Introduced By

Amruta Gaikwad Summaya Ghadiyali Sneha Ghag ` Nikita Gondhalekar Roshni Gothal Samiksha Hadkar Namrata Hire

Roll No.
09 10 11 12 13 14 15

What is Business Ethics?

Business Ethics refers to a code which businessmen are expected to follow while dealing with others. Business Ethics are those principles, policies or philosophies that are concerned with moral; judgment and good conduct as they are applicable to a business situation.

Definition of Business Ethics

Business ethics is primarily concerned with the relationship of business goals and techniques to specific human needs. -Prof. Thomas M. Garret Business Ethics is an Art or Science of maintaining harmonious relationship with society, its various groups and institutions as well as recognizing the moral responsibility for the rightness or wrongness of business conduct. -Prof. B. O. Wheeler

Features of Business Ethics

Universal application Based on moral & social values Protect consumers Provides framework Cannot be enforced by law Not against profit Supports expansion of business

Approaches to Business Ethics

Empirical approach Intuitive approach

Rational approach
Revelation approach

Business Ethics

Scope for Business Ethics

Criminal behavior and legal framework Human values and personal behavior

Corporate and Business Ethics

Importance of Business Ethics

Customer satisfaction Protection to consumer Improve the confidence of the consumer Protection to right of the customer

Create good image of businessman

Long lasting impression Not against the profit making

Business Ethics And Profits

The term profit in business is appropriate but only profit is not acceptable any more. A firm that not performing well is considered as liability and burden to the society, as it cannot discharge its responsibility to its community, welfare to its employee, revenue to shareholders and meet customer demands.

 The profit today is recognized as a characteristics of the success of the business and a justification for its existence.
Such a loss making company makes huge liabilities: Upset the business. Promote inefficiency. Cannot discharge its social responsibility.

What is Ethical Business Practices?

Business practices, which are legally, morally, and socially fair and Consumer friendly are ethical practices.
Ethical practices are socially useful and create cordial relations between business and society.

Ethical Business Practices

Insuring safety of the money & timely payment of interest to investors. Provision of fair opportunities in promotions and training, good working conditions and timely payment of salaries Polluting industries should ensure compliance with the government norms regarding pollution

Complete information of the service and product should be made available to the customers and their personal information should not be disclosed
Unethical practices and methods should be avoided while handling competitors Government rules and regulations regarding taxes, duties, trade practices etc should be avoided

Benefits of ethical business practices

Fair treatment to all social groups and offer safety and satisfaction Provide social support to business Facilitates growth and expansion Develop good corporate image to business enterprises

 Avoids social control on business, criticism and non co-operation from consumers and other social groups Raises social satisfaction and welfare
Creates goodwill for the business

Unethical business practices

Business practices which are not fair (legally, morally and socially) are treated as unfair/ unethical business practices.

PURPOSE:
To exploiting/cheating consumer and other social groups. For the profit maximization at the cost of social good. To exploit the specific social group for profiteering.

AFFECTS : Consumer Employee Government Shareholder And Society

Usually Unethical Business Practices Used In India Are Noted Below

Resorting to dishonesty, trickery

or deception.
Distortion of facts to mislead or confusion

Manipulating people emotionally by exploiting

their vulnerabilities

Greed to amass excessive profit.

 Creation of false documents to show increased profits.

Avoiding penalties or compensations for unlawful

acts.

Lack

of

transparency

and

resistance

to

investigation. Invasion of privacy used as leverage, for obtaining personal and professional gains.

Measures for effective implementation of ethical standards and morals

Ethical audit Ethical training Business Ethics consultants Ethical code of conduct Ethics committee Ethics hotlines

 Rewarding exemplary conduct Disciplinary actions Efficient systems Government laws

CONCLUSION
The need for business ethics is felt more in recent years. This may be the result of various factors such as growing competition in business, growing alertness amount consumers as regards their rights and growing awareness among employees, shareholders and the local community. People are not in mood to tolerate unethical business.