Business ethics and its scope

Business ethics and its scope

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  Akshaya Sankar
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  "Business ethics isthe study of business situations, activities, and decisions where issues of right and wrong are addressed.“- Andrew Crane What is Business Ethics ?
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  . *Business ethics refersto moral principles and social values that business should adopt in its code of conduct. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations . *Business Ethics is the set of moral rules that govern how businesses operate, how business decisions are made , how employees are treated and how they serve the customers
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  Scope of Business Ethics
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  • Ethics incompliance  Business ethics play an efficient role in the compilation of business activities with legal rules and regulation.  It ensures that business adheres to all established laws and any of its operations don’t go unlawful.  It reduces any chance of facing any unfavorable action by authorities like payment of fines and penalty.  Business following ethics in their operations frames strategies and policies in accordance with established rules and regulations.  All activities are monitored and ensured that they go in accordance with framed policies.
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   Ethics helpsin improving the employer-employee relations and overall productivity of the business.  Ethics related to human resource are introduced and implemented by Human resource management in business.  HRM covers all ethical issues related to employer- employee affecting their relationship.  The various issues covered are Discrimination issues, sexual harassment, employee’s privacy issues, salaries and wages issues, safety and health issues  . Ethics aims at overcoming all these issues so that employees are happy and motivated towards their roles.  This booms the overall performance and reduce the risk. • Ethics in Human Resource
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   Finance isa crucial part of every business and is needed for its successful operations.  Finance should be properly managed by every business otherwise it may have adverse effects.  Ethics aims at controlling and handling all finance issue faced by companies and employees.  The various ethical issues included are accounting related like window dressing and improper window dressing, insider trading, fake reimbursements, overbilling, bribery, kickbacks etc. • Ethics in Finance
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   Ethics inbusiness helps in monitoring and controlling the overall production activities.  It ensures that production processes do not adversely affect the business.  Ethics frames production policies by considering organization goals, objectives and various environmental factors.  The various ethical issues covered are defective and dangerous products, environmental ethics and pollution issues, Issues arising out of new technologies and product testing issues.  Implementation of ethics controls these issues and fosters overall productivity. • Ethics in Production
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   Marketing isan important part of every business organization.  It is the means through which it improves the sales and profitability of the business.  Marketing practices should be ethical and should avoid the adoption of any unfair means.  Implementation of ethics ensures that all marketing programmes are moral-ethical.  The various ethical issues covered are pricing issues like price discrimination and price skimming, misleading advertisements, black marketing, anti- competitive practices, wrong advertisement content etc. • Ethics in Marketing