Nature/Features of Business Ethics-
Ethics is a subject that deals with human beings. Human by their nature are capable of judging between right and wrong, good and bad. Thus the question of ethics arises, as human beings are associated with values and morals.
There was an argument whether ethics is a science or an art. But experts were of the opinion that ethics is more a science than an art as it is a systematic knowledge about moral behavior and conduct of human beings.
Ethics is a normative science. The term normative implies a guide or control of action; so, normative ethics tell what we ought to do. Finally, ethics deals with human conduct that is voluntary and not forced by any person or circumstances.
Human beings have the ability to choose. When a choice is provided between right and wrong or good and bad an individual chooses one of the alternatives by distinguishing between the options available. This concept applies to the business, since businesses are operated by human beings; they should be able to distinguish between right or wrong. Thus, businesses also have choices or alternatives, such as to maximize profits, increase sales volume, provide employee benefits and care for society.
However, at times profits and social responsibility cannot coexist, because while earning profits entrepreneurs may neglect social responsibility. For instance, some chemical firms driven by profit motive may postpone their investment in social welfare projects like effluent treatment plants. Thus it becomes difficult to maximize both profits and social responsibility. This situation results in managerial dilemma where managers have to choose between profit for the organization and social consideration towards the community.
Most businesses encounter two types of ethical problems known as Overt and Covert ethical problems.
Overt ethical problems deal with bribery, theft, collusions, etc. They are clear and reprehensible. Whereas covert ethical situations occur in corporate acquisitions, marketing and personnel policies, capital investment, etc. They are complex and have deft ethical solutions.
The concept of ethics is very vague, abstract and unstructured. There is no universally accepted definition of ethics because ethics is dependent on moral standards. Moral standards are dependent on the value system, and value systems are dependent on an individual’s background. The background of each individual differs according to his or her experience. Hence, the ethical practices of people are different.
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