Business Ethics

CHAPTER ± 3

Concept ‡ ETHICS is derived from the Greek word µETHOS¶ which means Character . set of rules and principles to be followed by Business Firms while dealing with consumers and other business firms. ‡ ETHICS refers to codes of conduct. ‡ Business Ethics refers to codes of conduct. set of rules and principles to be followed while dealing with people . .

ETHICS SOCIAL RESPONSIBILITY SOCIAL AUDIT .

³Business ethics is an art or science of maintaining harmonious relationship with society .´ .O WHEELER .DEFINITION : According to B. its various groups and institutions as well as reorganizing the moral responsibility for the rightness or wrongness of business conduct .

³ GOOD ETHICS IS GOOD BUSINESS ´  ³NO ETHICS . NO BUSINESS ´  ³ETHICAL BUSINESS IS PROFITABLE´  ³ETHICAL BUSINESS GENERATES GOODWILL ´ ³UNETHICAL BUSINESS LEADS TO EXPLOITATION OF CONSUMERS AND SOCIETY AT LARGE ´ .

 SELLING EXPIRED PRODUCTS. HOARDING.UNETHICAL PRACTICES CONSUMERS:  SUPPLYING INFERIOR QUALITY PRODUCTS. . ADULTERATION. BLACKMARKETING.  MISBRANDING.  CHARGING HIGH PRICES BY CREATING ARTIFICIAL SCARCITY FOR PROFIT MAXIMISATION .

 UNFAIR SALES PROMOTION TECHNIQUES (FALSE ADVERTISING CLAIMS)  EMPLOYEES :  PAYING LOW WAGES AND SALARIES. . INADEQUATE WELFARE FACILITIES .  EXPLOITATION OF CHILD LABOUR AND WOMEN WORKERS.  LACK OF SAFETY AND SECURITY MEASURES.

. DISREGARD TO DEMANDS OF LABOUR UNIONS .  SHAREHOLDERS :  PAYMENT OF LOW RATE OF DIVIDEND.  MISUSE AND MISMANAGEMENT OF FUNDS INVESTED BY SHAREHOLDERS.  NO PROTECTION OF INVESTORS¶ INTEREST.  NO REGULAR RETURN.

 GOVERNMENT :  AVOIDING PAYMENT OF TAXES AS PER LAWS. GOVERNMENT POLICIES.  DISREGARD TO BUSINESS LAWS.  CREATING MONOPOLIES AND AVOIDING COMPETITION. .  MISUSE OF INCENTIVES AND SUBSIDIES GIVEN BY GOVERNMENT.

 MISUSE AND EXPLOITATION OF NATURAL RESOURCES . ENVIRONMENT :  DISREGARD TO POLLUTION CONTROL MEASURES AND VIOLATION OF LEGAL PROVISIONS RELATING TO ECOLOGICAL BALANCE. .

non-political organization formed by businessmen for promoting business ethics. It is a non-profit. The following obligations are included in this code: .ROLE OF CFBP CFBP : Code of fair business practices.

. 5. 7. Not to publish mislead advertising. Not to engage in illegal business activities. 3. To provide efficient and timely after-sales service. To invoice goods at fair and reasonable prices. To charge fair and reasonable prices. Not to produce poor quality products.1. 4. profiteering . 6. Not to engage in black-marketing and hoarding. 2.

 Every year. Members of CFBP can develop a good image in the society .  These Awards are given to Individual Businessmen and Business enterprises. . Awards are given to members showing excellent performance in regard to fair trade .  This code of ethics is recognized by the International Chamber of Commerce. Advertising Councils of India and other Apex bodies.

Sign up to vote on this title
UsefulNot useful