SUMMARY: This chapter provides an insight into the

subject of ethics and business ethics. Many

philosophers have expressed different views about

ethics. But they all agree that, in essence ethics deals

with what is right or wrong.

Similarly the term business is defined as a primary

economic institution through which people in modern

societies carry on the task of producing and

distributing goods and services.

Thus, business ethics is nothing but an application of

ethical judgments to business activities. There was an

argument whether ethics should form a part of

business or not. This resulted in three different views:

Unitarian view, Separatist view and Integration view.

Unitarian view argues that morality and ethics are

related to business.

The Separatist view expressed that, business should concentrate on profits, and ethics and

morality do not form a part of business. The Integration view defined a new area called

business ethics, where ethical behavior and business are integrated. The external forces like

government, market system, law and services will guide the ethical behavior of the

business. Finally, the chapter discusses about the need or necessity for business ethics -

business in order to survive in the long run should concentrate on the welfare of the society.