CHAPTER ONE

THE CONCEPT OF BUSINESS ETHICS

What is Business Ethics?

Business ethics is a combination of two important words: Business and Ethics. A proper

understanding of business ethics requires decoupling the two words for better understanding and

appreciation of the concept. Business is any organized activity by an individual or organization

to produce and sell, for a profit goods and services that satisfy the needs of society. Ethics on the

other hand is about one’s ability to differentiate right from wrong. Put together, business ethics is

a form of applied ethics or professional ethics that examines ethical principles and moral or

ethical problems that arise in a business environment. It has an overarching effect on business,

individual and the entire organization.

Put together, business ethics refers to the study of people’s tendencies to behave in morally

appropriate ways in organizations. It is sometimes called corporate ethics. Business ethics can

also be defined as the written and unwritten codes of principles and values determined by an

organization’s culture that govern decisions and actions within that organization. It has an

overarching effect as it applies to all aspects of business conduct on behalf of both individuals

and the entire company.

The concept of Ethics

It is abundantly clear that people always know the right thing to do. The difficulty however, is

doing the right thing. This notion is central to the distinction between two key terms – moral

values and ethics-that are essential to understanding the nature of ethical behaviour in

organizations. When social scientists speak of moral values/ ethical values (usually more

simply referred to as morals), they are referring to people’s fundamental beliefs regarding what

is right or wrong. One of the most important sources of moral values is the religious background,

beliefs, and training we receive. Although people’s moral values may differ, several are widely

accepted. For example, most people believe that being charitable to someone in need is right

whereas killing an innocent person is wrong. Based on these beliefs, people are guided in ways

that influence the decisions they make and the actions in which they engage. These standards are

referred to as ethics.

Ethics refers to standards of conduct that guide people’s decisions and behaviour (e.g., not

stealing from others). Most organizational scientists acknowledge that it is not a company’s place

to teach employees moral values. After all, these come with people as they enter the workplace.

However, it is a company’s responsibility to set clear standards of behaviour(code of conduct)

and to train employees in recognizing and following them. Just as organizations prescribe other

kinds of behaviour that are expected in the workplace (e.g., when to arrive and leave), so too

should they prescribe appropriate ethical behaviour (e.g., how to complete expense reports and

what precisely is considered a bribe). Not surprisingly, most top business leaders recognize that

clearly prescribing ethical behaviour is a fundamental part of good management. Thus, ethics is

about conduct.
It seems obvious that we should care about ethics because behaving ethically is the right thing to

do. Indeed, many famous people agree that ethical behaviour is of paramount importance.

Concept of Business

Just like human beings function with limbs, corporations or companies function through their
businesses. The term business can be broken as ‘busy-ness’ meaning thereby an activity that
keeps an individual busy. In the economic sense, the creation of utility is called business while in
the commercial sense, the activities concerned with the purchase and sale of goods and services
are called business. A business includes that part of production, which is equally exchanged and
results in mutual benefits to the parties who exchanged goods in the transaction.

Nature of Business

Business is a wide term. It includes all occupations in which people are busy in earning income
either by production or purchase, sale and exchange of goods and services to satisfy the needs of
people and to earn profit. The following points may be discussed to reveal the true nature of a
business:

1. Economic activity: Business is an essential economic activity. Profit motive is the key
element that inspires a businessman to work efficiently.
2. Human activity: Business is a human activity. In this sense, business is considered to be
an economic activity of human beings only. A business is by the people and for the
people.
3. Social process: Business is a social process. All the individuals involved in a business,
such as owners, customers and employees, are an integral part of society. Business has to
fulfil its social responsibilities.
4. System: A system is a combination of things or parts forming a unitary whole. It is an
established arrangement of components for the attainment of objectives. Similarly,
business is a system consisting of various subsystems that are operated in a balanced and
coordinated way.
Types of Business Activities
All human activities concerned with earning money are included under the term business.
Cultivation by a farmer, teaching by a teacher and treatment taken by a patient from a doctor are
also treated as business activities. There are different types of business activities, which may be
classified as follows:

1. Industry: An industry includes the activities connected with the production and processing of
goods. Manufacturing enterprises are engaged in the production of goods. These kinds of
industries can be classified as follows:

(i) Analytical enterprises: An oil refinery that separates crude oil into petroleum, kerosene
and diesel oil is an analytical concern.
(ii) Synthetic enterprises: An enterprise which combines several materials to produce one
product is a synthetic enterprise. All soap mills and cement factories are synthetic
enterprises.
(iii) Assembling enterprises: All those plants engaged in the production of products, such as
radios, scooters and television sets are assembling enterprises. A few enterprises
involved in mining are involved in mineral resource production, for example, iron ore,
coal, gold and silver.
2. Commerce: It is the total of all those activities that are engaged in the removal of hindrances
of persons or trade, places or transportation, risk of loss or insurance and time, such as
warehousing, banking and financing of commodities. Commerce can be divided into two
categories: trade and aid to trade. Trade can be further divided into two categories, which are as
follows:

(i) Internal: This includes the trade that is done with the country, such as wholesale and retail
trade.

