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    Business Debate Paper

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    hitedog
    This document discusses the argument that ethical businesses have a greater probability of being more profitable than unethical ones. It provides three main points in support: 1) Ethical behavior builds trust with customers and regulators, resulting in higher long-term profits. Studies show companies with high ethics have better stock performance. 2) Specific ethical practices like producing safe products and respecting employee privacy improve business outcomes by reducing costs and improving productivity. 3) In competitive markets, customers and employees will choose to do business with ethical companies, allowing them to survive and be more profitable while unethical companies fail. Overall, the document argues that ethics are becoming more important to business success and are key to building sustainable wealth

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    Business Debate Paper

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    hitedog
    94 views4 pages
    This document discusses the argument that ethical businesses have a greater probability of being more profitable than unethical ones. It provides three main points in support: 1) Ethical behavior builds trust with customers and regulators, resulting in higher long-term profits. Studies show companies with high ethics have better stock performance. 2) Specific ethical practices like producing safe products and respecting employee privacy improve business outcomes by reducing costs and improving productivity. 3) In competitive markets, customers and employees will choose to do business with ethical companies, allowing them to survive and be more profitable while unethical companies fail. Overall, the document argues that ethics are becoming more important to business success and are key to building sustainable wealth

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    This document discusses the argument that ethical businesses have a greater probability of being more profitable than unethical ones. It provides three main points in support: 1) Ethical behavior builds trust with customers and regulators, resulting in higher long-term profits. Studies show companies with high ethics have better stock performance. 2) Specific ethical practices like producing safe products and respecting employee privacy improve business outcomes by reducing costs and improving productivity. 3) In competitive markets, customers and employees will choose to do business with ethical companies, allowing them to survive and be more profitable while unethical companies fail. Overall, the document argues that ethics are becoming more important to business success and are key to building sustainable wealth

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    94 views4 pages

    Business Debate Paper

    Uploaded by

    hitedog
    This document discusses the argument that ethical businesses have a greater probability of being more profitable than unethical ones. It provides three main points in support: 1) Ethical behavior builds trust with customers and regulators, resulting in higher long-term profits. Studies show companies with high ethics have better stock performance. 2) Specific ethical practices like producing safe products and respecting employee privacy improve business outcomes by reducing costs and improving productivity. 3) In competitive markets, customers and employees will choose to do business with ethical companies, allowing them to survive and be more profitable while unethical companies fail. Overall, the document argues that ethics are becoming more important to business success and are key to building sustainable wealth

    Copyright:

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    of 4

    8 AUGUST, 2009

    WEEK 5

    Defend the Statement: "Ethical businesses have a greater probability of being more
    profitable than unethical ones."

    A. Introduction: Business, like government, is a system that affects not only its

    managers and employees, but all members of the community. Many business decisions

    affect the lives of people in important ways. If businesses operate in unethical ways,

    this can contribute to people getting sick (as a result of pollution or defective products);

    or consumers could get taken advantage of (through false advertising). The Harvard

    Business Review suggests that well over three-quarters of businesses are trying to build

    ethics into their organizations. (harvardbusiness.org) Many business managers believe

    that, though more costly in the short run, ethical behavior is profitable in the long run

    as customers and government regulators will appreciate it. This will ultimately result

    in higher profits. I think ethics should be part of business. Business activities like any

    other human activities, cannot exist unless the people involved in the business and their

    surrounding communities adhere to some minimal standards of ethics. Business is a

    cooperative activity whose very existence requires ethical behavior. All businesses

    require a stable society in which to carry on their business dealings. Yet the stability of

    any society requires that its members adhere to some minimal standards of ethics.

    According to Ferrell, evidence shows that being ethical pays off with better

    performance. Companies that are perceived by their employees as having a high

    degree of honesty and integrity had a much higher average total return to shareholders

    than did companies perceived as having a low degree of honesty and integrity. (Ferrell,

    1
    2008) Rather than being just a compliance program, ethics is becoming one of the

    management issues within the effort to achieve competitive advantage.

    B. Opinion: Some businesspeople argue that there is a symbolic relation between ethics

    and business in which ethics naturally emerges from a profit-oriented business. I think

    that good ethics results in good business, which simply means that moral businesses

    practices are more profitable. For example, it is profitable to make safe products since

    this will reduce product liability lawsuits. Also, it may be in the best financial interests

    of businesses to respect employee privacy, since this will improve morale and thus

    improve work efficiency. Ferrell states that the long-term best interests of businesses

    are served by seeking a trusting relation with the public. (Ferrell, 2008) In addition I

    believe a stronger version of this profit approach is that in a competitive and free

    market, the profit motive will in fact bring about a morally proper environment. That

    is, if customers demand safe products, or workers demand privacy, then they will buy

    from or work for only those businesses that meet their demands. Businesses that do

    not heed these demands will not survive; thus, good business results in good ethics.

    We all must understand that ethics are the backbone of American industry, well, they

    should be. Whether an organization has good or bad ethical standards, ethics is an

    issue for all people and businesses alike.

    C. Conclusion: Ethics is becoming very important and this is reflected by business’

    increasing momentum towards ethics and sustainable wealth. Businesses are no longer

    looking for the quick (probably unethical) ways of getting rich. They now want to

    build long term relationships that will keep the income flowing for many years. Roger

    Spiller states, the purpose of an ethical business is to “create a triple bottom line of

    2
    environmental and social as well as financial wealth” (Spiller, 2000). It operates with

    “principles such as honesty, fairness, caring, and courage, which guide an individual

    and business behavior” (Spiller, 2000). The practices the business applies, such as

    those noted previously, take account of all stakeholders, while performance

    measurement involves ethical accounting for the triple bottom line (environmental,

    social, and financial wealth). Business ethics are of growing importance in today’s

    economic world. My opinion is, in the long run, ethics will make or break a company.

    It kind of takes us back to an old saying: “cheaters never win.” Running a clean,

    honest business not only puts you ahead in life, it will also move your organization

    forward with a clean conscience. There will not be any looking over your shoulder or

    excuse the expression, dodging bullets. Customers will recognize that they are being

    treated fairly and continue to return to a company that provides good, ethical services.

    People do not want to deal with someone whom they feel is always trying to pull the

    wool over their eyes. Most people appreciate an honest, hardworking company with a

    code of ethics or mission statement hanging on the wall in the office. More and more

    companies are investing time and money into learning more about conducting an

    ethical business and an increasing number are attending workshops. The more

    businesses learn about ethics, the more they will be able to practice the future of

    business: ethics and consequently maximize their profitability.

    3
    Reference List

    Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2008). Business Ethics Ethical decision Making

    and Cases, Boston. MA: Houghton Miifflin Company.

    Spiller, R. (2000). Ethical Business and Investment: A Model for Business and Society.

    Journal of Business Ethics, 27, 1/2. Retrieved August 6, 2009, from

    https://caseplace.org/s.asp?a=1358

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