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BBA 1st Year Business Ethics Short Question Answer

(5) Ethics, Profit and Profit Ethics Proceed Together: A company which is inspired by ethical conduct isalso profitable one. Value driven companies are sure to be successful in the long run, though in the short run, they may lose money.

(6)Law Cannot Protect Society, Ethics Can : Where law fails, ethics can succeed. An ethical oriented management takes measure to prevent pollution and protect worker’s health even before being mandated bylaw. The word ‘Va’ue’ means the worth, mer4it, usefxhesS or iixportauce of a thing. The value is a belief on which a man acts by preference. Everyone does not hold the same values. The value of a thing varies from person to person and it is more of a relative concept.

Q.3. What are the factors affecting business ethics?

Ans. Business ethics is affected by several factors which are described below:

(1) Cultural Factors : A Cultural value originates from religion, family system, heritage, education system, government etc. These institutions prescribe what is good and bad behaviouL Hence, cultural values affect the business ethics.

(2) Economic Factors Generally, business ethics become more liberal with the industrial anc commercial growth. The level of economic growth and development influences the nature and Ievej of business ethics. For example, comparing one’s product with competitive products in advertisement is no longer considered unethical today.

(3) Political Factors: Business ethics is immensely influenced by the ideology of political party in the power since, the government can regulate the behaviour of businessman through legislation. Hence businessman has to follow various laws relating to working conditions, safety measures at work place and factories. There are other laws relating to maintenance of quality and fair prices, prevention of pollution etc.

(4) Social Factors: Business is a part of society and social morality determines business morality. Every society has its customs, traditions, beliefs and values. The ethical behaviour of businessman is largely conditioned by his family, relatives, friends, religious beliefs. Hence, changes in social values arid norms cause changes in business ethics.

(5) Organisational Factors: Attitude of management, promotion policy, superior- subordinate relations, philosophy of promoters and other related factors in the organisation exercise influence on ethical behaviour or its members. Thus, organisational factors affect the business ethics. Values act as a powerful force in determining behaviour of people.

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