Question

Business Ethics is a code of conduct which society should follow while conducting their social activities.

• A. True
• B. False
• C. Partly true
• D. None of the above

Answer 1

Answer: (A)

True

Business ethics is one of the important branches of applied ethics. Business ethics is the application of general ethical ideas to business. ” Business ethics refers to the moral principles and standards and a code of conduct that businessmen are expected to follow while dealing with others. Business essentially is a means of society to use scarce resources to produce in an efficient manner those goods and services which society wants and is willing to pay for. Businesses must balance their desire to maximise profits against the needs of stakeholders. The significant issues in business ethics include ethical management of enterprise in relation to its stakeholders in particular and natural environment in general.

There is a kind of social contract between the society and business by which the society expects the business to work in its interest. Society creates and accepts business enterprises, hence it expects them to work in a manner which is not detrimental to its well being and interests. Technological advancements have to be made but their impact on the environment and mankind has he kept in mind.