Volume : 2, Issue : 5, May - 2013

Application of Ethics in Business Management

Prof U. S. S. Shrivastav

Abstract :

Nowadays business ethics determines the fundamental purpose of existence of a company in many organizations. There is an ensuing battle between various groups, for example between those who consider profit or share holder wealth maximization as the main aim of the company and those who consider value creation as main purpose of the organization. The former argue that if an organizations main objective is to increase the shareholders wealth, return profit – productivity then considering the rights or interests of any other group is unethical. The latter, similarly argue that profit maximization cannot be at the expense of the environment and other groups in the society that contribute to the well being of the business. Nevertheless business ethics continues to a debatable topic. Many argue that lots of organizations use it to seek competitive advantage and creating a fair image in the eyes of consumers and other stakeholders. It is therefore before doing any business in the world must to understand the correct meaning to gain advantages not from the business also to society as whole and subsequently regarding the good moral value – transparency and accountability as a whole.