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Scope of Business Ethics – Business Ethics | Business and Society

Scope of Business Ethics

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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.

Some of the major Scope of Business Ethics are discussed below: 

  • Ethics In Compliance
  • Ethics In Human Resource
  • Ethics In Finance
  • Ethics In Production
  • Ethics In Marketing
  • Ethics in Society
  • Ethics Internal Policy Formulation
  • Ethics in Personal Policy Formulation
  • Ethics for Stakeholder

Business Ethics FAQs

Which of the following is true of business ethics?

a) It examines ethical situations related to services that may damage the environment.
b)It examines ethical situations related to products that may damage the environment.
c) It examines ethical situations related to consumer issues.
d) It examines ethical situations related to global issues.
e) It examines ethical rules and principles within a commercial context.

Which of the following statements is true about business ethics?

A. It concerns the impact of a business activities on society.
B. It refers to principles and standards that determine acceptable behavior in the world of business.
C. It relates to an individual’s values and moral standards and the resulting business decisions he or she makes.
D. What is ethical is determined by the public, government regulators, interest groups, competitors and individual’s personal moral values.

The study of business ethics is important to better understand all of the following except

Which of the following is not an individual factor that affects business ethics?

Which of the following statements about business ethics is false?

Business ethics involve considering issues about what is:

Which of the following is the minimal standard essential for the development of business ethics

To be successful business ethics training program need to

Which legislation related to the concept of business ethics

Which one of the following is not principle business ethics

Investors are concerned about business ethics because they know that misconduct can

More than a compliance program, business ethics is becoming

As a philosophy for business ethics, utilitarianism focuses attention on the need to

The study of business ethics is important to better understand all of the following except

The most serious danger of using the conventional approach to business ethics is

Business ethics, as a field, has passed through which of the following states?

To provide greater clarity to business ethics, many companies and professional groups

Why might vertical systems be a business ethics issue?

With respect to business ethics, it can be said that “it takes two to tango.” this indicates that:

A. dancing around issues should be part of a firm’s code of ethics.
B. an individual’s behaviour is influenced by the behaviour of others.
C. teamwork eliminates a need for personal ethics.
D. management is insensitive to ethical issues.

What business ethics issue was a major concern during the 1920s?

a. ​abusive managers
b. ​living wage
c. ​consumerism
d. ​bribery
e. ​sustainability?

Business ethics deals primarily with

A. Social responsibility.
B. the pricing of products and services.
C. moral obligation.
D. being unfair to the competition

Factors influencing business ethics

Crucial step in understanding business ethics is

(a) Establishing codes of ethics
(b) Learning to recognize ethical issues
(c) Having efficient operations
(d) Implementing a strategic plan

3C of business ethics

The 3Cs of Business Ethics are Compliance, Contribution, and Consequence.

Myths about business ethics

  1. Business ethics is more a matter of religion than management.
  2. Business ethics is superfluous — it only asserts the obvious: “do good!”
  3. Business ethics in the new policeperson on the block.
  4. Business ethics and social responsibility are the same thing.
  5. Our organization is not in trouble with the law, so we’re ethical.


Why are ethics considered so important when studying organizational behavior?

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