The line between Profits and Ethics

Most of businesses ultimate goal is generating profits from operating businesses. Profits are one of the most important factors that motivates people to run businesses. However, sometimes we face ethical issues that make us to rethink about generating profits. Does profits over ethics? Should ethics be priority? Most of public will say that businesses should act ethically. However we can find many businesses with moral hazards and unethical behavior.

Wonga is a loan businesses which has highly stable profits and growth, but this business is becoming very controversial in UK. This is because, despite the economic depression, Wonga made their customers to pay  150% of original price of loan. They took an advantage of their vulnerable  and the depressed economic state.

One of foot ball player who has to wear the shirt which is sponsored by Wonga refused to wear the uniform. This kind of action affect their brand image negatively and many medias are criticizing the Wonga’s unethical action. Even though their action is not illegal, but the business should not take an advantages from vulnerable. They will take a responsibility of this action later on.

Reference : Reaich, Neil. “Biz/ed – What Price a Loan? | Biz/ed.” Biz/ed – What Price a Loan? | Biz/ed. N.p., 30 July 2013. Web. 08 Oct. 2013.

Sports Sponsorship and Brand Image 

Many sports teams or sports leagues have sponsorships from various businesses. For example, Samsung is sponsoring England Premium League team Chelsea and Nike sponsors Manchester United Club. As we can see, Nike is closely related to sports but Samsung seems to have less relation with sports. But many global businesses support sports clubs or the leagues. What’s the point of doing this?

Scotia Bank is going to sponsor National Hockey League in 2013 winter as the hockey season is coming towards. Scotia bank’s new line of debit card will be featured in the every 30 teams’ logo.

These correlations are expected to create huge benefits to both NHL and Scotia Bank. Firstly, Scotia Bank will be exposed to the hockey fans and hockey is quite famous sports in Canada. This will allow them to have positive and friendly brand image. Also using Scotia Bank’s card allows hockey ticket buyers to buy discounted price and easier access to book the tickets. This kind of strategic alliance benefits to Scotia bank and NHL, even though this is part of sponsorship.

KRASHINSKY, SUSAN. “The Globe and Mail.” The Globe and Mail. The Global and Mail, 27 Sept. 2013. Web. 05 Oct. 2013.

Business ethics- food fraud

We daily consume foods. Foods sometimes beyond the meaning of basic consumption. We find eating entertainment. We can find many businesses provide us beverages, foods, snacks, etc. But how do you feel if you find that the business provided you wrong information in order to monetize? Shockingly, it’s happening all over the world in the food industries.

ALW Food group is the company located in Germany which supplies and producing honey to all over the world. But this company fooled customers and partners by telling the wrong place origin which is originally China. This is the way to reduce the cost for producing honey and the low cost could enable them to take competitive advantage. Every company wants to minimize their cost of production and materials in order to generate more profits or reduce the price of products in order to get competitive advantage compared to the competitors. But is this right things to do? If they didn’t illegally import honeys from China they have to pay 3 times higher. But fooling consumers and partners are absolutely unethical behavior. Even though, businesses primitive purpose is generating profits, but their activities should be ruled ethically.

Reference

Berfield, Susan. “Largest Food Fraud in U.S. History.” Business Week. N.p., 19 Sept. 2013. Web. 2nd Oct. 2013.