In the most basic terms, a definition for business ethics breaks down to knowing the difference between right and wrong, good and bad, and choosing to do what is ethical, in other words what is right. The term “business ethics” is used to define the agility of individuals within an organization, and an organization as a whole for that matter (Business Definition for: Business Ethics, n/d).
A lot of businesses today have earned a bad a reputation for just being a business. The bottom line for most companies is to make money and it should be but to some people that is all a business cares about. For the most part it could be called capitalism. To make money isn’t wrong but it comes down to the manner a business conduct themselves that brings up the question of ethical behavior.
Every business should have good business ethics. There are many factors to consider when a company does business with another company that is considered unethical. Is the first company part of the other company’s unethical behavior cause of their partnership? Did they know from the get go what they were getting themselves into? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.
Major corporations, including most of the brands that the public use today, can be used as examples not to think too much of ethical business behavior. Major brands have been fined millions for breaking ethical business laws. The major deciding factor is still money in the end for them.
If a company doesn’t comply with business ethic laws they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The main problem with this is, is that these companies bank a lot more money then they’re fined. Billion dollars of profits blind these companies to their lack of business ethics, and in the end the dollar sign prevails (What is business ethics, 2009).
In the end it is up to the public to decide if a company is complying with ethical business behavior. If large amounts of money are in play for these companies, they might not be paying too close attention to business ethics. There are many companies that pride themselves in their business ethical principles and behavior, but in this competitive world they are becoming less and less.
Understanding the broad landscape of business ethics can take lots of understanding, time, discipline while being problematic. The field reaches very important topics that raise concerns such as corporate behavior, reputation management, accurate accounting and audits, fair labor policies etc. After business debacles such as Enron, Adelphia, and Worldcom and many others it may be easy to conclude that the world of business can be a cut-throat environment where ethics doesn’t matter or is neglected.
Ethics is a major contributor to a company’s success. It focuses on certain areas a company relies on namely: public image, investment and partnerships. Each corporation has it’s own public image in particular that reflects which way the public see’s it as a whole. These images are the results of a vast variety of different reasons but it primarily comes down to the way a company acts with respect towards different things in its environment. Business ethics plays a major role in determining a company’s public image since they (the public) determine behavior.
When a person, investor or company is considering a particular stock there are several different aspects that needs to be considered. This includes the future prospects of the company, public image, products their selling, service their delivering and in the end it comes down to ethics.
A company that encourages investment in itself needs to have a strong sense of business ethics. Companies fall apart or become extremely powerful with the partnership with a joint venture. To get a good partner you need to have a good overall track record and an excellent tradition of ethical business behavior. If you don’t, a partner will never consider to join your company and will be considered a bad investment (Business Ethics - Why They Are Important For a Company and Its Success, n/d).
References:
n/n. n/d. Business Definition for: Business Ethics. Retrieved April 12th, 2011 from BNET. Website: http://dictionary.bnet.com/definition/Business+Ethics.html
Cuizon, G. Jan 2009. What is business ethics? Retrieved April 12th, 2011 from Suite 101. Website: http://businessmanagement.suite101.com/article.cfm/what_is_business_ethics
Vasquez, M. n/d. Business Ethics - Why They Are Important For a Company and Its Success. Retrieved April 12th, 2011 from Ezine Articles. Website: http://ezinearticles.com/?Business-Ethics---Why-They-Are-Important-For-a-Company-and-Its-Success&id=1315711
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