HISTORY AND BACKGROUND

Ethical knowledge is not precise knowledge like mathematics or logic,

but general knowledge of nutrition. Also it is a practical discipline, rather
than theoretical i.e. in order to be good, one should not just study, what is
good, but also practice it. According to Aristotle, the philosopher, the aim of
ethics is the HIGHEST GOOD.
In simple words, any ethical conduct brings peace and harmony to
person and to the community and unethical conduct brings pain and misery.
Ethics is also a normative science it means it lays down the norms or rules of
what is good and what is bad. So it specifies what we “ought” to do and
what we “not to do”.
Since time immemorial, volumes have been written on what is ethical
and what is unethical what is fair and what is appropriate in a given
situation. In simple words, ethics is self realization. Our hypothesis is that
man is divine in nature. However it does not mean it is the end of all
endeavours. God is not in man in such a obvious fashion that he can possess
HIM absent mindedly and without any efforts or struggle. God is present in
every human being as a potential and a possibility. Though the individual is
born with a divine spark he is not wholly divine. He is part of God, aspiring
to be whole. If man in his ignorance, identifies himself with his selfishness,
animal instincts, cravings and passions. If he is lead by the ambitions of the
ego. The lust of the animal self he would never be able to reach the highest
realization of his self.
In short, Man’s aim as a spiritual being is to blend in love and be
united with the divine principle. Thus moral or ethical conduct is a SELF –
REALISED conduct.
 One does not have to go to any school to learn ethics. In order to know
what is ethical – one needs to introspect and ask a simple question.
If any one of my actions, thoughts, spoken words create a guilt, sorrow and
regret after it is performed or expressed? If the answer is yes, then it is an
ethical conduct. Further does my action thoughts or spoken words generate
confusion, anxiety and indecisiveness before I perform it or express it – then
– yes then once again it is unethical conduct. When any of my action,
thought or spoken words result in joy, happiness and satisfaction to me and
others it is undoubtedly an ethical conduct. If before I perform the action, or
express my thoughts or speech. I feel calm serene, composed and full of
compassion then it leads to ethical conduct.
It is only through the power of discrimination – viveka that a man can
choose between two elves: One which is driven by the animal instincts – A
self which is eternally craving for abstentious pleasures, in having and
possessing and the other is spiritual self which believes in being which is
serene, composed and eternally blissful. Ethics gives us the vision to
discriminate and decide on a course of action.

WHAT IS BUSINESS ETHICS?

Business ethics is a branch of ethics which prescribes standards of how
the business is to be carried out. It lays down guidelines for the company’s
response and accountability to its various stakeholders. It has to maintain a
fine balance and take care of the interest of the shareholders on one hand and
the other like the employees, suppliers, customers and community at large
on the other hand. All stakeholders have different objectives of what they
expect from the company and at times these objectives may be conflicting in
nature. For instance maximizing shareholders wealth is one of the important
objectives of any company. In order to serve this objective, the company
should not neglect other objectives of other stakeholders – like employees
need a fair remuneration and good working condition. Customers would
demand quality products at reasonable prices and society at large would be
looking forward to the company to provide employment opportunities to as
many people as possible, fund development projects as a social
responsibility and follow financial discipline and transparency in all its
dealings. Business ethics would tell us what is “RIGHT” and what is
“JUST” in a globalize world where the survival of the corporation is decided
by the market place.
 Business ethics also deals with the behaviors and response of a
manager in a given situation. A manager in his professional life at times
faces dilemmas – as there is a conflict between an organizations economic
performance (measured by revenue and profit after tax) and its social
performance stated in terms of obligation to all stakeholders.
These dilemmas cost both, the organization, which is evaluated by
financial standards and managers, who are subject to performance
appraisals. The sales managers who would bribe to get orders will have
higher sales, commission and would be appraised the best than the one who
refuses to succumb to such a pressure may have to leave the job as his
performance was not good. Business ethics would deal with such dilemmas
and strike a “fair” balance between the economic performance and the social
performance of an organisation

ADVANTAGES OF BUSINESS ETHICS

1. It builds a value based organisation ethical behavior is important for

business leaders as they imbibe high degree of trust, integrate and
motivate and empower all the stakeholders thereby building a strong
orgnisation which can compete in a globalised economy.
For e.g. Tata group of company has a very good
reputation of business ethics.
2. It creates awareness about the corporate social responsibility of
business. A business is a part of the society and it share its
prosperity by offering various facilities and services to its immediate
community. It also funds important projects which are for welfare of
the community. For e.g. building garden, hospitals, schools.
3. Business ethics is a practice and the managers has to study the theory
of business ethics and practice it in their professional life as they
understand the nature of ethical dilemma and analyzing it they are
better equipped to practice business ethics.
4. Practicing ethics at work place makes the individual associated with
the organisation aware about their divine nature and brings peace and
harmony to all f them