Define nature of business ethics, consider five views of business ethics and explain their merits and demerits?
Nature of Business Ethics
Business ethics concentrates on the moral standards as they apply to business policies,institutions, and behavior. Business ethics, in other words, is a form of applied ethics. It includesnot only the analysis of moral norms and moral values, but also attempts to apply theconclusions of this analysis to that assortment of institutions, technologies, transactions,activities, and pursuits that we call business.As we consider the nature of business ethics, we have two aspects;
Specific situations (areas)
of business in which ethical issues arise and
Principles of behavior.
Advertising, accounting,employee relations and environmental protection;
these areas are commonly familiar due toarising ethical controversies in them and on the other side
principles of behavior (Ethical theory)
guide us that how we should act in particular situations. We can judge whether an act isright or wrong on the basis of principles.
Diagram defining the nature of business ethics
Five views of business ethics
1)Business is Business2)Act consistently with law3)Good ethics mean good business4)Conventional morality5)Universal morality
Business is Business
This view of business ethics based on maxim “Business is business and cup of tea is a cup of tea” informs us that a business man should only focus on his business activities to maximizeprofits and no moral responsibility is taken.It has some merits and demerits:
More job opportunities for people
No sexual harassment and colour discrimination
Purely fair selection of applicants for jobs
No nepotism (favoritism)
Hiring intelligence from designated positions of other organizations
Poor quality goods (shoddy goods)
Having unnecessary staff
Not customer oriented (customer not satisfied)