(ii) External: This includes the trade that is done with various countries, such as export and
import.

Aid to trade can be divided into transport, banking and insurance.

Characteristics of Business
Business means the creation of utilities. There are many features of business activities and, thus,
the business. The essential characteristics of business may be summarized as follows:

Exchange or sale: A business includes the sale, purchase and exchange of goods and services.

Creation of utilities: A business creates transfers and utilities of goods by making them
available in proper form at the appropriate time and place.

Social institution: A business deals with the people of society. All the persons engaged in the
business, such as owners, customers, employees and other professionals, belong to the society. A
business has to fulfil its social responsibilities towards each part of the community and has to
follow the business ethics as well.

Profit motive: Business activities are carried out to make profit. A nonprofitable business
cannot continue to exist for long. Profits are essential for growth of a business.

Risk and uncertainty: There are two types of risks in a business. The first type of risk is floods
and thefts. The second type of risk is loss due to fall in demand and labour trouble. Uncertainty
arises because of unpredictability of profit in a business. Profit is such an element which cannot
be predicted in advance.

Customer satisfaction: A business always tries to satisfy its customer with better quality and
reasonable prices.

Business Goals

The term ‘goals’ denote what an organization expects to achieve in the future. A goal describes
clearly the activities and tasks to be completed by an individual and a department or an
organization. A business has a number of goals, which describe a desired future state for which
efforts are directed. The goals are like a measure to evaluate the success of the business. It helps
the management to keep the organization and the individuals working for it, away from
distractive activities which come in the way of the success of an organization

The characteristics of business goals are as follows:

Business goals are derived from mission statements.

(i) Business goals are task oriented and, therefore, they must state what is to be achieved by an
organization.

(ii) Business goals are short term in nature.

(iii) Business goals are challenging as they challenge the individuals who are responsible for its
attainment.

(iv)Business goals must specify the conditions that are necessary for the attainment of
organizational goals.

Objectives of Business

Objectives are needed in every field where performance and results affect the survival and
prosperity of a business. Success in a business cannot be achieved without the proper selection of
objectives. The structure, direction and management of a business closely depend upon its
objectives. Some of the important objectives are as follows:

(1) Economic objectives: Profit earning is the most important objective of a business. Profits
must be earned by a business to provide for its own survival, coverage of risks, growth and
expansion. It is a necessary motivating force and it is in terms of profits that the efficiency of a
business is measured. All business activities are performed to achieve the following economic
objectives:

(i) Incentive: Profit is the biggest incentive for work. It is the driving force behind the
business enterprise. It encourages a man to work to the best of his ability and
capacity.
(ii) Survival: Profit is essential for the survival of a business. In the absence of profits,
an organization will not be able to survive. It also helps in replacing obsolete
machinery and equipment and, thus, ensures the continuity of a business.
(iii) Growth: Stagnation is the biggest setback for any industry. The prosperity and
continuity of an industry largely depends upon its growth and expansion.
(iv) Measurement of efficiency: Profits measure the performance of the business. It is
the accepted yardstick for the evaluation of the efficiency of the business.
 (v) Prestige: An unsuccessful business concern carries no good will. Higher profits not
only provide economic power and status to the businessman but also improve the
creditworthiness and bargaining strength of the business.
(2) Social objectives: The purpose of a business is not only to earn profits but also to discharge
responsibilities towards society as well as employees. These objectives are as follows:

(a) Service to society: A business must serve the society by considering the
following factors:
(i) Better product: Customer satisfaction is the backbone of a business.
Therefore, a business must ensure a supply of better quality of goods and
services to its customers.
(ii) More employment: A business provides a large number of employment
opportunities to the members of the society. This is a very important service
especially in developing countries like India where the pressure of
population is high and thus unemployment prevails.
(iii) Better environment: No business can survive for long if it is harmful to the
society. It must not cause any kind of air, water or noise pollution. All effort
must be made to reduce the adverse effects of business on the quality of life.
Men, animals and birds must also be protected from industrial pollution of
the environment.
(iv) Better living standard: Good employment opportunities and good quality of
products improve the living standard of the people.
(b)Service to employees: A business must serve its employees by considering the
following

features:

