ETHICS AND BUSINESS

Lesson 1
"Any idiot with a strong enough stomach can make
quick money, sometimes a lot of it, by slashing costs and
milking customers, employees, or a company's
reputation. But clearly that's not the way to make a lot
of money for a long time. The way to do that is to create
so much value that your customers wouldn't dream of
looking for another supplier. Indeed, the idea is to build
a value creation system of superior products, service,
teamwork, productivity, and cooperation with the
buyer." - Thomas Teal in Fortune Magazine
Ethics And Business(Objectives)
1. Differentiate the three categories of
economic activities;
2. Illustrate the important features and
characteristics of business as an economic
activity;
3. Demonstrate the importance of ethics in
business;
4. Evaluate the relationship between
ethics and business;
5. Justify the morality of profit; and
6. Critiques ethics and morality in
business.
Ethics And Business All business organizations and the entire society
(Introduction) need ethics. In all aspects and operations of an
organization, ethics is a must to be implemented.
It is expected that organizations shall be able to
1 attain a long-term efficiency if ethics could be
implemented successfully. It is quite a regret that
numerous organizations are not able to execute
ethics because of human nature and
mismanagement.

Ethics is very beneficial to business organizations if

properly implemented. With successful execution of
2 ethics, organizations are able to attain better-quality
performance. This is the result of attracting and
retaining highly qualified employees and satisfying
stakeholders such as customers, suppliers and
investors. Yet implementing successfully ethics in the
organization requires a lot of time and effort. Due to
the very nature of human beings as not morally
faultless, this could not be achieved automatically.
Nature Of Business
According to Urwick and Hunt,
"Business is any enterprise
which makes, distributes or
provides any service which
other members of the
community need and are willing
to pay for it".
Nature Of Business
By its nature, man has unappeasable and innumerous wants.
In order to satisfy his unquenchable needs he works harder to
maximize the use of limited resources around him. Making full
use of meager resources to the best satisfaction of human
wants is known as economic activity. Economic activities are
those undertaken by man to earn income, money, and wealth
for his life and to secure greatest satisfaction of wants with
inadequate and limited means. For this intention, each person
may pursue an activity based on his interest, capacity,
knowledge and training.
 Nature of Business
Economic activities are classified therefore into three
categories, namely:

Profession-Profession is an occupation Employment-Employment is a

carried on by professional people like doctors, type of occupation under which one
lawyers, engineers, teachers and others. They person provides his services, physical
provide specialized services in return for fees. or mental to someone else in return
In order to become a professional, a man for whom he gets salary or wage.
The person who employs is called
requires specialized knowledge and
employer and the person who is
professional qualification. For instance, a employed is called employee or
doctor needs specialized knowledge in worker.
medicine; while a lawyer needs a degree in law,

1 and so on. 2
 Nature Of Business
Economic activities are classified therefore into three
categories, namely:

Business-Business is an economic activity concerned with

production and distribution of goods and services with the
aim of earning profit. It includes all those activities which
are directly or indirectly concerned with production,
purchase and sale of goods and services. So the
production, marketing, advertising warehousing, insurance,

3 banking, and others are all business activities.

 Nature Of Business
Business as an economic activity has very important features and
characteristics, which are the following:

1. Production or acquisition of goods - Business is an economic activity of

production and distribution of goods and services. Every business whether
small or large scale deals with goods and services. The goods may be
produced, manufactured or procured and then to supply for a cost to those
who are in need of them. The goods may either be consumers' goods (cloth,
books, electronics appliances, medicine and others) or producer goods
(machinery, tools and so on) or services (courier or transport services).
 Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

2. Generates employment - Business generates employment in

various sectors of the society. It is also an activity that creates
utilities to satisfy human needs and wants. The society gets
income from businesses that bring industrial and economic
growth and development of the country.
Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

3.Continuous process - Business is not a single time operation. It is a

recurring process of production and distribution of goods and
services. Recurrence of dealing is a must to be termed as a business. A
business must be done regularly in order to grow and achieve
expected returns. A business should also constantly engage in
research and developmental activities to achieve competitive
advantage. A constant improvement strategy helps to boost
profitability of the business organization.
 Nature of Business
Business as an economic activity has very important features
and characteristics, which are the following:

