MULUNGUSHI UNIVERSITY

STUDENT NUMBER: 201900001

PROGRAMME: Bachelor of Science In Laboratory

Technology (Chemistry Tier)

COURSE CODE: BMG 482

LECTURER: MR CHIBANGULA

ASSIGNMENT: DISCUSS WHY ETHICS AND

MORALS ARE APPLICABLE TO BUSINESS AND
EXPLAIN WHY BISINESSES ARE JUGDED IN THE
SAME WAY AS PEOPLE.
Ethics and morals are essential in business, as they help organizations identify and adhere to
acceptable standards of behavior. Ethics can be defined as the study of what is right and wrong in
human conduct, while morals refer to the principles or standards of right and wrong that
individuals use to guide their behavior (Crane & Matten, 2019). Both ethics and morals are
important in business, as they help organizations make decisions that align with societal
expectations. Ethical and moral behavior in business is essential for building a successful and
sustainable business. When businesses act ethically and morally, it fosters an environment of
trust and respect with their customers, employees, and stakeholders. It is a common
misconception that businesses are only concerned with profit and that ethics and morals do not
matter. However, ethical and moral behavior is becoming increasingly important for businesses,
with customers and employees alike demanding more transparency, sustainability, and social
responsibility from their employers. When companies act unethically or immorally, it can have
far-reaching consequences. Many companies have faced public backlash, legal action, and even
bankruptcy due to unethical behavior. In some cases, it may even lead to long-lasting damage to
the company's reputation and bottom line. This is why it is important for companies to hold
themselves to the same standards as individuals, to ensure they are operating in a responsible and
ethical manner. Furthermore, ethical and moral behavior in business is not just about avoiding
negative consequences. Acting in an ethical and moral way can actually benefit a business in
several ways. It can lead to increased customer loyalty, improved employee morale and
productivity, and even greater financial success in the long run. By putting ethics and morals at
the forefront of their business practices, companies can build a more sustainable and successful
business.

There are many reasons why business ethics matter. Firstly, customers are increasingly
concerned with the ethical practices of the companies they support. A survey by Cone
Communications found that 87% of consumers will purchase a product because a company
advocated for an issue they cared about. Conversely, 76% of consumers will boycott a company
if it supports an issue contrary to their beliefs. This highlights the importance of ethical practices
in maintaining customer loyalty.

Additionally, unethical behavior can have legal consequences for companies. The Enron scandal,
for example, resulted in jail time for top executives and bankruptcy for the company. This serves
as a warning to other companies that unethical behavior will not be tolerated by the legal system.

Another reason why business ethics matter is that they can have a positive impact on employee
morale and productivity. When employees feel that their company operates with integrity and
transparency, they are more likely to feel proud of their work and remain loyal to the company.
This can lead to increased productivity and a reduction in employee turnover. Businesses must
not only be responsible for their own actions but also those of their employees and suppliers. As
such, businesses must ensure that their employees and suppliers adhere to ethical and moral
standards. This requires providing training and guidance to employees and suppliers to ensure
that they understand what is expected of them. According to Velasquez et al. (2017), businesses
have a responsibility to ensure that their employees are treated fairly and that their suppliers
operate in an ethical and sustainable manner.

According to De George (2017), businesses are judged in the same way as people because they
have a moral and ethical responsibility to society. Also, businesses are judged in the same way as
people because they are social institutions that have a significant impact on society. Businesses
must be held to the same ethical and moral standards as individuals, as they have a moral and
ethical responsibility to society. Businesses have the power to impact society positively or
negatively, and when they engage in harmful practices, they can cause harm to society in the
same way that individuals can.

When businesses engage in unethical or harmful practices, it can damage their reputation and
impact their bottom line. Customers, investors, and other stakeholders may choose to boycott or
divest from the business, leading to financial losses. For example, Nike faced significant
backlash in the 1990s when it was revealed that the company was using sweatshop labor in its
factories. The public outcry led to a decline in sales and a damaged reputation for the company.
This demonstrates that businesses must consider the impact of their actions on society and act in
an ethical and responsible manner if they want to maintain the trust and loyalty of their
stakeholders.

In addition to legal consequences, businesses can also face social and economic consequences
when they engage in unethical or harmful practices. Socially responsible investing has become
increasingly popular in recent years, with investors placing a greater emphasis on environmental,
social, and governance (ESG) factors when making investment decisions. This means that
businesses that engage in unethical practices may struggle to attract investors and funding.
Additionally, businesses may face reputational damage and a loss of trust from customers and
other stakeholders, which can have a long-term impact on their success.

Furthermore, businesses have a legal responsibility to act in an ethical and responsible manner.
Laws and regulations are designed to protect society from harmful practices and ensure that
businesses operate in a fair and just manner. For example, businesses must comply with labor
laws, environmental regulations, and consumer protection laws. When businesses violate these
laws, they can face legal consequences such as fines, lawsuits, and even criminal charges. It is
essential for businesses to act in an ethical and responsible manner to ensure their long-term
success and contribute to a better society as a whole. Businesses can do this by adhering to
ethical and moral standards, providing training and guidance to employees and suppliers, and
considering the impact of their actions on society. Businesses can also take steps to promote
social and environmental responsibility, such as reducing their carbon footprint, supporting local
communities, and promoting diversity and inclusion.

In conclusion, ethics and morals are essential in business, as businesses have a responsibility to
act in the best interests of society. Businesses are judged in the same way as people because they
are social institutions that have a significant impact on society. Businesses must consider the
impact of their actions on society and adhere to ethical and moral standards to maintain the trust
and loyalty of their stakeholders. When businesses engage in unethical or harmful practices, they
can face legal, social, and economic consequences. Therefore, it is important for businesses to
act in an ethical and responsible manner to ensure their long-term success and contribute to a
better society as a whole.
REFERENCES

Carroll, A. B., & Buchholtz, A. K. (2019). Business and society: Ethics, sustainability, and
stakeholder management. Cengage Learning.

Crane, A., & Matten, D. (2019). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.

De George, R. T. (2017). Business ethics. Pearson.

Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts,
evidence, and implications. Academy of Management Review, 20(1), 65-91.

Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.

Jones, T. M. (1991). Ethical decision making by individuals in organizations: An issue-

contingent model. Academy of Management Review, 16(2), 366-395.

United Nations Global Compact. (2017). the ten principles of the UN Global Compact. Retrieved
from https://www.unglobalcompact.org/what-is-gc/mission/principles on 12/04/2023

Treviño, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.

Velasquez, M., Andre, C., Shanks, T., & Meyer, M. (2017). What is ethics? In Markkula Center
for Applied Ethics, Santa Clara University. Retrieved from https://www.scu.edu/ethics/ethics-
resources/ethical-decision-making/what-is-ethics/ Accessed on 12/04/2023