Question

Answer the following questions.

What is business ethics? What are the elements of business ethics?

Answer 1

Business ethics can be defined as the code of conduct that a business must follow for the welfare of society. Following are the elements of business ethics:

(a) Trust and Commitment: The top-level officers, such as the CEO and other higher level managers, must sincerely follow the ethical code of conduct. They should also guide employees in their organisation to practise the code. This would build a sense of trustworthiness, commitment and faith within the business players.

(b) Follow Honesty: A business should conduct fair and honest dealings with its clients. It must engage into legal activities and should aim at complete customer satisfaction.

(c) Confidentiality and Secrecy: In addition to follow a certain code of conduct and the confidential policy, an enterprise should not disclose the consumer's records and data to the outsiders.

(d) Involvement of employees at all levels: The successful implementation of ethical standards depends, to a large extent, on the involvement of employees at different levels. This should be done by taking regular feed-backs and opinions from the employees.