What is business

Business is the buying and selling of goods or services. Questions here contain anything
related to selling something for profit. Is
A business (also called a company, enterprise or firm) is a legally recognized
organization designed to provide goods and/or services to consumers.
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"usinesses are
predominant in capitalist economies, most being privately o#ned and formed to earn
profit that #ill increase the #ealth of its o#ners and gro# the business itself. $he o#ners
and operators of a business have as one of their main ob%ectives the receipt or generation
of a financial return in e&change for #or' and acceptance of ris'. (otable e&ceptions
include cooperative enterprises and state)o#ned enterprises. "usinesses can also be
formed not)for)profit or be state)o#ned.
$he etymology of *business* relates to the state of being busy either as an individual or
society as a #hole, doing commercially viable and profitable #or'. $he term *business*
has at least three usages, depending on the scope + the singular usage (above) to mean a
particular company or corporation, the generalized usage to refer to a particular mar'et
sector, such as *the music business* and compound forms such as agribusiness, or the
broadest meaning to include all activity by the community of suppliers of goods and
services. ,o#ever, the e&act definition of business, li'e much else in the philosophy of
business, is a matter of debate.
Basic forms of ownership
Although forms of business o#nership vary by %urisdiction, there are several common
forms-
Sole proprietorship: A sole proprietorship is a business o#ned by one person.
$he o#ner may operate on his or her o#n or may employ others. $he o#ner of
the business has personal liability of the debts incurred by the business.
Partnership: A partnership is a form of business in #hich t#o or more people
operate for the common goal #hich is often ma'ing profit. In most forms of
partnerships, each partner has personal liability of the debts incurred by the
business. $here are three typical classifications of partnerships- general
partnerships, limited partnerships, and limited liability partnerships.
Corporation: A corporation is a limited liability entity that has a separate legal
personality from its members. A corporation can be organized for)profit or not)
for)profit. A corporation is o#ned by multiple shareholders and is overseen by a
board of directors, #hich hires the business.s managerial staff. In addition to
privately)o#ned corporate models, there are state)o#ned corporate models.

Cooperative: /ften referred to as a *co)op*, a cooperative is a limited liability

entity that can organize for)profit or not)for)profit. A cooperative differs from a
corporation in that it has members, as opposed to shareholders, #ho share
decision)ma'ing authority. 0ooperatives are typically classified as either
consumer cooperatives or #or'er cooperatives. 0ooperatives are fundamental to
the ideology of economic democracy.
What is ethics
$he science of human duty1 the body of rules of duty dra#n from this science1 a
particular system of principles and rules concerning duty, #hether true or false1 rules of
practice in respect to a single class of human actions1 as, political or social ethics1
medical ethics.
$he completeness and consistency of its morality is the peculiar praise of the ethics
#hich the "ible has taught.
2thics is the science of morality or the systematic study of moral rules and principles.
$he term *morality* refers to rules #hich prescribe the #ay people ought to behave and
principles #hich reflect #hat is ultimately good or desirable for human beings. In
classical 3e#ish sources there is no term #hich corresponds to *ethics* or *morality* in
this sense. $he modern ,ebre# #ord musar, #hich is used today for this purpose, #hile
found in the "ible, means *rebu'e* or *chastisement.* ,o#ever, the primary sources of
3udaism, the "ible and rabbinic literature, undoubtedly contain an elaborate moral code
and the rudiments of an ethical theory.
In a short form #e can say that ethics is some thing that helps us not to do the #rong
thing or act. 4ifferent person pay has different ethics but business ethics are relatively
same. $here is only a little difference bet#een the business ethics.
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What is Business Ethics
$he study and evaluation of decision ma'ing by businesses according to moral concepts
and %udgments. 2thical 6uestions range from practical, narro#ly defined issues, such as a
company.s obligation to be honest #ith its customers, to broader social and philosophical
6uestions, such as a company.s responsibility to preserve the environment and protect
employee rights. 7any ethical conflicts develop from conflicts bet#een the differing
interests of company o#ners and their #or'ers, customers, and surrounding community.
7anagers must balance the ideal against the practical)the need to produce a reasonable
profit for the company.s shareholders #ith honesty in business practices, safety in the
#or'place, and larger environmental and social issues. 2thical issues in business have
become more complicated because of the global and diversified nature of many large
corporations and because of the comple&ity of government regulations that define the
limits of criminal behavior.
8or e&ample, multinational corporations operate in countries #here bribery, se&ual
harassment, racial discrimination, and lac' of concern for the environment are neither
illegal nor unethical or unusual. $he company must decide #hether to adhere to constant
ethical principles or to ad%ust to the local rules to ma&imize profits. As the costs of
corporate and #hite)collar crime can be high, both for society and individual businesses,
many business and trade associations have established ethical codes for companies,
managers, and employees. 9overnment efforts to encourage companies to adhere to
ethical standards include :resident 0linton.s 7odel "usiness :rinciples (;;<), in a
program overseen by the 4ept. of 0ommerce.
