BUSINESS ETHICS

ETHICS

Ethics is a system of moral principles . It affect how people make decisions and lead their lives. It is concerned with what is good for individual and society and is also described as moral philosophy.

        Or we can say that , Ethics separates good and bad , fair and unfair , right and wrong , moral and immoral , and proper and improper human actions.

BUSINESS  ETHICS

In a business , being ethical means applying principles of honesty and fairness to relationship with co-workers and customers. 

Business ethics is concerned with the attitude of the businessperson in conducting business , by inculcating morality in his business. It propagates welfare of society , increase profitability , improves productivity and foster business relationships.

DEFINITION  OF BUSINESS  ETHICS:

According to Andrew Crane,

   "Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed."

According to Raymond C. ,

 "The ethics of business is the ethics of responsibility . The business man must promise that he will not harm knowingly."

Being ethical in business creates a positive reputation that opens various opportunities of profit for the business. Ethical behavior and corporate social responsibility can bring significant benefits to a business. Some of them are :

• Attract customers to the firm's product , which means boosting sales and profits of the business.
• Reduce labor turnover and increase productivity.
• Reduce recruitment cost and enable the company to get the most talented employees.
• Attract investors and keep the company's share price high, therefore,  protecting the business from takeover.
• Increase the reputation of the company.
• Positive working environment in the company.

NEED  FOR  BUSINESS  ETHICS:

• Stop business malpractices
• Safeguarding consumer's rights
• Gain confidence of customers
• Survival and growth of business
• Creating goodwill
• Healthy competition
• Consumer satisfaction