Is There Ethics In Business World
Is there ethics in business world?
Neal Stoughton, a prominent finance professor, claims that there is no ethics in business world and it is not necessary at all to learn ethics in business school. We may find some theories or practices in support of this idea. For example, Adam Smith conceived the concept of "invisible hand" which describe individuals maximize their own interest in a free market can bring benefits to the whole society. I think Professor Stoughton’s assertion is partially correct in certain circumstances, because if human being’s pursuit of self-interest is restricted, then our motivation to work will shrink in all likelihood. This has been proved in some authoritarian society, where people are not allowed to gain extra wealth through their own efforts, then the whole society stayed in economic stagnation or even regression. However, just like other human activities, business involves many interest groups or individuals, and should be reciprocal in terms of benefit, so that it can sustain and prosper in the long run.
This has been eloquently demonstrated in the case of Ford Company’s startling policy to pay his employees the unprecedented wage in 1914. This strategy was recognized as a highly successful business, because the workers can earn enough to become good customers and thus secure the market. It reinforced the idea that the business cooperation should not only stays on the corporate level, but also should be promoted among companies, customers, and employees as well as other interest groups. Business is not win-or-lose game; instead, it relies on the win-win model. If a company lacks a good reputation, which is gained through bringing benefits to others, then it cannot scale its business or even survive. The analogy can be seen between business and human interaction, in which selfish people are always isolated and generous people make friends everywhere.
On the theoretical level, what Ford did is the demonstration of the economic
Neal Stoughton, a prominent finance professor, claims that there is no ethics in business world and it is not necessary at all to learn ethics in business school. We may find some theories or practices in support of this idea. For example, Adam Smith conceived the concept of "invisible hand" which describe individuals maximize their own interest in a free market can bring benefits to the whole society. I think Professor Stoughton’s assertion is partially correct in certain circumstances, because if human being’s pursuit of self-interest is restricted, then our motivation to work will shrink in all likelihood. This has been proved in some authoritarian society, where people are not allowed to gain extra wealth through their own efforts, then the whole society stayed in economic stagnation or even regression. However, just like other human activities, business involves many interest groups or individuals, and should be reciprocal in terms of benefit, so that it can sustain and prosper in the long run.
This has been eloquently demonstrated in the case of Ford Company’s startling policy to pay his employees the unprecedented wage in 1914. This strategy was recognized as a highly successful business, because the workers can earn enough to become good customers and thus secure the market. It reinforced the idea that the business cooperation should not only stays on the corporate level, but also should be promoted among companies, customers, and employees as well as other interest groups. Business is not win-or-lose game; instead, it relies on the win-win model. If a company lacks a good reputation, which is gained through bringing benefits to others, then it cannot scale its business or even survive. The analogy can be seen between business and human interaction, in which selfish people are always isolated and generous people make friends everywhere.
On the theoretical level, what Ford did is the demonstration of the economic