Chapter 1

• According to Urwick and Hunt, "Business is any enterprise which makes, distributes or provides any services which other members of the community need and are willing to pay for it".
• Economic Activities - Making full use of meager resources to the best satisfaction of human wants. Economic activities are those undertaken by man to earn income, money, and wealth for his life and to secure greatest satisfaction of wants with inadequate and limited means.
• Economic Activities are classified into 3 categories: Profession, Employment, Business
• Profession - is an occupation carried on by these people like doctors, lawyers, engineers, teachers and others. They provide specialized services in return for fees.
• Employment - is a type of occupation under which one person provides his services, physical or mental to someone else in return for whom he gets any salary or wage.
• Business - is an economic activity concerned with production and distribution of goods and services with the aim of earning profit.
• Important features and characteristics of economic activity: Production or Acquisition of goods, Generates employment, Continuous process, Profit is the basic motive, Risk or uncertainty of future, Creative and Dynamic, Customer satisfaction, Social Activity, Government control, Optimum utilization of resources.
• Ethics is very important for these reasons: Satisfying basic needs, Building credibility, Connecting leaders and employees, Enhancing decision making, Continuing gains, Protecting the society.
• These makes profits unethical: Employees, Marketing, Environmental, Quality.
• Features of Business Ethics: Code of Conduct -It tells what to do and what not to do for the welfare of the society. Businessmen should follow while conducting their normal business activities.
• Features of Business Ethics: Based on moral and social values - it contains moral and social principles of conduct for businessmen. This includes self-control, consumer protection and welfare, service to society, fair treatment.
• Features of Business Ethics: Gives protection to social group - business ethics give protection to different social groups such as consumers, employees, etc.
• Features of Business Ethics: Provides basic framework - it suggests legal, social, moral, economic and cultural limits within which business has to be operated.
• Features of Business Ethics: Voluntary acceptance for enforcement - business ethics must be voluntary.
• Features of Business Ethics: Requires education and guidance -they must be informed about the advantages of using business ethics.
• Features of Business Ethics: Relative Term - Business changes from one business to another.
• Features of Business Ethics: Not against profit making - business ethics is not against fair profit. It supports expansion of business activities but by fair means and not through illegal activities or corrupt practices.
• Sources of business ethics: Religion, Culture, Law
• Laissez Faire Capitalism - is a political, social, and economic system which allows everyone to do profit-seeking activities without any complications or interventions.