Scope of Business Ethics
Business ethics refers to values and principles that businesses should incorporate into their codes of conduct. For the welfare of society and all stakeholder groups, businesses must adopt and follow these rules. Business is referred to as a social organ and therefore should refrain from engaging in practices that are detrimental to the interests of all its stakeholders. Besides focusing on profit maximisation and higher growth, it should also work to uplift its surrounds. Businesses can use these ethics to decide what is right and what is wrong according to their circumstances.
The practice of business ethics helps the business to maintain better relationships with society, customers, employees, and other stakeholders. Business ethics must be adhered to strictly by everyone involved with the business. Business ethics should be tied to rewards and punishments for violators as well as for those who abide by these ethics. Ethics play an important role in raising the profitability and productivity of a business, as well as improving its reputation.