By Mahaver soni MBA 1st sem

Definition
Ethics is a system of moral principle ,rules & conduct
This word is Latin language meaning is science of

moral

Importance of Business Ethics

Ethics corresponds to basic human needs
Values create credibility with the public Values help better decision making

Ethics and profit go together

Business ethics
Rules or standards governing

the conduct of a business Moral code what is right and what is wrong? Highly subjective nature Tension between different stakeholders

Stakeholder

Contd.
Shareholders Generate profits

and pay dividends Customers provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness Employees health and safety at work, security, fair pay Suppliers pay on time, pay fair rates for the work done, provide element of security

Cont.
Local Community provide employment, safe

working environment, minimise pollution and negative externalities provide external benefits? Government abide by the law, pay taxes, abide by regulations Management their aims versus those of the organisation as a whole Environment limit pollution, congestion, environmental degradation, development, etc.

Moral Behaviour

Business Ethics
Examples: Baby milk McDonalds food quality, litter Jewellery diamonds and gold

Business Ethics
Solutions:
Taxation Self Regulation Subsidies

Government/EU regulation
Legislation Pressure Groups Improve competition and contestability

of markets Social and Environmental Audits

Concept of Business Ethics