Ethics: Ethics is the study of what is good and evil, right and wrong, and just and unjust.

Business ethics: Business ethics is the study of proper business policies and practices regarding
potentially controversial issues such as corporate governance, insider trading, bribery, discrimination,
corporate social responsibility and fiduciary responsibilities. Law often guides business ethics, while
other times business ethics provide a basic framework that businesses may follow to gain public
acceptance.

“Business Ethics is generally coming to know what is right or wrong in the work place and doing what is
right. This is in regard to effects of products/services and in relationship with the stake holders.” —Cater
McNamara

“Business ethics in short can be defined as the systematic study of ethical matters pertaining to the
business, industry or related activities, institutions and beliefs. Business ethics is the systematic handling
of values in business and industry.” —John Donaldson

Two theories of Business Ethics

• The first, the theory of amorality, is that business should be amoral, that is, conducted without
reference to the full range of ethical standards, restraints, and ideals in society. Managers may use
compromising ethics because competition distills their selfish actions into benefits for society.
Adam Smith noted that the “invisible hand” of the market assures that “by pursuing his own
interest [a merchant] frequently promotes that of the society more effectively than when he really
intends to promote it.

• The second basic ethical view is the theory of moral unity, in which business actions are judged
by the general ethical standards in society, not by a special set of more permissive standards.
Only one basic ethical standard exists, so business actions are judged by the same principles as
actions in other areas of life.

Sources of Business Ethic:

In every society there are three sources of business ethics-Religion, Culture and Law. The HR manager in
every organization, thus, has to be well versed with the unique system of values developed by these three
sources.
These sources are discussed as follows:

1. Religion:

Religion is the oldest source of Religion is the oldest source of ethical inspiration. There are more than
ethical inspirations. 1, 00,000 religions which exist across the whole world, but all of them are in
agreement on the fundamental principles. Every religion gives an expression of what is wrong and right in
business and other walks of life. The Principle of reciprocity towards one’s fellow beings is found in all
the religions. Great religions preach the necessity for an orderly social system and emphasize upon social
responsibility with an objective to contribute to the general welfare. With these fundamentals, every
religion creates its own code of conduct.

2. Culture:

Culture is the set of important understandings that members of a community share in common. It consists
of a basic set of values, ideas, perceptions, preferences, concept of morality, code of conduct etc. which
creates distinctiveness among human groups. When we talk about culture we typically refer to the pattern
of development reflected in a society’s pattern of knowledge, ideology, values, laws, social norms and
day to day rituals. Depending upon the pattern and stage of development, culture differs from society to
society. Moreover culture is passed from generation to generation. Culture facilitates the generation of
commitment to something larger than one’s individual self interest. Culture encourages the members of
the organization to give priority to organizational goals over and above their personal interests. Culture
also serves as a sense making and control mechanism that guides and shapes the attitudes and behavior of
people. Managers have to run an industrial enterprise on the cutting edge of cultural experience. The
tension that their actions create makes the business ethically more complex.

3. Law:

The legal system of any country, guide the human behavior in the society. Whatever, ethics the law
defines are binding on the society. The society expects the business to abide by the law. Although it is
expected that every business should be law abiding, seldom do the businesses adhere to the rules and
regulations. Law breaking in business is common eg. Tax evasion, hoarding, adulteration, poor quality &
high priced products, environment pollution etc.

5 Business Myths that Used To Be True

Technology is changing the business world and unlike previous years, we now have three generations
working side by side with each other: the Baby Boomers, Generation X and Millennial. As digital natives,
Millennial understand and use technology in a way that has created a seismic shift in corporate America
and also how we conduct business.

Whether you are a seasoned executive or a young entrepreneur looking for business management advice,
you need to know the new rules of the workplace.

Here are five commonly believed business lessons that are now myths:
1. You need to pay your dues.

Historically, new college graduates were tasked with chores like getting coffee for executives and sitting
quietly in meetings for the sole purpose of taking notes. Now, with the rapid influx of new technology,
young employees are a huge asset. Yes, someone still needs to handle keeping the spreadsheets up to date
and preparing conference rooms for big meetings, but don’t overlook these new employees when it comes
to idea sharing and out-of-the-box thinking. If they feel that their ideas are taken seriously, they’ll often
surprise you with a fresh take on age-old issues and will be motivated to work harder and longer. Many
young adults are already starting and running their own businesses; the idea that you can’t be successful
without a few years of slaving away at dreadful tasks is no longer true.

2. Don’t talk money.

The new workforce is not shy when it comes to sharing how much money they make and gender-equality
issues are being brought up in the media more than ever. If you pay your employees fairly and explain
why each benefit policy is in place, your workforce will have nothing to complain about. Make sure your
company is an even playing field that rewards great work and is an open environment where employees
feel comfortable chatting with HR.

3. There’s no place for social media at work.

Can you believe that some companies still block Facebook from their office computers? The new
workforce is about trust; trust that employees will use Internet access responsibly and will only share
what is appropriate in a work setting. In fact, there are many benefits to having social media in the office.
For example, encouraging employees to share company successes over social media is great for brand
management and recruiting. Social networks are also excellent for professional networking. 

4. Work happens between 9 a.m. and 5 p.m. – and in the office.

Traditional work hours died with the invention of mobile computing. Depending on the industry you’re
in, you and your employees likely check work emails as soon as you wake up and right before you go to
sleep. As an entrepreneur, your workday never ends, and in many ways your employees will feel
empowered if you share that ideology with them. Since emails can be read and replied to on the go,
there’s no reason why employees shouldn’t have the flexibility to work the morning in a coffee shop or
leave the office at 4:00 pm to take a kick-boxing class and finish their work at home later. This goes back
to the trust issue mentioned above: Employees know they need to do their job and will be rewarded for
hard work and great results. If you trust them to do this on their schedule, you’ll form a team of
independent, motivated and energetic employees.

5. The best employees have relative experience and a five-year plan

Today’s young employees have been told repeatedly to look for a job they love doing. They don’t hold
the same old-school beliefs that you need to stay at a company for several years or that you need to have a
long-term career path. If a person with a year of experience in advertising applies for an operational
associate role, give them a chance. An employee doing something they love will do much better than a
person doing something just because they have experience in it.

As an entrepreneur, create a corporate culture that empowers your employees and makes them feel
trusted, productive and creative. Technology is creating more change and entrepreneurs need to not only
adapt to it, but embrace it. We all know that, in business and life, change is the only constant.