GGSR

• Nature of Business


  Business is any enterprise which makes, distributes or provides any service which other members of the community need and are willing to pay for it
• Nature of Business


  Business is an activity that is part and parcel of human society. Society will not exist without business
• Three Economic Activities


  • Profession
  • Employment
  • Business
• Profession


  • An occupation carried on by professional people like doctors, lawyers, engineers, teachers, and others. They provide specialized services in return for fees
• Employment


  • A type of occupation under which one person provides his services, physical or mental, to someone else in return for whom he gets a salary or wage
• Business


  • An economic activity concerned with the production and distribution of goods and services with the aim of earning profit
• Features and Characteristics of Business

  1. Production or Acquisition of Goods

  2. Generates Employment

  3. Continuous Process

  4. Profit is the Basic Motive

  5. Risk or Uncertainty of Future

  6. Creative and Dynamic

  7. Customer Satisfaction

  8. Social Activity

  9. Government Control

  10. Optimum Utilization of Resources
• Relationship between Ethics and Business

  Ethics has a big role in the operations of a business. A bad business could be the consequence of unethical business practices. While effective practices could be the outcomes of good and valuable ethical practices. This simply proves that ethics and business really go hand in hand. Indeed, ethics must have a place in every business organization
• People go to business for profit. Businessmen consider profit as a form of anticipated reward or compensation for the efforts that spend, skill they apply and returns on capital they invested organizing a business
• Profit motive motivates people to do something
• Ethics must have a place in every business organization
• People go to business for profit
• Profit motive


  • Motivates people to do something meaningful
  • Makes people productive
  • Promotes ingenuity and cleverness in running the business
• Morality of profit


  • In order to understand if gaining profit is really advantageous and desirable, one must know the goals of the life well-lived
  • Every individual lives with double-purpose intentions, which are survival and flourishing
  • The only way to flourish is to gain profit
  • Profits come in a lot of different shapes. One may grow material reality from intellectual profit or gain of knowledge
• What makes profit unethical

  • EMPLOYEES - Reducing or not providing required benefits
  • MARKETING - Strong marketing strategy
  • ENVIRONMENTAL - Unethical environmental practices
  • QUALITY - Trimming down quality of goods
• Ethics and morality in business


  • It is basically ethics that decides whether certain actions, conducts, and behavior are right or wrong, good or bad, moral or immoral, and just or unjust
• Features of business ethics

  • CODE OF CONDUCT - Tells what to do and what not to do for the welfare of society
  • BASED ON MORAL AND SOCIAL VALUES - Contains moral and social principles of conduct for businessmen
  • GIVES PROTECTION TO SOCIAL GROUP - Provides protection to different social groups such as consumers, employees, small businessmen, government, shareholders, creditors, and other stakeholders
  • PROVIDES BASIC FRAMEWORK - Suggests legal, social, immoral, economic, and cultural limits within which business has to be operated
  • VOLUNTARY ACCEPTANCE FOR ENFORCEMENT - Business ethics must be like self-discipline. It must not be enforced by law. It should come from the businessmen
  • REQUIRES EDUCATION AND GUIDANCE - Businessmen must be given proper education and guidance before introducing business ethics. They must be motivated to follow ethical business practices
  • RELATIVE TERM - Changes from one business to another and from one country to another. What is considered as good in one country may be taboo in another country
  • NOT AGAINST PROFIT MAKING - Business ethics is not against fair profit making. However, it is against profiteering by cheating and exploiting consumers, employees, or investors