Business ethics

1 Introduction

• Business ethics is a branch of ethics which prescribes standards of how the business is to be carried out.

• Guidelines to stakeholders

• The responsibility of the managers and employees

• The application of ethical judgments to business activities.

2 Business Ethics

The study and examination of moral and social responsibility in relation to business practice and decision making in business is known as “Business Ethics”.

3

WHAT IS ETHICAL BEHAVIOUR?

Ethical behavior is that which is morally accepted as "good" and "right" as opposed to "bad" or "wrong" 

The advantages of ethical behaviour include:

• Higher revenues – demand from positive consumer support• Improved brand and business awareness and recognition• Better employee motivation and recruitment• New sources of finance – e.g. from ethical investors

4 Relationship between Business and Ethics

• Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run.

• Enhances a company's reputation.

• The highly competitive environment in today's global economy puts pressures on company leaders to remain profitable.

5 Need for Business Ethics

• Introducing Socialism in Business

• Interest of Industry

• Buyers Market

• Better Relations with Society

6 Importance of ethics in business

• Goodwill

• Profitability

• Going concern is assured

• Sustainability

• Survival of heated competition

• Safety from legal perspectives.

7 Why is it important ?

Ethics influence and contribute to:

• Employee commitment.• Investor and customer loyalty and confidence.• Legal problems and penalties.• Customer satisfaction.• The ability to build relationships with stakeholders.• Cost control.• Performance, revenue, and profits.• Reputation and image.

8 Presented By :

1. Rohit Kochhar