It’s personally reflecting on ideas and beliefs associated with

behaviours and actions.

We start with the idea that there are certain things,

irrespective of culture, country, gender, colour or profession,

that are...right or wrong. In the words of Peter.F.Drucker, ―Ethics deals with right

actions of individuals‖ , Ethics includes the following

1. Well based standards: Ethics refers to well based standards of right and wrong that prescribe what humans ought to do

2. Study and development of one‘s ethical standards: Ethics

refers to the study and development of one‘s ethical standards

What is ethics? What are ethics?

Business Ethics refers to carrying business as per self-acknowledged

moral standards. It is actually a structure of moral principles and code of

conduct applicable to a business. Business ethics are applicable not only to

the manner the business relates to a customer but also to the society at

large. It is the worth of right and wrong things from business point of view.

Ethics concern an individual's moral judgements about right and wrong.

Decisions taken within an organisation may be made by individuals or

groups, but whoever makes them will be influenced by the culture of the

company. The decision to behave ethically is a moral one; employees must

decide what they think is the right course of action. This may involve

rejecting the route that would lead to the biggest short-term profit .

Definition of Business Ethics

Business ethics not only talk about the code of conduct at workplace but also with the

clients and associates. Companies which present factual information, respect everyone

and thoroughly adhere to the rules and regulations are renowned for high ethical

standards. Business ethics implies conducting business in a manner beneficial to the

societal as well as business interests.

Every strategic decision has a moral consequence. The main aim of business ethics is to

provide people with the means for dealing with the moral complications. Ethical decisions

in a business have implications such as satisfied work force, high sales, low regulation

cost, more customers and high goodwill.

Some of ethical issues for business are relation of employees and employers, interaction

between organization and customers, interaction between organization and shareholders,

work environment, environmental issues, bribes, employees rights protection, product

safety etc.

Definitions Continued

Below is a list of some significant ethical principles to be followed

for a successful business-

1. Protect the basic rights of the employees/workers.

2. Follow health, safety and environmental standards.

3. Continuously improvise the products, operations and production

facilities to

optimise the resource consumption

4. Do not replicate the packaging style so as to mislead the consumers

5. Indulge in truthful and reliable advertising

Ethical Principles

6. Strictly adhere to the product safety standards.

7. Accept new ideas. Encourage feedback from both employees as well as

customers.

8. Present factual information. Maintain accurate and true business records.

9. Treat everyone (employees, partners and customers) with respect and

integrity .

10. The mission and vision of the company should be very clear to it.

11. Do not get engaged in business relationships that lead to conflicts of

interest. Discourage black marketing, corruption and hoarding.

12. Meet all the commitments and obligations timely.

Ethical Principles Cont …

13. Encourage free and open competition. Do not ruin

competitors’ image by fraudulent practices.

14. The policies and procedures of the Company should be

updated regularly.

15. Maintain confidentiality of personal data and

proprietary

records held by the company.

16. Do not accept child labour, forced labour or any other

human right abuses.

Ethical Principles Cont …

While the law imposes some ethical rules, legislation cannot possibly define

business ethics as a whole and cannot address every situation in which

ethical dilemmas may arise.

A code of ethics is a set of principles and rules used by companies,

professional organisations and individuals to govern their decision making

in choosing between right and wrong . Depending on the context of a

given code of ethics, penalties and/or sanctions may result from a violation.

Code of ethics are generally used in the business & professional context to

ensure the public that corporations and members of regulated professions

are acting in a socially and professionally accepted manner. Organisations

with an established and published code of ethics have in place review

processes and appeals procedures to guard against malicious or self-

serving use for individual effort.

Code Of Ethics

Companies and professional societies set their own ethical standards in an attempt to provide guidance for difficult choices.

These ethical rules are often referred to as code of conduct or rules of conduct, by which those in the group abide.

Each group determines their ethical stance based upon different guidelines, whether it is established principals, religious book, or group agreement.

While members of the group may follow the ethical guidelines as a principal by which they believe everyone should act , they might also have a set of personal ethics which also governs their own behaviours .

Code Of Ethics Cont …