class 3 prep: business ethics

Before starting the discussion about the news I picked, I would like to make the concept of “business ethics” clearer. Many believe that being ethical as a business is just simply following the local laws, as well as providing insurance, health-care, and other services which protects the rights and safety of their employees.

However, business ethics is actually not that easy. According to the theories of Milton Friedman, social responsibilities of business, which I consider as a part of business ethics, includes much more than only following laws or offering welfares. It is a way of action where morality is placed before the interest of the business, maximizing the social benefit even if the business earns less.
Of course, most companies still put their own profit at the top of the list, since they believe “money talks” in this era. In Congo, mining companies are using underage labor to fill up their demands for maximizing the production while paying low labor costs. This type of job is not only illegal, but also poisons the workers, since they are exposed to toxic matters every day. This is one of the worst situations where a business neglects its social responsibility, and is putting their employees’ life at risk. As R. Edward Freeman mentions when talking about Stakeholders’ Theory, a business with employees who does not wish to work for it, or a business which violates the local law, is a business in decline. These illegal businesses in Congo might be gaining profit in a short period of time, but running a company without considering business ethics would let them suffer from legal accuses and moral criticizes in the future.