UNDERSTANDING OF BUSINESS

ETHICS
 MEANING OF ETHICS
• IN LATIN LANGUAGE IS CALLED- ETHICUS
• IN GREEK – ETHICOS

• The word has been originated from – Ethos-

meaning character or manner
• The character of a man is expressed in terms
of his conduct.
Definition of Ethics and business ethics

• Ethics is relating to morals: treating of moral

questions; morality correct; honourable.
- concise oxford dictionary
• It is the study of morals and moral choices. It
focuses on standards, rules and codes of
conduct that govern the behavior of
individuals and groups.
• In simplest terms Business Ethics are moral
principles that define right and wrong
behavior in the world of business.
• Other meaning of ethics is that it is the
science of morals; it is the branch of
philosophy, which is concerned with human
character and conduct. It is a treatise on
morals (capable of knowing right or wrong).
Ethics describes what is right and what is wrong
in human behavior; and what ought to be .
Business ethics are the desired norms of
behavior exclusively dealing with commercial
transactions. Ethics is the description of
observer as well as desirable behavior and
conduct that attempts to articulate moral
values.
• According to John Donaldson, Business ethics,
in short can be described as the systematic
study of moral (ethical) matters pertaining to
business, industry or related activities,
institutions or practices or beliefs. It can also
refer to the actual standards, values or
practices or beliefs.
• Business ethics are the application of general
ethical rules to business behavior.
• Ethics are the set rules that define right and
wrong conduct. These rules tell us when our
behavior is acceptable and when it is
disapproved and considered to be wrong.
Business Ethics are the application of general
ethical rules to business behavior.
• Business ethics concentrate on moral standards
as they apply to business policies, institutions
and behavior. it is a specialised study of moral
right or wrong. It is a form of applied ethics. It
includes not only the analysis of moral norms
and moral values but also attempts to apply the
conclusions of the analysis to that assortment
of institutions, technologies, transactions,
activities and pursuits that we all business.
 Principles of personal ethics
• Concern and respect for the autonomy of
others
• Honesty and willingness to comply with the
law
• Fairness and the ability not to take undue
advantage of others
• Benevolence and preventing harm to any
creature
 People are motivated to be ethical for the
following reasons
• Most people want to make a clear conscience
and would like to act ethically under normal
circumstances
• It is natural for people to ensure that their
actions do not cause any injury, whether physical
or mental, to others
• People are obliged to obey the law of land
• Social and mental well being depends on one’s
ethical behavior in society.
 Principles of professional ethics
• Impartiality: objectivity
• Openness: full disclosure;
• Confidenciality: trust;
• Due diligence/ duty of care;
• Fidelity to professional responsibility;
• Avoiding potential or apparent conflict of
interest
 What is business ethics?
• Business ethics is the art and discipline of
applying ethical principles to examine and
solve complex moral dilemmas.
 What is not business ethics?
• Ethics is different from religion
Ethics is not synonymous with law
• Ethical standards are different from cultural
traits
• Ethics is different from feelings
• Ethics is not a science in the strictest sense of
the term
• Ethics is not just collection of values
 Code of conduct and ethics for managers

• Integrity
• Impartiality
• Responsiveness to the public interest
• Accountability
• Honesty
• transparency