Business Ethics:
Ethics is concerned with what is right and what is wrong in human behavior. Business ethics refer to the socially determined moral principles which should govern business activities.
Business ethics is the code of conduct followed and performed by every business. Ethical business behavior improves public image earn’s public confidence and leads to greater success.
Examples of Business Ethics:
1. Charging fair prices from customers
2. Using fair weights for measurement of commodities
3. Giving fair treatment to workers
4. Earning reasonable profits.
5. Avoiding adulteration, hoarding etc.
6. Using environmentally friendly products
Elements of Business Ethics:
1. Top management commitment:
The Chief Executive Officer and higher level managers must give continuous leadership for developing and upholding the moral values of the organisation.
2. Publication of a Code:
‘Code’ refers to a formal written document of the principles, values and standards that guide a firm’s actions. It may cover the areas of fundamental honesty and adherence to laws, product safety and quality, health and safety in the workplace, etc.
3. Establishment of Compliance Mechanism:
A suitable mechanism should be developed to comply with the ethical standards of the enterprise.
4. Employees Involvement:
To make ethical business a reality, employees at all levels must be involved.
5. Measuring Results:
Ethical results must be verified and audited that how far work is being carried according to ethical standards.
