Read the given below two statements and mark the correct answer.

Assertion (A):  Business ethics refer to the socially determined moral principles which should govern business activities.
Reason (R) : Charging high prices from customers is an example of following business ethics.

Assertion (A) is true but Reason (R) is False

The correct answer is option 3- Assertion (A) is true but Reason (R) is False.

Assertion (A):  Business ethics refer to the socially determined moral principles which should govern business activities. THIS IS CORRECT.
Reason (R) : Charging high prices from customers is an example of business ethics. THIS IS INCORRECT. Charging fair prices from customers is an example of  business ethics.

Business ethics concerns itself with the relationship between business objectives, practices, and techniques and the good of society. Business ethics refer to the socially determined moral principles which should govern business activities. A few examples of business ethics are: charging fair prices from customers, using fair weights for measurement of commodities, giving fair treatment to workers and earning reasonable profits. A businessperson behaves ethically when her or his actions are upright and serve the interests of society. This, of course, also applies to those not in business. The essential difference is perhaps that businesspersons by virtue of their widespread control over society’s resources have a much greater effect on what happens in a society than persons in other areas of activity do. Business people and politicians are expected to have higher standards over and above other people. This is perhaps the price they pay for being allowed to make decisions on behalf of society.