Business ethics; what does it really mean? Some say it’s an ox y moron and the two words can’t exist together as a concept. These people will tell you that within business, there is no room for ethics and ethical behavior. Others will explain the need for businesses to practice good ethical and moral values within their company, and the importance of this to our society. For me, in the past, I honestly never gave the idea or term a second thought. Now after learning so much of business in our society I have a firm understanding of business ethics and I’ve developed my own personal view that reflects it.
At the roots of proper business ethics is undoubtedly, understanding. As with life, all truths and therefore all ‘rights’, come with understanding. You can mimic steps and follow guidelines but that’s mere “window dressing” as according to Milton Friedman, an American economist (p. 285).
With understanding you can find the bottom line and follow that which causes the best over all results for the majority of those concerned. What exactly does that mean? To start to answer that question we have to look at the definition of business ethics.
Business, as according to Webster’s Dictionary: “Noun: employment; profession; vocation; any occupation for a livelihood; trade; firm; concern.” And here is the definition of ‘ethic,’ also from Webster’s Dictionary: “Noun, pl. : philosophy which treats of human character and conduct, of distinction between right and wrong, and moral duty and obligations to the community.” So business ethics is concerned with human character, understanding, and distinction between right and wrong, and moral duty, within a livelihood, trade or occupation. Given this definition you can see how there is much debate and confusion as to what business ethics really is. Business ethics is more of a concept than it is a definable term. Seeing that the definition is somewhat vague, and that business ethics is seen more as a concept, we can assume the concept to be relativistic in nature. Even so, that doesn’t mean it doesn’t exist or can’t be defined more clearly.
The Term Paper on Business Ethics and Issues
Ethics Ethics is a branch of philosophy which seeks to find answers about the moral concepts like bad, good, evil, right, wrong, etc. According to OEC (2011) ethic is defined as “a moral philosophy which is concerned with what is right or wrong, good or bad, fair or unfair, responsible or irresponsible, obligatory or permissible, praiseworthy or blameworthy”. Many scholars have associated it with ...
That just means it exists in many forms and for many different reasons, with many different definitions. Practicing the right business ethics means getting down to the bottom line. In the end who will the action affect and how? To what extent will it help, and why? What’s in it for us and who will also reap rewards beside us? Understanding a bottom line concept is basically following the analogy “don’t bite the hand that feeds you” in addition to following, in sort, John Stuart Mills, “Harm Principle”, Laid out in his book “On Liberty.” Mill’s Harm Principle was written from his concern about the civil liberties of individuals in governed societies. Mill’s harm principle states:’ the sole end for which mankind are warranted, individually or collectively, in interfering with the liberty of action of any of their number, is self-protection. That the only purpose for which power can be rightfully exercised over any member of a civilised community, against his will, is to prevent harm to others.
His own good, either physical or moral, is not sufficient warrant. He cannot rightfully be compelled to do or forbear because it will be better for him to do so, because it will make him happier, because, in the opinion of others, to do so would be wise, or even right… The only part of the conduct of anyone, for which he is amenable to society, is that which concerns others. In the part which merely concerns himself, his independence is, of right, absolute. Over himself, over his own body and mind, the individual is sovereign.’ (p.
The Essay on On Liberty Harms The Society
Analysis & Critique of. S. Mill's On Liberty The perception of liberty has been an issue that has bewildered the human race for a long time. It seems with every aspiring leader comes a new definition of liberty, some more realistic than others. We have seen, though, that some tend to have a grasp of what true liberty is. One of these scholars was the English philosopher and economist J. S. ...
68) What Mill’s says here is that our actions shouldn’t hurt others or hinder there happiness in anyway, even at the benefit of our own happiness. Furthermore the only way we should stop someone from doing any sort of action is when that person harms another, and only then should there be intervention. Though this was written with the individual, and an overpowering government in mind, can’t we apply this to business today? Don’t businesses govern our individual lives? Don’t some businesses harm our well being for their own benefit? From the time of the Aztecs to modern capitalism business shapes and governs our lives. So if business governs our lives, who governs theirs? The first would be government. The government puts regulations and guidelines in place to keep us from harm. Who else governs business and business ethics? In reality, we all do.
As consumers and customers, our morals, and values, expectations, and wishes all reflect in business. We, in the end, shape business ethics. All business in one way or another rely on society, in the form of consumers and customers and even bystanders. You can’t build a company upon poor ethical values and expect to thrive.
We won’t let it happen. You can’t short change your customer’s expectations, ideas, and wants and still expect to be successful. More over, your company relies on investors who want to see profits. You can’t spend ‘frivolously’ an investor’s money on ‘ethical’ and ‘moral’ causes who expects to see that money make more profit for the company. So business basically follows the morals and ethics that society lays out for them. What is proven effective and what society seem to like.
Given that, successful companies should follow practices that best reflect the interest of their customers, stockholders, and society in general. The bottom line approach thrives on understanding. It’s a medium between extreme views. Between Cicero’s view that “Everyone ought to have the same purpose; to identify the interest of each with the interest of all” (p.
The Essay on Business ethic and profit
To a large extent, I agree with this statement. Many companies owners suggested that successful business depend on how profitable the business is, instead of their ethical responsibility to the society. On the other hand, From a business owner perspective, practicing business ethic is time-consuming and costly. However,many multinational companies, including HSBC, Coca-Cola Company, Visa...... ...
277), and Friedman’s ideology that profit is supreme and there is no room for ethics in business (p. 283).
In Business we all need to understand how ethical behavior shapes capitalistic competition between businesses. To see how the treatment of the environment and the social impact directly affects business development and profits. This Understanding can drive business toward a strict ethical focus, or to that of one of pure profit oriented design.
This bottom line approach isn’t without good heartedness either. It isn’t to say that business should be or is void of ethical innovations. After all it wasn’t long ago that society didn’t even know it was interested in business ethics. Not until a few companies with revolutionary ideas, such as Patagonia, who donated 10 percent of pretax profits to environmental organizations in 1995, came along and raised the standards for ethics in business. If there is one thing I’ve learned it’s not to judge a book by it’s cover. Not to jump to conclusions, or think my first impression is the right impression.
Business is a whole world I never knew. It’s one that shape our lives. As individuals we have responsibilities to, in essence, take care of each other. Is it business ethics? Who or what is business anyway but you and I? It’s human ethics and the bottom line. Cicero (106-143 B.
C. ).
Excerpt from De Offic iis, Book III. In L. Cunningham & K. Gunn (Eds.
), Business & society-A journey of discovery, 5 th edition (pp. 275-283).
Boston: Pearson Custom Publishing Friedman, M. (1970).
The social responsibility of business is to increase its profits… In L.
Cunningham & K. Gunn (Eds. ), Business & society-A journey of discovery, 5 th edition (pp. 284-291).
Boston: Pearson Custom Publishing. Merriam-Webster Collegiate Dictionary (8 th ed.
).
(1998).
Mills, John S. (1859).
On Liberty. New York: Penguin Books ltd 1974.
