Q1) Features of Ethics and Business Ethics

1. Based on Moral and Social Value – Ethics are built on principles of

right and wrong, shaped by society and culture. Business ethics
follow these values to ensure fairness, honesty, and responsibility in
decision-making. They help businesses maintain a positive
reputation and build trust with customers, employees, and society.
2. Code of Conduct – A business code of conduct is a set of guidelines
that employees and organizations follow to maintain ethical
behavior. It includes principles like honesty, transparency, and
fairness in dealings. A strong code of conduct helps prevent
unethical practices and ensures professionalism.
3. Give Protection to Social Group – Business ethics protect employees,
consumers, investors, and society from exploitation. Ethical
companies ensure fair wages, safe working conditions, and honest
transactions. This protection leads to a balanced and fair business
environment.
4. Provide Basic Framework – Ethics provide a structured approach for
businesses to operate responsibly. They serve as guidelines for
decision-making, ensuring that companies act in ways that are fair
and just. This framework helps businesses build trust and credibility.
5. Voluntary – Following ethical practices is not legally required but is a
choice made by businesses to gain customer trust and long-term
success. Ethical businesses attract loyal customers and employees,
leading to sustainable growth. It also improves a company's
reputation.
6. Relative Term – Business ethics vary based on culture, industry, and
region. What is considered ethical in one country may not be the
same in another. Therefore, businesses must understand local and
global ethical standards to operate fairly.
7. Require Education and Guidance – Ethics are not always intuitive, so
businesses must educate employees about ethical practices.
Training programs and workshops help employees make responsible
decisions and understand the importance of ethical behavior in the
workplace.
8. New Concept – Business ethics have gained more importance in
recent years due to globalization, social awareness, and corporate
responsibility. Companies are now expected to act ethically, not just
for profit but also for the welfare of society and the environment.
Q2) Principles of Business Ethics
1. Sacredness of Means and Ends – Businesses should use ethical
means to achieve their goals, rather than resorting to unfair or
dishonest methods. A company that follows ethical practices in its
operations ensures long-term sustainability and respect.
2. Not to Do Any Evil – Businesses should avoid actions that harm
people, society, or the environment. Ethical businesses focus on fair
wages, sustainability, and safe products. Avoiding harmful practices
helps maintain a good reputation and legal compliance.
3. Non-Cooperation with Others – Ethical businesses should not engage
with organizations or individuals involved in unethical activities. This
includes avoiding partnerships with companies that exploit workers,
harm the environment, or engage in corruption.
4. Principle of Proportionality – Decision-making should consider the
balance between benefits and risks. Businesses should ensure that
their actions do not create unnecessary harm to employees,
customers, or society, even when pursuing profit.
5. Cooperation with Others – Ethical businesses should work with
stakeholders, including employees, customers, and competitors, to
create a fair and productive market environment. Cooperation leads
to mutual growth and a positive business atmosphere.
6. Publicity – Businesses should be transparent about their policies,
financial dealings, and practices. Hiding information or misleading
customers damages trust and credibility. Ethical businesses openly
share their policies to maintain integrity.
7. Equivalent Price – Businesses should set fair prices for their products
and services, ensuring they reflect true value without overcharging.
Fair pricing helps maintain customer trust and promotes long-term
customer relationships.
8. Universal Value – Ethical principles should apply across all
industries, cultures, and regions. Honesty, fairness, and
responsibility are global ethical values that businesses should
follow, regardless of location or market conditions.

Q3) Scope of Business Ethics

1. Ethics in Compliance – Businesses must follow government laws and
industry regulations to operate ethically. Compliance ensures that
companies do not engage in fraud, corruption, or illegal activities,
maintaining public trust.
 2. Ethics in HR – Human resource ethics focus on fair treatment of
employees, including equal opportunities, non-discrimination, fair
wages, and safe working conditions. Treating employees ethically
leads to higher job satisfaction and productivity.
3. Ethics in Marketing – Ethical marketing ensures that advertisements
are truthful and do not mislead customers. Businesses should avoid
false claims, deceptive pricing, and manipulative tactics to gain
customers’ trust and loyalty.
4. Scope of business ethics:
 Ethics in Compliance:
o Example: A company follows laws and regulations, like not paying
bribes.

 Ethics in Human Resources (HR):

o Example: A company treats all employees equally and offers fair
wages.

 Ethics in Marketing:
o Example: A company honestly promotes its products and respects
customer privacy.

 Ethics in Production:
o Example: A factory ensures workers are safe and uses eco-friendly
production methods.
 Ethics in Production – Ethical production means making high-
quality, safe products without harming people or the
environment. Companies should avoid using hazardous
materials, exploitative labor, or unsustainable practices in
manufacturing.

