Business being a social organ shall not be conducted in a way detrimental to the interests of the society and the business sector. The business as social establishment, should follow certain ethical values and rules. These can be called business ethics.
The term ‘Business Ethics’ refers to the system of moral principles and rules of the conduct applied to business. It applies to all aspects of business conduct and is to be followed by all individuals and organizations in the business.
However, there is no unanimity of opinion as to what constitutes business ethics. There are no separate ethics of business but every individual and organization in society should abide by certain moral orders.
Definitions of Business Ethics
Business ethics can be defined as the systematic study of ethical matters pertaining to the business or related persons and their activities.
“Business ethics is the systematic handling of values in business and industry.” —John Donaldson
Business is a group of people who are engaged in the production and distribution of goods or services. Therefore the business ethics is to be followed by each and every person in the business process. They may be management people, the employees and even the distribution people.
It may be easy to follow ethics by one person or a group of persons consisting of five to ten members. But it is not so easy to implement ethics in a business which involves large number of people.