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Name any four elements of business ethics.

Answer:

Ans.     Business ethics can be defined as the code of conduct that a business must follow, as it takes up only those activities that are desirable for the welfare of society. The purpose of business ethics is to guide managers and other employees in an organization in performing their jobs in a manner that is socially acceptable.

The following are some of the elements of business ethics.

(a) Top-level officers, such as the CEO's and other higher level managers, must sincerely follow the ethical code of conduct. They should also guide other employees in their organisation in adopting the code.

(b) An enterprise must clearly define the ethical code of conduct to be followed in the organisation. The code should include quality standards for work, laws governing production and employee's health and safety standards.

(c) In addition to setting performance standards, an enterprise must also devise a mechanism through which it can measure the actions of individual employees. This should be done in order to confirm whether the ethical standards are being met.

(d) The successful implementation of ethical standards depends on the large extent on the involvement of employees at different levels. This is because it is the employees who actually implement the ethical codes.

(e) Although it is difficult to measure the end results of implementation of ethical standards, the top management should take steps to monitor compliance. Also, it must take serious action against any unethical behaviour in the organisation.