4. Profit is the basic motive-Profit is essential for survival, growth and

expansion of the business. Behind any business, the stimulus and
assurance to continue survival of the business is profit. Profit is a sign
of success and failure of business. The principal aim of a business is
generally to gain the highest possible level of profit from the
manufacture and sale of goods and services. It is a return on
investment or the compensation of all those individuals engaged in a
particular business. An efficient businessman tries to double and
redouble his effort and creates plans to serve the business
community to gain more profit.
Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

5. Risk or uncertainty of future - It is a reality that future is risky and

uncertain. A business focuses on the future; hence there is always risk
and uncertainty while carrying on its operations.Risk and uncertainty is
always related with every business. The estimate and management of
the risk is essential to guarantee the success of a business organization.
It is risk and uncertainty which every businessman considers when he
gets involve in a business activity.
Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

6. Creative and dynamic - Modern business organizations have to

produce creative ideas, methods and ideas for the production and
distribution of goods and services. These organizations should come
out with bright, latest and ingenious things and ways. With the
dynamic and changing economic, social and technological
environment, a businessman should be innovative. In order to satisfy
the increasing and ever shifting needs of customers, a business must
always come out with new products and services.
Nature of Business
Business as an economic activity has very important features
and characteristics, which are the following:

7. Customer satisfaction - The phase of business has changed and

now adopts a consumer-oriented approach. Today, the vital aim of all
economic activities is customer satisfaction. Through providing
quality product at a reasonable price, a modern business is able to
satisfy its customers. Profit is just secondary to customer satisfaction
for a good businessman. When they get real value for their purchase,
customers are satisfied. Hence, customers keep on coming back and
make a lot of purchases.
Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

8. Social Activity - Business is also socio-economic activity. Business

and society are mutually interdependent. Contemporary businesses
operate with social responsibility in mind towards the society. In turn,
to properly function they need the assistance of different social
groups such investors, employees, customers, creditors and others by
making goods and services accessible to different segments of the
society. Indeed, businesses perform a vital social role and satisfy
social needs.
Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

9. Government control - The government has some control over the

operations of business organizations. Rules and regulations passed by
the government are required to be followed by businesses. The
government makes certain that businesses operate for social good.
Through strict control and effective supervision of the laws and rules,
the government is able to direct businesses to provide satisfying good
products and services to consumers.
 Nature Of Business
Business as an economic activity has very important features
and characteristics, which are the following:

10. Optimum utilization of resources - The inadequate

resources are brought into optimum use by businesses. This
is for the intention of satisfying the needs and wants of the
consumers. Both the material and non-material resources
are utilized fully to attain economic progress of a country.
FEATURES AND CHARACTERISTICS OF BUSINESS
AS AN ECONOMIC ACTIVITY
1. Production or acquisition of goods- Business is an economic activity of
production and distribution of goods and services. Every business whether
small- or large-scale deals with goods and services. The goods may be
produced, manufactured or procured and then to supply for a cost to those
who are in need of them. The goods may either be consumers goods (cloth,
books, electronics appliances, medicine and others) or producer goods
(machinery, tools and so on) or services (courier or transport services).
2. Generates employment- Business generates employment in various sectors
of the society. It is also an activity that creates utilities to satisfy human
needs and wants. The society gets income from businesses that bring
industrial and economic growth and development of the country.
3. Continuous Process- Business is not a single time operation. It is a recurring
process of production and distribution of goods and services. Recurrence of
dealing is a must to be termed as a business. A business must be done regularly
in order to grow and achieve expected returns. A business should also
constantly engage in research and developmental activities to achieve
competitive advantage. A constant improvement strategy helps to boost
profitability of the business organization.

4. Profit is the basic Motive- Profit is essential for survival, growth and expansion
of the business. Behind any business, the stimulus and assurance to continue
survival of the business is profit. Profit is a sign of success and failure of business.
The principal aim of a business is generally to gain the highest possible level of
profit from the manufacture and sale of goods and services. It is a return on
investment or the compensation of all those individuals engaged in a particular
business. An efficient businessman tries to double and redouble his effort and
creates plans to serve the business community to gain more profit.
5.Risk or uncertainty of future- It is a reality that future is risky and uncertain. A
business focuses on the future; hence there is always risk and uncertainty while
carrying on its operations. Risk and uncertainty is always related with every
business. The estimate and management of the risk is essential to guarantee
the success of a business organization. It is risk and uncertainty which every
businessman considers when he gets involve in a business activity.

