Corporate Ethics In Terms Of Costs &Benefits

Introduction

Most people involved in business—whether functioning as a small business owner, employee, or chief executive officer of a multinational company—eventually face ethical or moral dilemmas in the workplace. Such dilemmas are usually complex, for they force the person making the decision to weigh the benefits that various business decisions impart on individuals (including him or herself) and groups with the negative repercussions that those same decisions usually have on other individuals or groups. LaRue Hosmer, a business ethics expert who teaches at the University of Michigan, observed that reaching a "right" or "just" conclusion when faced with moral problems can be a bewildering and vexing proposition. Those who get sidetracked by issues of profitability and legality in gauging the morality of a business decision, on the other hand, often reach ethically skewed choices. As it has been proven time and again in the business world, the legality of a course of action may be totally irrelevant to their "rightness." In addition, any discussion of business ethics is subjective, for each brings different concepts of ethical behavior at the table. These moral standards are shaped by all sorts of things, from home environment to religious upbringing to cultural traditions. (Cohen, pp79-84)

Corporate ethics are a set of beliefs to which a company adheres that govern its behavior in the ways it conducts business. Some corporations have well defined ethical parameters and others don't, or they sacrifice ethical behavior to profit and determine that gaining profit and power are the most desired motives. When discovered in this type of activity, there is often a strong backlash that results in losing profits. This suggests that even if the decision to adopt defined corporate ethics is purely motivated by profit, it may be good business.

The ways companies conduct business are multiple and complex, and corporate ethics may operate on numerous levels. Ethical considerations can determine how a corporation competes at the business level with other corporations. Are they aggressive, and prone to change their minds or drop allegiances with other companies for their own benefits, or does the corporation cheerfully compete with and support the efforts of its competitors?

Another way corporate ethics get expressed is through the care a corporation takes in interacting with customers or people on other levels. Decisions about how customers are treated are important, but decisions on what type of responsibility the corporation plays in protecting the environments of people are valuable too. A company that routinely releases chemicals in the environment may have great customer service, but their actions indicate the baseline is not to protect the people it serves. Many corporations now take great pains to promote sustainability, and these efforts are well received by customers and neighbors.

In recent years, the issue of business ethics has garnered increased attention. But observers have also noted that at the same time, the business world were numerous instances of stock price pumping through a corporate downsizing, punitive actions against "whistleblowers" and other practices aimed still prevails to ...