(A) Meaning : The word ‘ethics’ is derived from Greek word ‘Ethos’ which refers to human character and conduct. The dictionary meaning of ‘ethics’ is moral principles that control or influence a person’s behaviour. The term ‘business ethics’ refers to a system of moral principles or rules of conduct applied to business operations or activities. It is a code of conduct for regulating the activities of business towards society and others. Ethics is a branch of social science.

According to Wheeler, “Business ethics is an art or science of maintaining harmonious relationship with society, its various groups and institutions as well as reorganising the moral responsibility for the right or wrong conduct of business.

(B) Elements of business ethics : 

The elements of business ethics are explained as follows:

(1) Trustworthiness : Every business unit or organisation must work in all areas to maintain trustworthiness. This increases the confidence of clients or customers in the organisation. The clients usually believe in organisations for reliability and quality performance. Company or organisation functions and prospers on character, i fairness, truth, honour and ability.

(2) Honest service delivery : It is much better to be honest about what one can do rather than making empty promises. Empty or false promises ruin the reputation of the business organisation. Business organisation should fulfil or complete all its commitments and obligations and leave every customer feeling well served and satisfied.

(3) Confidentiality : The company or business organisation should strictly obey and follow its i internal confidential policy. It is utmost important for every business organisation to keep in secret the confidential details of its own clients. For private gain it should not disclose such information to any one.

Similarly, it should not use any means to get information from competitors about certain formulae or methods of production.

(4) Openness : Good business ethics and continuous improvement also come from keeping an open mind. Business unit should follow the principle of openness. It should regularly demand opinions and feedback from both clients and team members. Even in times of business disagreement, business unit should welcome other’s opinions and ideas with respect and courtesy.

(5) Other common business ethics : (1) A large portion of our society is composed of common people with low purchasing power. Business enterprises should consider likes, dislikes and financial position of these people and accordingly manufacture and provide goods and services. (2) The guaranties and warranties given by the manufacturer should be proper and acceptable by the customers.

(3) Advertisements given by the businessmen should not cross limit of decency.