What is Business Ethics?

Business Ethics mean several things to several people, but generally it’s come into mind to know that what it right or what it wrong in the place where work has done and doing what's right. That is in regard to impact of products/services and in relationships with all stakeholders. In other words ethics are explained doing the right thing, in the right way, for the right reason. But this is most important for us to know “what is right” may differ from person to person, company to company or differ from country to country. This is depending on the cultures, norms and standard of that environment or acceptance of people of that environment. And 2^nd step is the right way. Way we used that is a legal or illegal, in this situation when the way we use through this way, can we fulfill his responsibility. For example, if a person give a 5% amount from his income to any trust or needy peoples.

The 1^st step is fulfill this is right thing and this is social purpose. And the 2^nd step is most important, the 5% amount must be sure to give needy persons. If the charity amount not give to required needy persons this is not spend for social purpose.

Business ethics reflect the philosophy of business, in one side that whose company aims is to determine the fundamental purpose of the company. If the purpose of the company is to maximize the shareholders return, in that situation the company sacrificing profits to other considerations would appear to be a violation of its fiduciary responsibility. The corporate persons are legally responsible and legally entitled to the rights and liabilities due to citizen as persons.

For this situation two different views have come on that issue. Economists like Milton Friedman believe that, the social purpose and the responsibility is to protect the rights only on individuals, for example real person not to the company. One thing he is also clear the responsibility of board is only for working to maximize the profit for their shareholders.

However, management star Peter Drucker says any many authors have different views. According to that views Peter Drucker says not have a separate ethics of business and nor have individuals. Implying that standards of personal ethics apply equally to business and personal situations. Thus the responsibly of board has individuals has and collective responsibilities for his goodwill and good business ethical policies.