Mandakh University,

School of the information technology

Acc-Is3 M.Nyamgerel

Business ethics

Name of lesson: Accounting

Code of lesson: ENG313

Ulaanbaatar
2019
 Mandakh University,
School of the information technology

Business ethics
Performed by:……………………../Nyamgerel.M ACC-IS 3/
Checked by:……………………....../Sarantuya.D Associate Professor/

Ulaanbaatar
2019

INTRODUCTION
 • The Term Ethics derived from Greek word ‘Ethos’ which means ‘Character’.

• Ethics is a social science which deals with concepts such as right and wrong, moral and
immoral, good and bad etc.

• Behavior of Dealing with one another

MEANING OF ACCOUNTING

What is business ethics?

Meaning

Business Ethics deals with morality in the business.it is a system of moral principles and values
applied to business activities. This means the business activities should be conducted according
to ethics or moral standards

Definition

Business ethics is the study of appropriate business policies and practices regarding potentially
controversial subjects including corporate governance, insider trading, bribery, discrimination,
corporate social responsibility, and fiduciary responsibilities. The law often guides business
ethics, but at other times business ethics provide a basic guideline that businesses can choose to
follow to gain public approval.

Understanding Business Ethics

Business ethics ensure that a certain basic level of trust exists between consumers and various
forms of market participants with businesses. For example, a portfolio manager must give the
same consideration to the portfolios of family members and small individual investors. These
kinds of practices ensure the public receives fair treatment.
The concept of business ethics began in the 1960s as corporations became more aware of a rising
consumer-based society that showed concerns regarding the environment, social causes, and
corporate responsibility. The increased focus on so-called social issues was a hallmark of the
decade.

Business ethics concentrate on moral standard as they apply to business policies,

institutions and behavior. It is a specialized study of moral right or wrong. It is a

form of applied ethics.

Law + Knowledge = Ethics

Features of Business ethics

• Code of conduct : Business ethics is a code of conduct. It tells what to do and what not
to do for the welfare of the society. All businessmen must follow this code of conduct.
• Based on moral and social values : Business ethics is based on moral and social values.
It contains moral and social principles (rules) for groups, not to exploit others, etc.
• Gives protection to social groups : Business ethics give protection to different social
groups such as consumers, employees, small businessmen, government, shareholders,
creditors, etc.
• Provides basic framework : Business ethics provide a basic framework for doing
business. It gives the social cultural, economic, legal and other limits of business.
Business must be conducted within these limits.
• Voluntary : Business ethics must be voluntary. The businessmen must accept business
ethics on their own. Business ethics must be like self-discipline. It doing business. This
includes self-control, consumer protection and welfare, service to society, fair treatment
to social must not be enforced by law.
• Requires education and guidance : Businessmen must be given proper education and
guidance before introducing business ethics. The businessmen must be motivated to use
business ethics. They must be informed about the advantages of using business ethics.
Trade Associations and Chambers of Commerce must also play an active role in this
matter.
 • Relative Term : Business ethics is a relative term. That is, it changes from one business
to another. It also changes from one country to another. What is considered as good in
one country may be taboo in another country.
• New concept : Business ethics is a newer concept. It is strictly followed only in
developed countries. It is not followed properly in poor and developing countries.
What are the Advantages of Business Ethics?
Business ethics offer companies a competitive advantage. Consumers learn to trust ethical
brands and remain loyal to them, even during difficult periods. In 1982, Johnson & Johnson
spent over $100 million dollars recalling Tylenol, its best-selling product, after someone
tampered with bottles of the painkiller. The company followed its credo, a set of ethical
organizational values, and the result was a boost in consumer confidence, despite the
contamination scare. Society benefits from business ethics because ethical companies recognize
their social responsibilities.

What are the Disadvantages of Business Ethics?

Business ethics reduce a company's freedom to maximize its profit. For example, a

multinational company may move its manufacturing facility to a developing country to reduce
costs. Practices acceptable in that country, such as child labor, poor health and safety, poverty-
level wages and coerced employment, will not be tolerated by an ethical company.
Improvements in working conditions, such as a living wage and minimum health and safety
standards reduce the level of cost-savings that the company generates. However, it could be
argued that the restrictions on company freedom benefit wider society.

Conclusion

 A company's ethics will determine its reputation

 Good business ethics are essential for the long-term success of an organization

 A company's ethics will have an influence on all levels of business. So we hope that all
the organization should maintain business ethics
Ashiglasan nom zui

• file:///C:/Users/user/Downloads/document.pdf “business ethics book page6-9”

• https://www.slideshare.net/bachkana/sumiya-46519571 “Business plan lectures ”

• https://epdf.pub/business-ethics-in-healthcare-beyond-compliance.html “business ethics

book page4-5”

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