Business ethics is that set of principles or reason which should govern the conduct of business both at the individual or collective level by the application of ethical reasoning to specific business situations & activities. Some of the factors justifying the need for business ethics are:-
ü Society bestows upon businesses the authority to own and use land & natural resources. In return society has the right to expect that productive organization will enhance the general interest of consumers, employees & community. Society may also expect that organization will honour existing rights and limit their activities within the bounds of justice.
ü The products and services of an organization and the actions of its members can affect its stakeholders i.e. employees, the community and society as a whole, either positively or negatively.
Business ethics provides guidance regarding the expectations of the community, principles of morality, consequences & complications of their actions, etc. Hence, business ethics are extremely needed for well-being of organization as well as community as a whole.