. 4 Sant Rawool Maharaj

2 concept and Definition of Business Ethics 7-8

3 Nature of Business Ethics 9

4 Importance of Business Ethics 10-11

5 Characteristics of Business Ethics 12-13

6 Scope of Business Ethics 14-15

7 Types of Business Ethics 16-17

8 Needs for Business Ethics 18-19

Advantages and Disadvantages of Business

10 Business Ethics of Features 23-24

pg. 6 Sant Rawool Maharaj

Business Ethics – Concept and Definitions of Business

(commercial concern) and the social consideration (welfare concern) of the

Principal Components of ‘Ethics’:

pg. 8 Sant Rawool Maharaj

Business Ethics – Nature of Ethics in Business

For a decision to be ethical, it should possess the following characteristics. It should

a. Right – that which is morally correct and due;

Ethics is unstructured, i.e., it does not have a structured format or framework. It is

a. Ethics depend upon our moral standards;

Ethical decisions should express some obligations to others. If a decision merely

pg. 9 Sant Rawool Maharaj

Importance of Business Ethics

pg. 10 Sant Rawool Maharaj

pg. 11 Sant Rawool Maharaj

Characteristics of business ethics

Protects the social group

Provides basic structure:

Education and Guidance Required:

pg. 12 Sant Rawool Maharaj

Costs and Risks Reducing:

pg. 13 Sant Rawool Maharaj

Scope of business ethics

Ethics in Human Resource

The various issues covered are Discrimination issues, sexual harassment,

pg. 14 Sant Rawool Maharaj

Ethics in business helps in monitoring and controlling the overall production

Marketing is an important part of every business organisation. It is the means

Implementation of ethics ensures that all marketing programmes are moral-ethical.

pg. 15 Sant Rawool Maharaj

Types of Business Ethics

Loyalties of a subordinate to his superior:

Superior's loyalty towards his subordinate:

pg. 16 Sant Rawool Maharaj

pg. 17 Sant Rawool Maharaj

pg. 18 Sant Rawool Maharaj

Need for Business Ethics

Stop business malpractices:

Improve customers' confidence:

Safeguarding consumers' rights:

pg. 19 Sant Rawool Maharaj

Protecting employees and shareholders:

Develops good relations:

Creates good image: