Business relations ethics is a procedure theoretically necessary and of a great social

importance, which, starting from the analysis of what this is, points out the moral
experience in a controversial domain of the human action, what should this be, as for
the businesses to be recognized as a profession, and for the business trainings to
subordinate the same moral exigency as in the public administration, law, medicine,
education, etc. To start with, a first argument that justifies the privileged position of
business ethics in the multitude of applied ethics is that today businesses themselves are
and this didnt always happened - a central and respectable activity, in a society that is
dominated by the open economy and the creative virtues of enterprisers free competition.
Therefore, business ethics evolved from the continuous attack over capitalism and profit
reaching to more productive and constructive examination of the basic rules of business
practicing. The present study is aiming, in its first part, to identify those arguments which
justify the central position of business ethics among the applied ethics, and next, in the
second part, to debate the newest issues people confront with in a transition society,
which strongest point doesnt seem to be under no circumstances the morality of those
involved in business.
Ethics is important not only in business but in all aspects of life because it is the vital part
and the foundation on which the society is build. A business/society that lacks ethical
principles is bound to fail sooner or later. According to International Ethical Business
Registry, "there has been a dramatic increase in the ethical expectation of businesses and
professionals over the past 10 years. Increasingly, customers, clients and employees are
deliberately seeking out those who define the basic ground, rules of their operations on a
day today...."
Ethics refers to a code of conduct that guides an individual in dealing with others.
Business Ethics is a form of the art of applied ethics that examines ethical principles and
moral or ethical problems that can arise in business environment. It deals with issues
regarding the moral and ethical rights, duties and corporate governance between a
company and its shareholders, employees, customers, media, government, suppliers and
dealers. Henry Ford said, "Business that makes noting but money is a poor kind of
business".
Ethics is related to all disciplines of management like accounting information, human
resource management, sales and marketing, production, intellectual property knowledge
and skill, international business and economic system. As said by Joe Paterno once that
success without honor is an unseasoned dish. It will satisfy your hunger, but won't taste
good. In business world the organization's culture sets standards for determining the
difference between good or bad, right or wrong, fair or unfair.
"It is perfectly possible to make a decent living without compromising the integrity of the
company or the individual, wrote business executive R. Holland, "Quite apart from the
issues of rightness and wrongness, the fact is that ethical behavior in business serves the
individual and the enterprise much better in long run.", he added.

Some management guru stressed that ethical companies have an advantage over their
competitors. Said Cohen and Greenfield, "Consumers are used to buying products despite
how they feel about the company that sells them. But a valued company earned a kind of
customer loyalty most corporations only dream of because it appeals to its customers
more than a product".
The ethical issues in business have become more complicated because of the global and
diversified nature of many large corporation and because of the complexity of economic,
social, global, natural, political, legal and government regulations and environment,
hence the company must decide whether to adhere to constant ethical principles or to
adjust to domestic standards and culture.
Managers have to remember that leading by example is the first step in fostering a culture
of ethical behavior in the companies as rightly said by Robert Noyce, "If ethics are poor
at the top, that behavior is copied down through the organization", however the other
methods can be creating a common interest by favorable corporate culture, setting high
standards, norms, framing attitudes for acceptable behavior, making written code of
ethics implicable at all levels from top to bottom, deciding the policies for recruiting,
selecting, training, induction, promotion, monetary / non-monetary motivation,
remuneration and retention of employees. "Price is what you pay. Value is what you get" Warren Buffet
Thus, a manager should treat his employees, customers, shareholders, government, media
and society in an honest and fair way by knowing the difference between right or wrong
and choosing what is right, this is the foundation of ethical decision making.
REMEMBER: GOOD ETHICS IS GOOD BUSINESS. "Non-corporation with the evil is
as much a duty as is co-operation with good" - Mahatma Gandhi.
Article Source: http://EzineArticles.com/1212419
One of the most important attributes for small business success, is the distinguishing
quality of practicing admirable business ethics. Business ethics, practiced throughout the
deepest layers of a company, become the heart and soul of the company's culture and can
mean the difference between success and failure.
"If you have integrity, nothing else matters. If you don't have integrity, nothing else
matters." -- Alan K. Simpson
Benefits of Practicing Business Ethics
In the research study, "Does Business Ethics Pay?" by The Institute of Business Ethics
(IBE), it was found that companies displaying a "clear commitment to ethical conduct"
consistently outperform companies that do not display ethical conduct. The Director of
IBE, Philippa Foster Black, stated: "Not only is ethical behaviour in business life the
right thing to do in principle, we have shown that it pays off in financial returns." These

