FATIMA KHAN SHILPI DUTTA

CONCEPT OF BUSINESS ETHICS

The word ethics is derived from the Greek word ethos which refer to character or ideal standard of behavior.

Business ethics is an art and science of maintaining a proper harmonious relationship with society, its various groups and institutions as well as recognizing the normal responsibility or the rightness or wrongness of business.

 Human values grows with the increase in size of business to which it a applies

High business value

supply of quality products producing goods or services required by common men of society producing lower cost goods

Services first profit next

This is the motto which business should follow in practices business must held in trust legally and morally for the benefit of the people when the business want to serve

Ethical cooperation

A business enterprise must not co-operate with others in promoting social welfare activities it must refuse to indulge in anti- social or evil thing

Upholding cultural and religious value of society

A business enterprise must not include in such activities as degrade the cultural and religious heritage of society

Ethical evaluation of management decisions

the management must undertake ethical evaluation of such decision to see that it does not have adverse effect on interest of any group

Optimum use of the resources

Every business has an obligation to make the fullest and best possible use of its inputs material and human

NEED OF THE BUSINESS ETHICS

The consumer right can be saved and several well only when there is certain type of moral binding on the business community Publication of the code of ethics is likely to improve the confidence of customers, client employees etc Business today is confronted with major groups of social issues like environmental protection, energy crisis, people-oriented management Business codes govern the interrelationship of the members. Business cannot be carried on without trust in the ethical standards

The policies of the company also influence the determination of ethical conduct

The ethical standards imposed on managers

The ethical climate of a country

The individual's personal code of behavior

Factors affecting

Corporate governance is "the system by which companies are directed and controlled" It involves a set of relationships between a companys management, its board, its shareholders and other stakeholders

it deals with prevention or mitigation of the conflict of interests of stakeholders

It include the processes, customs, policies, laws, and institutions which have impact on the way a company is controlled