PRINCIPLES OF BUSINESS ETHICS

sunandaC

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PRINCIPLES OF BUSINESS ETHICS


Business is said to be conducted on ethical and moral grounds along with economic objectives, but equal importance is given to social objective too. Principles of business ethics suggests what should and what should not be done to achieve business goals.
1. Importance of task:
For any success in business there should not be exploitation to achieve the task. The importance and status of task should be recognized in theory and practice. This can be done by providing better working condition, fare and equal treatment, payment of fare wages, better task management relations and providing welfare facilities to employees.

2. Satisfaction of consumer wants:
The object of business is to identify consumer and his wants. The business must produce and provide that goods and services which satisfy consumer needs and wants.

3. Service Motive:
This principle deals with the importance of service and consumer satisfaction over profit maximization. This would require self imposed restrains and some degree of personal sacrifice in terms of monitory return. A business firm should try to make profit after satisfying consumer wants and not by exploiting them.

4. Protection of Group Interest:
Modern business cannot escape from the responsibility towards employee, shareholders, creditors and consumers. Business cannot satisfy thirst of one group and keep others starving. It has to reconcile the conflicts of interest of various groups with a touch of humanity, equality and sense of responsibility.

5. Healthy Competition:
In sellers market, consumers are victim because of unfair competition. A well developed market would encourage competition and discourage monopoly. A healthy competition among businesses is beneficial to consumers because it ensures quality goods at reasonable price.

6. Better Utilization of Resources:
It is duty of businessmen to make best possible use of resources, minimize wastage and raise the standard of living. Business ethics would result in judicious and optimum utilization of depleting natural resources.
7. Rule of Publicity:- People should be adequately informed about the nature, purpose and consequences of business dealings.
8. Rule of Equivalent Price:- People receive the goods and services fully equivalent to the money paid. People should get the best return of their spending. There should be an element of mutual benefit – Business gets the price of the Product and consumer get the satisfaction.
9. The Rule of Conscience in Business:-
Rules of Business should be judged by the moral judgement. Decision of businessmen should be governed by the concern for the society, rather than selfish motives.

10. The Rule of Spirit of Service :– Service FIRST and Profit NEXT.

11. Business should be just and human as well as efficient and dynamic.


12. Growth of the size of business must be accompanied by the growth of human values

13. Business must make best and fullest use of its input.

14. Business should promote and support open and healthy competition.
 
For me business ethics and its principles are those which can fulfill human demands, also business owner should take care of their moral behavior towards public and environment. For more details, you can check my presentation on principles of business ethics.
 

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