Unity University

Adama
Special Campus
Individual Assignment

Prepared by – Eyerus Mamuye

 1. Why do we, as part of the society, care about business ethics? Discuss

Simply put, ethics involves learning what is right or wrong, and then doing the right thing
-- but "the right thing" is not nearly as straightforward as conveyed in a great deal of
business ethics literature. Most ethical dilemmas in the workplace are not simply a matter
of "Should Bob steal from Jack?" or "Should Jack lie to his boss?"

(Many ethicists assert there's always a right thing to do based on moral principle, and
others believe the right thing to do depends on the situation -- ultimately it's up to the
individual.) Many philosophers consider ethics to be the "science of conduct." Twin
Cities consultants Doug Wallace and John Pekel (of the Twin Cities-based Fulcrum
Group; 651-714-9033; e-mail at jonpekel@atti.com) explain that ethics includes the
fundamental ground rules by which we live our lives. Philosophers have been discussing
ethics for at least 2500 years, since the time of Socrates and Plato. Many ethicists
consider emerging ethical beliefs to be "state of the art" legal matters, i.e., what becomes
an ethical guideline today is often translated to a law, regulation or rule tomorrow. Values
which guide how we ought to behave are considered moral values, e.g., values such as
respect, honesty, fairness, responsibility, etc. Statements around how these values are
applied are sometimes called moral or ethical principles.

The concept has come to mean various things to various people, but generally it's coming
to know what it right or wrong in the workplace and doing what's right -- this is in regard
to effects of products/services and in relationships with stakeholders. Wallace and Pekel
explain that attention to business ethics is critical during times of fundamental change --
times much like those faced now by businesses, both nonprofit or for-profit. In times of
fundamental change, values that were previously taken for granted are now strongly
questioned. Many of these values are no longer followed. Consequently, there is no clear
moral compass to guide leaders through complex dilemmas about what is right or wrong.
Attention to ethics in the workplace sensitizes leaders and staff to how they should act.
Perhaps most important, attention to ethics in the workplaces helps ensure that when
leaders and managers are struggling in times of crises and confusion, they retain a strong
moral compass. However, attention to business ethics provides numerous other benefits,
as well (these benefits are listed later in this document).

Note that many people react that business ethics, with its continuing attention to "doing
the right thing," only asserts the obvious ("be good," "don't lie," etc.), and so these people
don't take business ethics seriously. For many of us, these principles of the obvious can
go right out the door during times of stress. Consequently, business ethics can be strong
preventative medicine. Anyway, there are many other benefits of managing ethics in the
workplace. These benefits are explained later in this document. (Extracted
from Complete (Practical) Guide to Managing Ethics in the Workplace.)

Social responsibility and business ethics are often regarding as the same concepts.
However, the social responsibility movement is but one aspect of the overall
discipline of business ethics. The social responsibility movement arose particularly
during the 1960s with increased public consciousness about the role of business in
helping to cultivate and maintain highly ethical practices in society and particularly in
the natural environment.

Erosion of ethics can have harmful effects on innocent people. It is because, when people
wants to get more benefits, they act unethically without concern for others, committing
acts such as cheating, fraud, and breaking of rules. All this may bring harm to the
innocent. Sometimes, people erode their ethics and sacrifice the minority of people in
order to satisfy the needs and happiness of the majority (Jessica, 2005). Ultimately,
society is in a lower state of harmony due to distrust, as a result of having harm inflicted
on them even though they did no bad deeds themselves.

Relationships are built on one fundamental principle, and that principle is trust. However,
erosion of ethics has affected the level of trust between people (Hill, 2009). This is
pervasive and everything from friendships to business transactions is severely
constricted. This is due to the feeling of uncertainty and doubt between each other. As a
consequence, businesses will be caught in tons of red tape and bureaucracy and the
growth of economy will be retarded.

Apart from that, there is concern that, if people know that everyone else is cheating or are
dishonest, they themselves will be more likely to cheat and consequently self-inflict
erosion of ethics (McCabe, Treviño, & Butterfield, 1999; McCabe & Trevino, 1993).
Likewise, when one engages the masses of society and feels that cheating is
commonplace and acceptable, at long last, people may also engage in unethical behaviour
due to it being a norm, and as a result, erosion of ethics increases (Cole & Smith, 1996;
Mangan, 2006). Ultimately, people erode ethics to gain personal interest.

