Eva Liu's Blog

As consumers are increasingly looking for cheaper and better products, businesses are starting to put less emphasis on business ethics, moving factories to countries where laws and regulations regarding working conditions are less severe, and more time on minimizing cost.

On April 24, 2013, Rana Plaza, a garment factory in Bangladesh, collapsed due to unsafe building conditions, resulting in the death of over 1,000 people. The factory manufactured apparel for many well-know brand such as the Joe Fresh, Mango, and Walmart. The article Bangladesh’s Rana Plaza factory collapse spurs change, finger-pointing discuses the measures several companies took in the event’s aftermath. This shows how the companies that have avoided dealing with business ethics has suffered serious backlash from the public, not to mention consequential damage to the company’s image and name, which for most has worked for years to build.

To this day, many businesses involved fail to do its part in contributing to lessen the damage, and setting a good example for business ethics. This makes the views of R. Edward Freeman, on how a business that is not a good citizen in their community, does not pay attention to the quality of life of the people in the community, and fails to adopt corporate responsibility is a business that is soon to be regulated in decline, stand out even more. 

Though profit is important for businesses, without other crucial factors that make the business fair and ethical for all stakeholders, the business will not strive. We can not forgo neither profit nor ethics in a business, however, a specific balance is needed in order to help the business develop. Major global corporations, especially, need to set a good example of business ethics for both our economy and society to grow.

References:

“Dhaka collapse toll passes 1,000.” BBC News. N.p., n.d. Web. 11 Sept. 2014. <http://www.bbc.com/news/world-asia-22476774>.

Hildebrandt, Amber. “Bangladesh’s Rana Plaza factory collapse spurs change, finger-pointing.”CBCnews. CBC/Radio Canada, 24 Apr. 2014. Web. 11 Sept. 2014. <http://www.cbc.ca/news/canada/bangladesh-s-rana-plaza-factory-collapse-spurs-change-finger-pointing-1.2619524>.

“What is Stakeholder Theory? – R. Edward Freeman.” YouTube. YouTube, n.d. Web. 11 Sept. 2014. <https://www.youtube.com/embed/bIRUaLcvPe8>.

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