Good business ethics contributes to positive reputation for a company. However, as long as a company causes one issue that violates the business ethics, almost everything of the company will be bad. Take Fonterra Co-operative Group Ltd, a company from New zealand, for example.
New Zealand dairy giant Fonterra announced on Aug. 3, 2013 that tests of some ingredients used in infant formula and sports drinks have turned up a type of bacteria that could cause botulism. Before that happened, Fonterra was praised as the biggest export merchant all around the world. In addition, it is widely acknowledged that New Zealand and its companies have a clean and healthy reputation and business ethics can be implemented thoroughly. That is why many countries chose Fonterra.
However, Fonterra is not as ethical as the public thought, and it did not even take people’s health into consideration. Obviously, the violation of business ethics always gives rise to the damage of a company’s reputation. And then, a series of negative impact aroused which deeply blocked the development of a company. For instance, China has stopped all of New Zealand and Australia imports of milk powder even though some dairies’ products are reliable, which is a big blow to Fonterra because it focuses on Chinese market.
In conclusion, Fonterra lost its reputation and profit because of the violation of business ethics. Thus, following the business ethics has a far-reaching and important effect on a company. Once the company offends it, the company will pay for a heavy price.
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