A good company should comply with business ethics and focus more than just satisfying shareholders and pursuing maximum profit. That being said, companies need to set a standard norm meeting social expectations, but also achieve economic goals. However, how does a company establish the norm of business ethics in order to accomplish a win-win situation between business and society?
Kimray inc. insists not to raise prices while the production costs have continued rising over the past two decades. By improving production efficiency to maintain adequate profits, the product market share occupies over half of the global market.
From the given example, I believe that performing ethical practices is actually a shortcut to a company’s success. Kimray Inc. does business in a mutual-benefit way for both its company and the society by not raising the prices and seeking alternative way to make profits, in this case, to improve production efficiency. The Stakeholder Theory is also demonstrated in this case since not only Kimray Inc. considers its self-benefits, but also other stakeholder’s interests. By acting ethically, the outcomes a company receiving are far beyond its expectation.
References:
- “Kimray Chairman, Tom Hill, Receives Prestigious Being a Difference Award from the NASBA Center for the Public Trust” Web.7 Oct 2013 <http://www.prweb.com/releases/2012/4/prweb9367379.htm>