Lesson 5

• Business ethics refers to standards of moral conduct, behavior and judgment in business. It involves making the moral and right decisions while engaging in such business activities as manufacturing and selling a product and providing a service to customers. Business ethics is an area of corporate responsibility where businesses are legally bound and socially obligated to conduct business in an ethical manner. Business ethics is based on the personal values and standards of each person engaged in business.
• The main purpose of business ethics is to help business and would-be business to determine what business practices are right and what are wrong.
• Special Purpose

  1. To make businessmen realize that they cannot employ double standards to the actions of other people and to their own actions.

  2. To show businessmen that common practices which they have thought to be right because they see other businessmen doing it, are really wrong.

  3. To serve as a standard or ideal upon which business conduct should be based.