BUSINESS ETHICS The term business ethics refers to the system of moral principles and rules of conduct applied

to business. This means that the business should be conducted according to certain self-recognized moral standards. Business, being a social organ, shall not conduct itself in a way detrimental to the interests of society and the business sector itself. A profession is bound by certain ethical principles and rules of conduct which reflect its responsibility, authority and dignity. The professionalisation of business management, should therefore, be reflected in the increasing acceptance of business ethics. NOTE: In the 1930s Rotary International developed the code of ethics that is still used extensions. It uses 4 questions that are called the 4 way of ethical behavior for any business forces Is it truth? Is the fair to all concerned? Will it build goodwill and friendship? Will it be beneficial to all concerned? LIST OF IMPORTANT ETHICAL PRINCIPLES THAT A BUSINESS SHOULD FOLLOW: 1. Do not deceive or cheat customers by selling substandard or defective products by under measurements or by any other means. 2. Do not resort to hoarding, black marketing or profiteering. 3. Do not destroy or distort competition 4. Ensure sincerity and accuracy in advertising, labeling and packaging. 5. Do not tarnish the image of competitors by unfair practices. 6. Make accurate business records available to all authorized persons. 7. Pay taxes and discharge other obligation promptly 8. Do not farm cartel agreements, even informal, to control production, price etc to the common detriment.

9. Refrain from secret kickbacks on payoffs to customers, suppliers, administrators, politicians etc. 10. Ensure payment of fair wages to and fair treatment of employees.