Ethics is the system of moral principles, rules of conduct, and morality of choices that individuals make.
Business ethics is the application of moral standards to business situations. Business ethics has become a matter of public concern.
All business people face ethical issues daily, and they stem from a variety of sources. Although some types of issues arise infrequently, others occur regularly. Let’s take a closer look at several ethical issues.
1. Fairness and Honesty.Fairness and honesty in business
are two important ethical concerns. Besides obeying all laws and
regulations, business people should refrain from deceiving, mis-
representing, or intimidating others.
2.Organizational Relationships.A business person may
be tempted to place his or her personal welfare above the wel-
fare of the organization. Relationships with customers and cow-
orkers often create ethical problems — since confidential infor-
mation should be secret and all obligations should be honoured.
Unethical behaviour in these areas includes not meeting one’s
obligations in a mutual agreement, and pressuring others to be-
have unethically.
3.Conflict of Interest.Conflict of interest results when a
business person takes advantage of a situation for his or her
own personal interest rather than for the employer’s or organi-
zation’s interest. Such conflict may occur when payments and
gifts make their way into business deals. A wise rule to remem-
ber is that anything given to a person that might unfairly influence that person’s business decision is a bribe, and all bribes are unethical.
4. Communications.Business communications, especially advertising, can present ethical questions. False and misleading advertising is illegal and unethical, and it can infuriate customers. Sponsors of advertisements aimed at children must be especially careful to avoid misleading messages. Advertisers of health-related products must also take precautions against deception.