Business Ethics
Business ethics requires that business persons must take decisions actions, which are in conformity with the prevailing norms or standards of society. Ethics determines whether business behavior is right or wrong in terms of truth and justice. For example, adulteration, black-marketing, false advertising are against business ethics. Ethic cal behavior is above behavior required by law. Law reflects what society considers minimum standards of behavior. Business ethics refers to standards of morality to be-followed in business. It varies form society to society and from one time period to another.
The main elements of business ethics are as follows:
Ethical lamination: It means being sensitive to ethical issues while taking business decisions. Businessmen must identify the situations where their decisions may be detrimental it the welfare of society.
Ethical Identification and Ranking: Businessmen must be able to identify the ethical factors, which are relevant in business decision-making. They should also rank the ethical issues in order of their importance.
Ethical Evaluation: In additions economic costs and benefits, ethics should also be used in evaluating outcomes of business decisions. However, there is bound to e some ambiguity and disagreement unethical thinking. Businessmen must be able to tolerate such ambiguity and disagreement.
Ethical Competence: Businessman requires not only managerial competence but also ethical competence. Unethical behavior is very costly. Therefore, ethical perspective must be an integral part of managerial training.
Ethical obligation: Managerial decision-making must be based upon a concern for justice, fairness and equality to people, groups and communities.
Tags: business ethics, Economic