Chapter 1

Introduction to Ethics:
Prof. Ishita Shah

Meaning of Ethics
The word ethics in Latin is known as ethicas and

in Greek it is known as ethicous.

This word have been derived from the term
ethos which is company character or manner.
In simplest terms ethics is nothing but treating of
moral question
on the basis of ethics one can conclude whether
the action is right or wrong , good or bad , moral
or immoral

Action :
Action conducted by person can be 4
types
1.Moral as well as legal
2.Moral and illegal
3.Immoral and illegal
4.Immoral and legal

Conti
So, ethics is the discipline dealing with what is

good and bad with moral duty and obligations

Business Ethics
The value of what should be done and

what should not be done from the business

point of view

Ethical issues for

business
Product safety standards
Advertising contents
Working environment
Unauthorized payments
Employees privacy
Environmental issues

Nature of Business Ethics

Code of conduct :
Business ethics is a code of conduct. It tells what to do and
what not to do for the welfare of the society. All businessmen
must follow this code of conduct.
Based on moral and social values
Business ethics is based on moral and social values. It
contains moral and social principles (rules) for doing business.
This includes self-control, consumer protection and welfare,
service to society, fair treatment to social groups, not to
exploit others, etc.

Gives protection to social groups :

Business ethics give protection to different social groups
such as consumers, employees, small businessmen,
government, shareholders, creditors, etc.
Provides basic framework :
Business ethics provide a basic framework for doing
business. It gives the social cultural, economic, legal and
other limits of business. Business must be conducted
within these limits.
Voluntary :
Business ethics must be voluntary. The businessmen must
accept business ethics on their own. Business ethics must
be like self-discipline. It must not be enforced by law.

Ten Commandments
The ethical commands in this are:
You shall not kill
You shall not commit adultery
You shall not steal
You shall not bear false witness against your neighbors
You shall not covet your neighbor's house.

Types of Ethics
1. Transactional Ethics
2. Participatory Ethics
3. Recognitional Ethics

Four groups to which business has a responsibility. Companies have a

responsibility to:
Society
Employees
Customers (Consumers)
Investors

Three types of strategies found in firms are:

(a)Corporate strategy
(b)Business strategy
(c)Functional strategy

THANK YOU
.