TYPES OF BUSINESS ETHICS

TYPES OF BUSINESS ETHICS

 

        It is very difficult to classify business ethics into certain definite types. However, certain attempts have been made to classify them on the basis of values and responsibilities.

 

On the basis of Values

 

On the basis of Values, Business Ethics can be summarized under three heads. They are Equality, Respect and Freedom

 

Equality: Equality means - avoiding all kinds of discrimination against any person. Any discrimination on the basis of gender, race, religion etc. should be avoided inside the business. The business should be able to treat all persons inside and outside business equally. It should provide a work environment which is suitable to all types of people. The business should ensure that all groups of people are happy and satisfied inside the business. Similarly, all customers should get equal consideration especially in times of seeking redressals on complaints. There should not be any kind of price discrimination. There should not be any kind of quality or quantity discrimination.

 

Respect: Business can respect the interests of all stakeholders around the business. It is an attitude of deference, admiration or consideration and also the feeling of protection offered to others by the business. Everybody connected to the business should be felt honored or esteemed. This behavior can increase good image and also reduce many ego problems arising out of ill feelings.

 

Freedom: It is the quality or state of being free: such as the absence of coercion, threat or penal action. Customer has freedom to select goods and shops at their wish. The business should allow this freedom to its customers. Duty of business is to serve the customers who approach it, and it has no right to interfere into their freedom in selecting a product or shop.

 

On the Basis of Responsibilities

 

On the basis of responsibilities, business ethics can be summarized under four heads: such as Personal Responsibilities, Official Responsibilities, Corporate Responsibilities and Organizational Responsibilities.

 

Personal Responsibilities: as a person everybody has a responsibility to be honest and sincere. Every person has a responsibility to respect others. Every person has a responsibility to obey rules and regulations prevailing in the country.  It means that, responsible behavior of persons inside the business is basis of ethics in business.

 

Official Responsibilities: Only persons or human beings occupy positions. A person who-is occupying a certain position in a business should strictly follow certain norms and other standards set for that official capacity. Being responsible to that position means, being ethical towards others. As an official, a person has responsibility to obey his superiors and to follow the rules and regulations of the orgnisation. Responsible behavior of officials can bring ethics.

 

Corporate Responsibilities: The business as a corporate has some responsibilities towards society, towards its customers and government. Corporates has certain responsibilities towards competitors also. It should never try to harass or insult the competitors. The responsibilities may not be identical with the personal moral codes of the managers who run the company. These responsibilities may be internal or external.

 

Organizational Responsibilities: As an organization the business has some responsibilities towards employees, customers and society. The business makes use of resources from the society and therefore, it has responsibility to give back quality products to its customers and society. The business makes use of opportunities available in the environment to grow and develop its business, and therefore has responsibility to protect the society and environment. It should never exploit its employees and customers. It should never destruct the ecological balance. It should never pollute the environment. As an organization, the business has responsibility to abide laws prevailing in the country. Being responsible organization, any business can become part of growth of people and nation.