As the business world becomes increasingly globalized and therefore, more competitive, we find that many companies have embraced a disturbing notion; that a profitable outcome is more important than ethical business practice.
Take Toyota for example. Ken Basinger, in his article for the Los Angeles Times quoted, “Toyota Motor Corp. officials took credit for saving hundreds of millions of dollars by persuading federal regulators to limit or avoid safety recalls and rules a company document released Sunday shows.” Some models that the automaker had produced had sudden-acceleration problems, and the document Basinger mentioned prove that the firm’s executives knew of the products’ defects months before it became widely known. However, instead of immediately coming forth with it and recall their products, Toyota officials tried to cover it up to save money “while the death toll climbed from accidents in which Toyota vehicles accelerated uncontrollably.”
Like Toyota, many other companies focuses too much on making money that they discard business ethics for more profitable outcomes when in fact running their business ethically would also be to their benefit. Cover-ups are difficult to maintain and when found out would drive customers away. Customers trust companies that runs their business ethically.
More examples
