Established in 2011, Ross Ulbricht developed an underground business named “SilkRoad” where buyers and sellers of illegal drugs could make anonymous transactions.  Applying a program called “Tor” originally created for the U.S. Navy to keep messages undisclosed, SilkRoad allowed customers to buy off other users in which the affairs would be untraceable. Here’s the catch. Transactions were paid in the currency of “Bitcoins” (retail value of $130 and was growing due to high market demand).  How Ulbricht kept his business running was due to the fact that he made 10% commission from transactions and when threatened to expose this business, he would simply pay thousands of dollars for hitmen to execute the opposing threat.

This brings us to question whether government mediation will effectively stop activity or encourage the development of an underground business, similar to the 1920 alcohol prohibition.  Rather than decreasing illegal activity, has restrictions only caused a prohibited business to sky rocket into success?  As shown in the past, occasionally restrictions only cause businesses to succeed through underground means such as the black market, which appears to still exist today.  So how exactly should the government intervene appropriately so that both parties benefit?

http://www.viceland.com/viceblog/500866Bitcoin_Silkroad4.jpg

Source:

http://topinfopost.com/2013/10/03/fbi-arrests-29-year-old-mastermind-of-billion-dollar-internet-drug-blackmarket

Business ethics is simply a set of moral principles that take place in a business environment.

In 1982, there was a massive recall of Tylenol due to tampering of the products raising safety concerns. Tylenol followed through with its promise to make products more resistant to tampering and therefore was able to maintain its strong reputation. As the company always had a reputation for being ethical, the consumers had faith that the company fulfilled its promise to make its product safe and tamper-proof and continued to purchase its products.

In my perspective, it is very important for businesses to carry out ethical practices for various reasons, primarily to keep a strong reputation of the company resulting in future success. Business ethics should be portrayed throughout the workplace especially among the managers so that clientele and employees are able to trust the company. It is important for the management of the company to maintain good rapport with its employees by being ethical in its behaviour; for example by ensuring that any over time work is paid for. Likewise, maintaining a good rapport with its customers through proper ethical behaviour will guarantee loyal customers throughout times of hardships within the company.

1982 Tylenol Recall
http://tylerannrose.blogspot.ca/2012/10/using-listening-to-move-your-brand.html

Source: Media, Demand. “Advantages & Disadvantages of Business Ethics | Chron.com.” Small Business – Chron.com. Web. 12 Sept. 2013. http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-10414.html>.

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