Features of Ethics and Profit - Coursework Example

Introduction It is said that ethics and profit are not related. In the first place, it is important to understand what this idea or concept of two ormore things being related is all about. In this paper, the proponent tries to show important reasons why there is a need to apply ethical standards in business. Thus, there are exemplary cases employed in the argument in this regard. What makes two things related? Two things become related when they are linked or associated. Ethics and profit may not be related because the latter can be obtained without the former. For instance, gaining profit out of illicit or prohibited drugs is possible but this does not mean that the entire activity is accepted as a good act within the society. In fact, the term that something is prohibited justifies further that there is no good about it at all. Ethics and profit may not be related because businesses may come up with different strategic moves that at some point may compromise what is considered morally good within the society. Thus, specifically there is a defined concept within the society for the preservation of life and that everyone is expected to do what is good and right. In line with this, there is a need to understand what ethics is all about. What is ethics? Ethics is concerned about the study of what is to be done (Kerridge, Lowe and McPhee 1). In other words it deals with identifying what is right and wrong (Pojman and Fieser 1). The principles or idea of right and wrong are integrated with the world. From the very beginning, humans have already understood what is right for them and everything that will contribute to their survival is good and that what should be done among them. The trial and error process led them to learn and even until today because humans learned a lot from their experiences. Based on these experiences, the idea of what is good and right has remarkably uncovered. The social contract Every individual is placed under a social contract to adhere by the specific standards emancipated within the society. In a social contract an individual adheres to be part of the political system of the government or simply be united with the whole social concerns of the society (Rousseau 4). For instance, in a social contract there are common rules that everyone should abide by. These rules simply try to protect the lives, rights and privileges of everyone. For example, a government may set a minimum wage program among private organizations or institutions. This is to be applied in order to set equal privileges among business men and their workers. In this way, workers are also ensured to receive what they deserve and exploitation will be out of the line. Some companies may come up with idea to generate more profit and one way of doing so is to cut the budget for those privileges that has been allocated for workers. The main issue in here is the generation of profit of business outside the bound of the social contract. Eventually, under the social contract an employee has the right to receive what is due to him. Thus, ethics may necessary be applicable in this case but there is really a need to apply it in order to emphasize the scope and coverage of the social contract and push every business towards its obligations in its employees and vice versa. . Business is associated with the law Under the social contract, business is associated with the law. There are corresponding laws that business should adhere to. For example, every business should adapt a financial reporting standard. One purpose of it is to declare the right figure a company is making in its business in order to pay the right amount due to the government. It cannot be denied that various companies are trying to come up with different financial reports depending on their usage for the sole purpose of gaining considerable amount of profit, which is actually the bottom line of all. In some other countries, tax avoidance and evasion are prevalent it is because profit maximization has become a must. Tax evasion is a serious offense and it has negative connotations in certain society. For some societies it is declared as a major offense, not morally good and should be dealt with accordingly. In the United States, many celebrities were faced with tax evasion cases. Some of them were sentenced for imprisonment because tax evasion is a specific crime committed against the law. Every individual who lives in the state and has the capacity to earn money or gain profit is required to perform their obligations and one is paying the appropriate tax. In the face of the law, it is not good to conduct business by evading some obligations that are required under certain decree or act. Thus, businesses or even individuals who are earning certain amount needs to address their obligation under certain decree or act emancipated by law. Thus, within the society, those who do not pay promptly and rightly their tax are considered tax evaders. Although generating profit and application of ethics may not be related at all especially in the case of tax evasion, the purpose of applying the principles of good and bad in this case is to simply remind each business or individual that paying tax is basically associated and under the law. The law has clearly defined what is good and bad in business. Thus, the purpose of applying ethics in business is simply to remind the basic responsibilities of every business person about how to fulfill what is required by law. In this case, ethics has become a gateway on how the law can be successfully implemented in every business. Every business is required to do what is right What is right or wrong is subjective and it depends on how a certain business justifies its very act from its own and other’s perspective. However, under the social contract and as required by law, every business should do the right thing. As stated earlier, there are existing rules defined by law and under the social contract that will lead to doing what is required and necessary. Since business is not outside the bound of society which is eventually covered by the whole social contract, every business entity is required to do what is right for the preservation of everyone’s life, protection of rights, privileges and many more. Everyone is given with the idea of what is good or bad because there are things that are simply required to be done. It is eventually true that outside the covered rules of law and the entire social contract, a business may perform what it perceives to be good for itself especially in the generation and maximization of profit. In this case, profit and ethics cannot be exactly related. However, this does not mean that the said business losses its obligation to do what is required as right. In the first place, the governing rules of the social contract and especially the law still have their power over every business. The bottom line of this is that every business has been given the appropriate standard on how they should perform. In other words, under how the law tries to protect everyone, the principles of good and bad are necessary to be set in order that the right thing should prevail. However, business nowadays has many ways to appropriately address its needs that are outside the standard set by law or the social contract. In this case, ethics and the entire business may not be related at all, but former always serves as the guiding principle on how the defined right and good by law or social contract may be effectively addressed. The knowledge of good and bad in the society It is therefore clear that as a result to the association of business with the social contract and specifically its being under the law, the knowledge of what is good and bad can be clearly defined. The standard is set. The governing principle on how business should do the right thing has already been set. All of these are made possible due to the application of the concept of what is good and bad. Thus, ethics is necessary to be applied in business because it gives the right principles that an individual should deliberately follow. As a result to this, the society has become knowledgeable about what is good and bad. This makes ethics cannot be separated from how a business should work. It may not be superimposed but it is actually required because this is the only way how the law and the social contract can be effectively implemented in the business realm. Conclusion Ethics may not be related with generating profit in business but it serves as a guiding principle on the ultimate path an individual should take. The idea of good and bad is necessary and required to be adapted by every person because it helps preserve life, address the need for more privileges, equality and other important social concerns in the society. References Kerridge, Ian, Michael Lowe, and John McPhee. Ethics and law for the health professions. New South Wales: Federation Press. Pojman, Louis P., and James Fieser. Ethics: Discovering Right and Wrong. California: Cengage Learning. Rousseau, Jean Jacques. The Social Contract Or Principles Of Political Right. Montana: Kessinger Publishing. Read More