Business 

Ethics
• How people try to live their lives
according to a standard of “right” or
“wrong” behaviors.
• In both how we think and behave
toward others and how we would like
them to think and behave toward us.

• Ethics is a set of moral standards for

judging whether something is right or
wrong.
• The set of principles by which
people in a society conduct
themselves in regard to good and
right behavior

• Our personal, fundamental beliefs

that we use to define what is most
important to us in life, which
determines our view of right and
wrong.
• The value of what should be done
and what should not be done from
the business point of view.

• Public’s interest in business ethics

increased during the last four
decades
 Origin of Ethics

• Ethics is a Greek word, it means

character or manners

• Ethics is subjective term.

 Business Ethics

• The principles and standards that

define acceptable conduct in
business.
• In the business world, the
organization’s culture sets
standards for determining the
difference between good and bad
decision making and behavior.
• Business ethics can be defined as
written and unwritten codes of
principles and values that govern
decisions and actions within a
company.
Importance of Business Ethics

Ethics influence and contribute to:

• Employee Commitment Investor and

customer loyality.

• Customer satisfaction Ability to build

relationship with stakeholders.

• Greater earning
 Factors influencing Business Ethics

• Formal and informal policies and rules

• Norms for acceptable behavior
• Financial reward system
• Hiring practices
• Applications of legal behavior
• Degree to which professionalism is
emphasized
• The company’s decision making processes
 Ethical Issues

• Fairness and honesty

• Conflict of interest
• Communications
• Business relationships
 Steps to Improve Business Ethics

• Top management support

• Expectations begin at the top
• Ethics imbedded in training
• Ethics office set up
• External stakeholders informed
• There must be enforcement