ETHICS

in business

INTRODUCTION:
Ethics in business are nothing but the dos and donts by the business users in the business. In other words it could be referred as set of principles a business man ought to follow. There should be business ethics means that the business should be conducted according to certain self recognized moral standards. Few unethical elements in the present day business are cheating, stealing, lying, bribing, corrupting etc. A business man should be aware of the ethics in the business and should follow them in order to maintain ecological balance in the society.

Def:

The study and examination of moral and social responsibility in relation to business practice and decision making in business is known as Business Ethics.

IMPORTANT ETHICAL PRICIPLES THAT A BUSINESS SHOULD FOLLOW

1. Do not deceive or cheat the customers by selling substandard or defective products by under measurement or any other means. EXAMPLE: Textile merchants in general clear the defective stock under the guise of discounts.

2. Do not report to hoarding, black marketing or profiteering. EXAMPLE: Management of theaters sell the tickets for higher prices during the initial days of release of a film starred by a crazy hero and heroine. 3. Do not destroy or distort competition. 4. Treasure sincerity and accuracy in advertising, labeling and packaging. EXAMPLE: Ads of automobiles in general provide false details in every aspect.

5. Do not furnish the image of competitors by unfair

practices. EXAMPLE: Publishing false information about courpetitors, bribing the retailers etc. 6. Make accurate business records so that transparency to the share holders can be achieved. 7. Pay taxes and discharge other obligation promptly.

8. Do not form castle agreements, even informal, to

control production, prices etc to the common detriment. EXAMPLE: cellular network providers will be in informal castle agreements to control the traffic. 9. Refrain from secret kick backs or pay logs to customers, suppliers, administrators, politicians etc. 10. Ensure payment of fair wages and fair treatment to the internal customers as well as external customers and share holders.

HOW TO IMPLEMENT BUSINESS ETHICS

Trade associations can be formed by the business users which should bolster the efforts of running any business with ethics. Trade association can promote business ethics in business user by Educating the members of the association and by consistent persuasion. Formulation a code of conduct for their members which should contain code of ethics.

 Praising and rewarding those firms and business users who keep up the ethics in business & by publishing. Another fact which the business user must realize is the management and ownership must be separated because the owners always tend for profit maximization where as the managers case for ethics as they work for fixed salaries. A managers must be a professional who possesses systematic knowledge and skill to perform certain responsible functions with authority and who is bound by certain ethics in the use of his knowledge and skill.

 A professional has to have autonomy.

He/she has enormous responsibilities and shall not use his/her knowledge skill and authority unscrupulously shall not knowingly do distribute to his/her customers.

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