Morals, ethics & Business Ethics Abhishek Mishra Institute of Management Studies Mahatma Gandhi Kashi Vidyapith

Morals & ethics What are ethics? Morals are concerned with the principles of right and wrong behaviour. Ethics are the set of moral principles that guide personal or group behavior.

What are business ethics? 'Business ethics' integrates the core elements of ethical philosophy into business activities, institutions, and organizations. Business ethics focuses on the study of moral standards - of right and wrong - and how these standards are applied (or not) to the production, distribution and utilization of goods and services. These standards are applicable to both individuals within an organization and the organization as a complete entity.

Features of business ethics Code of conduct Based on moral and social values Gives protection to social groups Provides framework for dong business Requires education and guidance Relative term voluntary

Importance of Business Ethics in Management Creating credibility Improving decision making Long term gains Securing the society

Specific Advantages for business Attract customers to the firm’s products, which means boosting sales and profits Make employees want to stay with the business, reduce labour turnover and therefore increase productivity Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees Attract investors and keep the company’s share price high, thereby protecting the business from takeover.

Business ethics should take into consideration the following factors: 1. A business should aim to have fair dealing with everyone dealing with it. 2. Ethics should be fixed for everyone working in the organisation at any level and their implementation should be linked with reward- punishment system. 3. Any violation of ethics should be detected at the earliest and remedial measures taken immediately. 4. Business ethics should be based on broad guidelines of what should be done and what should be avoided. 5. The ethics should be based on the perception of what is right.

Ethical issues relating to business Honesty- Communication & Behaviour consistent with facts -Disclosure of Information -Promises/commitments -Laws and professional standards -Representation of other stakeholders Unfair competition Just compensation Respecting rights of others