Business Ethics is nothing but the application of Ethics in business, according to the nature and idea of Ethics. That businesses may be ethical and yet generate money is demonstrated by Business Ethics. Business Ethics was believed to be a misnomer. Not anymore, thankfully. The use of ethical practises in business and the ethical consequences of business are becoming increasingly important.
Humans have been gifted with free will and the ability to choose. He knows the difference between right and wrong, reasonable and appropriate. He can discern between his desired objective and the methods to achieve it.
As with humans, companies are run only by humans, and businesses are nothing more than formal frameworks for humans to run. Also, businesses are seen as living, evolving entities. Thus, corporations can choose between maximising profits and doing good for the society in which they operate.
However, profit maximisation and maximal social responsibility cannot always be achieved concurrently. The two are sure to interact. For example, Concern for Task (Productivity) and Concern for People (workers) are bound to oppose. Combining both is tough, if not impossible.
Trying to achieve both concurrently causes a conflict. Many administrative decisions thus represent Managerial Dilemmas, between the organisation’s economic (commercial) and social (welfare) concerns. There are many ethical implications to managerial actions, giving rise to Managerial Dilemmas.
For example, utilising new technology to undermine traditional occupations and ethical practises of local residents is unethical. It is difficult to answer the question of what to do with people whose lives and wages are changed by the usage of advanced technology.
The term “ethics” refers to standards of behaviour that discriminate between what is good and what is bad; what is right and what is wrong in a situation. It is a person’s personal attitude and views about what constitutes appropriate behaviour. Individuals are responsible for their own ethics, which are defined in their own way by each individual in his or her own way. What may be considered ethical behaviour by ‘X’ may be considered unethical behaviour by ‘Y’.