Regulation of Business Ethics in India
Businessmen observe business ethics on account of the consequences that would result due to their non-compliance. Here, some of the regulations are presented briefly:
1. Legislative Measures: Enforcing the legislative measures is one of the ways of making businessmen to follow business ethics. The purpose of enforcing the Acts is to protect the public interests including the business and the businessmen. The Companies Act, Consumer Protection Act, M.R.T.P. Act, Environmental Pollution Act, and the like are some of the legislative measures.
2. Goodwill of Business Unit: Generally, businessmen work hard to earn goodwill by adopting the principles of business ethics. Thereafter, they follow the same practice to maintain the earned goodwill.
3. Social Status of Businessman: Businessman thinks that he gets recognition from the public in a place where he does business. It is always ethical for a businessman to keep social status. Then, he enjoys social status continuously by avoiding unjust or immoral business activities.
4. Trade Union: There are a number of trade unions functioning in India. A trade union may be a registered or unregistered one. Trade union has to suffer a break if business ethics are not properly followed. Trade union acts as a watchdog to ensure observation of business ethics.
5. Business Association: Business association also guides the business as how to observe business ethics, stating the reasons for doing so. A business unit may be isolated from the business association if the particular business unit fails to comply with ethics.
6. Consumer Movement: Now-a-days, the consumer movement has developed so much to protect consumer interests. As a matter of fact, business ethics deals with morality in the business environment. Nevertheless, consumer movements take active part in the adoption of business ethics.
For example, if a purchased product is not up to the standards as specified, the consumer movement claims damages or takes steps to replace the product to the consumer and insists the business unit to maintain the quality as specified by it.