Social responsibility requires individuals engaging in business endeavors to behave in anethical manner.
Ethics are principles of behavior that distinguish between right and wrong.
Ethical conduct conforms to what a group or society as a whole considers right behavior.People working in business frequently face ethical questions.
Business ethics is theevaluation of business activities and behavior as right or wrong.
Ethical standards inbusiness are based on commonly accepted principles of behavior established by the
expectations of society, the firm, the industry, and an individual’s personal values.
can be defined as the critical, structured examination of howpeople & institutions should behave in the world of commerce. In particular, it involvesexamining appropriate constraints on the pursuit of self-interest, or (for firms) profits,when the actions of individuals or firms affects others.
(9)With unethical business practices often receiving publicity, the public sometimes believethat people in business are less ethical than others in society. But ethical problemschallenge all segments of our society, including government, churches, and highereducation.Most business leaders realize their firms cannot succeed without the trust of customers andthe goodwill of society. A violation of ethics makes trust and goodwill difficult to maintain.In thousands of companies, executives and employees act according to the highest ethicalstandards. Unfortunately managers in some firms behave unethically, and these instancesare often highly publicized. Personnel executive say the major reason managers behaveunethically is to obtain power and money.
is a wider term that includes many other sub ethics that are relevant to therespective field. For example there is marketing ethics for marketing, ethics in HR for HumanResource Department and the like. Business ethics itself is a part of applied ethics; the lattertakes care of ethical questions in the technical, social, legal and business ethics.
Origin of Business Ethics
When we trace the origin of business ethics we start with a period where profitmaximization was seen as the only purpose of existence for a business. There was noconsideration whatsoever for non-economic values, be it the people who worked withorganizations or the society that allowed the business to flourish. It was only in late
’s that both intelligentsia and the academics as well a
s the corporate began toshow interest in the same.