The terms ‘ ethics ’ and ‘ business ethics ’ are two different aspects. ETHICS : Ethics is a branch of philosophy which is concerned with human character and conduct. Under the study of ethics, we consider what things are good or bad and about what actions are right and wrong. BUSINESS ETHICS: Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It is optional for an organisation to be ethical because it only relates with the moral values. Ethics play a vital role in each and every phase of the business like production Human Resource Finance Marketing Research 1. ETHICS IN PRODUCTION PROCESS : Ethics are needed in production to ensure that the production function or activities are not damaging to the consumers or the society. Ethical Issues in Production : Nowadays it is very difficult for an organisation to survive in th