Question

What is the relationship between business ethics and free enterprise?

Answer 1

Ans:-

Ethics are thd principles of conduct governing an individual or a group. Ethics relates to what is good or bad and having to do with moral duty and obligation. Ethics refers to standards of behaviour that tell us how human beings ought to act in many situations.

Ethics in business refers to the application of day to day moral or ethical norms to business. Business ethics are the principles and standards that determine acceptable conduct in business organisations.

Business ethics in a business organisation relates to a corporate culture of values, programmes, enforcement and leadership.

Business ethics is a set of principles or reasons which should govern the conduct of business at the individual firm level or at the collective industry level, by thr application of ethical reasoning to specific business situation and activities.

Free Enterprise is a system which combines or conglomerate all the economic activities in a given business area. It is a freedom given to the private enterprises to operate and generate profit by carrying out various business activities in an organisation. Free Enterprise system is a legal system of an organisation in which commercial activities are primarily regulated through private means rather than the political ones.

It is a system whuch operates in the business enterprise with government interference beyond regulation in order to protect the public interest so the nation economy is in a balanced position. Here the government places few restrictions on the ownership and different types of business activities in which the citizens participates.

This free Enterprise system is also known as free market or capitalist system. In this system, you are allowed to spend your money in the way you want too.