[Link] 1. What is ethics? Explain objectives of ethics.
*MEANING OF ETHICS :-
- The word “Ethics” which is coined from the Latin word “Ethics” and Greek
word “Ethikos” which means character. - Ethics is said to be science of
conduct which deals with certain standards of human conduct and morals.
- The term ethics refer to a code of conduct that guides an individual while
dealing with others.
- It is a moral principles or set of values about what is right or wrong, true or
false, fair or unfair, proper or improper.
- What is right is ethical and what is wrong is unethical.
- Thus, the study of ethics helps us study the goodness in human action.
*DEFINITION OF ETHICS :-
- According to Mackenzie define Ethics as “the study of what is right or good
in human conduct”.
- Thus, ethics is the study of good and bad, right and wrong, moral and
immoral, true and false in the conduct of business.
*Objectives of ethics :-
- The primary objective is to define the highest good of man and set a
standard for the same.
- Ethics should be guided by virtues like: Truthfulness, Accuracy, Objectivity,
Impartiality, Fairness and Public accountability.
➢ Objectivity for Life: Ethics aims to provide an unbiased and consistent
framework to guide human behavior and decisions in everyday life.
➢ Standards for Life: It establishes moral standards and principles that help
individuals distinguish right from wrong and act responsibly.
➢ Fairness and Judging Actions: Ethics ensures that actions are evaluated
fairly, promoting justice and discouraging discrimination or favoritism.
➢ Accuracy: Ethical behavior involves honesty and precision in
communication and actions, avoiding misinformation or deceit.
➢ Truthfulness: Being truthful is a core objective, encouraging individuals to
be sincere and transparent in their dealings.
➢ Impartiality and Equality: Ethics demands treating all people fairly without
bias or prejudice, respecting equal rights and dignity.
➢ Public Accountability: Ethics holds individuals and institutions accountable
for their actions, ensuring responsibility towards society and the public good.
*Conclusion :-
- The objectives of ethics guide individuals and organizations to distinguish between right and
wrong, ensuring responsible behavior.
- They aim to promote fairness, integrity, and accountability in decision-making.
- Ultimately, ethics help in building trust, harmony, and sustainability in society.
[Link] 2. Importance of ethics
*MEANING OF ETHICS :-
- The word “Ethics” which is coined from the Latin word “Ethics” and Greek
word “Ethikos” which means character. - Ethics is said to be science of
conduct which deals with certain standards of human conduct and morals.
- The term ethics refer to a code of conduct that guides an individual while
dealing with others.
- It is a moral principles or set of values about what is right or wrong, true or
false, fair or unfair, proper or improper.
- What is right is ethical and what is wrong is unethical.
- Thus, the study of ethics helps us study the goodness in human action.
*DEFINITION OF ETHICS :-
- According to Mackenzie define Ethics as “the study of what is right or good
in human conduct”.
- Thus, ethics is the study of good and bad, right and wrong, moral and
immoral, true and false in the conduct of business.
*IMPORTANCE OF ETHICS :-
➢ Basic Need: Ethics form the foundation for human interaction in society
and organizations.
- They provide guiding principles for distinguishing right from wrong,
ensuring fairness and trust.
➢ Decision Making: Ethical principles help individuals and organizations
make choices that are not only profitable but also morally sound, minimizing
harm and fostering long-term sustainability.
➢ Harmony and Teamwork: Ethics promote mutual respect, fairness, and
transparency, creating a positive work environment where collaboration
thrives and conflicts are minimized.
➢ Image and Credibility: An ethical approach builds trust with customers,
employees, investors, and society, enhancing the organization’s reputation
and brand value.
➢ Legality: Ethics often align with legal requirements, helping individuals and
businesses avoid legal violations, penalties, and litigation risks.
➢ Organising: Ethical conduct ensures that organizational structures,
processes, and policies are fair, transparent, and free from bias or
exploitation.
➢ Success: Long-term success is more sustainable when built on ethical
foundations, as it fosters loyalty, trust, and positive relationships with all
stakeholders.
*Conclusion :-
- Ethics is important as it provides a moral framework for making fair and just decisions in
personal and professional life. - It helps in maintaining trust, transparency, and respect in
relationships and society.
- Ethical practices enhance credibility and long-term success for individuals and organizations.
- Ultimately, ethics ensures social harmony, justice, and overall well-being.
[Link].4 Meaning of business ethics and its features
*Meaning of Business Ethics :-
- Business ethics are the application of general ethical rules to business
behaviour.
