Concept of Business Ethics, Entrepreneurship & Small Businesses | Entrepreneurship & Small Businesses - B Com PDF Download

What is Ethics ?

The theory of Business Ethics can be extremely Complex and in order to be of use in our day to day work situations. It must be made in practice.

“Ethics is about the theory of right of song not about the practice application of these principles. This is the area of moral.”

“Ethics involves the values that a person seek to express in a certain situation, moral the way he or she said sets out to achieve this.”

Elements of Ethics :

• Fairness

• Deciding what is right and wrong

• The practices and rules which underpin responsible conduct between individual and Groups.

Business Ethics

The term Business Ethics refers to the system of moral principles and rules of conduct applied to the business. Because being a social organisation not be conducted in a way deterimental to the interests of society and the business sector itself.

The ethics implies that professional should care fully e-value at his decisions and ensure that his action will  not proceed negative effects.

1. Educational persuasion: The trade Association can educate and persuade the members in the importance of and the need for having Business Ethics.

2. Code of ethics: Trade Association should formulate a code of conduct, which also contains a code of ethics for their members.

3. Moral sanctions: Sanctions refers to the ways in which moral conduct is rewarded or misconduct is punished.

Nature of Business Ethics and Values

Business ethics is the application of ethical principles and methods of analysis of Business. Business ethics deal with the topic of study that has been given its due importance in business, commerce and industry since last 3 decades.

The characteristics that make a business decision ethical are:

• Equitable: The decision be just and equal.

• Right: Morally correct and due.

• Good: Which highest good for highest number of concerned people.

• Just: Justice is done to all and it should appear that justice is given to due.

• Proper: That which is appropriate to the situation and generally acceptable.

• Fair: Which is honest and due.

Importance of Ethics in Business

Expectation of public all stakeholders haven’t I on the culture and behaviour of a business organisation due to dominance of Economics in the society. The public expects a high level of ethical behaviour from the business organisations. Doing the right thing, do no harm and good to all are the Expectations of general public from business.

1. Image: An ethical organisation commands trust and respect of all its stakeholders. The organisation bulls and ethical image for itself.

2. Pride of best companies: The ethically managed company’s command respect from publix as well as government organisations. The company policies with regards to profit sharing bonuses, social responsibility, balance of work and social life are quoted.

3. Part of society: Business is a part of society. Whatever ethical principles apply in society applied to business. Example if a company in deliberately evades tax payments the company is treated unethical.

4. Costs: Deterioration of relationships, and damage to reputation and reduction of employee productivity, loyalty that come out of unethical practices cost companies. An uncaring employers will find it difficult to employ good professions for his business.

5. Trust of employees: High level of morale and productivity can be easily obtained in companies that treat their all Employees with equality, encourage good team and work culture, and with tickle practices. Employees get satisfaction in ethically and socially responsible companies.