Business ethic is the moral code and principals that a business or corporation should always follow and obey. In my opinion, I agree to what Ed Freeman says businesses should manage their operations to satisfy the benefits of all stakeholders.

This is an example demonstrating the wrong business ethics. A hidden camera done by local reporters exposed the plant workers re-labeled the expiredmeat as fresh and handled with bare hands. The meat was lying on the ground with rubbish and sewage, being scooped up and thrown into mixers. This act of deceiving customers by using rotten meat instead of fresh meat is completely unethical. Especially in the food industry, using rotten meat may cause harmful health issues such as food poison, allergy or even death to customers. It is also bit sarcasm that the manufacturer of such rotten meat, “Shanghai Husi Food” was named “Advanced Unit (A-Class)” of “Safe FoodProduction” recognized by local authorities.

In this case, the company is engaging in fraud and deception in order to maximize its profit. Since Milton Friedman says that businessshould maximize profit through not engaging in deception; Ed Freeman says that businesses should manage well so the stakeholders including customers, suppliers, employees, communities, and financiers all benefit. Husi does not satisfy any of these two theories and demonstrates an unethical business behavior.

Work Cited:

Vaitheeswaran, Vijay. “Food Safety: Not Yum”. 23 July 2014. The Economist. 10 September 2014.

http://www.economist.com/blogs/analects/2014/07/food-safety

Image Cited:

http://www.japantimes.co.jp/news/2014/07/22/business/corporate-business/china-food-scandal-drags-in-other-chains-spreads-to-mcdonalds-japan/#.VBIxvBYVxFI