- Business ethics is the systematic study of ethical matters pertaining too
business industry or related activities, institutions and beliefs.
- Business ethics or ethical standards are the principles, practices and
philosophies that guide the business people in the today’s business
decisions.
- Business ethics refers to the application of moral principles and standards
to business behavior and decisionmaking.
*Characteristics/Features of Business Ethics :-
➢ Based on Moral and Social Values – Business ethics is rooted in moral
principles such as honesty, fairness, integrity, respect, and responsibility.
- These values guide business decisions and ensure that actions are
acceptable in the eyes of society.
➢ Universally Applicable – The principles of business ethics apply to all
businesses, whether small or large, local or global, manufacturing or service-
oriented.
- They are not industry-specific and are relevant across geographies.
➢ Voluntary in Nature – Unlike laws, which are enforced by the government,
business ethics is largely selfimposed.
- It depends on the willingness of business owners, managers, and
employees to adopt ethical behavior beyond legal compliance.
➢ Balances Profit with Social Responsibility – Business ethics encourages
earning profits while being socially responsible.
- It ensures that businesses do not exploit employees, customers, or
resources for short-term gains at the expense of societal welfare.
➢ Long-Term Perspective – Ethical conduct focuses on building trust, goodwill,
and long-term sustainability instead of chasing immediate profits.
- A business with strong ethics gains a loyal customer base and
employee commitment over time.
➢ Dynamic in Nature – Ethical standards are not static; they evolve with
changes in social norms, technology, business practices, and legal
requirements.
- Businesses must continuously adapt their ethical codes to stay
relevant.
➢ Requires Top Management Commitment – For ethics to be truly practiced,
the leadership must set examples through their actions.
- Ethical culture starts at the top and flows down to all levels of the
organization.
*Conclusion :-
- The features of business ethics emphasize integrity, fairness, and responsibility in all business
dealings.
- They ensure that organizations balance profit-making with social responsibility and ethical
values.
[Link].5 Objectives of business ethics
*Meaning of Business Ethics :-
- Business ethics are the application of general ethical rules to business
behaviour.
- Business ethics is the systematic study of ethical matters pertaining too
business industry or related activities, institutions and beliefs.
- Business ethics or ethical standards are the principles, practices and
philosophies that guide the business people in the today’s business
decisions.
- Business ethics refers to the application of moral principles and standards
to business behavior and decisionmaking.
*Importance/Objectives/Purpose of Business Ethics :-
➢ Positive Consequences – Ethical practices create trust, loyalty, and mutual
respect, resulting in better business performance and fewer disputes.
➢ Goodwill of the Business and Businessman – Honesty and fairness enhance
the business’s reputation and the personal image of its owner/management.
➢ Survival of Business – Ethical conduct ensures customer loyalty, legal
compliance, and smooth operations, helping the business sustain in the long
run.
➢ Protection (Both Sides) – Safeguards the interests of the company and its
stakeholders, including customers, employees, investors, and suppliers.
➢ Self-Satisfaction – Ethical business owners experience inner satisfaction
knowing they operate fairly and responsibly.
➢ Success and Development – Ethical behavior attracts investors, skilled
employees, and loyal customers, leading to overall growth.
➢ New Management – Ensures a smooth handover and acceptance of
leadership changes, as trust and integrity are already established.
➢ Good Business Ethics Promotes Good Business – Companies with strong
ethics often see better productivity, profitability, and stakeholder support.
➢ Stop Business Malpractices – Prevents harmful practices such as fraud,
adulteration, and false advertising.
➢ Improves Customer Confidence – Customers trust ethical companies,
leading to repeat purchases and positive word-of-mouth.
➢ Consumer Satisfaction – Meeting customer needs honestly and delivering
promised value ensures satisfaction and loyalty.
➢ Creates Good Image – Builds a positive brand identity in the market and
society.
➢ Develops Good Relations – Encourages healthy, long-term relationships
with all business partners and stakeholders.
➢ Safeguarding Consumers’ Rights – Protects consumers from exploitation,
faulty products, and misleading claims.
*Conclusion :-
- The objectives of business ethics aim to guide businesses in operating fairly, responsibly, and
transparently.
- They help build trust with stakeholders while ensuring long-term growth and social welfare.
[Link].6 Scope/Types of business ethics
*Meaning of Business Ethics :-
- Business ethics are the application of general ethical rules to business
behaviour.
