CHAPTER 1: BUSINESS ETHICS
Introduction
Ethics is a topic of social science that is connected with moral values and social values.
'Business Ethics' can be called as a study of proper business policies and performs regarding
possibly controversial issues, such as corporate governance, insider trading, bribery, discrimination,
corporate social responsibility, and fiduciary responsibilities.
Define Ethics
There are numerous meaning of business ethics, but the ones given by Andrew Crane and Raymond C.
Baumhart are considered the most appropriate ones.
According to Crane, "Business ethics is the study of business situations, activities, and decisions
where issues of right and wrong are addressed.“
Baumhart defines, "The ethics of business is the ethics of responsibility. The business man must
promise that he will not harm knowingly."
Features of Business Ethics
There are eight major types of business ethics
1. Code of Conduct − Business ethics is really a form of codes of conduct. It lets us know what to
do and what not to do. Businesses must follow this code of conduct.
2. Based on Moral and Social Values − Business ethics is a topic that is based on moral and social
values.
3. Protection to Social Groups − Business ethics defend numerous social groups counting
consumers, employees, small businesspersons, government, shareholders, creditors, etc.
4. Offers a Basic Framework − Business ethics is the basic framework for doing business correctly.
It constructs the social, cultural, legal, economic, and other limits in which a business must
operate.
Introduction
Ethics is a topic of social science that is connected with moral values and social values.
'Business Ethics' can be called as a study of proper business policies and performs regarding
possibly controversial issues, such as corporate governance, insider trading, bribery, discrimination,
corporate social responsibility, and fiduciary responsibilities.
Define Ethics
There are numerous meaning of business ethics, but the ones given by Andrew Crane and Raymond C.
Baumhart are considered the most appropriate ones.
According to Crane, "Business ethics is the study of business situations, activities, and decisions
where issues of right and wrong are addressed.“
Baumhart defines, "The ethics of business is the ethics of responsibility. The business man must
promise that he will not harm knowingly."
Features of Business Ethics
There are eight major types of business ethics
1. Code of Conduct − Business ethics is really a form of codes of conduct. It lets us know what to
do and what not to do. Businesses must follow this code of conduct.
2. Based on Moral and Social Values − Business ethics is a topic that is based on moral and social
values.
3. Protection to Social Groups − Business ethics defend numerous social groups counting
consumers, employees, small businesspersons, government, shareholders, creditors, etc.
4. Offers a Basic Framework − Business ethics is the basic framework for doing business correctly.
It constructs the social, cultural, legal, economic, and other limits in which a business must
operate.
