BUSINESS ETHICS

Meaning of Business Ethics :

Business ethics refers to moral principles and social values that business should adopt in its
code of conduct. These are rules that businesses must accept and follow in its day to day
operations for the welfare of society and all its stakeholders.

Business ethics helps the business to maintain better and harmonious relations with society,
customers, employees, and the concerned industry sector. Ethics adopted by the business
should be followed strictly by each and every person working with the business. 

Business ethics have an important role in raising the profitability and productivity of a
business and improves its goodwill in the market.
DEFINITION :

According to Raymond C. Baumhart, "The ethics of business is the

ethics of responsibility. The business man must promise that he will not
harm knowingly."
Types of Business Ethics :

Business ethics as a field of study is incredibly diverse, but many

concepts can be divided into a few basic principles. Every business
should strive to follow these guidelines in the pursuit of success.
• Trustworthiness
• Respect
• Fairness
• Caring
Importance of Business Ethics :
1. Control Business Malpractices
2. Better Relation with Employees
3. Improves Customer Satisfaction
4. Increase Profitability
5. Improves Business Goodwill
6. Better Decision Making 
7. Protection of Society
Functions of Business Ethics:
1. Protect consumer rights
2. Enhance relations with society
3. Safeguard interest of industry
4. Improve business goodwill
5. Assist in decision making