Maintaining proper business ethics - Essay Example

With the many global challenges bedeviling the business world, many corporate are faced with the challenge of balancing between their concern for profits and maintaining proper business ethics. The contemporary corporate world calls for cooperate responsibility concerning preserving both the resources and the natural environment. Many businesses are forced to juggle between their need to make a profit and their collective cooperate responsibility in the business world. Many studies have shown a direct correlation between ethics and business, with two divergent conclusions: one argument has been that good ethics is a prerequisite for good business (Fieser). In this regard, those businesses that uphold moral practices are profitable in that they are able to meet the right standards of product quality while avoiding legal suits against them. This also goes hand in hand with the businesses’ reputation, which does not suffer adverse publicity with regard to its ethical operations. Such business are cautious not to any business malpractices as that would result to farfetched problems that might compromise their profit margins. Conversely, the assertion that good ethics results to good business only applies to businesses that are desired to last as benefits from business ethics only accrue in the long run. In other words, businesses competition in the market and desire for short-term benefits that will ensure business sustainability is what drives many businesses. Similarly, the economic viability of business ethics gradually declines even in the long run and companies are forced to take stringent unpopular decisions that are crucial for business sustainability. For instance, many companies have had to infringe on their employees privacy by implementing internet usage monitoring policies. Some businesses have also had to lay off part of their labor force in spite of the public outcry and ethical implications, as part of structural adjustment programs. This now leads as to the second assertion that good business results in business ethics (Fieser), and in this case, it is believed that the drive for profits will force businesses to uphold proper business ethics. Businesses that fail to take corporate responsibility will automatically be pushed out of business- the ethics conscious corporate market will be too stringent on them. In this regard, the desire for sustainability will result to good business ethics as businesses are forced to conform to proper business ethics. For instance, many companies are forced to show concern for environmental conservation as part of their collective corporate responsibility, in order to ensure sustainability of the natural environment and its resources. Environmental policies impact positively on the companies’ reputation, as they are able to show the companies' concern and responsiveness to environmental matters. The companies also avoid damaging publicity that could result from legal suits against them from the government or concerned parties; these may arise due to the companies’ breach of corporate responsibility in environmental conservation. However, the assertion that good business results to good business ethic is pegged on the assumption that all the concerned parties will exert pressures on corporate to act responsibly. This may not be the case in all contexts, as seen where consumers opt for cheaper counterfeit products regardless of the health risks involved. Employees might also be lured with financial incentives into foregoing their privacies and sense of ethical practices; this encourages companies to indulge in unethical business practices by flouting their social corporate responsibility. In view of the two assertions discussed above, it is evident that the issue of business ethics is as critical to businesses as their concern for profits (Camus). Ethical businesses are socially responsible, and the reverse is applicable in that a socially responsible business is ethical. In this regard, business must make ethical decisions in their daily operations; such decisions are both legal and acceptable on the basis of shared standards of morality in the business environment. Many businesses have established their own codes of practice that define their operations with regards such issues as corporate social responsibility, customer relations, corporate culture and environmental issues. Many studies have linked higher business returns to business ethics and many businesses believe that cooperate social responsibility in particular will bolster their profit margins (Robins). This is because a business that is socially responsible is likely to be reputable in the market, and as such, it will register increased sales, improve employee loyalty and productivity- this may also enable the business to get a competent workforce that would suitable to its code of practice. Because of this growing trend, many businesses are rigorously concerned with upholding and maintaining business ethics, and both managers and employees embrace ethical conduct for business sustainability. According to the Institute of Business Ethic’s survey that was conducted in 2008, a majority of British and American employees attest to the ethical conduct of their organizations (Webley). Corporate firms are sensitizing their employees to act ethically at all times, and to report cases of misconduct; these measures aim to safeguard their reputation. A strong cooperate culture that is pegged on business ethics promotes the co-operates’ reputation as if petty unethical conduct is tolerated, the businesses are likely to incur losses from gross misconduct of the company stakeholders later. In this regard, there is pressure on businesses to match the contemporary business trend in the corporate world by complying with business ethics for sustainability. It is this concern that has driven many businesses to adopt governance practices that uphold business ethics in their businesses; effective corporate governance trend focuses on ethical issues, in recognition of the crucial role ethics play in global business. Firms are emphasizing on business ethics in attempts to stamp their identities and values that will bolster their reputation in the global business (Camus). With regards to environmental concerns, oil companies around the world have been concerned with fears of their survival in view of the global climate change concerns, and trends towards the adoption of environmental friendly alternative sources of fuel. The reputation of oil companies has always been threatened due to their negative impact on the environment; for instance, combustion of fuels has been linked to environmental changes and exploration of energy resources has always elicited questions of sustainability of the global energy reserves. Oil companies have thus been faced with the challenge of conforming to business ethics that require their responsiveness to environmental protection. This can be seen in the case of the British Petroleum and the Royal Dutch Shell support of the environment treaties and adopting measures aimed at reducing emissions and moving towards sustainable energy sources (Kolk and Levy 501). Climate change is a global concern and corporate cannot afford indifference to this crisis that threatens the lives of global populations. When oil spillages allied to the British Petroleum occurred, it was a massive blow to the environment, and it nearly shook the company’s reputation with regards to its environmental responsiveness. Shell and BP have taken considerable measures to respond to both social and environmental concerns for the sake of sustaining their reputation in the global business. This can be seen in how BP has managed to mend its global reputation after the disastrous oil spillage incident; the disaster threatened to hurt its reputable rating and profits in the global business. BP and Shell have also demonstrated a large concern for the environment by being supportive to environmental discussions on mitigation of the environmental crisis and implementing environmental policies. This has seen their business register rapid growth and expansion due to their reputable contributions to environmental conservation efforts. Works Cited Kolk, Ans and Levy, David. “Winds of Change: Corporate Strategy, Climate Change and Oil Multinationals”. European Management Journal Vol. 19, No 5. 501-509. 2001. Print. Camus, Miguel R. “Wharton professor cites ethics’ bigger role in global business”. Businessmirror.com.ph. 25 Nov.2012. Web. 12th Dec, 2012 Fieser, James. “Bussiness Ethics”. Utm.edu. n.d. Web. 12th Dec, 2012 Webley, Simon. “Business ethics survey shows increased pressures at work”. Guardian.co.uk. 6 Dec. 2012. Web. 12th Dec, 2012. Robins, Ron. “Does Corporate Social Responsibility Increase Profits?”. Business-ethics.com. 12th May, 2011. Web. 12th Dec, 2012. http://business-ethics.com/2011/05/12/does-corporate-social-responsibility-increase-profits/ Read More