- Business ethics is the systematic study of ethical matters pertaining too
business industry or related activities, institutions and beliefs.
- Business ethics or ethical standards are the principles, practices and
philosophies that guide the business people in the today’s business
decisions.
- Business ethics refers to the application of moral principles and standards
to business behavior and decisionmaking.
*Scope/Area/Types/Issues of Business Ethics :-
*ETHICS IN COMPLIANCE
- Ethics in Compliance refers to the commitment to obeying and adhering to rules,
regulations, and legitimate authority.
- It involves following the laws, policies, and guidelines set by governments, regulatory
bodies, and organizations to ensure the smooth, fair, and transparent functioning of
business operations.
- Example: A food company meets all safety regulations but also conducts extra quality
checks to ensure consumer health.
*ETHICS IN FINANCE
- Ethics in finance refers to applying moral principles and integrity in financial
decision-making, ensuring fairness, transparency, and accountability in all
financial dealings. - - - Unethical practices in finance can damage trust, harm
stakeholders, and lead to legal consequences.
- Example: A CFO notices profits are lower than expected but chooses to
present the actual figures rather than inflating numbers to impress investors,
maintaining transparency and stakeholder trust.
*ETHICS IN HUMAN RESOURCES
- Ethics in Human Resource Management involves ensuring fairness,
equality, and respect for all employees in the workplace.
- It focuses on creating a safe, non-discriminatory, and inclusive environment
where employees’ rights, dignity, and well-being are protected.
- Example: A company refuses to promote an employee solely because of
their age, even though they meet all performance requirements.
*ETHICS IN MARKETING
- Marketing ethics refers to the moral principles and standards that guide the
conduct of individuals and organizations in marketing activities.
- Ethical marketing ensures fairness, honesty, and responsibility in promoting
products or services, while avoiding practices that mislead, harm, or exploit
customers.
- Example: Two competing airlines secretly agree to set ticket prices at the
same high rate (price fixing).
*ETHICS IN PRODUCTION
- Ethics in production refers to the moral principles that guide companies in
manufacturing goods and delivering services responsibly.
- It ensures that the production process prioritizes safety, quality,
environmental sustainability, and respect for human rights.
- Example: A chocolate company refuses to buy cocoa from farms using child
labor, even if it costs more, to ensure ethical production.
*Conclusion:-
The scope of business ethics covers all aspects of business conduct, ensuring responsible
practices that balance profit with social responsibility.
[Link].7 Role of Government in Ensuring Business Ethics
*Meaning of Business Ethics :-
- Business ethics are the application of general ethical rules to business
behaviour.
- Business ethics is the systematic study of ethical matters pertaining too
business industry or related activities, institutions and beliefs.
- Business ethics or ethical standards are the principles, practices and
philosophies that guide the business people in the today’s business
decisions.
- Business ethics refers to the application of moral principles and standards
to business behavior and decisionmaking.
*Role of Government in Ensuring Business Ethics :-
➢ Legislative Role: The government creates laws and policies to set ethical
boundaries for business operations. These laws cover areas like consumer
protection, environmental safety, advertising standards, and labor rights.
➢ Supervisory Role: It monitors, inspects, and audits business activities to
ensure compliance with laws and ethical norms. This prevents fraud,
exploitation, and unsafe practices.
➢ Incentivizing Role: The government encourages businesses to follow
ethical practices by offering benefits, recognition, or facilities.
Example: Providing testing facilities for verifying product quality and safety.
➢ Encourage Effective and Fair Competition: The government prevents
monopolies, price-fixing, and market manipulation, creating a level playing
field for all businesses. It promotes innovation, better quality, and fair pricing
for consumers.
➢ Educational and Awareness Role: The government educates both
businesses and consumers about ethical practices, rights, and
responsibilities.
Example: Running awareness campaigns on consumer rights and sustainable
business practices.
➢ Promoting Corporate Social Responsibility (CSR): Many governments
require or encourage companies to invest in social, environmental, and
community development projects.
Example: Mandatory CSR spending in certain sectors to support education,
healthcare, and environmental conservation.
➢ Environmental Protection and Sustainability: The government ensures
businesses follow eco-friendly practices to reduce environmental harm.
Example: Enforcing pollution control norms, waste management laws, and
promoting renewable energy use.
*Conclusion :-
Governance plays a vital role in ensuring business ethics by establishing rules, policies, and
accountability mechanisms. It promotes transparency, fairness, and responsibility, fostering trust
among stakeholders.
