 Hello everyone. Welcome to this session. I am Priyanka Bansore and today we are going to learn about introduction of business ethics. These are the learning outcomes of this video lecture. At the end of this session students will be able to first explain ethics and basic definition of business ethics, then describe the relationship between business ethics and the law and the third one distinguish between ethics, morality and the ethical theory. These are the contents of this video lecture. Specifically, we will be concentrating on these points. Before moving towards to the introduction of business ethics pause this video for few seconds and you have to think and write what is ethics actually. Now pause the video and you have to write down the answer. So, ethics is nothing but it is a moral philosophy or code of morals practiced by a person or group of people. The word ethics is derived from Greek word. So, it is a Greek word that is nothing but ethos which refers to a character, then guiding beliefs, then standards or ideas that spread through a group, community or we can say through the people. So, all individuals are accountable to their community for their behavior. Then the community can exist in the form of like neighborhood, profession, city, state etc. So, ethics is the branch of philosophy which is concerned with the principles of behavior that distinguishes between right from the wrong. So, that is nothing but ethics separate out the good and bad, then right and wrong things, then which is the fair and which is unfair, then again it differentiate between moral immoral. So, ethics separate out these things. So, in short ethics means a code of conduct. It tells a person how to behave with another person. So, before moving towards business ethics let us see first what is the business. So, generally when we understand by business we understand for profit organization right. So, actually business is doing for getting the maximum profit. Then what is profit organization? So, a for profit organization is one which takes in resources in different forms and then move it through the process within the organization to generate outcome which yields the profit. So, this is nothing but this is the about the profit organization. Now, we will see what is business ethics. So, already we have seen the ethics, now we will see the what is business ethics. So, business ethics refers to the application of the ethics to the business. So, to be more specific business ethics is the study of good and evil, then right and wrong and just unjust actions of businessmen in the world of business. So, in short it is the study of business situations, activities, decisions where issues of right and wrong are addressed. So, what constitutes right and wrong behavior in business. So, it is determined by the public interest groups, then business organizations as well as the individuals moral values and the principles. Therefore, these standards are mean to govern the conduct of the business person. Now, we will see the relation between the business ethics and the law. So, here in this figure you can see one of the area is ethics and the another area is law and this common area between them or you can say the area is overlap between ethics and the law which is referred as a gray area, this is known as the gray area, okay. So, business ethics in terms of issues of right and wrong, one might quite naturally question whether this is in any way distinct from the law. Surely the law is also about issues of right and wrong, this is true and there is considerable overlap between ethics and the law. In fact, the law is essentially codification of ethics into the specific social rules and regulations. So, the best way of thinking about the ethics and the law is in terms of two intersecting domains, right. So, the law might be of minimum acceptable standards of the behavior. The law does not explicitly cover every possible ethical issue in business or you can say outside of the business, right. So, similarly it is possible to think of issues that are covered by the law but which are not really about the ethics. In one sense you can say the business ethics can be said to begin where the law aims. Therefore, business ethics is primarily concerned with those issues not covered by the law or where there is no definite agreement on whether something is right or wrong. We will see the relationship between morality, ethics and ethical theory, okay. So, here when we are going to study the business ethics, first of all we have to know three other terms that are morality, ethics and the ethical theory, okay. So, before we continue it is important for us to sort out some of the terminology we are using. So, in common uses the terms ethics and morality are often used interchangeably. However, in order to clarify certain arguments many academic writers have proposed clear differences between the two terms, okay. So, we do agree that there are certain advantages in making a distinction between ethics and morality. Now, we will see actual definitions of morality, ethics and the ethical theory. So, morality is concerned with the norms, values and beliefs that are embedded in social processes which define right and wrong for an individual person or a community or a group. Now, we see the ethics. So, ethics is concerned with the study of morality and the application of reason to elucidate means you have to explain clearly the specific rules, principles and that determine morality acceptable courses of action. So, ethical theories are the codifications of these rules and the principles. According to figure or we can say this is the way of thinking morality precedes ethics and ethics precedes the ethical theory. So, all individuals and communities have morality, a basic sense of right or wrong in relation to particular activities. Ethics represents an attempt to systemize and rationalize morality typically in normative rules that suppose offer a solution to these situations of moral uncertainty. So, these the outcomes of the codification of these rules are ethical theories such as right theory or the justice theory. So, it is important at this stage to recognize that ethics is about some form of rationalization of morality. Now, there are some ethical tips for organizations and managers. So, first develop a code of ethics for the organizations and make ethical performance a strategic priority. Then second say it some good examples as per need. Then third one create open lines for communication, then engage the communicate and train your staff. Fourth one educate employees and provide support routes for staff. And the last treat ethics as a process and so that major effectiveness of your ethics program. These are the references of this video lecture. So, from this book also you can understand the concept of business ethics very nicely. Thank you.