Is related to the moral principles that should govern business activities?
Ethics is a subject of social science that is related with moral principles and social values. 'Business Ethics' can be termed as a 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. Show Businesses must abide by some basic principles. It should provide quality goods and services at reasonable prices to their consumers. It must also avoid adulteration, misleading advertisements, and other unfair malpractices. A business must also perform other duties such as distributing fair wages, providing good working conditions, not exploiting the workers, encouraging competition, etc. Business Ethics – DefinitionThere are many definitions of business ethics, but the ones given by Andrew Crane and Raymond C. Baumhart are considered the most appropriate ones. According to Crane, "Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed." Baumhart defines, "The ethics of business is the ethics of responsibility. The business man must promise that he will not harm knowingly." Features of Business EthicsThere are eight major features of business ethics −
Principles of Business EthicsThe principles of business ethics are related to social groups that comprise of consumers, employees, investors, and the local community. The important rules or principles of business ethics are as follows −
Follow Woodrow Wilson's rules − There are four important principles of business ethics. These four rules are as follows −
Example of Unethical Business PracticesSatyam Computers, a global IT company, was defamed in a notorious list of companies involved in fraudulent financial activities. The list includes names such as Enron, WorldCom, Parmalat, Ahold, Allied Irish, Bearings and Kidder Peabody. Satyam’s CEO, Ramalinga Raju, accepted his role in a broad accounting impropriety that had overstated the company’s net revenue and profit. The company had earlier reported a cash reserve of approximately $1.04 billion that actually existed only in books but not in reality. In his letter to his board, exposing the fraud, Satyam’s Raju showed the propensity of the fraud. He stated that, “What started as a marginal gap between actual operating profits and ones reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions. …” Later, he described the process as “like riding a tiger, not knowing how to get off without being eaten.” What is the moral principle of your business?What Are the 7 Business Ethics? Business ethics is an evolving topic. Generally, there are about 12 ethical principles: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, law-abiding, transparency, and environmental concerns.
What are moral principles that govern?Ethics - Moral principles that govern a person's behaviour or the conducting of an activity. The definition implies action. In other words, ethical considerations should be embodied and evidenced in decision-making and actions.
What are the 7 principle of ethics in business?There are seven principles of business ethics including accountability, care and respect, honesty, healthy competition, loyalty, transparency, and respect for the rule of law.
What are the 3 types of business ethics?Corporate ethics codes often include subjects like social responsibility, insider trading, discrimination, corporate governance and bribery.. Personal responsibility. ... . Corporate responsibility. ... . Loyalty. ... . Respect. ... . Trustworthiness. ... . Fairness. ... . Social and environmental responsibility.. |