Q4) Importance of Business Ethics

1. Self-Satisfaction – Ethical businesses gain satisfaction from doing
the right thing. Following ethical values brings peace of mind to
business owners and employees, knowing they are contributing
positively to society.
2. Success and Development – Companies that follow ethical practices
tend to achieve long-term success. Ethics attract loyal customers,
 investors, and employees, leading to steady growth and financial
stability.
3. Encourage Others – When a company practices business ethics, it
sets an example for others to follow. Ethical businesses inspire
competitors and new businesses to adopt fair and honest practices,
improving the overall business environment.
4. New Management – Ethical business practices promote modern
management strategies that focus on employee well-being,
sustainability, and corporate social responsibility. Ethical leadership
results in a positive and productive workplace.
5. Develop Good Relations – Ethical businesses build strong
relationships with employees, customers, investors, and society.
Honest dealings and fair treatment create trust and long-term
business relationships.
6. Create Good New Relations – Ethical companies attract new
customers, business partners, and investors. People prefer to
associate with businesses that have a good reputation and ethical
values.
7. Healthy Competition – Ethics promote fair competition, preventing
practices like price manipulation, false advertising, and monopolistic
behavior. This ensures that businesses compete based on quality
and innovation rather than deceit.
8. Improve Customer Confidence – Customers trust businesses that are
ethical, transparent, and fair. Ethical businesses gain customer
loyalty, leading to repeated purchases and positive word-of-mouth
marketing.

Q5 ) What are the myths of business ethics?

1. Business Ethics is Only for Large Companies – Many people believe
that only big corporations need to follow ethical practices, but ethics
are essential for businesses of all sizes. Small businesses also need
to be fair, honest, and responsible to build trust and long-term
success.
2. Ethics and Profits Do Not Go Together – Some think that ethical
businesses cannot be profitable, but in reality, ethical companies
attract loyal customers and investors. Fair practices, transparency,
and trust lead to long-term growth and financial stability.
3. If It's Legal, It's Ethical – Just because something is legal does not
mean it is ethical. Some business practices may be allowed by law
but can still be unfair or harmful, such as misleading advertising or
exploiting workers. Ethics go beyond legal requirements.
4. Ethical Businesses Cannot Compete – Many believe that ethical
businesses cannot survive in a competitive market, but companies
with strong ethical values often have better customer loyalty,
employee satisfaction, and long-term success. Ethics create a strong
brand reputation.
5. Business Ethics is Only About Corporate Social Responsibility (CSR) –
While CSR is an important part of business ethics, ethics also include
honesty, fairness, transparency, and responsibility in all business
activities, such as marketing, employee treatment, and financial
reporting.
6. Ethics is a Personal Matter, Not a Business Concern – Some think
ethics is only about personal beliefs, but ethical behavior is crucial
for businesses. A company’s ethical culture affects its reputation,
employee morale, and customer trust, making it a key business
concern.
7. Employees Do Not Care About Business Ethics – Many assume that
employees are only motivated by salaries and not ethics. However,
employees prefer working in ethical environments where they feel
valued, respected, and treated fairly, which leads to better
performance and job satisfaction.
8. Ethical Problems are Rare in Business – Some believe that ethical
issues happen only in extreme cases, but businesses face ethical
challenges regularly, such as fair pricing, truthful advertising, and
employee treatment. Ethical decision-making is needed in daily
business operations.
Q6) Types of Ethics

1. Transaction Ethics – This refers to ethical behavior in business

transactions, ensuring honesty, fairness, and transparency in
dealings with customers, suppliers, and partners. It focuses on
maintaining trust and integrity in financial and trade interactions.

2. Recognition Ethics – This involves acknowledging and respecting

ethical responsibilities towards employees, customers, and society.
Businesses that follow recognition ethics value diversity, fairness,
and respect in their operations.

3. Participatory Ethics – This type of ethics encourages involvement

and collaboration among employees, stakeholders, and the
community in ethical decision-making. It promotes transparency,
inclusivity, and shared responsibility in ethical practices.

Q7) Nature of Ethics

1. Personal Ethics – These are an individual's moral values and

principles that guide their behavior in daily life and work. Honesty,
kindness, and responsibility are key aspects of personal ethics.

2. Professional Ethics – These are the ethical standards followed in a

specific profession, such as honesty in business, confidentiality in
healthcare, and fairness in law. They ensure integrity and
accountability in professional conduct.

3. Management Ethics – This refers to ethical principles applied in

business management, including fair leadership, employee rights,
corporate social responsibility, and ethical decision-making. Ethical
management ensures long-term business success and trust.
Q 8) cs

1. Compliance

Compliance means following laws, rules, and ethical standards set by

society, government, or the organization. It ensures that businesses
and individuals act within legal and ethical boundaries.

2. Contribution

Contribution focuses on the positive impact businesses or individuals

make on society, such as providing quality products, supporting
communities, or protecting the environment. It emphasizes adding
value beyond just profits.

3. Consequences

Consequences involve considering the outcomes of actions on

stakeholders, such as customers, employees, and the environment.
Ethical decisions ensure that the results benefit everyone and avoid
harm.

Transactional Ethics:

Transactional ethics refers to ethical practices in business transactions,

focusing on honesty, fairness, and mutual respect between parties
involved in exchanges.

Ethics in Marketing:
Ethics in marketing involves promoting products honestly, avoiding
misleading advertisements, and ensuring fairness to consumers while
respecting cultural and societal values.

Ethics is Not an Art:

Ethics is a set of principles or rules, not a creative or subjective process

like art. It is about following moral and societal guidelines to act
responsibly.

Professional Ethics:

Professional ethics are the standards and principles that guide

behavior in a specific profession, ensuring integrity, accountability, and
respect in the workplace.