BUSINESS ETHICS

Submitted to : Submitted by :
Dr. Navpreet kaur Mandeep kaur
Assistant professor Class – B. Voc (FST)3rd year
(Food science and Roll no. 7201
technology)
 CONTENT
1) Business ethics
- Meaning
- Definition
- Scope
- Features
- Sources
2) Principles of business ethics
3) Characteristics of ethical organisation
4) Theories of business ethics
5) Advantages and disadvantages
6) Conclusion
 Meaning
The word ethics is derived from the Greek word ‘ethos’,
which means character. Ethics is a branch of philosophy
concerned with human character and conduct.
 Definition
Business ethics is the study of business situations,
activities, and decisions where issues of right and wrong
are addressed.
(Acc. to crane)
• Scope of business ethics
• Business ideas and objectives need to be harmless.
• Product and services must not be harmless.
• Business location must not cause difficulty to the neighboring people.
• Customer should be served with true information.
• The scope of business ethics can be stated on following four different levels.
• 1) Society
• 2) Stakeholders
• 3) Internal policy
• 4) Employees
 FEATURES OF BUSINESS ETHICS

1) Code of conduct
2) Based on moral and social values
3) Protection to social groups
4) Offers a basic framework
5) Voluntary
6) Require education and guidance
7) Relative term
8) New concept
SOURCES OF BUSINESS ETHICS

1) Religion
2) Cultural experience .
3) The legal system
 Principles of business ethics
The principle of business ethics are related to social groups that
comprise of consumers, employees and local community.
The important rules or principles of business ethics are as
follows:-
1) Avoid cheat of consumers - Do not cheat consumer with
measures such as artificial price rise and adulteration.
2) Avoid profiteering – illegal business activities such as black –
marketing, selling banned or harmful goods to earn exorbitant
profits must be avoided.
3) Ensure accuracy – Weighing, packaging and quality of
supplying goods to the consumer has to be followed.
4) Pay taxes regularly - Taxes and other duties to the
government must be honestly and regularly paid.
5) Fair treatment to employees – Fair wages or salaries,
facilities and incentives must be provided to the employees.
6) Discourage secret agreement – Making secret agreement with
other business people to influence production, distribution and
pricing etc. are unethical.
7) Service before profit – Accept the principle of “service first
and profit next “.
8) Fulfill customers expectations – Adjust your business
activities as per the demands and expectations of the customers.
9) Respect consumers rights – Faith the basic rights of
consumers.
 10) Accept social responsibility – Honor responsibilitis towards
the society.
11) Satisfy consumers wants – Satisfy all business operations
must have this aim.
CHARACTERISTICS OF ETHICAL ORGANISATION
 THEORIES OF BUSINESS ETHICS

Business ethics theories form the foundation for acceptable behaviors

and decisions in the work environment.
The three main business ethics theories :-
1) Dentological theory
2) Utilitarianism theory
3) Norm theory
• 1) Denological theory – Dentological theory states that ethical
behavior should follow an established set of rules or principles in
all types of situations.
• 2) Utilitarianism theory – What makes some thing good or bad,
right or wrong, is that it produces the greatest amount of pleasure
for the greatest number of people.
• 3) Norm theory – It states that certain standards of moral conduct
should be followed by the entire group. The acceptable forms of
conduct are typically defined for a variety of probable situations.
 FACTOR AFFECTING BUSINESS ETHICS

• 1) Leadership
• 2) Strategies / policies
• 3) Corporate culture
• 4) Individual characteristics
 ADVANTAGES OF BUSINESS ETHICS

• 1) Enhance business reputation

• 2) Positive work environment
• 3) Improve customer happiness
• 4) Retain good employees
• 5) Avoid legal problems
 DISADVANTAGES OF BUSINESS ETHICS

• 1) Reduce profits
• 2) Time consuming
• 3) Not ideal for small business
• 4) Instability
 CONCLUSION

• A company's ethics will determine it’s reputation.

• Good business ethics are essential for the long term success
of an organization.
• A company’s ethics will have an influence on all levels of
business.
So we hope that all the organization should maintain
business ethics.