BUSINESS ETHICS

• Business organizations exist to serve consumer’s needs and make profits when people patronize their products and services
• Business organizations contribute to the economy’s growth, provide products for consumption, and offer employment to people
• Business is an active process where economic resources are brought together and distributed to deliver consumer goods and products
• Profit refers to the difference between the amount received and the amount spent on something purchased, produced, or manufactured
• Revenue is the total amount of money a business earns during a given period by offering products to the market
• For-profit organizations have the right to keep and use their profits as they choose within legal limits
• Non-profit organizations are formed for a specific purpose to serve the common good of the public
• Service businesses provide services to customers rather than products, examples include computer repair, laundry services, tutoring, and delivery services
• Merchandising businesses sell products they buy from other businesses, examples include sari-sari stores, bookstores, and supermarkets
• Manufacturing businesses turn basic inputs into products sold to customers, examples include shoe manufacturing, baked goods, and cosmetics manufacturing
• Sole proprietorship is a one-person business where the owner has full control over finances and operations
• Partnership is a business relationship between two or more people who share profits and liabilities
• Corporation is an entity created by law that is independent and distinct from its owners, it can raise funds by selling shares of stocks
• Economics is the study of how resources used in the production of goods and services are distributed for consumption within a social system
• Economic system describes how society distributes its resources to produce goods and services
• Roles of business organizations in society include providing goods and services, investing in innovation and excellence, and creating employment opportunities
• Christianity:

  • Views physical and human creation positively
  • Emphasizes human dignity and concern for people
  • Focuses on justice in business, strict adherence to contracts, compliance with regulations, and working for the common good
  • Christians should ensure workers are well-paid and find their work meaningful
  • Encourages transparency, honesty, and fair dealings in business
• Judaism:

  • Emphasizes honesty in the market and fair pricing
  • Business relations should be conducted ethically
  • Employers are obligated to pay workers on schedule
  • Business ethics is a significant aspect of Jewish laws and tradition
• Islam:

  • Believes in the Oneness of God
  • Source of rules is the Qur'an
  • Principles include fair contracts, prohibition of interest, and compassion in business
  • Business should be conducted in accordance with the rules of nature governed by God
• Buddhism:

  • Guided by principles such as defining goals, following the principle of cause and effect, developing empathy and compassion, being flexible and innovative, and respecting all involved
  • Business ethics are closely tied to being environment-friendly
• Hinduism:

  • Believes in one true, formless, boundless, all-inclusive and eternal God called Brahman
  • Emphasizes ethics (dharma) and salvation (moksha) over wealth
  • Business practices should involve fair prices and profits, just wages for workers, and a tax system that is fair and does not hinder economic growth