What is the relationship between ethics and business? Analyze and discuss.
Post by classmate 1
Ethics are a major component that leads to the success of a business. Businesses who don’t put in place rules/regulations for their employees will suffer when an unethical issue arises. Also, if businesses aren’t practicing ethics, then they might run into some legal troubles in the future. “Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run because they show a commitment to an expectation of sound moral behavior” (Goessl 2010). Doing this can enhance the companies reputation as a more fair and ethical company, which many consumers desire.
Not only are ethics important to build a strong reputation for the company and to gain consumer’s trust, but it is also important for the employee side of things too. There needs to be ethical leadership in an organization, or employees may not be happy with their jobs due to unethical leadership. If employees are unhappy working for that company, then turnover rates will be high, which leads to a lot of money lost. “Building on a foundation of ethical behavior helps create long-lasting positive effects for a company, including the ability to attract and retain highly talented individuals, and building and maintaining a positive reputation within the community” (Horton 2019). Overall, it is vital for a company to build their brand based on ethical values and to hire employees that match these values.
Goessl, Leigh. “Understanding the Relationship between Business & Ethics.” MedicalSearch, 2010, www.medicalsearch.com.au/understanding-the-relationship-between-business-and-ethics/f/4808#:~:text=The%20relationship%20between%20business%20and%20ethics%20is%20intrinsically%20entwined.&text=This%20demonstrates%20a%20dedication%20to,more%20value%20to%20the%20organisation (Links to an external s
Post by classmate 2
When discussing the relationship between ethics and business, one must seek the primary basis of ethics and business to see that ethics is a vital component of a successful business.
The primary purpose of a “business” is to produce a profit. Technically, a business is put in place so that it can provide the most significant gains possible. Several components build a business entity, such as its owners, employees, customers, and even its stakeholders. All these components are crucial to having the business function properly so that it can produce profits. Since businesses have a capitalistic goal, maximizing profits is always the prevalent point to success. Industry week states, “I believe there is a general problem with ethics in American industry because revenue is “king” and the factors that most contribute to it are production output and cost.” (Ericksen, 2020). If The leaders of a business entity are not ethically correct, that can lead the business to become unethical and that can lead to internal issues as well as potential legal issues for businesses.
Ethics, on the other hand, can be described as a moral principle that people carry for themselves when making daily life decisions. Since businesses are comprised of people who take ethical values, companies need people that will make morals and ethical decisions for the set business to function successfully and ethically. Sustaining and running the ethical business should be the critical goal for every business owner in addition to producing profits. Failing to tie ethics in with successful business practices are where issues can arise. Price discrimination, price gouging, unfair treatment to employees, and fraud and manipulation (Alton, 2017), are examples of unethical business practices and failed ethics from business owners that should be implementing this foundational standard.
Ericksen, P. (2020, January 16). Is Ethics in Business Possible? Retrieved June 30, 2020, from https://www.industryweek.com/supply-chain-initiative/article/21120741/is-ethics-in-business-possible
Alton, L. (2017, September 12). How Much Do A Company’s Ethics Matter In The Modern Professional Climate? Retrieved June 30, 2020, from https://www.forbes.com/sites/larryalton/2017/09/12/how-much-do-a-companys-ethics-matter-in-the-modern-professional-climate/