Debate and Reflection: The Role of Ethics in Modern Business Practices

This essay presents a debate and reflection on the role of ethics in business, addressing the argument that the primary focus of a business should solely be on profit. It explores the importance of ethics in business operations, highlighting how adherence to ethical principles, rules, and standards is crucial for long-term success. The essay discusses the negative impacts of unethical behavior, including legal consequences, decreased employee performance, and loss of credibility. It also examines the sources of ethics in business, such as religion, culture, and law, and emphasizes the significance of a strong ethical culture in fostering employee loyalty, attracting investors, and maintaining customer trust. The essay concludes that ethics is not only compatible with profitability but also essential for building a sustainable and respected business.

Topical Debate and
Reflection
(There is no ethics in business, “the business of a
business is business”)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
There is no ethics in business, "the business of a business is business”......................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The current debate topic is about the Ethics in business which undertake the study of
suitable business policies and practices considering the potential controversial subjects including
corporate governance discrimination corporate responsibility and fiduciary responsibilities
(Cater, Collins and Beal, 2017). The law prominently set the suitable tone of Ethics in business
by providing the basic guideline which business need to choose to follow up in order to gain
public approval. For this debate the concerning argument is for the Ethics in business within the
operations of business regarding the growth and success of an organisation.
MAIN BODY
There is no ethics in business, "the business of a business is business”
It is important that every organisation need to follow and consider Ethics in business as it is
important to embrace and accept the prominent principles rules and Standards for deciding what
is right and wrong in order to carry forward the business.
Rules and procedures for how a firm should be operated are established by the federal and
state governments. Large fines and other penalties are frequently imposed on businesses that fail
to meet federal and state regulations. Larger corporations may conclude that breaching the law
and paying the fines is less expensive than the financial gain obtained by breaching the law
(Faugère and Gergaud, 2017). Consistently breaching the law, on the other hand, can result in
costly legal fights that offset the initial gain.
Employee performance is negatively impacted by a lack of ethics. Employees are sometimes
so focused on getting ahead and gaining money that they overlook procedures and policy. This
can result in additional paperwork and thoughtless mistakes, requiring the task to be redone.
Employees who believe that operating ethically and following the rules would not help them
advance in the company may experience a lack of motivation, which can lead to a drop in
performance.
When a company’s lack of ethics becomes public awareness, it loses credibility. While some
organisations are able to survive public awareness of a lack of ethics through rebranding and
advertising campaigns, many others lose a significant portion of their consumer base. Even if a
company recovers from news about its lack of ethics, restoring its image and consumer

confidence takes a long time and a lot of money. Customers who leave a company because of
unethical actions will look for other products and services that fulfil their demands.
A lack of ethics is frequently the result of poor planning and other flaws in the firm. Set
realistic goals for staff to avoid unethical behaviour (Friedman and Gerstein, 2016). Employees
who are required to meet unattainable targets and targets may engage in unethical behaviour in
order to achieve them. Monitor employee performance on a regular basis.
Employees who are not watched are prone to slacking off and taking credit for work that
were left unfinished. All personnel should be well trained. Untrained personnel frequently cut
corners and make excuses for not finishing work to the company’s standards.
Besides from this, any sort of violation of ethics should be properly detected and remedial
measures should be immediately taken. In respect of this the Ethics in business also based on the
white guidelines of what should be done in the business organisation and what should be
neglected and it is prominently based on the perception of what is right and what is wrong. Apart
from this there are various sources of Ethics in business that include religion culture and law by
having unique system of values developed by these resources.
For this, the religion is considered as the oldest source of ethical inspiration because every
religion provides an expression of what is right and what is wrong and it reciprocate the principal
towards the fellow being is found in all the religions? Moreover, the great religious also breach
towards the requirements for the older social system and also focus on social responsibility with
an objective to contribute towards the general welfare. In respect of this every religion create
their own code of conduct (Kish-Gephart and et. al., 2019). Culture is also considered as the
important understanding in order to set basic ideas values perception preferences and concept of
morality that create discipline among the individuals.
Depending on the suitable pattern of the culture and development stage culture different
from the community to community and Society to society. Apart from this culture is passed from
generation to generation and also facilitate the proper commitment to something larger than the
self-interest of individual. In respect of this culture motivates the suitable members of the
organisation in order to provide priority to the goals of company over and above the personal
interest. The managers of businesses have to run the industrial Enterprise in terms of cutting at to
their cultural experience that creates tension regarding the actions which make the business
ethically more complicated.

Apart from this the legal system of the country give proper direction to the behaviour of
individuals in order to survive within the community and Society. Ethics plays an important role
in terms of defining and binding the overall society as the society expect that the business is
abided by the proper laws and norms. Besides from this it is also expected that every business
needs to be seldom because of the properly addressing the rules and regulations. In this context
the preaching of law is quite common in businesses like holding adulteration poor quality and
high prices product environmental pollution and many more (Ciulla and et. al., 2018).
In respect of this ethics in business is important for organisations that is the basic need of
business in order to survive in the market with proper respect and proud. Along with this
everybody likes to be associated with the organisation considering the respect of society as the
honest and socially responsible manner. In regard of this the HR manager of company need to
fulfil the basic requirements of employees and considered on basic needs in terms of directing
the ethical organisation. Just for an effective business they need proper managers and employees
who compel the organisation to be ethically oriented.
When employees are confident in the ethical values of the company they work for, they hold
the company in high regard. It establishes a shared set of goals, beliefs, and language. Because
the organisation is credible in the eyes of the public, the HR manager will have credibility with
the employees. Employees will respond to perceived social uprightness and moral ideals more
than any other incentive plan.
Respect for ethics will compel managers to evaluate diverse economic, social, and ethical
factors when making decisions. Decisions will be better made if they are made in the public’s,
employees, and company’s long-term interests.
Being ethical does not imply a lack of profit. Every business has a responsibility to itself,
which is to make money. Ethical businesses are more likely to be successful and lucrative in the
long run, even if they may lose money in the short term (McCann, 2018). Ethics can protect
society more effectively than the country’s legal system. Ethics always triumphs where the law
fails. The government is unable to regulate all harmful behaviours in society. More successfully
than the cops, an ethical HR manager may reach out to agitated employees.
Ethics in business are established by corporations to encourage employee integrity and
acquire trust from key stakeholders such as investors and consumers. Almost every firm now has
a code of ethics. Part of this is due to the fact that technology and digital communication have

