Question
Clarify the concept of business ethics and explain its elements in brief.

Answer

  • Introduction :
    • According to Abraham Linclon, any person can cheat many people for short time.
    • But he cannot cheat many people for long time.
    • The meaning is not that the people realize that they have been cheated.
    • The business unit which misleads people and does not maintain ethical standard is rejected by society.
    • Society does not allow such units to exist long whether it is an individual, organization or a business unit.
    • One should follow ethics in its deal.
  • Meaning of Business Ethics :
    • Universally accepted principles and group of authorized evidences of conduct and character means business ethics.
    • Business ethics is necessary and useful for business and society.
    • It there is ethics in day to day dealing of business unit then only the environment of ethics is created in entire business unit.
  • Elements of Ethics in business : They are noted as below.
    • Commitment of Top level management :
      • Top level management should stick to the values to achieve high result they should be committed.
      • Higher management should be committed to ethics.
      • Top level management should provide leadership through moral conduct and motivate employees of unit for good conduct.
    • Publication of guideline :
      • Booklet of guideline for guidance to employees regarding ethical conduct and moral dealing should be published.
      • Norms should be published regarding dealing with different parties.
    • To form infrastructures
      • Top level management should form infrastructure to make sure that each person follows the code of ethics formulated by business unit.
    • Partnership in decision :
      • Employees should be made co-partners so that ethics standards of business are followed.
    • Assessment of result :
      • Ethics is a relative and qualitative concept. The response of various departments of business should be known to what extent the standard of ethics is observed.
  • Conclusion :
    • Employees and officers should be made familiar with standard of ethics so that they maintain this standard in their dealings.
    • To what extent each employee has followed ethical standard in his dealing, should be assessed by business unit. Business unit should know the opinion of others in this context.

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