6. Creative and dynamic- Modern business organizations have to produce

creative ideas, methods and ideas for the production and distribution of goods
and These organizations should come out with bright, latest and ingenious
things and ways. With the dynamic and changing economic, social and
technological environment, a businessman should be innovative. In order to
satisfy the increasing and ever shifting needs of customers, a business must
always come out with new products and services.
7.Customer satisfaction- The phase of business has changed and now adopts a
consumer-oriented approach. Today, the vital aim of all economic activities is
customer satisfaction. Through providing quality product at a reasonable price,
a modern business is able to satisfy its customers. Profit is just secondary to
customer satisfaction for a good businessman. When they get real value for
their purchase, customers are satisfied. Hence, customers keep on coming back
and make a lot of purchases.

8. Social activity- Business is also socio-economic activity. Business and society

are mutually interdependent, Contemporary businesses operate with social
responsibility in mind towards the society, In turn, to properly function they
need the assistance of different social groups such investors, employees,
customers, creditors and others by making goods and services accessible to
different segments of the society. Indeed, businesses perform a vital social role
and satisfy social needs.
9. Government control- -The government has some control over the operations
of business organizations. Rules and regulations passed by the government are
required to be followed by businesses. The government makes certain that
businesses operate for social good. Through strict control and effective
supervision of the laws and rules, the government is able to direct businesses
to provide satisfying good products and services to consumers.

10. Optimum utilization of resources- The inadequate resources are brought

into optimum use by businesses. This is for the intention of satisfying the needs
and wants of the consumers. Both the material and non-material resources are
utilized fully to attain economic progress of a country.
The Importance Of Ethics in
Business
The Importance Of Ethics In Business
Ethics tries to form logic of right and wrong in the organizations. Often
when the law does not succeed, it is the ethics that may discontinue
organizations from destructing the society or environment. Ethics
needs to be practiced to make sense for a business organization.
Everyone wants businesses that are fair, clean and beneficial to the
society. Certainly, for this intention to happen, business organizations
should be ethical and follow rules while they are engaging in
competition for the benefit of the consumer, the society and the
organization itself. Ethics is very important for these reasons, namely:
1. Satisfying basic needs- One of the basic human needs is being fair,
honest and ethical. Each employee wants to remain himself and to work
hard for an organization that is fair and ethical in all its practices.

2. Building credibility-An ethical business organization that is propelled by

moral values is highly respected in the society. Although with less or
without information about the organization still this perception remains a
business having good corporate governance and social responsibility
programs. This view is held everywhere even by those who are not yet
familiar with that business the organization is into.
3. Connecting leaders and employees – An organization driven by moral
values is well-regarded by its employees too. They are the common string
that binds the employees and the decision-makers together on a general
stand. Although, to align behaviors would take time and big effort to do
before the realization of one common goal or mission.

