Module 6: Ethics for Management and Business Success

There are two different perspectives concerning to the practice of ethics in business. The first perspective does not agree with the idea of bringing ethics in business. Among some of the arguments in supporting this perspective are that profits and the interest of their firms are more significant and therefore, ethical considerations should be ignored. The second perspective supports that ethics should be part of business. Ethics should govern business because ethics govern voluntary human activities and business is a voluntary human activity.

The lack of equality around us is the effect of greed. Some people would do anything including those unethical acts in order to get wealth and fame. Although there are many greedy people, most of them do not become wealthy because they do not have the opportunity to convey their greed in a way that offers higher incomes in return. Greed is prohibited by every religion and ethical system of thought. However, it is still exist because human beings just could not be satisfied with what they have. They tend to ask for more when they given something. For example, in business. Businessmen will only engage in projects that give a high return even when the projects might pollute the environment.

There are two different views concerning the responsibility of business towards the welfare of the society. First view is that businesses have no obligation to the welfare of the society. A business firm has obligations to all of its stakeholders. In perfectly competitive free markets, the pursuance of profit by business firms will by itself assure that the society is benefited. Second view supports that business should be held responsible to the welfare of the society. From the economic responsibility perspective, business firm is responsible to maximize the wealth of the shareholders. From the public responsibility perspective, business should act in a way that is consistent with society’s view of responsible behavior. Lastly from the social responsive perspective, business should take the initiative to contribute to society in a healthy way to improve the welfare of society.

Businessman who practices ethical acts usually produces and provides quality goods or services to his customers. Honest businessman will not do misleading act such as cheating their customers or not being honest on the price of the goods or services. Honest businessman usually cares for his business goodwill or reputation as well as goodwill of his competitors. Maxim “Honest businessman will be placed together with all the prophets” indicates that businessman who practices ethical acts will be respected by everyone. Therefore, every businessman should be honest and practice ethical codes when dealing with customers.

In this Module 6, I learned when dealing with the society. It is very important in order to gain other people’s trust and respects.