perhaps that businesspersons by virtue of their widespread control over society’s resources have a much greater effect on what happens in a society than persons in other areas of activity do. Business people and politicians are expected to have higher standards over and above other people. This is perhaps the price they pay for being allowed to make decisions on behalf of society. There is a growing realisation all over the world that ethics is vitally important for every business and for the progress of any society.
Ethical business is good business. Ethical business behaviour improves public image, earns people’s confidence and trust, and leads to greater success. Ethics and profits go together in the long run. Ethics alone, and not government or laws, can make a society great.
An ethically responsible enterprise develops a culture of caring for people and environment and commands a high degree of integrity in dealing with others. Ethical activity is indeed valuable in itself, for its own sake, because it enhances the quality of our lives and that of the work we do. . .
Elements of Business Ethics Since ethical business behavior is good for both the business enterprise and society, it makes sense to discuss how the enterprises can foster ethics in their day-to-day working. Some of the basic elements of business ethics while running a business enterprise are as under: (i) Top management commitment: Top management has a crucial role in guiding the entire organisation towards ethically upright behaviour. To achieve Origin of Three Similar Concepts (a) Corporate Social Responsibility: It originated in U.S.A where Government had passed Anti-Trust Act against monopolistic practices, so as to protect and improve the welfare of society. (b) Business Ethics: This also originated in U.S.A in the 1970s.
Business ethics highlighted social values and society’s concerns in relation to business and forced the corporates in that country to abstain from policies and practices which were hostile to consumers and environmental protection. (c) Corporate Governance: It originated in the U.K. for the purpose of improved accountability of directors to shareholders, emphasis on more transparent auditing and increased