Introduction: The Ethics in Business
In this article let’s see the Definition for Ethics in Business & its principles in detail.
What does the Ethics in Business mean?
- The Ethics in Business means to conduct business with a human touch in order to give welfare to the society. So, the businessmen must give a regular supply of good quality goods and services at reasonable prices to their consumers.
- Businessman must avoid indulging in unfair trade practices like adulteration, promoting misleading advertisements, cheating in weights and measures, black marketing, etc. They must give fair wages and provide good working conditions to their workers. They must not exploit the workers. Businessman must encourage competition in the market. Businessman must protect the interest of small businessmen. They must avoid unfair competition and also avoid monopolies. They must pay all their taxes regularly to the government.
Meaning of the Ethics in Business
- The word ethics is derived from the Greek word ‘ethos’, which means character. Ethics is a branch of philosophy concerned with human character and conduct. It is the discipline dealing with ‘what is good and bad’ and with moral duty and obligation. Ethics is the embodiment of moral values, which describes what, is ‘right’ and what is ‘wrong’ in human behavior and what ‘ought to be’.
- Business ethics study the special obligations that a man and a citizen accept when he becomes a part of the world of commerce. Business ethics are the norms and moral values of human behavior desired by the contemporary society exclusively and inclusively dealing with commercial transactions.
- Business ethics means the behaviour of a businessman while conducting a business, by observing morality in his business activities. The behavior of a businessman has more impact within the business organisation than outside.
Definition for Ethics in Business
- According to Andrew Crane Definition for Ethics in business is, “Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed.”
- According to Raymond C. Baumhart, “The ethics of business is the ethics of responsibility. The business man must promise that he will not harm knowinfly.”
- According to Wikipedia, “Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.”
Principles of the Ethics in Business
There are four important principles of business ethics. These four rules are as follows:
- Rule of publicity: According to this principle, the business must tell the people clearly, what it tends to do.
- Rule of equivalent price: The customer should get proper value for their money. Below standard, outdated and inferior goods should not be sold at high prices.
- Rule of conscience in business: The businesspersons must have conscience while doing business, i.e. a morale sense of judging what is right and what is wrong.
- Rule of spirit of service: The business must give importance to the service motive.
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