business ethics

 

It is necessary for companies to realize the importance of business ethics. In the article, “The Sanlu Scandal”,in order to make more profit, Sanlu Milk Company added melamine to the formula, which is the toxic chemical. This caused infants got kidney stones and even three babies had died. Without doubt, it is immoral to have such a horrible behavior. Obviously, Sanlu Milk Company did not take social responsibilities and have the business ethics. This incident negatively influenced Sanlu’s reputation as well as Chinese milk industry. Consumers do not trust the quality of Sanlu’s milk anymore as well as domestic milk which demonstrates the immoral behavior that one company did can affect the whole society. As Sanlu lost business ethics, the companies went bankrupt. To illustrate, companies should know their business values and offer the products with good qualities to show the true value. Making more profit, improving efficiency and competition cannot be the reasons for companies going against business ethics. Companies have to take the consequences of their behaviors into consideration as well as all the stakeholders. They are responsible for their behaviors and should pay for the damage they cause. Also, companies with good business ethics can strengthen their reputation in the market. Consumers will be loyal to the brand, which can make more profit in the long term.

http://www.bjreview.com.cn/nation/txt/2008-09/22/content_153891_2.htm