1.ETHICS 2.BUSINESS ETHICS NEED FOR BUSINESS ETHICS 3. BUSINESS ETHICS AFFECTING PROFITS 4.VARIOUS CONTRIBUTION OF ETHICS TOWARDS SOCIAL AND ECONOMIC GROUPS

1. How does Business Ethics affect profitability
BUSINESS
ENVIRONMENT
PRESENTATION ON:

2. What is Ethics?
• The Term Ethics derived from Greek word
‘Ethos’ which means ‘Character’.
• Ethics is a social science which deals with
concepts such as right and wrong, moral and
immoral, good and bad etc.

3. Business Ethics
 Business ethics can be defined as written and unwritten codes of principles
and values that govern decisions and actions within a company.
 Definition:
According to wheeler, Business Ethics is an art or science of
maintaining harmonious relationship with society, its various groups and
institutions as well as reorganizing for right or wrong of business conduct.
 It is a system of moral principles and values applied to business activities

4. Why do we need Business Ethics?
Ethical behaviour and corporate social responsibility can bring significant benefits
to a business. For example, they may:
 Attract customers to the firms products
 Attract more employees wanting to work for the business
 Attract investors and keep the company’s share price high
Unethical behaviour or a lack of corporate social responsibility, by comparison,
may damage a firms reputation and make it less appealing to stakeholders.

5. How does Business ethics affect profit?
• A number of factors play a part in making a
business profitable, including expert
management teams, dedicated and
productive employees, consistent consumer
demand and careful watch over the bottom
line. Business ethics is an important catalyst
to the success of a company.

6. • Comes from employees who believe their future is tied to the organization’s
• Are willing to make personal sacrifices for the organization
• The more dedication on the part of the company, the greater the employee
dedication
• Concerns include a safe work environment, competitive salaries and benefit
packages, and fulfilment of contractual obligations
Ethics Contributes to Employee Commitment:

7. Ethics Contributes to Investor Loyalty:
• Companies perceived by their employees as having a high level of honesty
and integrity are more profitable than companies with a low level of honesty
and integrity
• Ethical climates in organizations provide platform for:
– Efficiency
– Productivity
– Profitability

8. Ethics Contributes to Customer Satisfaction:
• Consumers respond positively to socially concerned businesses– Being good
can be extremely profitable
• Customer satisfaction dictates business success
• A strong organizational ethical climate places customers’ interests first
• Research shows a strong relationship between ethical behaviour and customer
satisfaction

9.  Ethics are important not only in business but in all aspects of life because it is an essential part of the
foundation on which of a civilized society is build. A business or society that lacks ethical principles is
bound to fail sooner or later.
 An integrity approach to business can yield strengthened competitiveness: it facilitates the delivery of
quality products in an honest, reliable way.
 This approach can enhance work life by making the workplace more fun and challenging. It can improve
relationships with stakeholders and can instil a more positive mindset that fosters creativity and innovations
among the stakeholders.
 The purpose of ethics is to enhance our lives and our relationships both inside and outside of the
organization.