Profit is one of the many essential needs for firms in order to experience growth and satisfy shareholders. However, it is important to remember that there are limits for a business to pave its way in maximizing profit.

Regulations set up by the government is a form of such limits, as it is aimed for society’s welfare. In reality though, there are companies that have take such regulations for granted, like Freeport that mines in Papua, Indonesia. It was reported that Freeport had violated the government’s environmental law, polluting the river with toxic, causing 30% of the species living in it threatened.

It is understood that such deed may be done to lower cost and save time, improving productivity. From Freeport’s perspective, it is better to dump 42 micrograms/liter of copper to the river, than having to reduce their capacity to meet the maximum of 20 micrograms/liter waste set by the government. However, this doesn’t take into account the environmental group’s and government’s opinion, for example. Hence, the stakeholders are not on the same page. The company though, may actually invest in waste management to keep up with the rules in order to be ethical.

Being ethical does not only mean to do good in business and following rules, but it also creates future opportunities for such business to get profit.

Article: http://www.thejakartapost.com/news/2006/05/04/damage-freeport-site-worse-claimed-ngo.html