Question

Business ethics relates to.

• A. Society's decision
• B. An individual's or work group's decisions
• C. Customers decisions
• D. Government decisions

Answer 1

Answer: (B)

An individual's or work group's decisions

Business ethics refers to a ‘code of conduct’ which businessmen are expected to follow while dealing with others. ‘Code of conduct’ is a set of principles and expectations that are considered binding on any person who is member of a particular group. The alternative names for code of conduct are ‘code of ethics’ and ‘code of practice’.

Business ethics comprises of the principles and standards that guide behaviour in the conduct of business. Businesses must balance their desire to maximize profits against the needs of the stakeholders. Maintaining this balance often requires tradeoffs. To address these unique aspects of businesses, articulated as well as implicit rules are developed to guide the businesses to earn profits without harming individuals or society as a whole.