Page 1 of 6
European Journal of Business & Social
Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 406
A Study on the Role of Bussiness Ethics, Morals and Values
in Modern Businesses in India
Akshay Dua
Student, Kurukshetra University, Kurukshetra
B.Com., M.Com., UGC NET, Pursuing MBA
Abstract: Business ethics is the study of proper business policies and practices regarding potentially
controversial issues such as corporate governance, Insider trading, bribery, discrimination, corporate social
responsibility and fiduciary responsibilities .Business ethics simply we mean that the application of ethics in
business. The study concentrates on how the modern businesses are accelerated by applying the code of
conduct in the environment of the business. Business ethics ensure that a certain required level of trust exists
between consumers and various forms of market participants with businesses. A relationship of trust
between business concerns and its customers may be a key factor in your company's success. In Indian
society there are three sources of business ethics- Religion, Culture and Law. The Human Resource
Manager in every organization, thus, has to be well versed with the unique system of values developed by
these three sources in order to achieve success.
Key Words: Business Ethics, Corporate Governance, Modern Business, Social Responsibility, Ethical
Behavior.
BUSINESS ETHICS: AN OVERVIEW
Ethics means the set of rules or principles that the organization should follow. While in the business ethics
refers to a code of conduct that businesses are expected to follow while doing a business. Through ethics, a
standard is set for the organization to regulate their behavior. This helps them in distinguishing between the
wrong and the right part of the businesses. The ethics that are formed in the organization is not any rocket
science. They are based on the creation by a human mind. That is why ethics depend on the influence of the
place, time, and the situation. Code of conduct is another term that is used extensively in businesses nowadays.
It is a set of rules that are considered as binding by the people working in the organization. Business ethics
compromises of all these values and principles and helps in guiding the behavior in the organizations.
Businesses should have a balance between the needs of the stakeholders and their desire to make profits. While
maintaining these balances, many times businesses require to do tradeoffs. To combat such scenarios, rules and
principles are formed in the organization. This ensures that the businesses gain money without affecting the
individuals or society as a whole. The ethics involved in the businesses reflects the philosophy of that
organization.
MORALS AND VALUES
Morals have a greater social element to values and tend to have a very broad acceptance. Morals are far more
Page 2 of 6
European Journal of Business & Social
Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 407
about good and bad than other values. We thus judge others more strongly on morals than values. A person can
be described as immoral, yet there is no word for them not following values. Morals are principles of right
behavior inculcated in children by the society they grew up in, used as a standard of personal accountability,
upon which law is loosely based. People who adhere to those principles avoid offending and betraying others,
avoid breaking laws based on moral principles, and thus avoid trouble. Morality is essentially the difference
between civilized behavior and barbarism, a civilization and a chaotic social order.
Values are the rules by which we make decisions about right and wrong, should and shouldn't, good
and bad. They also tell us which are more or less important, which is useful when we have to trade off
meeting one value over another. Values are the things that are important to you. There are several dozen
values fitting under many categories that all humans share in common. That is, all humans consider the
same things valuable, but each individual prioritizes them differently. Your unique prioritization of what’s
important to you (your top values) is an essential part of what makes you a unique personality, and a
different prioritization is the reason you will decide differently than another person in the same situation.
PURPOSE OF STUDY
The purpose of the study is to contribute to the understanding of business ethics and particularly it
reflects the modern business practice in India. The study concentrates on how the modern businesses are
accelerated by applying ethics in the environment of the business. The study also focuses on why the
modern business needs the application of ethics in their survival in the society.
ETHICAL PRINCIPLES IN MODERN BUSINESSES
Essentially, any businesses that run in India comprises of these ethical principles.
INTEGRITY
Whenever there is great pressure to do right instead of maximizing the profits, this principle is tested. The
executives need to demonstrate the courage and personal integrity, by doing what-what think is right.These are
the principles, which are upright, honorable. They need to fight for their beliefs. For these principles, they will
not back down and be hypocritical or experience.
LOYALTY
No ethical behavior can be promoted without trust. And for trust, loyalty needs to be demonstrated. The
executives need to be worthy of this trust while remaining loyal to the institutions and the person. There should
be friendship in the time of adversity and support and devotion for the duty. They should not use or disclose
personal information. This leads to confidence in the organization. They should safeguard the ability of a
professional to make an independent decision by avoiding any kind of influence or the conflicts of interest. So,
they should remain loyal to their company and their colleagues. When they accept the other employees, they
need to provide a reasonable time to the firm and respect the proprietary information attach with the previous
firm. Thus, they should refuse to take part in any activity that might take the undue advantage of the firm.
HONESTY
Page 3 of 6
European Journal of Business & Social
Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 03
March 2019
Available online: https://ejbss.org/ P a g e | 408
The ethical executives are honest while dealing with their regular work. They also need to be truthful and do
not deliberately deceive or mislead the information to others. There should be avoidance of the partial truths,
overstatements, misrepresentations, etc. Thus, they should not have selective omission by any means possible.
RESPECT AND CONCERN
These are two necessarily different forms of behavior in the organization. But they go in tandem that is why
they have been put under one principle. When the executive is ethical he is compassionate, kind, and caring.
There is one golden rule which states that help those who are in need. Further, seek their accomplishments in
such a manner that the business objectives of the firm are achieved. The executives also need to show respect
towards the employee’s dignity, privacy, autonomy, and rights. He needs to maintain the interests of all those
whose decisions are at stake. They need to be courteous and treat the person equally and rightly.
FAIRNESS
The executives need not be just fair in all the dealings, but they also should not exercise the wrong use of
their power. They should not try to use over each or other indecent manners to gain any sort of advantage. Also,
they should not take an undue advantage of anything or other people’s mistakes. Fair people are inclined more
towards justice and ensure that the people are equally treated. They should be tolerant, open-minded, willing to
admit their own mistakes. The executives should also be able to change their beliefs and positions based on the
situation.
NEED FOR BUSINESS ETHICS, MORALS AND VALUES IN BUSINESS
Today, it is considered profit is a must for any business for its existences and growth. In fact not making
profit is considered unethical today. Business ethics in simple terms is application of ethics in businesses.
Business has to go with its economics as well as social obligations. Any managerial decision has to
distinguish between good and bad, right and wrong, just and proper. It is also seen that the ethical companies
which took care of their social responsibilities have survived competition and growing. Ethical issues occur
in decision making in industry, education. Business is part of society. Whatever ethical principle apply in
society apply to business. Example tax evasion is considered unethical in society. If a company deliberately
evades tax payments the company is treated unethical. All stakeholders have an eye on the culture and
behaviour of a business organisation due to dominance of economics in the society. The public expects a
high level of ethical behaviour from the business organisations. High level of morale and productivity can be
easily obtained in companies that treat their all employees with equality, encourage good team and work
culture, and with ethical practices. The employees in the company as well as those connected feel good and
develop a mutual trust. Employees get attraction to ethically and socially responsible companies.
An ethical organisation command trust and respect of all its stakeholders. The organisation builds image
for itself. Ethical good image is important because all stakeholders stand to gain. Deterioration of
relationships, damage to reputation and reduction of employee productivity, loyalty that come out of
unethical practices cost companies. An uncaring employer will find it difficult to employ good professions
for his business. The ethically managed companies command respect from public as well as government
