Business ethics are fundamental to any corporate entity that aspires to create value and notable reputation in a public platform. However, despite its significance, ethics are often disregarded by managers and businessmen who tend to prioritize profits over long-term value. Apart from potentially harming the society, this approach could also hurt the business itself. In the past, a plethora of corporations and businesses have breached ethical codes in attempts to maximize their profits. However, once their misconducts get unveiled, these businesses could lose the trust of their customers, suppliers, creditors, and stockholders. With that stigma and the loss of value, a business is less likely to earn desirable profits.

Consider the stigma that Apple faced, in 2013, for illegal and unethical staff treatment in its Chinese factories. The corporation was accused for discriminating the staff, providing poor and hazardous working conditions, imposing longer working hours, and for not paying the overtime wages. Newly employed staff, including those who had perilous jobs, received inadequate training of only two hours. These reports portray violation of workers’ rights and unethical business practices. Although Apple has promised to investigate the case, the violation of business ethics could hurt the company’s long-term value and damage its reputation.

Citations

Trendal, Sam. “Apple Supplier Accused of ‘illegal and Unethical’ Staff Treatment.” CRN Channelweb. Ncisive Financial Publishing Limited, 6 Sept. 2013. Web. 9 Sept. 2014.

“Business Ethics.” Ventism. 18 Feb. 2014. Web. 10 Sept. 2014. <http://2.bp.blogspot.com/-IyTgG-5IxT8/UwOAMxYEFkI/AAAAAAAC7Js/XTq2z8Cuk74/s1600/ethics1.gif>.