(i) Fair wages: Social justice requires that employees get fair remuneration
for their work. Apart from the wages, if their employers acknowledge their
contribution, the employees would be satisfied and would work more
sincerely.
(ii) Growth and promotion: The work of the employees must be
acknowledged and they should be given adequate training to improve
 themselves so that they will be ready to accept better positions in an
organization, if offered.
(iii) Partnership in the prosperity of business: Employees should not be
considered servants in an organization. Their contribution must be given
due recognition. They must be allowed to share in the prosperity of the
business either by sharing of profits or capital.

(c ) Human objectives: The production process consists not only of materials, machines and
land, but also the workers working for the organization. Different human objectives can be listed
as below:

(i) Fair wages, bonus, dearness allowance, provident fund, medical facilities
and
(ii) Encouragement of creativity, initiative and provision of growth
opportunities for employees
(iii) educational and other facilities to employees
(iv) Workers’ participation in management
(v) Job satisfaction and other provisions to raise the morale of workers
(vi) Congenial working conditions
(vii) Security of employment for workers
(viii) Profit sharing schemes for the workforce
(d) National objectives: Apart from the other objectives, there are some national objectives as
well which are as follows:

(i) Ensuring social justice

(ii) Development of skilled personnel
(iii) Development of small entrepreneurs
(iv) Export development
(v) To abide by laws passed by local, state and central governments

Role of Objectives Business

Objectives play a very significant role in strategic management. They help the management in
the following ways:

1. Objectives are the base of strategic decision-making. They help in strategic decision-
making by directing the attention of strategists to the areas where decision-making is
required by them and also by coordinating individuals’ behaviour towards strategic
decision-making.

2. Objectives help in providing standards with the help of both the individual as well as the
overall performance of an organization can be judged.
3. Objectives also define the relationship of an organization with its environment. This
helps the organization to take into consideration what has to be achieved for its
employees, customers and the organization itself.
4. Objectives also help define the vision and mission statements of an organization.

Responsibilities of a Business towards Various Interest Groups/ stakeholders

Interest groups consist of the various persons connected with a business, such as consumers,
shareholders ,community, suppliers, financiers, government, employees, management, etc. The
responsibilities of a business towards various interest groups are as follows:

Responsibilities towards consumers: A consumer is a person who determines what goods shall
be produced and whether they should be sold in the market or not. Consumers not only
determine the income of the business but also affect the success and survival of the business.
Therefore, a business has some basic responsibilities towards the consumers and these are as
follows:

(i) To produce those goods that meet the needs of consumers of different tastes, classes
and purchasing power
(ii) To establish the lowest possible price with efficiency and reasonable profit to the
business
(iii) To ensure fair distribution of products among all sections of the consumers.
 (iv) To make the products more satisfactory to consumers through the study of consumer
needs
(v) To handle the complaints of consumers more carefully and to analyse them properly
(vi) To answer consumers’ enquiries related to the company, its products and services

Responsibilities towards shareholders: The basic responsibility of a business is to ensure the

safety of investment and higher rate of return on the investment. Owners of a business may be
proprietors, partners or shareholders. The interest of shareholders lies in participating in the
management and getting regular dividends at appropriate rates. It is, therefore, the responsibility
of the management to improve communication between the company and its shareholders. This
can be done by providing maximum information to the shareholders through newsletters, annual
reports or by holding the annual general meeting of the company at an appropriate time and place
so that the maximum number of members can come and participate in the discussions.

Responsibilities towards community: The management has the responsibility of informing the
community about the organizational policies, activities and contribution towards the betterment
of society. The various other responsibilities towards the community are as follows:

(i) Financial help to the municipal and district boards for the improvement of housing
conditions
(ii) To help the community by aiding hospitals, schools, colleges, religious institutions,
and so on
(iii) To organize community forums and group discussions to promote better
understanding of national and local affairs
(iv) To encourage sports and provide recreational facilities
In summary, a business must also perform other duties such as distributing fair wages, providing

good working conditions, not exploiting the workers, encouraging competition, etc. Business

ethics ensure that a certain required level of trust exists between consumers and various forms of

market participants with businesses. For example, a portfolio manager must give the same
consideration to the portfolios of family members and small individual investors. Such practices

ensure that the public receives fair treatment

Sources of Ethics

All human beings have a basic sense of right and wrong, which develops quite early in life and is

often modified with maturity and experience. However, there are some categories of people who

appear to be without concern for the impact of their actions on other humans. These people,

Psychologists label as sociopaths.

