It is newly reported that the housing price in Beijing has grown up to 65000 RMB/m²(downtown),and the housing price in suburb has increased to approximately 20000 RMB/m².Research shows that this abnormal sustainable growth will continue and the main course of this is the growing price of land.

It seems that the growing housing price shows the prosperous of real estate industry,however,I think this is a reflection of property bubbles.Most of the sold apartments are regarded as real estate rather than a place to live in.That results in market failure——the price of house are not determined by the “real consumers”but the speculators.The consequence of this is people who really need a house can not offer one,but the houses in abnormal high price remain unsold(or the speculators buy them but they do not actually live there),which might intensify social contradictions.

In my opinon,this situation is quite similar to the 2008 financial crisis,resulted from the sub-prime crises in America.To prevent that,government should moderately control the housing price and introduce policies to restrict the number of houses a person can buy.

Additionally ,the increasing housing price in big cities like Beijing Shanghai etc. may let the consumers turn their sigh to the house in tourist cities because of the lower price and better environmental conditions.

Business ethics is a kind of professional ethics that requires firms(or business managers)to take responsibilities  to all their stakeholders including consumers and the whole community.

Evidently,the goal of every corporations is to maximize profits in order to give maximum return to their stakeholders.However they should adhere to conventional standards of morality at the same time.The fact that most corporations ignore that has resulted in consequence that the contradiction between firms and consumers is intensified.A typical example is about food safety.For the sake of achieving maximum profits,some food corporations may add illegal additives(normally used in industry,which is much cheaper)to reduce the cost.KFC is reported to use Sudan Ⅲ(that is carcinogenic) in their product in April 23rd 2010,which resulted in serious credibility crisis.And the business ethics of the whole food industry was criticized for being dishonest.

Surely,a firm with a good business ethics will gain more consumers in the long term.Also,is has positive effect on employees’  engagement,which will increase the operating profit.

Reference list

http://www.chinadaily.com.cn/english/doc/2005-03/17/content_425851.htm

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