Buisness Ethics

Buisness Ethics

What is Business Ethics?

  

Business Ethics is a subject that deals with moral guidelines and corporate governance. Companies are supposed to set high standards and adhere to certain common business practices.Ethics is a subject of social science that is related with moral principles and social values. Business Ethics can be termed as a study of proper business policies and practices regarding potentially controversial issues such as corporate governance insider trading bribery discrimination corporate social responsibility and fiduciary responsibilities.

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Ideology of Business Ethics

Ethics is a branch of knowledge or idelogy that deals with moral principles and values.

The term ethics is derived from the Greek word Ethikos which itself is derived from the Greek word ethos,meaning custom or character. In philosophy,ethical behavior is that which is “good.”The field of ethics or moral philosophy involves developing, defending, and recommending concepts of right and wrong behavior.

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Features of Business Ethics

There are eight major features of business ethics- 

1. Code of Conduct- Business ethics is actually a from of codes of conduct. It lets us know what to do and what not to do. Business must follow this code of conduct. 

2. Based on Moral and Social Values- Business ethics is a subject that is based on moral and social values. It offers Some moral and social principle for conducting a business.

3. Protecting to Social Groups- Business ethics protect various social groups including consumers, employees, small businessperson, government, shareholders, creditor etc.

4. Offer of Basic Framework- Business ethics is the basic framework for doing business properly. It construct the social, cultural, legal, economic, and other limits in which a business must operate.

5. Voluntary- Business ethics is meant to  be voluntary. It should be self-practiced and must not be enforced by law.

6. Requires Education & Guidance-Businessman Should get proper education and guidance about business ethics. Trade Association and Chamber of commerce should be active enough in this matter.

7. Relative Term- Business ethics is a relative term. It change from one business to another and from one country to  another.

8. New Concept- Business ethics is a relatively newer concept. Developed countries have more exposures to business ethics, while poor and developing countries are relatively backward in applying the principle of business ethics.

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Principles of Business Ethics 

The principle of business ethics are related to social group that comprise of consumer employees, investor, and the local community. The important rules or principle of business ethics are as follow-

* Avoid Exploitation of Consumer- Do not cheat and exploit consumer with measures such as artificial price rise and adulteration. 

* Avoid Profiteering- Unscrupulous business activities such as hoarding, black marketing selling banned or harmful goods to earn exorbitant profit must be avoided.

* Pay Taxes Regularly- Taxes and other duties to the government must be honesty and regularly paid.

* Fair Treatment to Employees- Fair wages or Salaries, facilities and incentives must be provided to the employees.