Are humans born ethical? Or we learn to be ethical? This issue has preoccupied the minds of

scholars for centuries. The argument is, are babies born with some knowledge or inclinations, or

a newborn baby is a blank slate, with knowledge and inclination provided by experience. This

complex issue is sometimes referred to as the “nature vs. nurture”, debate, and has been a subject

of a great deal of study and experimentation. However, present evidence point to the fact that, in

some ways, newborns are not all alike. In layman’s terms, infants are born with personalities or

pre-dispositions. All share certain physical instincts, but such traits as excitability or placidity

seem to be present in varying degrees from birth. It is imperative however, to appreciate the fact

that, a baby’s upbringing from earliest days also has significant influence on how it reacts to the

world around it. There is enough evidence to conclude, at least tentatively, that children brought

up in secure and nurturing environments show a strong tendency to view the world differently

than children raised in less secure and more hostile environments.

While evolutionary researchers have established that patterns of decision-making and concepts

of right and wrong emerge from early life experience, it important to note that influence is not
the same as determination. This is because unless individuals at least in some instances make

truly free choices, the concept of ethics makes no sense. It is a principle of both philosophy and

law that no one is obliged to do what they cannot do.

It can be said that the sources of an individual’s sense of moral right and wrong lie to some

extent in their personality, and this is impacted by early experience. There are a variety of ways

by which individuals learn or inculcate ethical values.

Parents

Parents are certainly a major influence on the sense of ethics of that adults bring to their work.

Consider the statement, “She has a good work ethic.” It is a common way of saying that someone

has certain beliefs and attitudes that influence their performance at work. If this can be said about

someone in her first job, then the good work ethics must have been formed before they became

an employee. For most people, this means that it was formed at home as they were growing up,

and this shows the influence of parents in development and internalization a good work ethic.

Even adults who no longer agree intellectually with their parents’ teaching about right and wrong

behaviour sometimes admit that their parents’ teaching influence their thoughts and actions.

Therefore, parents are one source of ethics that an individual does bring to their work.

Peers/ colleagues or friends

Our siblings, schoolmates, college mates, fellow workers or members of a club, team or social

group to which an individual belongs influence our sense of ethics. Often individuals define

themselves by their group of friends, and adults also have their views shaped to some degree by

their peers. It is said that police officers often have a more negative view of humanity than those

in some other professions because they spend so much of their time dealing with criminals.
Peers can also be members of the same profession. Accountants, attorneys, medical doctors and

members of other professions undergo extensive schooling. They learn not only how to minimize

taxes and costs, but also how member of their profession act and think alike. Professional

education involves socialization as well as information transmission. Obviously, not all

accountants or attorneys think alike. However, an argument can be made that members of a

given profession think more alike than non-members of that profession. Another factor involving

peer influence in the profession is the existence of professional code of conduct. These codes of

conducts are not perfect, and they do not influence all members of a profession equally.

However, they do provide a starting point for making some kinds of ethical judgments, and they

are more or less widely known within a profession. It is expected to belong relating with your

peers you must portray the right behaviour.

Teachers

They are another important medium of an individual’s sense of morality. Whether it is the simple

but often-repeated rules of primary schools or the more involved exposition that occurs in

college classes, teachers as authority figures do communicate in ways that influence the

reasoning and judgment of at least some of their students. For example, almost all teachers

communicate, subtly or overtly, that cheating is wrong. They say this, they write it in a syllabi

and on exam instructions, and they act on this when they detect cheating. Teachers also often

communicate the value of doing assignments, or thinking clearly, or doing one’s part in a group

projects. The cumulative impact of teachers does have an influence on the formation of an

individual’s sense of ethics.

Culture –community, organizational culture

Our cultural values are critical as far as moral lessons are concerned. Culture can be defined as

the unspoken rules and assumptions about how we do things around here. When considered in

this way, culture is subtle because it is unspoken. Most organizations do not have explicit rules

that dictate who shall be called by their first name and who shall be addressed more formally.

They do not have explicit rules about profanity at work, or the degree to which client information

is kept confidential, or the kind of jokes that are acceptable or unacceptable in the workplace.

