In the news article on The Ethicist, someone discovers that their relative who runs a marijuana business has been committing tax evasion for almost two years.  After confronting the relative about the tax evasion, they had different viewpoints which created a strain in the relationship.

When it comes to businesses that run underground, it is not uncommon for them to avoid paying taxes to maximize profit. Tax evasion is illegal and in most cases it should be reported without hesitation.  Tax evaders are criminals and are essentially cheating the people who do pay taxes.  However, when a family member is committing this illegal action, it isn’t so black and white.  In this situation, a conflict of interest occurs between loyalty to family and loyalty to the law/government. On one hand, conflict is created within a family, but on the other hand, not reporting the tax evasion is equivalent to being an asset to the crime.  In these dilemmas, it’s tough to make the right decision because both choices seem to have negative consequences.

Business ethics has long been a complex, controversial topic that has no clear set of guidelines because it is not just a moral code that states what is right and wrong.  To some, business is nothing but a money-making industry that seeks to make a profit at all costs.  However, business isn’t only about money.  Business ethics are about balancing the fine line between making a profit and abiding by human rights values and thus are a core part of business.  A company that embodies business ethics is not only more likely to gain the acceptance of the public, they are also making the world a better place.

I was raised with the mindset that rules are in place for a reason; therefore, my ethics and morals clearly tell me that adherence to the law is more important than loyalty to my family.  If I were in a situation where I caught a family member committing tax evasion, I would bring the situation up with them and tell them that I think what they’re doing is dishonest, and I would report them afterwards if they fail to comply.  I firmly believe that tax evasion is unethical not only because it’s illegal, but more importantly it’s a prime example of social loafing in the real world.  A business that participates in tax evasion does not abide by the unspoken rules of business ethics because they are stealing from the government, and as an extension, everyone in the country.  I believe that a business cannot truly be called successful unless they are making a significant profit whilst still upholding business ethics.

-450 words

References:

https://www.nytimes.com/2017/08/22/magazine/should-i-turn-in-my-tax-cheating-relative.html rref=collection%2Ftimestopic%2FEthics&action=click&contentCollection=timestopics&region=stream&module=stream_unit&version=latest&contentPlacement=9&pgtype=collection

http://www.investopedia.com/terms/b/business-ethics.asp

http://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporate-social-responsibility/what-are-business-ethics.html