4. Enhancing decision making- The future of an organization is the total

amount of all its decision throughout its lifetime. Hence, decisions must be
driven by moral values. It is a fact that competition is always present in the
world of business. Emerging from a stiff competition through wiping out
competitors and creating a monopoly in the market is not a good decision of
an ethical business organization.
5. Continuing gain– Ethical business guided by moral values are profitable for
a long period of time. Possibly it may seem to lose money but that would only
be on a short-term basis. There were numerous businesses that have been
observed on the threshold of decline, yet still operate ethically and were later
able to overcome. Some companies failed to do well at some point, yet are
now doing good because they remained to be ethical despite some failures.
6. Protecting the society – Often ethics succeeds law in safeguarding the
society. Law as a machinery is often found acting as a mute witness, incapable
to save the society and the environment. Technology, for example is growing
at such a fast pace that by the time law comes up with a regulation there is a
newer technology with new threats in substitute of the older one. Lawyers
and public interest litigations may not help a great deal, but ethics can.
THE RELATIONSHIP BETWEEN ETHICS AND
BUSINESS
• Ethics has a big role in the operations of a business. A bad business could be
the consequence of unethical business practices. While effective practice
could be the outcomes of good and valuable ethical practices. This simply
proves that ethics and business really go hand and hand. Indeed, ethics must
have a place in every business organization.
• Ethics should actually start from time the goals and intentions are being
framed at the beginning of the venture. So that once a business is launched,
ethics already becomes a part of its internal infrastructure. Ethics should be
part of the management structure of any business. It must be a component of
the core rules of business operation for an effective management. In every
relationship inside the business, an organization needs ethics as its
foundation such as that of employees, business itself and its partners and the
organization and its customer. For instance, an employer must have its moral
Obligations to his employees in the form of respect and loyalty, just and fair wage
good working condition.
• There must always be the motive to contribute some social benefits despite the
primary objective of a business to produce profit. A business needs to satisfy a need
or a want in order to offer something of value to its customers. Indeed, in this case a
business must consider social needs and should involve ethics in doing so.
Obviously, while espousing ethics, a business must not forget its primary objective
which is generating profits.
• In today’s highly competitive environment, there is a pressure to stay profitable for
the sake of good return of investments to please stakeholders. Often this pressure
however, leads to unethical decisions just to deliver positive results. When a
decision-maker justifies such act knowing it is wrong, this may develop into
becoming part of the organizational structure sooner or later. Eventually,
subordinates will see this as an example and such short of moral judgement will
multiply. The society nowadays desires immediate satisfaction and people look
forward to instant outcomes. This could possibly be the main explanation on the
unethical practices of some businesses certainly, bad business practices when
tolerated may cultivate unsound moral philosophies which would decline moral
• There must be no basis why a business organization cannot create ethical
decisions and cannot act ethically while still making profit. Deceitful and
dishonesty do not add value to a business and may also affect its operation
negatively. Employees and good reputation are two vital assets of a company
that need to be enhanced by encouraging a morally ethical environment for
both employees and customers. Trust and confidence coming from
consumers can serve a lot of benefits to the business company. Once a
business becomes popular as a company that treats everyone fairly, with
expertise and very knowledgeable staff about company, more customers
would be attracted to buy because of such reputation of honesty and
integrity.
 THE MORALITY OF PROFIT
In order to understand if gaining profit is really advantageous and desirable,
one must know the goals of a life well-lived. Every individual lives with double-
purpose intentions, which are survival and flourishing. The goal of perpetuating
ones biological being and averting to experience poverty, downfall, and death is
known as survival. While flourishing is being able to control and manage
material reality and take advantage of more elements for the sense of self-love
so as to un-stick one’s self from a present situation and make a start to grow as a
human being.
In life, every individual will obtain some benefits from material reality only if
the acts and utilizes his reasoning. For a person to act in the ways he desires
there will be expenses that he needs to spend. When a mans gains are equal to
his expenses that means a break-even for him, and he survived. Simply, this
means he is no worse off neither is he better off than he was when he started.
When a man wants to flourish, his gains should be greater than his expenses
hence,
it necessitates for him to produce a profit. The only way to flourish is to gain
profit. In order to control and manage material reality, a person must not lose
any assets or just have a break-even.

Practically speaking no one ever denounce every type of profit. Ironically,

however the type of profit that draws the greatest criticism is monetary profit.
The criticism is completely unjustifiable. When a person possesses monetary
profit he can easily control everything in the quest of the greatest diversity of
ends. Certainly, money cannot buy absolutely everything, yet it can help
fulfilling one’s life objectives. Money being a medium of exchange is always use
in trading a broad variety of goods and services very conveniently. In order for
an individual gain knowledge and skills, he needs money to purchase books or
pay for his tuition fee in school.