made it simpler to spot and broadcast ethical gaffes. Companies are dedicating greater resources
on corporate ethics in order to avoid unwanted consequences.
According to one survey of accountants, 55 percent believe the relevance of corporate ethics
will increase in the next three years. Companies are creating ethical workplaces through
employing the right individuals, in addition to developing formal processes (Issa and Pick,
2018). According to a recent survey, the second-most crucial skill for business executives is
“high integrity and honesty”. Today’s business leaders must comprehend the relationship
between corporate ethics and success.
Employees are more likely to use ethical reasoning when their organisation clearly
illustrates why Ethics in business is vital, according to a Global Business Ethics survey.
Employees in the United States who work in an environment with a strong ethics culture claimed
they are prepared to deal with ethical difficulties in 99 percent of cases. Companies that promote
Ethics in business encourage their employees to act ethically in their jobs.
Companies with questionable ethics may see a drop in stock price and lose commercial
partnerships, both of which can have a negative impact on profitability. Furthermore, client
loyalty is tied to Ethics in business (Naude, 2019). Developing and maintaining a strong ethical
culture, as well as an emphasis on corporate social responsibility, can have significant, beneficial
effects on a company's sales and profitability, as well as employee loyalty and productivity.
Employees will be more likely to make ethical judgments for the company if the company
has a strong ethical culture. Individuals or groups with an interest, influence, or stake in a
company are known as stakeholders. Beyond traditional shareholders, today’s workplace
stakeholders include a diverse group of people who are invested in the success of ethical
business practises. It is not enough to simply deliver a good or service; stakeholders must be
treated with respect and taken into account in order to maintain a long-term relationship.
Organizational cultures that are based on ethics are essential for commercial success.
An organization’s ethical principles and standards are represented by its ethical culture,
which is a system of shared beliefs, attitudes, and behavioural norms. To ensure effective
connections with customers, suppliers, employees, and the community, ethical cultures support
an organization's core mission and subsequent compliance processes (Kang and Choi, 2017).
Compliance is about more than just following the rules and regulations in order to run a

successful business. Successful companies recognise that adhering to ethical business practises is
critical to standing out from the competition (Schweigert, 2016).
Because a robust ethics and compliance programme also generates a common vision of
purpose and what success means, ethical businesses prioritise compliance as the right thing to do.
Ethics and compliance policies, regardless of the size of the company, provide a solid foundation
from which to grow. Employee loyalty and morale, as well as the depth of a management team's
bond, are all factors to consider when it comes to corporate ethics. The ethical operation of a
firm is intimately tied to profitability in both the short and long term, as it is with other business
endeavours.
The reputation of a company in the community, among other firms, and among individual
investors is critical in assessing if it is a good investment. Investors are less likely to acquire
stock or support a company's activities if it is regarded to be operating unethically.
Companies should foster a climate of fairness and openness in order to attract and retain
competent employees. Employee’s value working in a pleasant environment where they may
progress based on merit rather than favouritism or other tactics. When employees perceive
unfairness in the workplace, their commitment to the company decreases.
Companies that hold their employees to high but reasonable standards have an easier time
attracting and retaining bright, engaged, and ethical staff (Werhane, 2016). Pay raises and
promotions, for example, should be based on merit rather than favouritism. Employees should be
paid on time and as promised. This fosters trust between employees and the organisation, which
improves the overall working environment.
It is also critical for company executives to treat employees with dignity and respect, as well
as to develop a culture that does not allow any form of harassment. This demonstrates to
employees that they are valued and strengthens their dedication to the company. Customers and
partners should also be treated decently by businesses. They should not overpay for goods or
services, nor should they exaggerate the worth of what they have to offer (Cater, Collins and
Beal, 2017).
They should make every attempt to uphold their promises to clients on pricing, delivery, and
service levels. They should not make unreasonable promises and should accept responsibility for
their errors. A reputation can be harmed simply by the perception of being untrustworthy or

being caught in a lie. The public is becoming more aware of firms' corporate social responsibility
(CSR) efforts.
These initiatives could include lowering their carbon footprint and demonstrating other
forms of environmental stewardship, as well as committing to workplace diversity. When
executives start planning and implementing CSR efforts, they should think about challenges that
are important to their industry, look for feasible solutions, create measurable goals, and share
their plans with the public.
CONCLUSION
From the above discussion, it has been analysed that ethical ideals of an organisation
provide credibility in the public eye. People will like to buy the goods of a company if they
believe that the company is honest and is delivering value for money. Due to this, the public
offerings of such companies are almost certain to be a success. As a result, only cola firms are
now investing large quantities of money on ads to persuade the public that their goods are safe
and free of pesticides of any type.

REFERENCES
Books and Journals