Business ethics and family business

Morality can be defined as the principles that an individual or a group has about what is right and wrong or good and evil.

How can we distinguish moral principles from barometers that are not moral?

* The main aim of ethics is to construct a body of rules which a person feels reasonable to hold based on careful thought.

* Ethics is the activity of examining the significance a society or of an individual. Whether the standards are reasonable or not and how to apply the same in particular situations are examined by ethicist.

* While at a Family Business it is important to know about Business Ethics which is an inquiry of ethics in the field of business.

* Business Ethics mainly concentrates on maxim that: a business, organizations, and

3.individuals within the business organizations and

4.individuals who deal with business organizations have to evaluate and follow in their day to day dealings and decisions.

* Business Ethics is studied at three levels:




Systemic issues deal with economic, political, legal, and other related systems within which production and distribution activities are carried out. Issues like capitalism, regulation of business also are related to systemic ethics.

Corporate concerns and corporate citizens issues fall under the category of corporate ethics.

Individual Ethics is more concerned with Moral reasoning, wherein actions are judged with reference to moral standards. It involves knowledge of moral standard and knowing whether situation needs the application of moral standards or not.

*Moral reasoning needs to be logical, accurate, relevant and complete. Consistency in the moral standards is essential.

Ethicist suggests five characteristics to identify moral standards.

1. Rules that deal with matters which people think can seriously injure or seriously benefit human beings.

2. Standards are not established or changed by political or legal authoritative bodies. The validity of moral standards rests on the adequacy of the reasons.

3. Principles are preferred to other standards including even self-interest when choice is there.

4. Precepts are impartial. They are based on impartial reasons that an impartial observer would accept.

5. Morality is associated with special emotions. When people act in violation of a moral standard, they feel guilty, ashamed, and remorseful.

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