Meaning Of Business Ethics

Meaning Of Business Ethics

Business Ethics refers to the system of moral principles applied to business activities. It deals with morality in the business. There should be ethics behind all business activities. This means the business activities should be conducted according to certain self recognized moral standards. Business ethics refers to a code of conduct which businessmen are expected to follow while dealing with others and also fellow businessmen. The coverage of business ethics is wide as it relates to customers, shareholders, employees, dealers, government and competitors.  These are in fact the different areas of business ethics.

Business Ethics suggest that dealings with all social groups should be honest and fair. In the case of customers, businessmen should avoid unfair trade practices. In the case of shareholders, correct position about financial position, current status and future prospects of the company should be provided through company reports. In the case of employees, justice should be done to them as regards wages, Working conditions and facilities. In brief, businessman should make distinction between ethical and unethical practices and follow ethical business practices.

DEFINITIONS OF BUSINESS ETHICS

(1) According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the rightness or wrongness of business conduct. ”

(2) Dr. C. B. Mamoria and Dr. Satish Mamoria, defines business ethics as “Businessman’s integrity so far as his conduct or behaviour is concerned in all fields of business as well as towards the society and other business. “