What is Business Ethics
In simple words, ethics can be defined as ‘moral values and principals’.It is a decision of choosing right among wrong and right. Business ethics are that functions which leads to choosing right decision at right time which leads for the welfare of not only business owners but also society, consumers, stakeholders and its employees. Business ethics now days have become so important that no business can survive in market without following them.
The importance of business ethics in a business world is increasing day by day. Following points helps to explain the reason for it in a brief form:-
Today’s market is consumer market. Consumer buys only that product which gives them maximum satisfaction. So it is necessary for a business to follow business ethics which makes business works in such way which satisfy more and more consumers. Business ethics leads to make employees satisfy which helps to reduce turnover and absenteeism of employees. Further it also helps to increase the productivity of business and quality of goods manufactured. So it becomes necessary to follow the business ethics for productive results. Every business is a creditor of society. As the resources used by business belongs to society. So there is some responsibility that lies on every business towards society. To fulfill that responsibility the code of conduct which is to be followed are business ethics. It is noted that the concerns which are following business ethics always are the successful on as the better productivity and consumers satisfaction leads to improved goodwill in market. It is also helpful to increase market share i.e. sales. Stakeholders always want better returns and good results. This aim of business can only fulfilled by the way of following business ethics. Better productivity results better sale for business which leads to better returns to the stakeholders.
Now it is to be noted that by following business ethics organization not only satisfy others but the ultimate goal of earning profit can also be achieved. So the importance of business ethics is increasing day by day in today’s market. The efficiency of business in productivity is also increased. Better the products better would be sale. So it can be said that business ethics now become the blood life of a business concern.