“What are the advantages and disadvantages of ethical behavior in business?”
Nowadays the concept of ethical behavior in business ethics is one of the most debatable issues in the world’s business community. Why? Just because there is a global division of business people on who are completely blinded by the word “money” (their number increases with each year) and who not. Each of these two groups of people has certainly own truth. For the first group any business activity is just the activity that must make money for the owner, for the second group any business activity must make money+benefit as for the owner, as for the employees, as for the customers. Which way is the truth? In order to answer on this question - this theme has been chosen. Each advantage and disadvantage of ethical behavior contributes for at least being closer to the proper way of conducting any business.
Firstly, let’s detail the definition of the ethical behavior in business. “Being ethical means applying principles of honesty and fairness to relationships with coworkers and customers”1. For example, a company should not engage in bribery, use false advertising, cheat its employees on salary and etc. Business ethics’ principles should be applied in all spheres of the business and to all people, who undertake the business activity.
Starting from the advantages of the ethical business behavior the one that is put on the first place almost in all articles is “trust and loyalty of your customer”. Brian Hill2 in his article ““The Advantages of ethical behavior in business” gives the first place exactly to this advantage. Why? I think that just because the customer is the bread of any firm, without it any business will just die. The author says that having a loyal constant customer base is the main key to the long-term business success. Let’s imagine, if we will lie once to our constant customer, he or she will be disappointed with our product and, as
References: ANON, “The costs of ethical behavior”, available from: http://businesscasestudies.co.uk/primark/providing-consumers-with-ethically-sourced-garments/the-costs-of-ethical-behaviour.html#axzz2N4B1bUwD ANON 2, “What are the effects of acting ethically”, available from : http://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporate-social-responsibility/what-are-the-effects-of-acting-ethically.html#axzz2N4B1bUwD HILL, B., “The Advantages of ethical behavior in business”, Demand Media, (Introduction), available from: http://smallbusiness.chron.com/advantages-ethical-behavior-business-21067.html JEURISSEN, R., AND KEIJZERS, G., 2004, “ Business Ethics Quarterly», volume 14, issue 1,p.47, (Abstract), available from : http://www.pdcnet.org/collection/show?id=beq_2004_0014_0001_0047_0069&file_type=pdf KOKEMULLER, N., “What are the disadvantages of CSR”, available from: http://www.ehow.com/info_8031857_disadvantages-corporate-social-responsibility.html MIKULIN, R., (a specialist in numerous facets of business and finance), “The Benefits of Running an Ethical and Socially Responsible Company», Yahoo Voices, available from: http://voices.yahoo.com/the-benefits-running-ethical-socially-responsible-8326891.html?cat=3 REMIZOV, D., “It is possible to make big money fairly”, 2007, translated and available from: http://www.nastol.ru/Go/ViewArticle?id=1300 VASQUEZ, M., “Why Business Ethics is important for the company and its success”, (Investment), available from: http://www.streetdirectory.com/travel_guide/161760/corporate_matters/why_business_ethics_are_important_for_a_company_and_its_success.html ZANIN, S., (an entrepreneur and founder of the Prague Business School), “How to attract and hold the customer”, translated and available from: http://www.zanin.ru/ru/40/chel26