Basically, business is about making money. But should a business ignore its social responsibility and only focus on achieving its maximum profit? Economist Milton Friedman states that executives of companies are responsible for making the maximum profit while operating their business under regulations, laws and ethical custom. That is saying business ethics is essential for a business and the ethics should concern all stakeholders including employees, suppliers, customers and shareholders as well as the environment and society. As Yena Lee mentions in her Blog (link: https://blogs.ubc.ca/yenalee/) that Nike gets the blame for unethical “labor practices” on children. Such behavior reveals Nike’s irresponsibility for its suppliers and employees. Similarly, the recent Fonterra’s baby formula contamination could be grouped into unethical behavior to customers. Though it may not be Fonterra’s initial intention, the company is still accountable for its carelessness in managing the product security. Unethical business behavior draws an increasing public attention and it will definitely damage a company’s image. While I support that a company should operate under business ethics, one of my concern is to what degree a company is doing enough for it ethical behavior and will business ethics be a burden to companies with the soaring pressure from the public.
Resources:
Fonterra admits baby formula milk contaminated with toxic bacteria:
http://www.theguardian.com/world/2013/aug/05/fonterra-baby-formula-milk-bacteria