findings deserve to be considered as an important insight for companies striving for longterm success and growth.
7 Principles of Admirable Business Ethics
1. Be Trustful: Recognize customers want to do business with a company they can trust;
when trust is at the core of a company, it's easy to recognize. Trust defined, is assured
reliance on the character, ability, strength, and truth of a business.
2. Keep An Open Mind: For continuous improvement of a company, the leader of an
organization must be open to new ideas. Ask for opinions and feedback from both
customers and team members and your company will continue to grow.
3. Meet Obligations: Regardless of the circumstances, do everything in your power to
gain the trust of past customer's and clients, particularly if something has gone awry.
Reclaim any lost business by honoring all commitments and obligations.
4. Have Clear Documents: Re-evaluate all print materials including small business
advertising, brochures, and other business documents making sure they are clear, precise
and professional. Most important, make sure they do not misrepresent or misinterpret.
5. Become Community Involved: Remain involved in community-related issues and
activities, thereby demonstrating that your business is a responsible community
contributor. In other words, stay involved.
6. Maintain Accounting Control: Take a hands-on approach to accounting and record
keeping, not only as a means of gaining a better feel for the progress of your company,
but as a resource for any "questionable " activities. Gaining control of accounting and
record keeping allows you to end any dubious activities promptly.
7. Be Respectful: Treat others with the utmost of respect. Regardless of differences,
positions, titles, ages, or other types of distinctions, always treat others with professional
respect and courtesy.
Recognizing the significance of business ethics as a tool for achieving your desired
outcome is only the beginning. A small business that instills a deep-seated theme of
business ethics within its strategies and policies will be evident among customers. It's
overall influence will lead to a profitable, successful company. By recognizing the value
of practicing admirable business ethics, and following each of the 7 principles, your
success will not be far off.
Robert Moment is a best-selling author, business coach, strategist and the founder of The
Moment Group, a consulting firm dedicated to helping small businesses win federal
contracts. He just released his new book, "It Only Takes a Moment to Score", and Sell
Integrity, a small business tool that helps you successfully sell your business idea

. Importance of Ethics in Business

Archive
This article explores the relevance and application of Principles and
Strategies discussed in the 3rd Century BC treatise, Kautilyas Arthashastra, in
Todays Corporate World.
A huge misunderstanding revolves around the personality of Kautilya, better known
as Chanakya. People generally believe that he was a shrewd and cunning person.
Thats just a myth.
While training his students in the management of a kingdom, he emphasised on
sound philosophy in order to become a good leader. Ethics and morals were of top
priority for him. In the very first chapter of Arthashastra, called The Topic of
Training he provides the importance of spiritual foundations.
Therefore he says in the Arthashastra,
Philosophy is ever thought of as the lamp of all sciences, as the means of all
actions (and) as the support of all laws (and duties) (1.8.12)
The root of any business lies in its core value system, its philosophy. This was also
pointed out by the father of modern management Peter Drucker. He said, Profits are
by- products of business not its very goal. In the above verse, Kautilya brings out
finer points of ethics in business.
1. GUIDANCE
The value system initiated by the founders of an organisation always becomes the
guiding factor. Even during calamities and difficult times, these values become the
light house, providing a direction where the organisation should proceed. Like a
lamp, it guides us in darkness.
2. DECISION IN ACTION
How to proceed even with a plan -is always the big question in business. Either one
could take the easy route where success is quick and, yet, short lived. Or one can
take up the road less traveled where success is delayed but is ever lasting. Only an
ethical person can easily handle these tough decisions.
3. ADHERING TO LAW
A good businessman is not just law-fearing but law-abiding. He follows the law of
the land as set up by a constitution. At the same time, he also understands the higher

universal law of nature. Ergo, his thoughts become very powerful. Such a
businessman contributes to society and brings great economics prosperity to all
persons connected with him.
4. DOING ONES DUTY
For such a person duty is a priority over rights. He understands the importance of
Giving more than what is taken and producing more than what is consumed. His
work and duty is not out of pressure but out of joy and service.
Once, an Indian company which believes in ethical business was asked by a
politician to offer a small sum of bribe to clear a huge project. The sum was small
compared to the size of the project. However, the philosophy of the organisation did
not support bribing. The result? They dropped the project. The gain - it still continues
to be the most trusted company in the country.
This kind of a highly spiritual leader and businessman is called as Rajarishi by
Kautilya.
Contributed by - Radhakrishnan Pillai