Chapter 1

Question 1

What is the meaning of Business Ethics?

Answer 1

Business ethics refers to contemporary standards or sets of values that govern the actions and behavior of individuals in the business organization and the actions of the business itself.

Question 2

What are the main features of Business Ethics?

Answer 2

1. Code of Conduct − Business ethics is actually a form of codes of conduct.
   It lets us know what to do and what not to do. Businesses must follow
   this code of conduct.
2. Based on Moral and Social Values − Business ethics is a subject that is
   based on moral and social values. It offers some moral and social
   principles (rules) for conducting a business.
3. Protection to Social Groups − Business ethics protect various social
   groups including consumers, employees, small businesspersons,
   government, shareholders, creditors, etc.
4. Offers a Basic Framework − Business ethics is the basic framework for
   doing business properly. It constructs the social, cultural, legal,
   economic, and other limits in which a business must operate.
5. Voluntary − Business ethics is meant to be voluntary. It should be self practiced and must not be enforced by law.
6. Requires Education & Guidance − Businessmen should get proper
   education and guidance about business ethics. Trade Associations and
   Chambers of Commerce should be active enough in this matter.

Question 3

What are the principles/needs of Business Ethics?

Answer 3

The principles of business ethics are related to social groups that comprise of
consumers, employees, investors, and the local community. The important rules
or principles of business ethics are as follows −

1. Avoid Exploitation of Consumers − Do not cheat and exploit consumer
   with measures such as artificial price rise and adulteration.
2. Avoid Profiteering − Unscrupulous business activities such as hoarding,
   black-marketing, selling banned or harmful goods to earn exorbitant
   profits must be avoided.
3. Encourage Healthy Competition − A healthy competitive atmosphere
   that offers certain benefits to the consumers must be encouraged.
4. Ensure Accuracy − Accuracy in weighing, packaging and quality of
   supplying goods to the consumers has to be followed.
5. Pay Taxes Regularly − Taxes and other duties to the government must
   be honestly and regularly paid.
6. Get the Accounts Audited − Proper business records, accounts must be
   managed. All authorized persons and authorities should have access to these details.
7. Fair Treatment to Employees − Fair wages or salaries, facilities and
   incentives must be provided to the employees.
8. Keep the Investors Informed − The shareholders and investors must
   know about the financial and other important decisions of the company.
9. Avoid Injustice and Discrimination − Avoid all types of injustice and
   partiality to employees. Discrimination based on gender, race, religion,
   language, nationality, etc. should be avoided.
10. No Bribe and Corruption − Do not give expensive gifts, commissions and
    payoffs to people having influence.

Question 4

Define Values.

Answer 4

Values are the principles that guide an individual’s decisions. They influence a person at an individual level and help him judge between right and wrong.efi

Question 5

Define Work Ethics.

Answer 5

WORK ETHICS – Its an individual’s values and attitudes toward work, reflecting dedication, integrity, and diligence. It shapes performance, productivity, and commitment in the workplace.