Q.9. Discuss the impact of ethics on business.
Ans. The Indian industry is realizing the impact of ethics on business. This is because one of the basic facts of globalization is that there is going to be intense competition. In a competitive
Environment if an enterprise has to survive, it will have to attract and retain talent. Attracting and retaining talent means having a proper organisational culture of ethics. This is necessary to retain the loyalty and morale of the people in the organisation. It is only with loyalty and morale that executives of a company will give their best and come out with creative ideas. Creativity is a competitive edge that is needed in this era of globalization. We can therefore see the direct link between the need for ethical standards in business and its relevance in the context of globalization. ‘Honesty is the best policy’ is a fact that is being re-discovered.
Q.1O. Why ethics matters in business?
Or What is the need of business ethics?
Ans. “Doing the right thing” matters to employers, employees, stakeholders and the public. To companies and employers, acting legally and ethically means saving lacs of rupees each year in lawsuits, thefts and settlements.
Corporations have to pay significant financial penalties for acting unethically. For example, the tobacco industry discovered that lying about nicotine can be costly to their business.
leaders and managers, managing ethically also means managing with integrity.
Integrity cascades throughout an organisation. It shapes and influences the
values, tone and culture of the organisation; the communication among all the
members and the realism; commitment and imagination of everyone in a company.
Hence, business ethics is needed in business for the following reasons:
(a) To give fair and equitable treatment to the employees.
(b) To raise the morale of the employee.
(c) To develop healthy working atmosphere in the organisation.
(d) To build a good reputation in the industry for long-term growth.
(e) To earn reasonable profit in honest ways.
(f) To become a good corporate citizen.
(g) To preserve the interest of all the stakeholders.
Q.11. What are the different ethical issues in Socialism?
Ans. Socialism refers to various theories of economic organisation advocating government intervention, public or direct worker ownership and administration of the means of production and allocation of resources and a society characterized by equal access to resources for all individuals with a method of compensation based on the amount of labour involved.
Socialism is not a concrete philosophy of fixed doctrine and programme; its branches advocate a degree of social intervention and economic rationalization (usually in the form of economic planning),but sometimes oppose each other. Some socialists advocate complete nationalization of the means of production, distribution and exchange, others advocate state control of capital within the framework of a market economy.
Q.12. Define ethical values.
Ans. Business ethical values vary by company, and are defined largely by the behaviours and values that govern a business environment. In general, business ethical values are a set of guiding principles that encourage individuals in an organisation to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry.