Ethics refers to a system of moral principles a sense of right and wrong, andgoodness and badness of actions and the motives and consequences of these actions.
As applied to business firms, ethics is the study of goodand evils, right and wrong and just and unjust actions of businessmen.
Ethics is a body of principles or standards of human conduct that govern thebehavior of individuals and groups. Ethics arise not simply from man'screation but from human nature itself making it a natural bodyof laws fromwhich man's laws follow.Ethics is a branch of philosophy and is considered a normative sciencebecause it is concerned with the norms of human conduct, as distinguishedfrom formal sciences such as mathematics and logic, physical sciences suchas chemistry and physics, and empirical sciences such as economics andpsychology
Ethics is seen as an individual’s own personal attitude and a believeconcerning what is right or wrong, good or bad
. It is important to note thatethics reside within individuals and that organization doesn’t have ethics.People have ethics.
Consequently, its definition and understandingvaries from person to person.
These are not absolute, but are relative.Ethical behaviors are in the eye of beholder. What is right or wrong is apersonal individual matter, but is still influenced by socially accepted norms.
Right, and proper and fair are the ethical terms
. It expresses a judgmentabout behavior towards people they felt to be just. Ethics are useful tools for sorting out the good and bad components within complex human interactions.Business ethics does not differ from generally accepted norms of good or badpractices. If dishonesty is considers to be unethical and immoral in thesociety, then any business man who is dishonest his or her employees,customer’s shareholders, or competitors is unethical and immoral person.Businessmen should not try to evolve their own principles to justify ‘what isright and what is wrong’
A.16 Formation of ethics