Profit that is used to flourish and elevate one’s life from poverty is moral. By
its very nature money cannot destroy a man’s life.
 A man may basically generate profits in two ways. First, he can take an action
beneficial to himself but is immaterial to rest of people. Possibly, he may pursue
an action towards his individual’s self-improvement or a direct change of
nonliving things without the involvement of anyone. In this situation, no person is
placed in there will be a lot of indirect advantages to other people coming from
the results of the person’s self-improvement and his direct change of nonliving
things. Secondly, he may secure the participation and team with other people to
attain an objective that is helpful to everyone. An individual may connect with a
charitable trade with someone work in partnership with others on a project or
just bond in a mutually cherished friendship. Here, in this condition, there would
be direct advantages to other people, which earning a profit might be one of
them.
Man needs to be free in obtaining profit. He must rely on his own reasoning t
make a choice on what is profitable for him and decide on how he does it. He
cannot act in his best interest or flourish up to his ceiling if he would restrict to
follow his choice or someone shall enforce unbeneficial strategy on him. He needs
laissez-faire capitalism to let him flourish freely.
 Laissez- faire capitalism is a political, social, and economic system which allows
everyone to do profit seeking activities without any complications ir interventions.
Under the principle of laissez-faire, anyone has the autonomy to make a decision
on the value he will give each kind of profit, the manners he will use to gain said
profit and kinds of connections he will pursue with others to flourish. Just bond in
a condition, there would be direct advantages to other people, which earning a
profit might be one of them.
In addition, in order for businessman to gain profit on the free market, he must
monitor and remove arbitrage opportunities which come from extensive
inaccuracies of opinion. Arbitrage opportunity is an investment strategy that gives
ways to a positive profit with positive likelihood but without any risk advantage.
The businessman may attempt to discover a better way to distribute resources at
hand which is different from what he had done before. A netter way of allocating
resources must be done if mistakes in people’s knowledge presently cause
resources to be inefficiently distributed away from their most advantageous uses.
If the businessman gains profit this ways, it means he is able to place the resources
to an improved application than before.
 Simply, people around him are agreeable to pay him more than previously
because of this new allocation of resources. Through removing arbitrage
opportunities, business people are able to correct market flaws and balance
supply and demand to fully satisfy human needs. Further, mandatory economic
rules would stop every individual in discovering how to flourish in his own
approach, other people might be harmed.
PROFIT FOR CHRISTIANS
The Bible is the base ethics of all Christians. Profit is a very difficult issue,
considering most Christians have the viewpoint that the word of God says any
point of its unethical. Using the principle of good stewardship, the idea of profit is
indispensable. The evidence that a businessman was able to generate more
benefits than cost is the resulting profit. In the present time, profit is actually a
reward for doing something that is helpful to other people. Obviously, one must
not take advantage of one’s suffering by taking the situation as an opportunity for
profit. The presence difficulties, offers everyone the chance to practice charity. It
is the duty of everyone to be a Good Samaritan by extending assistance to other
people who are in need. Basically, meeting severe human needs prompts
business people to provide answers to those needs with profit as the vital
motivation
 In reality, there are a lot of human needs but inadequate resources in this
world; however, with profit these needs are answered. When utilizing resources
for much pressing need, higher profit is estimated. While lower profit is
expected when filling a need that is not much vital and not much urgent.
Humans are not all- knowing, hence profit serves as an important signal to good
stewardship. Deciding on various opposing need is also critical. Say for instance
that a person has a million pesos for his disposal with the requirement of
spending them for a much critical needs, so how will he use such amount of
money? The answer for numerous Christians would primarily be donating the
money to the ministry of the gospel. However, such quantity of money could
also be spent into other advantageous uses such as food and clothing.
WHAT MAKES PROFITS UNETHICAL
The profit motive is indispensable particularly to businesses because it is
their primary goal. Businesses have the option to grow and maximize profits
either ethically or unethically. The choice of unethical business practices such
as deceiving customers through dishonest advertising cutting down incentives
of employees, selling low quality products: or damaging the natural
environment may result to tarnish brand reputation or disloyalty among
consumers.

EMPLOYEES
reducing or even not providing the required benefits due to employees to
minimize costs is one of the most common unethical practices in companies. In
almost all industries, the largest percentage of expense concerns payroll. This bad
practice of getting rid of benefits has become an ethical issue that results to poor
morale among employees in workplace.
MARKETING
a company marketing may contribute a lot to its generating of profits. A
strong marketing strategy may increase brand awareness. Pull customers
towards the company and eventually produce profits. In the field of marketing,
the intention of maximizing profits often, times leads companies into an ethical
dilemma of choosing the right from wrong decision.

ENVIRONMENTAL
the process of producing some goods and the delivery of some services are
sometimes done using unethical environmental practices. Often, companies
wanted to generate profits to the detriment of the environment. Some of these
unethical environmental practices include increasing pollutants, water supply
contamination and deforestation. The common reason for these unethical
practices is cost.
ENVIRONMEL POLLUTION COULD BE IN THE FORM OF:
1. AIR POLLUTION- it is any alteration of the physical, chemical and biological
properties of the atmospheric air.

2. WATER POLLUTION- it is any alteration of the physical, chemical, biological

or radiological properties of a body of water resulting in the impairment of
its purity or quality.

3. NOISE POLLUTION- it is the excessive sound that causes hearing loss, stress,
fatigue, irritability, tension, headaches, and high blood pressure.

