BUSINESS ETHICS

WHAT IS BUSINESS ?
Business refers to an enterprising entity or
organization that carries out professional activities.
They can be commercial, industrial, or others.
WHAT IS ETHICS ?
In the Middle Ages, Thomas Aquinas developed a
synthesis of Biblical and Aristotelian ethics called
natural law theory, according to which the nature of
humans determines what is right and wrong.
Origins and Roles of Business
Organizations
Traditionally, the primary role of a business is to
create wealth for its stakeholders. Generally,
stakeholders pertain to the shareholders, employees,
customers, and society. The profitability of the
business is essential to business survival and job
creation. When a company is profitable, it
contributes to and boosts the economy.
Throughout human history, people have traded and exchanged goods
and services to fulfill their needs - food, water, clothing, and shelter. In
modern times, these needs have expanded to include education,
safety, transportation and medicine. With the improvement of the
quality of life, opportunities to satisfy people's wants have become
abundant. Instead of using public transportation to travel (a need), one
might want to drive a car (a want); or in place of a public pay phone to
communicate (a need), one might want to use the current mobile
phone model (a want).

To take advantage of the opportunities presented by these needs and

wants, some individuals have decided to use their skills, efforts, and
assets to provide goods and services to the other people. A person
who uses these opportunities to organise and operate a business, and
who accepts the risks of operating a business is called an
ENTREPRENEUR.
• Division of Labor is the source of interdependence of
entrepreneurs and organizations, which results into increase in
trading. It also increases productivity of the organization and
the individual worker.

• The word entrepreneur first appeared in the french dictionary in

1723. It was used to describe a person who undertakes and
manages a business by taking a financial risk. These
entrepreneurs, in return, pay taxes to the governing bodies. The
government then uses these taxes to pay for the services
people need, such as health care, education, and recreational
facilities.
The Concept of a Modern Corporation

• An organization is formed and lawfully recognized by the

government. Each business organisation is given a registration
certificate that allows the organization to operate the business and
the owner or its representatives are required to submit documents
to close down the business.

• A business organization is a "group of individuals systematically

united for the accomplishment of a common purpose or
undertaking for profit in any of the several ways allowed and
regulated by law “Securities and Exchange Commission (SEC),
exercise adequate supervision over business organizations '
activities and operations. Their role is to develop and foster good
governance and enhance investor protection.
Roles of Business Organizations in Society

• Provide products and services needed

• Provide employment (The wages that employees
receive are used to purchase other goods and
services)
• Profits from the organizations are used to
compensate stockholders.
• A percentage of the income is paid to the
government as taxes.
THANK YOU