12 Nature of Business Ethics

Ethics are learned early in life from parents and family, peers, teachers, and significant others and are either reinforced or altered by subsequent experience. Now let’s know about the nature of business ethics.

Business ethics deals with those activities of business enterprises some of which should be done and some should not be done for society.

A businessman must practice some ethics and here we describe the nature of business ethics below:

Nature of business ethics

1. Ensure the legality of business activities: Business activities must be legal and a businessman should not do any kind of illegal activity.

2. Customer orientation: All of his operations must be customer-oriented. He must bear in his mind that the “customer is the kind” So, he should produce and distribute those types of goods and services which can satisfy the customers.

3. Supplying good quality products: A businessman must have to ensure the supply of good quality products and services. He has to maintain the minimum standard of his product and service.

4. Price: The businessman has to claim a reasonable price for products or services that are under the buying capacity of the customers.

5. Following rules and regulations: A businessman must have to follow all business-related rules and regulations that are formulated by the government.

6. Employer-employee relationship: This is an important issue to build up a friendly relationship between employers and employees in an organization because the successes of the organization largely depend on it.

Nature of Business Ethics

7. Avoiding fraud and cheating: A businessman has to avoid unfair means. He should not try to cheat or fraud the customers or the general public. He should always practice honesty and sincerity in his activities.

8. Environmental issues: In the present world, environmental issues are considered vital matters. A businessman ensures a healthy environment for the insiders as well as the outsiders for running the organization smoothly.

9. Avoiding artificial shortage: Some dishonest businessmen create an artificial shortage of products and thereby they want to gain more profit. This is not acceptable.

10. Meeting the claims: Claims of different categories of people like workers, executives, suppliers, etc. are not the same but businessmen have to satisfy them as per their requirements.

11. Avoiding harmful competition: In order to survive in the market successfully, each and every business organization should cooperate with each other. They should avoid harmful competition.

12. Social welfare: Profit earning cannot be the sole motive of business activity. Businessmen have a social responsibility that must be met. Moreover, the business organization produces goods and services to generate profit. At the same time, it must have some impact on society as well as the whole community.

The responsibility of a businessman is to provide goods and services in a way that is not harmful to society. Finally, a businessman must consider the overall social welfare.

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