Although none of these things is formalized, there often are unspoken rules. An observer of the

behaviour of workers at a construction site and at a law firm would notice immediate and

profound difference in individual behaviour and methods of conducting business. The two have

different cultures. However, an individual’s sense of ethics is shaped by the culture or cultures in

which he operates.

Religion

By far religion is regarded as the most important driver of an individual’s sense of ethics. People

who were raised in a religion, even if they no longer believe or practice it, often have the

teachings of that religion as part of their sense of ethics. People who do believe in and practice

religion typically find the moral rules or dictates of their religion the most meaningful way to

answer questions about right and wrong behaviour. However, most religious people would agree

that it is not a good thing to commandeer passenger airplanes and fly them and their passengers

into building in order to avenge one’s god or to send a religious message. Most religious people

would agree that doing such things in the name of religion is to misunderstand or misinterpret

religion.
Types/ categories of ethics
Ethics is a broad field that encompasses various perspectives and approaches to moral principles
and values. Different types or categories of ethics explore different aspects of ethical
considerations. Here are some commonly recognized types of ethics or categories of ethics:
1. Personal Ethics:
Honesty and Integrity: Issues related to truthfulness, honesty, and the consistency of one's
actions with personal values.
Personal Responsibility: Ethical dilemmas regarding individual accountability and obligations.
2. Professional Ethics:
Conflicts of Interest: Situations where personal interests may conflict with professional duties or
responsibilities.
Professional Competence: Ethical concerns related to maintaining and enhancing professional
skills and knowledge.
3. Organizational Ethics:
Corporate Social Responsibility (CSR): Ethical issues related to a company's impact on society,
including environmental practices and philanthropy.
Transparency and Accountability: Concerns regarding openness, honesty, and accountability
within an organization.
4. Environmental Ethics:
Sustainability: Issues related to environmental conservation, resource management, and
ecological sustainability.
Pollution and Waste Management: Ethical concerns regarding the disposal of pollutants and
waste.
5. Medical Ethics:
Informed Consent: Issues related to the disclosure of information and obtaining consent in
medical treatments.
End-of-Life Decisions: Ethical dilemmas surrounding decisions at the end of a person's life, such
as euthanasia and withdrawal of life support.
6. Technological Ethics:
Privacy Concerns: Ethical issues related to the collection and use of personal data in the digital
age.
Artificial Intelligence (AI) Ethics: Concerns about the ethical implications of developing and
using AI technologies.
 7. Bioethics:
Genetic Engineering: Ethical considerations surrounding the modification of genes and genetic
information.
Human Cloning: Issues related to the cloning of humans and the ethical implications of creating
identical copies.
8. Business Ethics:
Fair Trade Practices: Ethical concerns related to fair competition, anti-trust, and anti-competitive
practices.
Whistleblowing: Issues related to reporting unethical practices within an organization.
9. Social Justice:
Equality and Discrimination: Ethical concerns regarding the fair treatment of individuals,
regardless of gender, race, religion, or socio-economic status.
Access to Resources: Concerns about equitable distribution of resources and opportunities within
society.
10. Research Ethics:
Human Subjects Research: Ethical considerations related to the treatment of participants in
research studies.
Scientific Integrity: Issues related to the honesty and transparency in scientific research.
11. Political Ethics:
Corruption: Ethical concerns related to abuse of power, bribery, and unethical political practices.
Campaign Finance: Issues related to the funding of political campaigns and its impact on
decision-making.
12. Educational Ethics:
Academic Integrity: Ethical concerns related to plagiarism, cheating, and dishonesty in
educational settings.
Equitable Access to Education: Concerns about ensuring equal educational opportunities for all
individuals.
Is Ethics the same as Morality and Law?

Ethics, morality, and law are related concepts but have distinct meanings and applications. While
they share common ground in addressing principles of right and wrong, they operate in different
spheres and are shaped by distinct frameworks.
Ethics:

Definition: Ethics refers to a set of principles or values that guide individuals or groups in
determining what is morally right or wrong. It is a broader concept that involves the study of
moral philosophy and the development of principles that govern behavior.

Source: Ethics can be derived from various sources, including cultural norms, religious beliefs,
philosophical theories, and individual or collective experiences.

Scope: Ethical considerations extend beyond legal requirements and often involve personal and
professional conduct, guiding individuals in making morally sound decisions even in the absence
of specific laws.

2. Morality:

Definition: Morality is a set of principles or rules that individuals or societies consider as

standards of behavior, distinguishing right from wrong. It often encompasses personal beliefs
about what is morally acceptable or unacceptable.

