Reflective Journal: Business Ethics, Taxes, and Justice in MGT211

This assignment delves into the critical role of business ethics and the societal benefits derived from paying taxes. The author emphasizes the significance of ethical principles in business operations, highlighting how they shape individual and organizational conduct. The paper explores how business ethics provide guidelines for interactions within and outside a company, fostering a positive image and preventing larger issues like discrimination. It also discusses the importance of tax payments in funding government programs and promoting economic growth. The author argues that paying taxes is a civic duty and a moral responsibility, contributing to the overall well-being of society. The paper also examines the utilitarian perspective on economic goals, emphasizing the importance of resource distribution for the benefit of all citizens, while acknowledging the need for balance to avoid discouraging investment and incentives. The assignment concludes by reiterating the importance of strict business ethics and appropriate tax contributions for the success and ethical standing of any organization.

Running head: BUSINESS ETHICS & GLOBAL PERSPECTIVES
BUSINESS ETHICS & GLOBAL PERSPECTIVES
Name of the student:
Name of the university:
Author note:

1BUSINESS ETHICS & GLOBAL PERSPECTIVES
The fact remains an ultimate truth that ethics play a vital role in business. It is important
for businesses to consider business ethics that are formed of applied ethics or professional ethics
examining ethical principles and moral problems (Carroll & Buchholtz, 2014). Ethics deals with
individual character and the moral rules that specify and limit human conduct. Certainly ethics
have a significant purpose in relation to business as well as human life. One of the concerns in
association with is paying taxes. The paper will aim at discussing the purpose of ethics and the
ways paying taxes benefit society. The discussion would be carried out considering and
highlighting the significance of ethics in business.
Ethics deals with individual character and values in regard to morality that limit human
conduct. In helps in understanding right deeds and wrong deeds a take actions accordingly.
Human conduct can go to any extend without considering the consequences or impact on other
lives. Business ethics are the principles that constitute right and wrong considering human
behaviour in context to business. In an organization there are several times when closely related
moral questions arise. Organizations aim for to make profit by providing goods or services. It is
important that business ensure that their work do not conduct any unethical work in order to
generate profits. Business ethics helps in providing guidelines that organizations follow when
they interact with entities internally as well as externally of the company. Business ethics helps
businesses consciously alter behaviour towards other companies and people (William et al.,
2016). Apart from the basic role of business ethics, there are some major roles that business
ethics play. A business is seen as a single entity by the community, the vendors and the
employees. Therefore, the action of any single person is not perceived differently but as an action
of the organization. Therefore, a code of conduct helps in maintaining the standardized positive
image among the external and internal environment. Business ethics helps to prevent causing

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bigger issues. Discrimination, sexual harassment, hazardous working conditions are regulated by
state and federal laws. Any company that violates these laws must endure the consequences of it.
The company may face fines, lawsuits and injunctions which may become barrier to carry on the
business. The strict business ethical practices help in making the company a place with only
positive environment, good business ethics create responsible business relationship with other
companies (Ferrell & Fraedrich, 2015). The business ethics makes each employee aware of their
action and limits their misconduct behaviour. Business ethics are helps in building business
relationship. A positive professional relationship is developed when a company has ethical
business practices. The good image of the business helps not only in lowering product costs but
also in repeat business and source of finance. When a company maintains good ethical practices,
it is certainly to sustain in the market compared to the companies that do not have good ethical
practices. Not to be ignored one of the most valid purposes for having ethical practices in
business is to reduce turnover in the company. Employee turnover is a big damaging factor for
the company. Company depends on its employees for reasons, specifically when it’s the old
employees they begin to rely on them. Therefore, it becomes highly damaging when old
employee leave the company which can be maintained and reduced through ethical treatment of
employees. Therefore, considering the role of business ethics, it is important to have strict
business ethics in every organization (Shaw, 2016).
Taxes have been introduced in order to develop the state and the nation for the benefit of
the citizens. It is a contribution that public or private companies as an investment or better future.
To foster economic growth and development there is a substantial amount of resources that
government needs (Dowling, 2014). Government use the funding for the purpose of social