Moreover, breaking rules or irregularities invariably is one of the negative consequences

of erosion of ethics. Breaking rules can lead to penalties such as fines and imprisonment.
Often, some of the unethical behavior can be hidden by others. However, after a period of
time, society could be adversely affected (Janette, 2011). Erosion of ethics is like the
spreading of virus; if it is not stopped it will spread and become more and more severe.
Families may be torn apart after they find out one of their members are involved in
criminal acts. The involved individuals may not only tarnish their own reputation and
image, but of their family’s as well.

Ethics is shown to play an important role in moulding one’s behaviour to identify what is
right and wrong to do in a society, as it is a belief and standard that helps to create a
harmonious and conforming environment. Not only that, in order to eradicate erosion of
ethics among society one need to understand why ethics play a vital role to everyone as a
whole, and not being bias to only a part of the community.

Through this study, tons of knowledge is learnt and seems to be very useful as an early
detection of how, when, who and why erosions of ethics could happen as on many
occasion the importance of ethics tend to take a “back sit”.
There is no universal definition of what exactly ethics is, but amidst all the troubles in the
world, ethics still acts as a guiding force to dictate an individual’s sense of right and
wrong, and the erosion of ethics is becoming increasingly troubling and if not stemmed
out soon, will definitely spell trouble for all civilization, because the rapid rise of
globalization meant that everyone on this planet is connected to one another.

Religion, be it the doctrines itself or the strict religious leaders, seems to have an impact
on the followers of the religion. Whether there is a direct relationship between a strong
faith and high ethical conduct remains to be seen, but what is certain however is that all
mainstream religions pushes for good and kind behaviour to the general public, and that
is in no way a bad thing.

Can ethics and profitability co-exist? Make a critical reflection by raising the
contending arguments on the issue.

Many factors play an important role in making a business profitable which includes
dedicated and productive employees, expert management teams, and consistent consumer
demand. In addition to these factors, organization that executes a management
philosophy that relies completely on business ethics. Business ethics are proven to be
much more beneficial than those which operate in an unethical manner towards the
success of a company.

Conducting a business the right way is imperative for organizations to build a public
image and stay in the competition. By following ethics in business, organizations can
make correct judgments and decide what is right and wrong for them. By following the
code of ethics in business, they can plan, track, implement, and evaluate management
acts. Being responsible towards clients, their course of action, and the society can do a lot
of benefits for businesses. Any deviation from these basics of running a business will can
prove a spoiler for the company’s image, and it will also result in losing clients,
stakeholders, and profit.

A number of factors play a part in making a business profitable, including expert

management teams, dedicated and productive employees, consistent consumer demand
and careful watch over the bottom line. In addition to these well-known business
practices, companies that implement a management philosophy that relies heavily on
business ethics are proven to be more successful than those that operate in an unethical
manner. Although it may not be the first variable considered in analyzing the profits of a
company, business ethics is an equally important catalyst to the success of a company.

Business Ethics in Management

The leadership of an organization holds the key to its long-term success, and remaining
consistent with a management philosophy built on a foundation of ethics creates a
positive example for all workers. Ethical accounting practices, treatment of employees,
interactions with the public and information disseminated to shareholders are all
responsibilities of the leadership team and can have a direct impact on the overall
profitability of the company. When these integral aspects of business are not performed
with a resounding theme of business ethics from the top down, each facet of the business
beneath the management team has a greater potential to falter in the short or long term.

Business Ethics and Employee Morale

It has been proven time and again that employees who are satisfied with the environment
in which they work are more productive than workers who are unhappy. Unethical
practices in the workplace can cause widespread unrest with employees, leading to a
greater sense of dissatisfaction with the work they are doing and their employers.
However, when business ethics are encouraged from management and company
executives lead by example, the ability of employees to focus on the work they need to
complete to make themselves and the organization successful increases exponentially.
Productivity increases when fewer distractions are present and morale is high, and this
leads to greater profit levels for the company.

Employee happiness can also have an impact on turnover and retention, as unsatisfied

workers are more prone to seek out other opportunities, regardless of higher pay or
benefits offered by their current employer. Continuous recruitment and training of new
employees can reduce the capital a company can spend on revenue-producing activities,
ultimately shrinking its long-term profits.

Business Ethics and Public Image

Companies would be nothing without shareholders and investors, and as such, operating
with business ethics in mind is most important when interacting with these crucial
players. It is common for the profitability of publicly traded companies to decline rapidly
when they encounter situations where information regarding unethical behavior is
discovered. When investor confidence is lost, it can be a struggle for a company to regain
the trust of the public, its investors and its valuable shareholders; profitability may take
years to build up again. Companies that lay the framework for business ethics in all facets
of operation are more likely to become and remain profitable than those that conduct
business in an unethical manner.