Ethics in business is becoming more and more important every day, and it is the responsibility of all businesses to act ethically in their practice, whatever that may be. Not only can honesty and morality give credibility to companies, but it can also increase sales and attract new customers. This is not to mention boosting a businesses reputation, sparking future deals, growth, and development. According to an interview with Andrew Crane, who is the director of the Centre of Excellence in Responsible Business at Schulich School of Business at York University, “the biggest change is that companies are starting to see there might be some advantage to being ethical. This isn’t across the board but there is a lot more interest in where those win-win opportunities might be, and a lot more attention to the issues. Ethics isn’t just seen as a cost of business but also a potential opportunity.” (Lopez-Pacheho, n.d.)
On the flip side if businesses do not attempt to act ethically, sometimes the government must step in, like we examined in class 1. We discussed government intervention in alcohol, energy drink, and soda production and distribution companies. Whilst these businesses (such as monster or grey goose) are not necessarily acting unethically as they are simply meeting demand for these products, the products themselves are known to cause various health problems. Some of the blame for growing general health problems among the populations of countries such as the United States lies upon the shoulders of these businesses. Such intervention included governments attempting to create price floors or reduce allowable consumption of said goods. Even so, a dilemma is created with intervention in unethical businesses. If intervention fails, the problem affects stakeholders such as healthcare providers, who have more stress placed upon them. If intervention succeeds, consumers, who have the right to ingest what they choose, suffer. An entire scenario like this can completely be avoided with ethical practice in business, and ethical products being sold by them. Alas, this largely impossible for some businesses, so they should focus on maximization of ethical behaviour.
Some companies are simply much more black and white in their unethical practice, a great example being price-gouging medical item distributors. In this case, it is certainly necessary for the government to step in as there is immediate danger with peoples lives at risk.
Creating and following a code of ethics is an important step to becoming a well-respected and growing business in the 21st century world.
Word Count: 412
References (APA):
Lopez-Pacheco, A. (n.d.). The advantages of being ethical. Retrieved September 09, 2016, from http://business.financialpost.com/thirty-second-mentor/the-advantages-of-being-ethical
COMM 101 104 Class #1 Discussion, September 8th 2016.