What Are Advantages and Disadvantages of Ethical Behavior...

Essay: â€Å"what are advantages and disadvantages of ethical behavior in business?† Business Ethics Some commentators, such as Milton Friedman, believe that the primary and only responsibility of business is to make money while abiding by the law. Supporters of this point of view argue that companies self-interested pursuit of profit benefits the whole of society. Profitable businesses clearly benefit shareholders, but other commentators, such as Edward Freeman, argue that businesses should also benefit other stakeholders. Stakeholders are people and groups with whom the business has a relationship. This includes shareholders, but extends out to include employees, their families, the community within which the business operates,†¦show more content†¦In some industries, this can cost the business a significant amount of money, such as restaurants whose employees steal food from the storage locker or freezer. Avoid Legal Problems At times, a company’s management may be tempted to cut corners in pursuit of profit, such as not fully complying with environmental regulations or labor laws, ignoring worker safety hazards or using substandard materials in their products. The penalties for being caught can be severe, including legal fees and fines or sanctions by governmental agencies. The resulting negative publicity can cause long-range damage to the company’s reputation that is even more costly than the legal fees or fines. Companies that maintain the highest ethical standards take the time to train every member of the organization about the conduct that is expected of them. Disadvantage: Polarization of Society Because it offers such an integral look into human nature, ethics -- as a branch of philosophy -- tends to create divisions among those of varying opinions. Within the United States, the reverberations of this effect are at the core of government policy. Two groups, such as Pro-Choice and Pro-Life, work from similar facts and land on different notions of what is ethically and morally right. These rifts within society may slow down legislation and other government progress. Advantage: Simplification One advantage of any firm ethical system is that when the time comes to make a decision, thereShow MoreRelatedâ€Å"What are the advantages and disadvantages of ethical behavior in business?†1794 Words   |  8 PagesAccounting 11.856. â€Å"What are the advantages and disadvantages of ethical behavior in business?† Nowadays the concept of ethical behavior in business ethics is one of the most debatable issues in the world’s business community. Why? Just because there is a global division of business people on who are completely blinded by the word â€Å"money† (their number increases with each year) and who not. Each of these two groups of people has certainly own truth. For the first group any business activity is justRead MoreEthical: Research and Manufacturing Company1065 Words   |  5 PagesEthical 1 Is it ethical for a manufacturing company that wishes not to be identified as the sponsor of a mail survey to invent the name of a fictitious research company and print the name on the letterhead paper used for the survey? I do not think it is ethical for a manufacturing company to invent a fictitious research company. I think 3 things that are not good can come from it. The first thing is the manufacturing company might not have the expertise in surveys. Second is there a point to theRead MoreInternal Environmental Scan/950 Words   |  4 Pagesthis module you will conduct a comprehensive assessment of the internal environment at your business unit or organization you are working with for this project, also known as an organizational assessment, and present your findings in a report. Your report should analyze the operating characteristics and assets of your business unit and categorize them as strengths or weaknesses in terms of enabling the business strategy (these will be inputs into a final SWOT analysis). The internal environmentalRead MoreFinance And Financial Management : The Major Sub Areas Of Finance772 Words   |  4 Pagesdecisions in the business context.† (Cornett, Adair, Nofsinger, 2016, p. 5). Sub-areas of finance: 1. Investments. â€Å"The analysis and process of choosing securities and other assets to purchase.† (Cornett, Adair, Nofsinger, 2016, p. 7). 2. Financial Institutions and Markets: â€Å"The organizations that facilitate the flow of capital between investors and companies.† (Cornett, Adair, Nofsinger, 2016, p. 7). 3. International Finance. â€Å"The use of finance theory in a global business environment.† (CornettRead MoreIntroduction To Financial Management Essay1146 Words   |  5 Pagessuch attribution. Financial management may be defined as the management of the finances of a business or an organization in order to achieve the financial objectives. It includes creation, effective utilization of funds to ensure the smooth functioning of the business. It encompasses planning, administration and controlling. The various sub areas of finance are: 1. Investments – deals with deciding on what kinds of securities/bonds the company can buy. 2. Financial management – management of financesRead MoreImportance Of Business Ethics On Previous And Current Literature Essay1459 Words   |  6 PagesImportance of business ethics in previous and current literature Previous Methodologies used for Studying Business Ethics Majority of the literature reviewed relied heavily on questionnaires and surveys as the chosen methodology. According to Rowley (2014), questionnaires are the â€Å"most widely used means of collecting data† (p. 308). However, when designing a questionnaire or survey researchers should consider the type of questions being used, sensitivity of questions asked, content and lengthRead MoreEssay on Chapter 6 Business Ethics and Ethical Decision Making1278 Words   |  6 Pagesthe advantages and disadvantages of each decision that Elaine has made. a. 1st decision Graphic, Inc. loan of $10 million. Graphco was a tobacco firm embroiled in litigation concerning the promotion of its products to children. Elaine based her decision by Moral Philosophies which refers to the specific principals or rules that people use to decide what is right or wrong (Ferrell, Fraedrich, Ferrell, Ninth Edition Business Ethics, p 153). The advantage to this decision is she did what sheRead MoreCsr s Abbreviation For Corporate Social Responsibility1225 Words   |  5 Pages2015 ) Importance: Nicole Fallon Taylor wrote the article in Business News defining CSR importance. Liz Maw, CEO of NGO Net Impact, observed that CSR is coming out to be an important component of business as it ensures the sustainability of business and earning profit for them. He also further elaborated it by saying that sustainability is not only of great significance for the people or society but also for the business. And the key to its assurance is CSR. As customer’s awareness to socialRead MoreBus3062696 Words   |  3 Pagesinvestments—involves methods and techniques for making decisions about what kinds of securities to own; financial management—deals with a firm’s decisions in acquiring and using the cash that is received from investors or from retained earnings; financial institutions and markets—the two entities work in different ways to facilitate capital flows between investors and companies; International finance—involves investors, companies, business operations, and capital markets that may be located in differentRead MoreE ffective Ethics and Ethical Behavior1468 Words   |  6 PagesEffective ethics and ethical behavior Memorandum and Report Carol Harris TO: Rebecca M. Melton, ABC Toy Co. CEO FROM: Carol Harris, Elementary Division Manager, ABC Toy Co. DATE: 6/5/11 SUBJECT: Product quality issue and a report on ethical decision making. This memo addresses a product quality issue with a whistle included in our toy collection. I have included a report on the importance of ethical decision making