Source: Morality can be influenced by cultural, religious, or philosophical beliefs. Personal

experiences and upbringing also play a role in shaping an individual's moral compass.

Flexibility: Morality can vary between individuals and cultures, and what is considered moral in
one context may differ in another.

3. Law:

Definition: Law consists of a system of rules and regulations established by a governing

authority to regulate behavior within a society. It is a formal and codified set of rules that
individuals are legally obligated to follow.

Source: Laws are typically enacted by governments and derive authority from legal systems.
They can be influenced by ethical and moral considerations, but not all ethical or moral
principles are codified/ are addressed into law.

Enforcement: Legal systems have mechanisms for enforcing laws, and violations may result in
legal consequences such as fines, imprisonment, or other sanctions.

Key Differences:

Enforceability: Laws are enforceable rules established by a governing authority and backed by
the legal system, while ethics and morality rely on personal or collective adherence to principles.

Flexibility: Morality is often more flexible and subjective, varying among individuals and
cultures. Laws are more rigid and standardized, applying uniformly within a jurisdiction.
Consequences: Violating ethical principles or moral standards may lead to social or personal
consequences, while violating laws can result in legal consequences imposed by the state.

Factors that Affect Ethical Behavior next week 24th

1. Stage of moral development (Kohlberg) – Stage one – pre-conventional, rule following.

Stage two – Conventional, living up to expectations of others. Stage three – Principled,
following self-chosen path and respecting others.

2. Individual characteristics – values, knowing right from wrong. Ego strength, the power
of your convictions. Locus of control, an internal locus of control means that you believe
you control your own destiny, an external locus of control means you believe you have
no control.

3. Structural factors – an organisation’s structure affects people’s ethical behaviour (e.g.

clear ethical statements, policies and regulations).

4. Organisational culture – this is made up of the values and norms shared by people
working for an organisation. A strong culture will exert more influence than a weak one.

5. Issue intensity – this refers to how important an issue is. Something not so important
(e.g. making private local calls) has different ethical implications to something very large
(e.g. embezzling 1 million ksh ). The act is the same (theft) but the intensity of the issue
is different.

Importance of ethics in the society

Ethics plays a crucial role in shaping the fabric of society, influencing individual
behavior, interpersonal relationships, and the overall functioning of communities. The
importance of ethics in society extends across various dimensions:

1. Shared Values: Ethics provides a framework for shared values and principles within a
society. Common ethical standards create a sense of unity and cohesion, fostering a
shared understanding of what is morally acceptable.
2. Guidance for Decision-Making: Ethics serves as a guide for individuals when making
decisions. It helps people distinguish between right and wrong, encouraging
responsible and conscientious behavior.
3. Foundation for Trust: Ethical behavior is fundamental to building trust within
communities. Trust is crucial for interpersonal relationships, cooperation, and the
functioning of various social institutions.
 4. Fair Treatment: Ethical principles underpin concepts of justice and fairness. A society
that values ethics is more likely to promote equality, fairness, and the protection of
individual rights.
5. Balancing Individual and Collective Interests: Ethical considerations help strike a
balance between individual interests and the collective well-being of the community.
This ensures that societal structures and policies benefit the greater good.
6. Integrity in Professions: Ethical standards are crucial in professional settings, guiding
individuals to maintain integrity, honesty, and responsibility in their roles. This is
vital for the credibility of professions and business practices.
7. Promoting Accountability: Ethical behavior encourages individuals and organizations
to be socially responsible. This involves considering the impact of actions on the
environment, community, and future generations.
8. Negotiation and Resolution: Ethical principles provide a foundation for resolving
conflicts peacefully. By appealing to shared values, ethical discussions can lead to
compromise and resolution.
9. Moral Education: Ethics is often integrated into educational curricula to instill moral
values and critical thinking skills in the younger generation. This helps shape
responsible citizens.
10. Cultural Integrity: Ethics contributes to the preservation of cultural integrity by
guiding individuals and communities to respect cultural diversity and traditions
11. Protection of Vulnerable Groups: Ethical considerations help identify and prevent
harm to vulnerable groups within society, ensuring their rights and well-being are
safeguarded.
12. Environmental and Social Sustainability: Ethical behavior promotes sustainable
practices, fostering environmental stewardship and social responsibility for the
benefit of current and future generations.

Questions

1. Identify and discuss two reasons why business ethics is relevant for business

professionals

2. Briefly discuss the statement that “Ethics and law are not the same”.

3. Following the law is ethical. Explain with illustration(s)