Business ethics is a form of applied ethics that examines just rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons who are engaged in commerce. Taking an insurance cover is paying some amount of money called the premium, to an insurance company, in lieu of which, they take your financial risk on their head. Many times business owners are worried that having textbook business ethics will cause their business to fail because of reduced profits, when actually the opposite is true.
In other words, if a university ethics professor is attempting to model ethical behavior through his or her lessons, students will sort through the information and determine which ethical characteristics (if any) they will adopt. In our free enterprise system, a company that cannot manage its assets properly, has a product or service that the public wants to buy, and makes a profit for its shareholders goes out of business.
To compete with larger businesses, it may be tempting to abandon ethics just to make an adequate profit. They assert that to assume that the primary function of a business is to serve its client base in an ethical manner is idealistic and that the nature of a free economy dictates that ethics must take a back seat to increasing profits.
The insurance company makes profits by investing the money of the insured in other financial ventures. While this is an astonishing and sad commentary on the ethics and morals of the management of these companies, I find something else even more disgusting. Companies that act ethically impart a sense of trust and responsibility in both local and national communities; this type of trust can often promote strong business alliances.
Modern ethics is first and foremost, the science that allows to consider human relationships, as well as to evaluate the behavior of people in terms of generally accepted norms. To grow your business, you need to recruit more people and then encourage them to buy your products.