What is business ethics? Discuss the different areas of social responsibility of business.

Business ethics is the standard of behaviour that guides managers in their work, based on the moral principles and rules that help decide right from wrong in a given situation. It reflects a manager's perceptions and beliefs while making decisions and depends on the moral standards or code of conduct set by society. Ethical business builds trust with customers, employees, and the public, which supports long-term success; for example, a shopkeeper who refuses to sell expired goods or engage in black marketing during shortages is practising business ethics and earns lasting customer loyalty. Since a business grows because of its stakeholders, it carries responsibilities toward each of them, and these areas of social responsibility are discussed below.

1. Toward shareholders/investors: Since they invest capital and bear risk, the business must use their investment properly.
   a. Main duties: It should pay fair dividends and interest, share up-to-date financial information, and maximise the value of their investment.
   b. Participation: It should also let them participate in planning and policy-making.
2. Toward customers: Customer satisfaction is the ultimate aim of the business.
   a. Main duties: It should provide quality products at reasonable prices, in adequate quantity when needed, with good behaviour and after-sales service.
   b. Avoiding malpractice: It must avoid unfair practices like black marketing and adulteration.
3. Toward employees: Employees are valuable assets of the organization.
   a. Main duties: It should provide meaningful jobs and job security, fair wages and benefits, and welfare facilities like medical and education support.
   b. Development: It should offer a favourable working environment, training and development, and maintain good labour relations.
4. Toward government: All activities should run within the law of the country.
   a. Main duties: It should follow rules, pay taxes like VAT, income tax, and customs duty, and avoid monopoly and unfair trade.
   b. National support: It should support national problems like unemployment and poverty.
5. Toward community: Since the business operates within society, it owes society a return.
   a. Main duties: It should create employment, maintain environmental ecology, and use society's resources properly.
   b. Welfare: It should promote community welfare programmes and preserve social and cultural values.