General business ethics
$his part of business ethics overlaps #ith the philosophy of business, one of the
aims of #hich is to determine the fundamental purposes of a company. If a
company.s main purpose is to ma&imize the returns to its shareholders, then it
should be seen as unethical for a company to consider the interests and rights of
anyone else.
Corporate social responsibility or 0=>- an umbrella term under #hich the
ethical rights and duties e&isting bet#een companies and society is debated.
Issues regarding the moral rights and duties bet#een a company and its
shareholders- fiduciary responsibility, sta'eholder concept v. shareholder concept.
2thical issues concerning relations bet#een different companies- e.g. hostile ta'e)
overs, industrial espionage.
?eadership issues- corporate governance.
:olitical contributions made by corporations.
?a# reform, such as the ethical debate over introducing a crime of corporate
manslaughter.
$he misuse of corporate ethics policies as mar'eting instruments.
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Importance of Business Ethics
Business ethics is a form of applied ethics that e&amines ethical principles and moral or
ethical problems that arise in a business environment. It applies to all aspects of business
conduct and is relevant to the conduct of individuals and business organizations as a
#hole. Applied ethics is a field of ethics that deals #ith ethical 6uestions in many fields
such as medical, technical, legal and business ethics.
In the increasingly conscience)focused mar'etplaces of the 5st century, the demand for
more ethical business processes and actions ('no#n as ethicism) is increasing.
=imultaneously, pressure is applied on industry to improve business ethics through ne#
public initiatives and la#s. "usinesses can often attain short)term gains by acting in an
unethical fashion1 ho#ever, such behaviors tend to undermine the economy over time.
"usiness ethics can be both a normative and a descriptive discipline. As a corporate
practice and a career specialization, the field is primarily normative. In academia
descriptive approaches are also ta'en. $he range and 6uantity of business ethical issues
reflects the degree to #hich business is perceived to be at odds #ith non)economic social
values. ,istorically, interest in business ethics accelerated dramatically during the ;ABs
and ;;Bs, both #ithin ma%or corporations and #ithin academia. 8or e&ample, today most
ma%or corporate #ebsites lay emphasis on commitment to promoting non)economic
social values under a variety of headings. In some cases, corporations have redefined
their core values in the light of business ethical considerations.
Benefits of Business Ethics
In to days #orld ethics are very closely related #ith our business. $here is nothing to say
separately about the benefit of ethics. >ather #e sho# ho# it is related in different part of
our business.
1. Ethics of accountin information
0reative accounting, earnings management, misleading financial analysis.
Insider trading, securities fraud, buc'et shops, fore& scams- concerns (criminal)
manipulation of the financial mar'ets.
2&ecutive compensation- concerns e&cessive payments made to corporate 02/.s
and top management.
"ribery, 'ic'bac's, facilitation payments- #hile these may be in the (short)term)
interests of the company and its shareholders, these practices may be anti)
competitive or offend against the values of society.
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!. Ethics of human resource manaement
$he ethics of human resource management (,>7) covers those ethical issues arising
around the employer)employee relationship, such as the rights and duties o#ed bet#een
employer and employee.
4iscrimination issues include discrimination on the bases of age (ageism), gender,
race, religion, disabilities, #eight and attractiveness. =ee also- affirmative action,
se&ual harassment.
Issues arising from the traditional vie# of relationships bet#een employers and
employees, also 'no#n as At)#ill employment.
Issues surrounding the representation of employees and the democratization of the
#or'place- union busting, stri'e brea'ing.
Issues affecting the privacy of the employee- #or'place surveillance, drug testing.
=ee also- privacy.
Issues affecting the privacy of the employer- #histle)blo#ing.
Issues relating to the fairness of the employment contract and the balance of
po#er bet#een employer and employee- slavery, indentured servitude,
employment la#.
/ccupational safety and health.
$he entire above are also related to the hiring and firing of employees. An employee or
future employee can not be hired or fired based on race, age, gender, religion, or any
other discriminatory act.
". Ethics of sales an# mar$etin
7ar'eting, #hich goes beyond the mere provision of information about (and access to) a
product, may see' to manipulate our values and behavior. $o some e&tent society regards
this as acceptable, but #here is the ethical line to be dra#nD 7ar'eting ethics overlaps
strongly #ith media ethics, because mar'eting ma'es heavy use of media. ,o#ever,
media ethics is a much larger topic and e&tends outside business ethics.
:ricing- price fi&ing, price discrimination, price s'imming.
Anti)competitive practices- these include but go beyond pricing tactics to cover
issues such as manipulation of loyalty and supply chains. =ee- anti)competitive
practices, antitrust la#.
=pecific mar'eting strategies- green#ash, bait and s#itch, shill, viral mar'eting,
spam (electronic), pyramid scheme, planned obsolescence.
0ontent of advertisements- attac' ads, subliminal messages, se& in advertising,
products regarded as immoral or harmful
0hildren and mar'eting- mar'eting in schools.
"lac' mar'ets, grey mar'ets.
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%. Ethics of pro#uction
$his area of business ethics usually deals #ith the duties of a company to ensure that
products and production processes do not cause harm. =ome of the more acute dilemmas
in this area arise out of the fact that there is usually a degree of danger in any product or
production process and it is difficult to define a degree of permissibility, or the degree of
permissibility may depend on the changing state of preventative technologies or changing
social perceptions of acceptable ris'.
