The Importance Of Business Ethics

9 Pages 2334 Words

The Importance of Business Ethics
Business Ethics is one of the most challenging issues facing the corporate
world today, here in the United States and abroad. The corporate world has been
involved in a number of ethical scandals which involves several activities, which
includes tax evasion, racial discrimination, insider trading, employee drug and
alcohol abuse, and many more. Business ethics has a huge impact on the survival
of many organizations. " Ethical managers in the corporate world considers what is best in short term instances, but also by the long term effects a particular decision will have on its customers, suppliers, employees, the environment, and the community. The ethical decisions that managers' make is vital on his and the company’s reputation" (Prickett). In this paper I will discuss different examples of unethical business ethics that consumers should be aware of.
“A definition of what constitutes good ethical behavior is sometimes difficult. This can be due to the fact that there are several underlying ethical theories,”( Hoffman 58). Therefore there is no precise definition of what constitutes good business ethics. Ethical conduct goes beyond just abiding by the law, because conduct that is legal can still be unethical. That is why it is imperative for businesses in the corporate world to constitute what is the best ethical method for them. Ethical behavior is good for business, which is shown in a study by the Ethics Resource Center in Washington, D.C. This study shows that companies that had a written commitment outperformed by nearly nine times as high as companies that had no written commitment. (Hoffman 9)
So, what constitutes a deceptive advertisement or fraudulent practice in business? Section 5 of the Federal Trade Commission (FTC) Act of 1912 gave the FTC the power to attack unfair and deceptive acts of business practice. In order to be considered deceptive under the ...