3BUSINESS ETHICS & GLOBAL PERSPECTIVES
programming and public investments. Programs that would prove education, health,
infrastructure and other services are improved by government with the help of the funding raised
by the government through taxes and revenues. Therefore, tax is an important part of
development in every country (Braithwaite & Reinhart, 2019). Taxation is not only for the
purpose of paying public goods but also for determining a government’s legitimacy. When
government takes the responsibility of collecting tax, it becomes highly affective and
administrative. Therefore, it is the government that acts as the mediator between development of
the nation and collection of taxes. The amount of the tax cost for business matters for the
investment and growth. Place with high taxes tend to have business that opt out of the formal
sectors. Taxes are paid in various ways, directly and indirectly. Firstly, it is a civic duty pay taxes
even though it is considered too be a requirement by law. The money that is collected from the
tax collection is used for many reasons including the salaries of government employees. In
conclusion, the major benefit of paying taxes is to help government raise funds that would
benefit the society. From the utilitarian point of view, economic goals are to ensure that goods as
well as services are available in order to let everyone have a decent life (Luttmer & Singhal,
2014). It is important to pay tax as it help achieving the economic goals of the nation that are set
for the well-being of the citizens. Also, economic goals help in distributing the resources widely
enough in order to have every people enjoy them. When people would think from the utilitarian’s
point of view, it will certainly make it as his or her responsibility of paying tax. The tax that is
paid to the government leads to greater good and good consequences for the society. Therefore,
when every person is with moderate resources, it helps in generating more satisfaction in total
than when it is concentrated in one hand. However it is important to understand that higher rates
of taxes are reduce investment and incentives which makes it difficult for generating sufficient

4BUSINESS ETHICS & GLOBAL PERSPECTIVES
total resources. When there is too much redistribution, it may mean too small a piece to share
(Onu & Oats, 2016). Therefore a balance has to be maintained. Therefore, considering the
benefit of tax paying, every business should maintain it appropriate share of tax and pay
accordingly.
As discussed above, Ethics deals with individual character and the moral rules that
specify and limit human conduct. Certainly ethics have a significant purpose in relation to
business as well as human life. One of the concerns in association with is paying taxes. It can be
concluded that it is important to have strict business ethics in every organization for the benefit
of the organizations. A code of conduct helps in maintaining the standardized positive image
among the external and internal environment. Business ethics helps to prevent causing bigger
issues. Also, it is important to pay tax as it helps achieving the economic goals of the nation that
are set for the well-being of the citizens. Every business should maintain it appropriate share of
tax and pay accordingly as it is not only a legal method but also a morale responsibility.

5BUSINESS ETHICS & GLOBAL PERSPECTIVES
References:
Braithwaite, V., & Reinhart, M. (2019). The Taxpayers' Charter: Does the Australian Tax Office
comply and who benefits?. Centre for Tax System Integrity (CTSI), Research School of
Social Sciences, The Australian National University.
Carroll, A. B., & Buchholtz, A. K. (2014). Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Dowling, G. R. (2014). The curious case of corporate tax avoidance: Is it socially irresponsible?.
Journal of Business Ethics, 124(1), 173-184.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson
Education.
Luttmer, E. F., & Singhal, M. (2014). Tax morale. Journal of Economic Perspectives, 28(4), 149-
68.
Onu, D., & Oats, L. (2016). “Paying tax is part of life”: Social norms and social influence in tax
communications. Journal of Economic Behavior & Organization, 124, 29-42.
Shaw, W. H. (2016). Business ethics: A textbook with cases. Nelson Education.
William, S., Vincent, B., Theodora, I., Shaw, W. H., & Muntean, D. (2016). Moral issues in
business. Retrieved from https://ebookcentral.proquest.com