Effects of Business Ethics Elective †MyAssignmenthelp.com

Question: Discuss about the Effects of Business Ethics Elective. Answer: Introduction In a business environment, there exist various principles and morals that dictate how business activities should be carried out. Business ethics, therefore, entails the study of these principles and morals and how they impact the business environment. It relates to all the aspects that might be present in a business such as the conduct of employees or other individuals, and the organization as a whole (Abend, 2013, pp 175). Ethics is important in a business environment for many reasons. First, ethics entails the moral judgment of an individual on whether a certain action is right or wrong. Ethical behaviors attract more customers to buy the companys products which translate to a boost in sales and profits.Secondly, the employees will want to work for the business for a long period. In other words, a business that is keen to observe business ethics values its employees and hence the productivity of the business is increased due to the reduction in labor turnover. It is also important to note that a business which portrays corporate social responsibility attracts more employees. Top-notch and skilled employees will be more than willing to work for the company. At the end, the business will enjoy lower recruitment costs and attract the most qualified employees. Thirdly, the business will manage to attract more investors who will increase the overall earnings of the business and keep the share price at an all-time high. This works to cushion a business from a possible takeover. These are just a few benefits of business ethics. Every business owner should understand the importance of business ethics. The reputation of a small business or company is very difficult to restore once it has been lost. In fact, the reputation of a business should be seen as one of the most valuable assets in the business. This being said, businesses should purpose to fulfill their promises and ethical responsibilities so that they will not have to deal with the detrime ntal repercussions of an eroded reputation. Ethical Theories in a Business Environment Business owners face the daily responsibility of ensuring that every decision made is in accordance with the theories of business ethics. Therefore, the business owners should at least be able to comprehend the ethical theories which will help in solving ethical issues and making well-informed choices. This business ethics theory argues that decisions relating to a business should be made at a personal but within the confines or context of the law. Therefore, an individual has to make the decision based on self-interest and aspirations. The people who believe and follow laissez-faire capitalism agree with this theory. Most of the personal interactions see this as an unethical behavior. The believers of the free market economy, however, hold the opinion that self-interest behaviors champion for the creation of new jobs and wealth (Stanwick and Stanwick, 2013, pp 11). Considering the fact that most of the business owners might not be aware of the best strategies to impact the whole society, they choose to benefit the society by upholding what is good for their business. This theory is mostly used by the business owners who need to justify their actions or business decisions. The real markets are obliged to adhere to various regulations and restrictions. Therefore, a pure free market would be seen as a hypothetical approach. Business ethics theorists argue that business owners bear essential ethical obligations which go beyond personal interests (Simmons, Shafer, and Snell, 2013, pp 580). However, there are some prevailing debates which intend to determine who the business owners are obliged to. In a case where a company has stockholders and investors, the owner of the business is legally obliged to consider their financial interests. Another school of thought would argue that the business owner is ethically responsible to the interests of the employees, the community, the environment, and other stakeholders. Some business owners believe that they are personally responsible for their actions. Therefore, they tend to stick to what is morally acceptable and uphold what they believe in, including the religious teachings. Compassion and consequence Some existing business theories have been criticized by a number of scholars. The thinkers argue that these theories are more concerned with the abstract moral principles and fail to consider the idea that humans need compassion. It is true that no business entity can operate and succeed solely on compassion, but this does not mean that the business should neglect compassion in ethical-decision making (May,Luth and Schwoerer, 2014, pp 80). A physician who does not charge a needy patient or a business owner who relentlessly pardons his reckless employee could be considered as compassionate. Also, a business may face some consequences due to certain actions. For instance, the environmental problems which spark from business practices might result in immediate benefits for the business owner and other stockholders, but the long-term consequences would be detrimental. The theory of virtue ethics is seen as ancient though it has been operational in the recent years. A champion of virtue ethics upholds and acts within the confines of key virtues such as courage, honesty, and kindness while steering clear of vices and unworthy characteristics such as cowardice and dishonesty (Audi, 2012, pp 275). In a real-world, decision making faces unavoidable challenges because no ethical theory can suffice or cater for all cases. A business owner, for instance, will have to make several considerations and ask some key questions before taking a course of action. Does the action act in the interest of the business? Does it consider the interests of the stockholders and investors? What impact will the actions have on the environment, employees, and the community? The decision that will be made after a careful and keen consideration of these questions will abide by the ethical requirements. Strengths and Weaknesses of Business Ethics Concepts The theories of ethics offer a business numerous benefits. First, the business achieves customer loyalty because of the enhanced trust. The customers will choose to remain loyal to the brand event during the challenging moments. Johnson