Submitted to Prof.

Sunil verma

Submitted by Sachin Patel M.B.A (MM)IIA

The concept comes from the Greek word ethos that means both an individuals character and a communitys culture. Business ethics involves adhering to legal, regulatory, professional and company standards, keeping promises and commitments and abiding by general principles like fairness, truth, honesty and respect.
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The maxims such as business is business or principles like caveat emptor (let the buyer beware) fall for short of public expectation. Businesses are under pressure to define their standards and codes of practice.

Ethics are moral guidelines which govern good behaviour So behaving ethically is doing what is morally right. Behaving ethically in business is widely regarded as good business practice.

An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully: Ethics are about what is right and what is wrong Law is about what is lawful and what is unlawful

Ethics constitutes desirable conduct in a particular set of social circumstances. Business ethics are that functions which leads to choosing right decision at right time which leads for the welfare of not only business owners but also society, consumers, stakeholders and its employees.

There are three approaches to studying business ethics Descriptive- describing practices, moral codes and beliefs

Prescriptive- an attempt to formulate and defend basic moral norms

Conceptual study- analyzing central ethical terms such as right, good, an attempt to distinguish what is moral and what is immoral.
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Moral standards are the yardsticks of business ethics. They provide the basis for deciding whether an act is right or wrong.

Moral standards consist of specific moral norms and general moral principles.

Business ethics is the process of evaluating decisions, either pre or post, with respect to the moral standards of societys culture. Moral norms prohibit certain types of behaviour such as lying, stealing and killing. Moral principles provide more general guidelines for behaviour and are applicable to decision situations.
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Integrative social contracts theory is used for

evaluating the ethical dimension of decisions.

It is a normative theory of business ethics and it allows for moral diversity among various cultures while maintaining certain universal norms.

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