Ethical Behavior in Business

Can Ethical Behavior Really Exist in Business

Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. Many organizations are choosing to make a public commitment to ethical business by formulating codes of conduct and operating principles. In doing so, they translate into action the concepts of personal and corporate accountability, corporate giving and corporate governance. Organizations that enact an ethics program will prevent the misconduct of employees and prevent the embarrassment and a tarnished reputation.

Business organizations have the moral duty that extend well beyond serving the interest of its owners or stockholders, and these duties consist of more than simply obeying the law. It is the belief that a business has moral responsibilities to stakeholders including employees, customers, vendors, the local community and society as a whole. With this concept understood, it remains that Business organizations can conform and be successful while practicing ethical behavior.

Philosophers and others disagree about the purpose of a business ethic in society. Some suggest that the principal of a business is to maximize returns to its owners, or in the case of publicly – traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. Some point out that self interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines, loss of licensure, or as stated company reputation.

Prior to the physical...