Johnson, for instance, spent a fortune in an effort to recall their once best-selling product named Tylenol, after a person had interfered with the containers of the drug. The company set up worthy organizational values which resulted in enhanced consumer confidence and trust, regardless of the contamination threat (Strobel,Tumasjan and Welpe, 2015, pp 33). A business that follows its ethical obligations benefits the society as a whole. Ethical theories also serve to differentiate brands and businesses. In a case where businesses operate in oversubscribed markets, a competitive edge can be achieved. Strong ethical values and key theories make the services or products of a company more appealing and worthy. For instance, a cosmetics company that does not test its products on animals would be more likely to achieve a competitive edge (Ferrero and Sison, 2014, pp 400). It is also important to note that a business has moral obligations to the community. A business should not just operate for financial benefits. As a key player in the society, the business should observe the needs of the employees and other stakeholders, and also consider the environmental impact (Michalos, 2017, pp 300). The knock-on-effects result from adoption of worthy and strong business ethics. Transparent and honest accounting operations increase the financial base of the company and help to prevent sanctions and lawsuits (Michalos, 2017, pp 200). The knock-on effects accrued to a fair compensation of employees and fulfilling tax liabilities lead to a robust economy which serves the benefits of all. On the other hand, the ethical theories serve several drawbacks and weaknesses to the business. It has been proved that business ethics restrict a business from maximizing its income and profits. For instance, a multinational business may decide to relocate its manufacturing activities to a developing nation in order to cut costs (De Cremer and Tenbrunsel, 2012, pp 16). Some of the practices that are regarded right and acceptable in that nation such as poor working conditions, poor pay, and child labor, are not acceptable by an ethical business (Ulrich and Sarasin, 2012, pp 20). Good working conditions, including the safety and health standards and living wage,reduce the income generated by a company.Another weakness of the ethical theories is lack of enforceability (Bardy, Drew, and Kennedy, 2012, pp 270). This is the case especially in international business platforms where some nations break the rules. The business ethic theories contribute to knowledge in many ways. A business owner or employee, for instance, will need to understand and pick the most relevant concept in order to succeed. Wrong choices deliver undesired services and products (Hartman,DesJardins and MacDonald, 2014, pp 13). A successful business should acknowledge the existence of these theories and seek to learn from them since they offer a stepping stone to the success and sustainability of a business. Milton Friedman is one of the commentators who argue that the sole responsibility and role of a business is to generate profits while adhering to the requirements of the law. Other people who are inclined to this opinion believe that a companys self-interest serves the benefits of all society members (Ma, Liang, Yu and Lee, 2012, pp 290). Another commentator, Edward Freeman, holds a different opinion. He asserts that businesses should strive to meet the expectations of other stakeholders including the employees, customers, suppliers, and the community as a whole (Ford and Richardson, 2013, pp 40). Companies should see their success beyond just income levels and profits. Companies are obliged to explain their social, environmental, and financial performance. The Dow Jones Sustainability Index requires companies to abide by the triple bottom line, people, planet, profit, and benchmarking of companies is done on the basis of the same (Giacalone and Promislo, 2013, pp 90). This reporting approach considers the fact that businesses must make profits to remain relevant but enforces the need for ethical business practices. As seen in this paper, the concept of business ethics is gaining relevance in the business environment day by day, and the businesses are obliged to follow ethics in their operations at whatever cost. Honesty and morality help businesses gain credibility, not forgetting that it also results in more sales and more customers (Santoro and Strauss, 2012, pp 90). The impacts of business ethics are overwhelming, to say the least. It is also important to note that the reputation, future deals, development, and growth of a business depend on the ethical opinion of a business (Floyd, Xu, Atkinsand Caldwell, 2013, pp 760). Andrew Crane, a professor at York University, asserts that businesses are starting to see big changes as a result of adopting ethics in their operations (Carroll and Buchholtz, 2014, pp 23). He also states that ethics should be seen as a win-win opportunity and businesses should take maximum advantage of it. In cases where businesses fail to act ethically, the government is bound to step in. For instance, governments in many nations intervene in energy drinks, sodas, and alcohols. While some businesses such as monster are not unethical in their operations as they act to meet the demands of the customers, the products have been proven to cause health problems (Grace and Cohen, 2015, pp 31). In countries such as the United States, these companies have been constantly bashed for the health problems among the populations (Jennings, 2014, pp 19). Some of the government interventions include restricting the consumption of the products and creation of price floors. In cases where the interventions are not fruitful, the healthcare providers and other stakeholders will have to bear with the stress. On the flip side, the success of these interventions denies the consumers the right to consume what they please. These are some of the big and unending debates which arise when the question of business ethics is mentioned, thus creating a dilemma (DesJardins and McCall, 2014, pp 21). However, these scenarios can be prevented if the businesses are willing to follow business ethics and produce ethical products (Crane and Matten, 2016, pp 17). Though this might be impractical or impossible for several businesses, more focus should be put on the propagation of ethical practices. 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