Business ethic is always a big problem in each country. Some businesses can always use the gap in the laws for larger profits and ignore the ethic problem.

Sanlu, the famous milk powder producer in China, was found out that they use harmful chemicals in their products, which made many children’s heads were larger than the ordinary. The method which was used to test whether the milk powder achieves the security level in china was defectively. Sanlu used cheap material to pass the test easily and sell at the old price to get more profits.

They had been trusted by Chinese society for decades, but they just care about their own profit and forgot customers are stakeholder, too. As the Freeman’s theory means, business ethics is try to find the intersection region of different stakeholders, and they can find how to run the business with the same and right direction.

But the fact shows we cannot rely on business’ conscience only, a strong law and high-security tests on products will also help to decline the risks. Continue reading →