Business Ethics

It refers to the application of ethics to business. It may be defined as a set of moral standards which people owning and managing business is expected to follow. Business ethics is a form of applied ethics that examines ethical principle and moral or ethical problems that arise in a business environment. According to Robert Kreiter, “Business ethics is the study of complex business practices and behaviour that give rise to ethical issues in organizations.”

According to Manuel Velasquez, “Business ethics is applied ethics According to Manuel Velasquez, “Business ethics is applied ethics. It is the application of our understanding of right and good to institutions, transactions, activities, and pursuits called business”. Nature of Business Ethical Value Interest of Society Relative Terms Business-Society Relationship Provide Framework

1. Ethical Value: Business ethics is concerned with morality in business. In today’s world, business community forms a large part of the society and its actions are bound to have a direct impact on the well being and welfare of the society. 2. Relative Terms: Ethics is a relative term i.e. the concept of morality and immorality differs from one individual to other or society. 3. Interest of Society: Business ethics implies that the business should do first good to the society and then to itself. 4. Businesses-Society Relationship: It indicates what society expects from business and what it thinks about business. 5. Provide Frameworks: Like an individual, business is also bound by social rules and regulations.

Scope of Business Ethics Stakeholder’s Level Societal Level Personal Policy Level Internal Policy Level