Business Ethics its main characteristics and scopes

Category: Bank
Posted on: Monday, September 18, 2017


Business ethics is concerned with day to day behaviour of business in a business situation. Business ethics is rapidly becoming an important subject of study replacing yesterday’s “social responsibility of business.”

In the words of Robert Gueinner and others, “Business ethics may be defined as those principles, practices and philosophies that are concerned with moral judgments and good conduct, as they are applicable to business situations.”

In the words of Rogene A. Buchholz, “Business ethics refers to right or wrong behaviour in business decisions.” Thus, business ethics relates to the behaviour of a businessman in a business situation.Characteristics or Assumption of Business Ethics :

 For the understanding business ethics, it is necessary to know its important characteristics there are :

(i) As a discipline.
(ii) It is art and science both.
(iii) Ethics is different from social morality.
(iv) Not based on emotions & sentiments.
(v) Business ethics is not affected by social approval or disapproval.
(vi) An ancient concept.
(vii) A universal philosophy.
(viii) Dynamic philosophy
(ix) Theology is the basis of business ethics.
(x) Study of goals and means.
(xi) Recognition of moral responsibility.
(xii) More greater than law.
(xiii) Different from social responsibility.
(xiv) Hermony between different roles.
(xv) Good intention.
Scope of Business Ethics :
The scope of business ethics or the issues in business ethics are as follows :
(i) Issues relating to objectives of Business.
(ii) Issues relating to employees.
(iii) Issues relating to competitive institutions.
(iv) Issues relating to Government.
(v) Issues relating to national interest.
(vi) Issues relating to owners of business.
(vii) Issues relating to customers.
(viii) Issues relating to creditors.
(ix) Issues relating to local community.