BUSINESS ETHICS

Business Ethics and Laws

Introduction

With the objective of cost minimizations and profit maximization business in today's world are bound to follow code of conducts business ethical. Following the codes of moral values and ethics do not match up with the strategy of cost minimization and profit maximization. Therefore, in every country and in the whole world, state constitutional laws and international laws are passed for business to oblige the ethical standards. In this paper a case of a USA based firm is studied that how this multinational firm maximized profit through exploitation of workers in region outside USA and how the firm showed monopolistic power in stocks markets with minority share holders.

Multinational incorporations are common to exploit loopholes in the countries where they expand the business. Shifting towards low wage regions legally ends up in involvement of informal sector in the company's production lines. Such low wage regions in the world have worst conditions of law and order.

Discrimination in the business strategies with partners having small shares is also very common among companies big capital. It is observed often that the big capital companies bear losses to capture the market and once they have monopolistic powers, the unethical strategies start to take place.

Description of business situation of legal and ethical issues

ABC is a United States based manufacturing group engaged in manufacturing consumer goods in personal product categories, home, foods, and refreshments. The company is active in emerging markets of Latin America, Central & Eastern Europe, Africa and Asia. Many famous brands are included in ABC's portfolio and the brand names are managed under the categories of home care, personal care, beverages, ice cream, spreads and dressings, and savory. The company sells its products around the world in over 190 countries.

Huge profits are extracted by ABC in Africa through exploitation of workers brutally. Starvation wages and no other benefits are given to the workers in third party contracts to manufacture most of the products of ABC. Near a slum area in a city of deprived population in Africa LMN Soap Ltd. is one of these places of brutality and oppression. Under the banner of LMN Soap soaps of different brands of ABC are manufactured here. LMN Soaps own this place despite of visits of the management of ABC. Workers are exploited here extremely as they are hired with no job security by another contractor.

Without any notice the owners sacked 30 workers forcibly in February 2013. These products that make huge profits to the owners and the workers were paid less than 90 dollars per month. These exploitations resulted in an increase of 143 million dollars increase in the profits of ABC in 2012. Permanent workers of ABC are offered job securities, allowances and other benefits but none are provided to the workers at LMN Soaps. They are not even recognized as workers of LMN Soap instead they are considered as temps hired by Mr. X contractor.

In stock markets ABC has proved to be an international dividend achiever as since 1937 the company ...