4. SOIL POLLUTION- it is chiefly caused by chemicals in pesticides, such as

poisons that are used to kill agricultural pests like insects and herbicides
that are used to get rid of weeds.
QUALITY
Producing goods and providing services especially premium ones are
costly. This is possibly the rationale of companies in trimming down the quality
of goods by using substandard materials but still selling at the same price to
gain more profits. However, this kind of practice crosses the boundary towards
an unethical business practice. The practice of maximizing profit at the cost of
quality may stain the company’s brand name and reputation.
ETHICS AND MORALITY IN BUSINESS
It is basically ethics that decides whether certain actions, conducts and
behavior are right or wrong, good or bad, moral or immoral and just or
unjust. In general, ethics creates the rules and standards that direct the
proper behavior of both individuals and groups. It considers honesty of
primary intention, possible would-be harm and harmony with customary
values and rules.
On the other hand, morals are judgements, standards and rules of right
conduct in the society.
FEATURES OF BUSINESS ETHICS
Business ethics is a form of applied ethics, which studies ethical principles,
moral and problems that happen in the business environment. Here are the
features of business ethics.
1. CODE OF CONDUCT- business ethics is a code of conduct. It tells what to do
and what not to do for the welfare of the society. It is the code of conduct
which businessmen should follow while conducting their normal business
activities.
2. BASED ON MORAL AND SOCIAL VALUES- business ethics is based on well-
accepted moral and social values. It contains moral and social principles of
conduct for businessmen. This include self-control, consumer protection
and welfare, service to society, fair treatment to social groups, and not to
exploit others.
3. GIVES PROTECTION TO SOCIAL GROUPS- business ethics give protection to
different social groups such as consumers, employees, small businessmen,
government, shareholders, creditors, and other stakeholders.

4. PROVIDES BASIC FRAMEWORK- business ethics provides a basic framework

for conducting business. It suggests legal, social, moral, economic and cultural
limits within which business has to be operated. Business must be conducted
within these limits. It suggest what is good and what is bad in business.

5. VOLUTARY ACCEPTANCE FOR ENFORCEMENT- business ethics must be

voluntary. The businessmen must accept business ethics on their own. Business
ethics must be like self-discipline. It must not be enforced by law. It should
come from within the businessmen.
6. REQUIRES EDUCATION AND GUIDEANCE- businessmen must be given proper
education and guidance before introducing business ethics. The businessmen
must be motivated to follow ethical business practices. They must be informed
about the advantages of using business ethics. Trade Associations and
Chambers of Commerce must also play an active role in this matter.

7. RELATIVE TERM- business ethics is a relative term. That is, it changes from
one business to another. It also changes from one country to another. What is
considered as good in one country may be taboo in another country.

8. NOT AGAINST PROFIT MAKING- business ethics is not against fair profit
making. However, it is against profiteering by cheating and exploiting
consumers, employees or investors. It supports expansion of business activities
but by fair means and not through illegal activities or corrupt practices.
SOURCES OF BUSINESS ETHICS
Basically , ethics in business is affected by three important sources which are
culture, religion and laws of the state. Thus, there are no unform or totally the
same standards across the globe.

RELIGION
A religion is a custom and observance of a conception on what is real and
significant (for example God, Allah, the Tao, and Brahman), It is the belief that
wrongdoing, vice, disillusionment, and illusion may be defeated by grace, prayer,
practices. In addition, living in harmony, unity, or friendship with what is real and
significant are all part of religion. A Christian faith for instance, may be
acknowledgeable by Jesus' radical teaching about loving one's neighbor, being a
Good Samaritan, loving one's enemies, and the like. Religion is one of the oldest
foundations of ethical standards. There are numerous religions which exist across
the whole world.
CULTURE
The other source of business ethics is the culture. Culture is the set of
significant understandings that members of a community share that are
transferred from one generation to another. It also refers to the pattern of
development reflected in a society's pattern of knowledge, ideology, values,
laws, social norms and everyday rituals differs from society to society. It is the
culture that primarily determines what is wrong and what is right and defines
certain behavior as acceptable and others as unacceptable. Culture facilitates
the generation of commitment to something larger than one's individual self
interest.
LAW
Laws are procedures and code of conduct that are laid down by
the legal system of the state. They are meant to guide human
behavior within the social fabric..
The major problem with the law is that all the ethical expectations
cannot be covered by the law and specially with ever changing outer
environment the law keeps on changing but often fails to keep pace.
In business, complying with the rule of law is taken as ethical
behavior, but organizations often break laws by evading taxes,
compromising on quality, service norms and 50 on The legal system of
any country, guide the human behavior in the society.
Thank you!
 MEMBERS:

Afable, Paulo
Ayapana, Mary Rose
Baylon, Hercy
Bitancor, Melody
Bon, Gremar