Ethics can be defined as society’s expectations of what is right behaviour whereas morals refer to actions that a person considers to be right or wrong. Both ethics and morals can be a product of their environment. This is referred to as differential association, which states that an individual who is exposed to a certain environment in which there is no respect for the law will more likely commit criminal actions. As a result, if individuals affected by this theory of differential association come together in a business, it will more likely result in bad corporate behaviour due to the environments they were brought up in. Personally, I believe ethical business conduct refers to businesses with certain ethics and morals operating in a rightful manner in tough and controversial situations.
Introduction The term “Marketing ethics” has been defined as how moral standards of right and fair practices are implemented into organization and strategy (Murphy et al., 2005). In fact, marketing and ethics are usually seemed as a contradiction, because the purpose of marketing is monetary-oriented. The ultimate goal for business is making profit or generating sales, while ethics is moral and societal, such as contributing to the society. Introcaso et al (1998) quotes Michael Novak’s (1998) words that business might fail in the short term if introducing ethical model in competition, because high moral standards increase costs. Consequently, numerous companies launch misleading advertising, manufacture unsafe products, exploit labour right and waste natural resource for self-interest.
On the other hand, Jeffrey L. Seglin argues that the problems in American businesses are a combination of ethical and legal problems. The ideas of ethical problems in corporate America are illustrated differently in both Frohnen and Clarke’s essay and Seglin’s essay. In Bruce Frohnen and Leo Clarke’s essay, "Scandal in Corporate America: An Ethical, Not a Legal, Problem" they discuss their views of American businesses and the little honesty that these businesses have. They claim how important honesty is within businesses and how it will help our public’s well-being and corporate America. They view American business officials to be greedy and many of their jobs just consist of helping businesses find their way around the laws.
Analytical ethics is when people justify the way in which they decide to behave and why. Why businesses should concentrate on ethics? A business must focus on ethics because business must not only concentrate on the profit that they make but also the impact that their business, as well as their decisions impact on the societies that are involved in their communities. A business must also concentrate on their employees because employees are more productive when there is a balance between personal and professional life, as a result the business will act more ethically in the corporate world. Another concern is bad publicity which has a very negative impact on the business, as a result the business must play according to the unwritten and written rules.
This new Nasdaq rule is suppose to make investors and the public aware of what is happening with the company weather its conflict of interest or other corporate abuse. They also believe it will give investors more confidence in the companies that they invest their money in. The new rule should prevent a bad company from showing dishonest behavior. Many agree that there will not really be a change for companies that are doing business correctly already. All it really will do is show the public who the bad companies are and see them as they are put to justice.
A major question for business historically has been whether corporate decision makers should be concerned with issues other than profitability. The statement ethics and profit do not go hand in hand is an ancient and traditional theory as is in the modern world business people are introducing new advertising and sales techniques that drive a business into success as well as putting into account people’s rights and obligations. This is so as to achieve the long term benefit and stay in the market for a much longer period of time. This essay explains how the firm uses ethics to consider the customers and employees before profits and how to deal so as to survive unfair profit oriented competitors it also explains how firms use practices like competence,social responsibility and disclosure of interest. Ethics are the values of a person’s sense of feeling of what is good or bad or what the law requires them to do Profit is the main backbone of a business .If it does not make profits it will fail and not survive.
Business act ethically because it is the best long term-strategy for a company. Of course, being ethical does come at a price. Doing the right thing can be costly, but that is only a short term cost endured in the hopes for long term profit. The logic behind this notion is that ethical businesses have comparative advantages to unethical businesses when we measure them against each other in the long run (Transcript: Ethics: Business an Oxymoron?, n.d.). If a firm conducts business in an unethical manner, in the long run, it will lose its customers because they will not appreciate being treated poorly.
Introduction In today’s world, different types of business have emerged and business operations have become the cornerstone of making a success, however the way in which they are operated is what is important. Most businesses hunt the main objective of making a profit without considering how that might affect other factors of society and that is what in most cases diminishes the longevity of the organisation. This research is compiled to explain how good ethical practices and good values in business can yield sustainability within the business and the society as a whole and in order to do this the concept of ethical business practice and values have to be understood. Decades ago, the perception of ethics and values in business practice has always been associated with business failure as entrepreneurs had the “eat or be eaten” mind set – which in essence means that one must do whatever it takes to reach the desired goal, which in the case of a business means that the businesses has to make a profit no matter the cost. As the standard of living advanced so did the ways of doing business – business ethics supervened.
Being irresponsible and unethical could leads to sanctions, particularly corporate bribery, and product safety. Bribery is unethical which affects company performance and erodes the authority of leaders who condones. Consumer will boycott any business that is unethical and exhibits irresponsible behavior towards citizens and society. Ethical behavior will certainly do positively influence on employees and employers, but not being ethical will affect worker morale. With the internet and mobile technology, any bad ethics and behavior and will cost companies a fortune.
In particular, stakeholder theory, which stresses the importance of all groups that affect or are affected by a firm, has been proposed as a more adequate theory of the firm for studying business ethics. An important benefit of business ethics research conducted within such a framework would be a narrowing of the gulf between business ethics and the fields of financial economics and corporate law. Business ethics is widely dismissed as irrelevant by researchers in these fields because of its failure to recognize the existing financial and legal structures of the corporation, which are built largely on a contractual foundation. Hence, a common framework could increase the relevance of business ethics research and create a mutually beneficial dialogue. As a framework for identifying and analyzing many common business ethics problems, the contractual theory focuses our attention on the need to provide adequate safeguards for each constituency's interests.