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SAI INTERNATIONAL SCHOOL

CLASSS XI

SUBJECT: BUSINESS STUDIES
CHAPTER -6,
Social Responsibility of Business and Business Ethics

Topics: Business Ethics and its elements.
(Lesson -29)

BUSINESS ETHICS

From the social point of view, business exists to supply goods and services to the

people. From the individual point of view, the primary objective of a business firm

is to earn profit. One may expect that the individual goals of the firm would not

be in conflict with the objectives of society.

However, business enterprises are run by human beings whose decisions and

actions may not always be in accordance with the expectations of society. An

enterprise may be good in terms of economic performance (like revenue, costs

and profits) but poor in terms of social performance like supplying products of

reasonable quality and at reasonable prices.

CONCEPT OF BUSINESS ETHICS

The word ‘ethics’ has its origin in the Greek word ‘ethics’ meaning character;

norms, ideals or morals prevailing in a group or society.

Ethics is concerned with what is right and what is wrong in human behavior

judged on the basis of a standard form of conduct/behavior of individuals, as

approved by society in a particular field of activity.

 Ethics may be viewed as the entire body of moral values that society

attaches to the actions of human beings.