Thoufeeq Azlam Khan

User Type : Moderator
Ethics in Business

Ethics in Business

Post By : Thoufeeq Azlam Khan

Post Rank : 2836th

Category : Business

Sub Category : Start Ups

27 Jan 2014

The term ethics has a variety of meanings. One way to interpret ‘Ethics’ is – the priciples of conduct governing a group or an individual. Another way of defining ethics is what is good or bad having to do with moral duty and obligation.

Business Ethics refers to the application of moral and ethical behaviour to business. It is the principles and standards that determines acceptable conduct of business.

In a company, the self-interested motive of profit is contradictory to business ethics. But now, it is a well accepted fact that business ethics creates a positive reputation for the organisation thereby increasing the chances of profit in the long run. Being ethical in business requires conducting business with an awareness of how the products and services of an organisation and the actions of its employees can affect its stakeholders and the society as a whole.

Mahatma Gandhi advised his countrymen to be truthful in business dealings and reminded them that their responsibilities were much greater since their conduct would be seen as a reflection of India. He said that, “A business man has to act only as a trustee of the society for whatever he has gained from the society. Everything finally belongs to the society.”   

Society helps in the conduct of business by giving it the authority to use their resources like labour, land and natural resources. In return the society expects and has the right to expect that the business organisations will provide the consumers with quality products and services at a fair price and to enhance the interests of consumers, employees and community.
Here rises a social contract between the society and business. What are the rules that guide the conduct of business ? The minimal duties and obligations of a business enterprise ? Business ethics provides guidance to the managers of the organisation for moral conduct of the business and also provides a view of the complications and consequences for their actions.