ETHICS HAS NO PLACE IN BUSINESS !!

Ethics is the study of morality that involves scrutinizing the concepts of right and wrong. In the
same manner business ethics is depicted as the process of rationally evaluating our moral
standards and applying them to business situations. However, there are a number of people who
deny the idea of applying moral standards to business actions.
Various arguments arise that caring about moral standards or following under the ethical criteria
does not build profits. To pursue profits, a firm should only produce what the society needs and
it should do it in an effective way. The second disagreement that occurs is that managers are
only liable to serve the company. They should only be loyal to the company and work for its
benefits exclusive of the ethical dilemmas. Furthermore, it is argued that only law is necessary
for the corporations to run, ethics should not be taken into account.
On the contrary majority of people including myself believe that “Business Ethics” is highly vital
for an organization to pursue profits plus flourish in the industry and in the eyes of general
public. Society is healthy because of the moral standards held by the individuals. And it is the
individuals who altogether construct a company. Imagine of a world where there is no notion of
ethical values, no moral standards and no concept of right and wrong, that world would be a
darkest place where there is no trust. Similarly business without ethics means no confidence no
faith no humanity, everything would seem to be carried out on legal contracts. If looked upon
research, it clearly shows that it is the ethics that enhance the pursuit of profits. Common people
like us care about principles and beliefs and customers become satisfied when corporations care
about feelings and morality. Companies which carry out corporate social responsibility (CSR)
activities are an example of success due to business ethics. Companies like General Electronics
and Harley Davidson have made it and they are listed as World’s Most Ethical Companies along
with a list full of other names. This clearly shows being principled won’t let you down. And
there are companies like Chevron, the oil and guess company which is accused of violating
human rights. Philip Morris, cigarette manufacturers is considered as the 5th most unethical
company.

It is crystal clear that Ethics has an important place in business and is proved by the research.
Companies which take into account the moral standards of society are highly appreciated, become
successful and also achieve higher profit margins than those that do not follow business ethics.

Importance of business in Ethics !!

Ethics concern an individual's moral judgements about right and wrong. Decisions taken within
an organisation may be made by individuals or groups, but whoever makes them will be
influenced by the culture of the company. The decision to behave ethically is a moral one;
employees must decide what they think is the right course of action. This may involve rejecting
the route that would lead to the biggest short-term profit.

PHRASE !!

Not always, it depends what it is. People have different things they consider moral. Some things we
can all agree on like murder and rape for instance. When it comes to sex before marriage or abortion
the views differ. Many get their moral values from their religion and others get it from home or simply
themselves while growing up. This is also why it's a good thing to keep religion and politics apart
when it comes to making laws since not everyone follow that religion or any religion at all. And even
those who do does not agree with everything the religion stands for. It would end up forcing people
to follow the laws of a religion they are not following and since we have freedom of religion that is not
legal.

DEFINITION of 'Business Ethics'

The study of proper business policies and practices regarding potentially controversial
issues, such as corporate governance, insider trading, bribery, discrimination, corporate
social responsibility and fiduciary responsibilities. Business ethics are often guided by law,
while other times provide a basic framework that businesses may choose to follow in order
to gain public acceptance.

Chapter 1:

Questions for Discussion

1. Discuss why ethics is important in business.
 Business Ethics paves the way for a common understanding of the fundamental idea of
what is good and what is bad in our human conduct. Without ethics, people will set
their own moral standards which would result into a kind of subjective morality.
2. Refute the businessman’s myth that “ethics has no place at allin business.”
 Business is a social activity thus, being a social activity it should conform to the norms,
rules and principles of this society. These standards are embedded in ethics.
3. Explain the phrase: “Not all that is legal is moral, but what ismoral is worth legalizing.”
 An action may be legal but not necessarily moral. Ethics provides a clear distinction
between morality and legality. Consider abortion- in some countries abortion is legal but
in the Christian faith abortion is an immoral act.
4. Define Business Ethics. What is your own personal definitionof Business Ethics?
 Business Ethics is the study of what is the right and wrong human behavior and conduct
in business.
 For me, business ethics is putting a conscience in the science of profit making.

5. Explain the phrase: “Ethics is the unwritten law written in thehearts of men.”
 I interpret that as ethics has been a tried and tested guide of men in ages that have
been handed down from one generation to another. These are actions that society
consider as the proper action given a particular circumstance.
6. What is your personal view on profit-motive?
 Personally, profit making is not bad. I go by the tenet of giving Caesar what is due Caesar
and God what is due God. In profit making it means giving the business person his due
profit but also giving his customers their due in terms of quality of products and services
and it should be commensurate to the product or service.
 7. Do you agree with Milton Friedman that the only responsibilityof business is to maximize
profits? Why or why not? Discussyour answer.
 No, this is really a very simplistic view. I believe that a business entity has other
responsibilities such as paying the correct taxes, giving quality products and services to
its clients and sharing its fruits through CSR.
8. What is the Catholic Church’s stand on profit-motive?
 The church is not against profit -making. Pope Pius XI just reminds that “one should
respect the laws of God, not prejudice the rights of others, and works according to faith
and right reason.” (QA #136)

9. What is your concept of reasonable profit?

 This a hard question to answer. For me, it is about justice. If your profits take away food
from another’s table then it is excessive.

Case 1: Ethics vs. Profit

Questions:
1. What are the ethical problems mentioned in this particularcase and what are the probable
causes of theseproblems?
 Providing unsafe products/ questionable products in lieu of savings to increase profits
 Questionable business practices such as bribery to obtain more sales to increase income
2. Is it all right to do something illegal or unethical to maintainthe company’s image and
profitability?
 No, because one cannot keep a secret for long. The unethical or illegal practices will
haunt the company and will cause more problems in the future. Also, there is the ethical
consideration of doing what is right and true in one’s dealings.
3. If you are the CEO of the company, what would you doand why?
 I will not condone those behaviors. I will institute rules on the contrary as well as
provide a culture program to ensure that people working in my company are guided in
the values of my company.

Case 2: Friendship in Business

Questions:
1. Was the action of Mr. Dy to cancel the contract legally correct and morally justified?
 In my opinion, it is not justified. He delivered a substandard product and this is the
reason why Mr Gutierrez returned the materials.
2. Is it appropriate to extend friendship in businesstransactions? Why or why not? Discuss your
answer.
 For me, extending friendship in business transactions can be very tricky although it is
not totally wrong. Friendship is a social activity and cannot be totally neglected even in
business transactions. It can be part of interpersonal relationships which is important in
business dealings.