4efective, addictive and inherently dangerous products and services (e.g. tobacco,
alcohol, #eapons, motor vehicles, chemical manufacturing, bungee %umping).
2thical relations bet#een the company and the environment- pollution,
environmental ethics, carbon emissions trading
2thical problems arising out of ne# technologies- genetically modified food,
mobile phone radiation and health.
:roduct testing ethics- animal rights and animal testing, use of economically
disadvantaged groups (such as students) as test ob%ects.
&. Ethics of intellectual property, $nowle#e an# s$ills
Eno#ledge and s'ills are valuable but not easily *o#n able* as ob%ects. (or is it obvious
that has the greater rights to an idea- the company #ho trained the employee, or the
employee themselvesD $he country in #hich the plant gre# or the company #hich
discovered and developed the plant.s medicinal potentialD As a result, attempts to assert
o#nership and ethical disputes over o#nership arise.
:atent infringement, copyright infringement, trademar' infringement.
7isuse of the intellectual property systems to stifle competition- patent misuse,
copyright misuse, patent troll, submarine patent.
2ven the notion of intellectual property itself has been criticized on ethical
grounds- see intellectual property.
2mployee raiding- the practice of attracting 'ey employees a#ay from a
competitor to ta'e unfair advantage of the 'no#ledge or s'ills they may possess.
$he practice of employing all the most talented people in a specific field,
regardless of need, in order to prevent any competitors employing them.
'. Ethics an# (echnoloy
$he computer and the Forld Fide Feb are t#o of the most significant inventions of the
t#entieth century. $here are many ethical issues that arise from this technology. It is easy
to gain access to information. $his leads to data mining, #or'place monitoring, and
privacy invasion.
7edical technology has improved as #ell. :harmaceutical companies have the
technology to produce life saving drugs. $hese drugs are protected by patents and there
are no generic drugs available. $his raises many ethical 6uestions.
G
)isa#vantaes of ethics
"usiness ethics can be e&amined from various ne# perspectives, including the
perspective of the employee, the commercial enterprise, and society as a #hole. Hery
often, situations arise in #hich there is conflict bet#een one and more of the parties, such
that serving the interest of one party is a detriment to the other(s). 8or e&ample, a
particular outcome might be good for the employee, #hereas, it #ould be bad for the
company, society, or vice versa. =ome ethicists see the principal role of ethics as the
harmonization and reconciliation of conflicting interests.
:hilosophers and others disagree about the purpose of a business ethic in society. 8or
e&ample, some suggest that the principal purpose of a business is to ma&imize returns to
its o#ners, or in the case of a publicly)traded concern, its shareholders. $hus, under this
vie#, only those activities that increase profitability and shareholder value should be
encouraged, because any others function as a ta& on profits. =ome believe that the only
companies that are li'ely to survive in a competitive mar'etplace are those that place
profit ma&imization above everything else. ,o#ever, some point out that self)interest
#ould still re6uire a business to obey the la# and adhere to basic moral rules, because the
conse6uences of failing to do so could be very costly in fines, loss of licensure, or
company reputation.
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*in#ins
2thics is no more a business or personal issue. (o# a day, it has become an international
issue. At the time of doing the assignment I have found that, business ethics is nothing
but the combination of business rules and regulations.
"usiness ethics in different department is different but it is relatively same in
business organization.
"usiness people are ma'ing their business ethics to increase their business profit
and #ealth.
All the business is follo#ing business ethics.
"usiness ethics has some disadvantages also.
=ome people are against of some ethics because it hampers their benefits.
"usiness ethics are not only for the business internal people but also for the
e&ternal people.
(ot everyone supports corporate policies that govern ethical conduct
$hose are the ma%or findings of this assignment.
+ecommen#ation
:eople are more concern about the business ethics throughout the #orld. $he
e&ternal people also should more concern about that.
"usiness people should follo# the business ethics.
=ometimes there is disconnection bet#een the company.s code of ethics and the
company.s actual practices.
=ome companies are assessing the environmental factors that can lead employees
to engage in unethical conduct.
2thical business practices result from a corporate culture that consistently places
value on ethical behavior, a culture and climate that usually emanates from the
top of the organization.
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"usiness e&perts and ethicists ali'e point to a number of actions that o#ners and
managers can ta'e to help steer their company do#n the path of ethical business
behavior.
Conclusion
2ntrepreneurs and small business o#ners #ield great influence in determining the ethical
philosophies of their business enterprises. 2mployees often follo# the lead of the o#ner
in e&ecuting their duties and attending to their responsibilities, so it is incumbent on the
o#ner to establish a #or' environment that embraces moral standards of behavior. $here
are e&ceptions to this, of course1 dishonest and unethical employees sometimes #or' in
other#ise ethical companies, %ust as honest and ethical #or'ers can be found in
organizations #ith a prevailing culture of duplicity and selfishness. "ut a business o#ner
or manager #ho #ishes to establish an ethical mind set in his or her company can help
the cause by being proactive.
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