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to dominate the market and drive away the small scale industries
out of the market. Small scale units can establish their position
and fight for their rights if the industry follows a code of ethics.
V. Consumer Movement:
The growth in consumer movement is also another important
factor that has necessitated the need for business ethics. The
spread of education and awareness among consumers about their
rights has made the business community to conduct business on
ethical principles.
VI. Better Relations with the Society:
Business ethics is needed to develop good relations between
business and society. The relationship of business with society
has various dimensions such as its relations with shareholder,
employees,
consumers,
distributors,
competitors
and
government. Business ethics will help to promote and protect the
interest to various groups.
VII. Buyers Market:
There has been a structural change in the concept of business.
The concept of profit has been gradually taken over by consumer
satisfaction. The large scale production and increased competition
in the market has changed the business scene from a sellers
market to a buyers market. In a changed situation, business
ethics is needed to redefine the traditional concept of profit and
replace it by a balance between profit and consumer satisfaction.
VIII. Beneficial to Business and Society:
Ethics suggests what is good and bad, right and wrong, ethical
and unethical, etc; to businessmen. It also brings an element of
honesty, sincerity, fairness, and human touch to business
activities. Society is also benefited by the introduction of business
ethics. It ensures healthy and competitive business atmosphere,