Lesson 04:

Business ethics
1/ what is business ethics?

The moral principles that act as guidelines for the way a business conducts itself and its
transactions. In many ways, the same guidelines that individuals use to conduct themselves in
an acceptable way – in personal and professional settings – apply to businesses as well.

2/ The benefits of business ethics are:

A business may be conducted according to certain self-recognized business ethics. If so,
certainly, the following benefits are available to the concerned groups.

a. Customers:
* Receive quality goods.
* Pay reasonable price.
* No difficulty in obtaining goods.
* No price discrimination.
b. Employees:
* Fair wages.
* Better working conditions and working environment.
* Recognizing human feelings.
* Reward for efficiency.
* Job security.
* Participation in management.
* Proper personnel policy.
c. Industry:
* Healthy competition.
* Better co-operation and co-ordination.
* Steady growth.
d. Business:
* Adequate Profit.

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* Fast growth.
e. Society:
* Better utilization of resources.
* Improving standard of living.
* No pollution problem.
f. Government:
* Prompt collection of taxes.
* Development of nation.
* Easy implementation of legislation.
3/ Importance of business ethics:
 Increases customer loyalty.
 Reduce business risk.
 Ethical investments keeps growing.
 Enhance the strength of the management.
 Profitability.
 Attract investors and customers.
 Enhance productivity.
 Clients and customers believe in your company and want to support it.

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