This document provides an introduction to business ethics. It defines business ethics as the application of ethics to business situations and decisions. It discusses the meaning, nature, objectives and importance of business ethics. It also covers topics like the sources and types of business ethics, as well as factors that influence ethical behavior in business. The overall purpose is to introduce the concept and scope of business ethics.

1. INTRODUCTION

2. UNIT - I
INTRODUCTION
 Definition and Nature of Business Ethics
 Characteristics
Ethical theories
 Causes of unethical behavior
 Ethical abuses
Work Ethics
Code of conduct
Public good

3. MEANING
The word “ethics” is derived from the
Greek word “ethos”, which refers to
character, guiding beliefs, standards or
ideas that pervade a group, community or
people.
All individuals are accountable to their
community for their behavior
The community can exists in forms like
neighbourhood, profession, city, state,
etc.

4. MEANING
Ethics separate
 Good and bad
 Right and wrong
 Fair and unfair
 Moral and immoral
 Proper and improper human action
 In short, ethics means a code of conduct. It tells a
person how to behave with another person.

5. DEFINITION
 According to webster, “Ethics is the
discipline dealing with what is good and bad
and with moral duty and obligations”.
 According to Philip Wheel Wright,
“Ethics is a branch of philosophy which is
the systematic study of selective choice of
the standards of right and wrong and by
which it may be ultimately directed”

6. Nature of Ethics
 The concept of ethics is applied to human beings
only as they have freedom of choice and means of
free will. They can only decide the degree of ends
they wish to pursue and the means to achieve the
ends.
 There was an argument whether ethics is a science
or an art. But experts were of the opinion that
ethics is more a science than an art. Because it is a
systematic knowledge about moral behavior and
conduct of human beings

7. Nature of Ethics (contd.)
 Ethics deals with human conduct which is
voluntary not forced by circumstances or humans.
It can be said that at ground level, ethics deals with
moral judgement regarding set directed human
conduct.
 The science of ethics is a normative science. It is a
search for an ideal litmus test of proper behavior.
Normative science involves arriving at moral
standards that regulate right and wrong conduct.

8. BUSINESS ETHICS
MEANING
 Business Ethics refers to the application of ethics
to business
 To be more specific, business ethics is the study of
good and evil, right and wrong and just and unjust
actions of businessmen
 It may be defined as a set of moral standards
which people owning and managing business is
expected to follow.
 These standards are mean to govern the conduct
of business persons.

9. BUSINESS ETHICS - DEFINITION
 According to Robert Kreitner, “Business
Ethics is the study of complex business
practices and behaviors that gives rise to
ethical issues in organisations”
 According to Andrew Crane, “Business
Ethics is the study of business situations,
activities and decisions where issues of right
and wrong are addressed”

10. NATURE / CHARACTERISTICS
 Ethical Value
 Relative Terms
 Analytical in Nature
 Diagnostic in Nature
 Evaluative Nature
 Prescriptive Nature
 Interest of Society
 Business-Society Relationship
 Provide Frameworks

11. OBJECTIVES (Peter Pratley)
 To prevent malpractices in business, Ethics
make business activities more authentic
 To ensure uniformity in business practices
among various business enterprises
throughout the country.
 To make businessmen more aware, sensible
and liable to customers, other stakeholders
and society and the whole

12. OBJECTIVES (Peter Pratley) contd.
 To ensure conformity of business operations
with the contemporary legal framework (the
Acts)
 To confirm or restrict harmful operations
which affect adversely long-term interests of
people
 To teach the ethical rules and principles that
are relevant for business

13. OBJECTIVES (Peter Pratley) contd.
 To teach the manager as to how to run the
business on ethical lines.
 To enable a business firm to identify the
areas which are not practising ethical
principles and therefore can prescribe the
necessary ethical code.
 To help a firm to make business decisions
and strategy which are morally fair, just and
consistent.

14. SOURCES OF BUSINESS ETHICS
 RELIGION – One of the oldest sources of ethical
inspiration
 CULTURAL EXPERIENCES – Culture refers to a
set of values, rules and standards transmitted
among generations and acted upon to produce
behaviors that fall within acceptable limits
 LEGAL SYSTEM – Laws are rules of conduct,
approved by legislatures that guide human
behavior in any society

15. TYPES OF BUSINESS ETHICS
GENERAL BUSINESS ETHICS
FUNCTIONAL BUSINESS ETHICS
INTERNATIONAL BUSINESS ETHICS
ETHICS OF ECONOMIC SYSTEM

16. FACTORS INFLUENCING BUSINESS ETHICS
Value forming Institutions
Organisational Goals
Work and Career
Superiors
Peers and Colleagues
Professional Codes

17. IMPORTANCE OF BUSINESS ETHICS
 Helps to maintain a moral course in turbulent
times
 Cultivates strong teamwork and productivity
 Supports employee growth and meaning
 Helps to ensure that policies are legal
 Helps to avoid criminal acts “of omission”
 Promotes a strong public image
 Helps to manage values