Business Ethics

Ethics
 Ethics is defined from the Greek word ‘Ethos’
meaning character , guiding beliefs, norms,
standards that pervades a group , a
community or people.

 Business ethics refers to the morale principle

which governs the business.
Causes of unethical behaviour
 Personal gains
 Pressure to perform at expected level.
 No knowledge.
 Competition within industry.
 Stress
Unethical business practices
 Against employees
◦ Paying less salary
◦ Poor working condition
◦ Lack of safety measures for workers
 Against government
◦ Evasion of taxes
◦ Smuggling of goods
◦ Offering bribe
 Against the consumer
◦ Adulteration of goods.
◦ Sale of duplicate products
◦ Pollution of environment.
Principle of ethics
 Principle of not to do evil.
 Principle of non-cooperation of evil
 Principle of cooperation with others.
 Principle of equivalent prices.
 Principle of proportional judgment.
 Principle of satisfaction.
 Principle of expectation
Ethical theories
 There are three periods in the history of
ethics-
 Greek period theory
 Medieval period theory
 Modern period theory

1. Relativistic ethics theory

2. Deontological ethics theory
3. Teleological ethics theory
4. Virtue theory
Factors influencing business ethics
 Social factors
 Cultural values
 Personal values
 Personal values
 Code of conducts