What is Ethics?

Ethics is the branch of study dealing with what is the proper course of action for man. It answers the question, "What do I do?" It
is the study of right and wrong in human endeavors. At a more fundamental level, it is the method by which we categorize our
values and pursue them. Do we pursue our own happiness, or do we sacrifice ourselves to a greater cause? Is that foundation of
ethics based on the Bible, or on the very nature of man himself, or neither?

Why is Ethics important?

Ethics is a requirement for human life. It is our means of deciding a course of action. Without it, our actions would be random
and aimless. There would be no way to work towards a goal because there would be no way to pick between a limitless number
of goals. Even with an ethical standard, we may be unable to pursue our goals with the possibility of success. To the degree
which a rational ethical standard is taken, we are able to correctly organize our goals and actions to accomplish our most
important values. Any flaw in our ethics will reduce our ability to be successful in our endeavors.

What are the key elements of a proper Ethics?

A proper foundation of ethics requires a standard of value to which all goals and actions can be compared to. This standard is our
own lives, and the happiness which makes them livable. This is our ultimate standard of value, the goal in which an ethical man
must always aim. It is arrived at by an examination of man's nature, and recognizing his peculiar needs. A system of ethics must
further consist of not only emergency situations, but the day to day choices we make constantly. It must include our relations to
others, and recognize their importance not only to our physical survival, but to our well-being and happiness. It must recognize
that our lives are an end in themselves, and that sacrifice is not only not necessary, but destructive.

Business is the commercial activity through which individuals or collective entities make profit.
Almost all businesses are based on one simple principle: produce something that people need and
sell it to them. All businesses are governed by the law of supply of demand and their relationship
with price. As supply decreases demand increases. As a result of demand increasing, the price of
the commodity increases as well. The converse is true as well. Take any business you know of
and test it against this model. You will find that it is a fundamental axiom in the world of
business.

Businesses exist for the sole purpose of making profit. A business that does not make profit will
wither and fail, particularly in free-market, capitalist economies. Profit is an important, in fact
the most important, component of any commercial venture. The sad thing is that many
businesses take this principle to an extreme, going to any length to ensure that they remain
profitable. The corporate world is peppered with incidences of blackmail, deceit, trickery and
theft. The public has been made more aware of unscrupulous business practices in recent years as
a result of high-level leaks. Businesses that are unprincipled may in the short run make a profit.
Eventually, however, dishonest means conclude in undignified ends. The history of the corporate
world is replete with examples of this.

One has to realize that just as there are rules that govern the basics of free-market capitalism
there must also be higher rules that govern our operation within the economic framework of the
market. Businesses, therefore, have a standard code of ethics to guide their consciences, a
touchstone against which their commercial activities can be judged. This code of ethics dictates
how businesses ought to serve their customers, interact with their suppliers and deal with their
competitors. When all businesses in a particular industry follow this code of ethics, the industry
flourishes and everyone goes home a winner. However, as mentioned before, breaking these
rules might yield short-term profitability but will inevitably result in complications at a later
stage.

Businesses that follow the standard code of ethics are responsible to their investors and their
shareholders. They are bound to the commitment to safeguard their money, spend it wisely and
return an adequate interest. Businesses are also responsible to their employees, the cogs and
wheels of their commercial machine. They are required to compensate their employees
adequately, avoid discrimination, train them and nurture them. A business is responsible,
ultimately, to the government of the nation or nations that it operates in. The government
safeguards a business' existence but creating an environment in which it can flourish. It also
provides legal safeguards that systematize and legalize the business code of ethics. Businesses,
therefore, must make it a point abide by the laws of the land, pay taxes where they are due,
refrain from bribery and other forms of corruption and report to their respective governments on
a regular basis. Lastly, a business is responsible to the customer it serves. Without customers, the
business would cease to exist. It, therefore, owes its customers quality, transparency and honesty.

Introduction:
Working capital is the life blood and nerve centre of a business. Just as circulation of blood is essential
in the human body for maintaining life, working capital is very essential to maintain the smooth
running of a business. No business can run successfully with out an adequate amount of working
capital.

Working capital refers to that part of firm’s capital which is required for financing short term or current
assets such as cash, marketable securities, debtors, and inventories. In other words working capital is
the amount of funds necessary to cover the cost of operating the enterprise.

Meaning:

Working capital means the funds (i.e.; capital) available and used for day to day operations (i.e.;
working) of an enterprise. It consists broadly of that portion of assets of a business which are used in
or related to its current operations. It refers to funds which are used during an accounting period to
generate a current income of a type which is consistent with major purpose of a firm existence.

Objectives of working capital:

Every business needs some amount of working capital. It is needed for following purposes-

• For the purchase of raw materials, components and spares.

• To pay wages and salaries.
• To incur day to day expenses and overhead costs such as fuel, power, and office expenses etc.
• To provide credit facilities to customers etc.