Business ethics is what all business companies should follow. However, Mitsubishi Motors and others didn’t do so. It is said in The Economist that, “public prosecutors in Tokyo indicted Mitsubishi Motors and four of its top executives for covering up defects affecting thousands of vehicles”.

From the western perspective, these problems should not exist in the current decade. From what we learnt in class, Milton Friedman stated, “the only social responsibility of business is to earn profits while following the law and basic ethical customs.” Personally, good business ethics is what makes a business sustainable.

But during the economic downturn, most Japanese firms regard surviving as the most vital factor, not ethical guidelines. Thus, many organizations are not living up to its values and taking appropriate actions.

While some companies try to tighten their ethical guidelines, they realize that without enforcement, ethical guidelines cannot be followed. In order to blow the whistle on unsavory practices in this lifetime employment and strict seniority system, some changes are made such as to build a “speak-up” system which is totally anonymous, or to stop calling each other’s titles, which have been effective.

Video: BBB – Ethics – Better Business Bureau

Hyperlink:

http://www.economist.com/node/587230