Ethics in Business

Pavithra B
1. Introduce the concept of Ethics in Business.
Ethics is an individual’s character, moral judgements of what is good or right and wrong or
bad. It is the character of a person which is decided by his conduct , which leads to set of
series of actions taken, this action is considered good or bad, right or wrong , moral or
immoral. We can judge such actions by moral judgments requiring moral standards. It
comprises principles and standards that guide behavior in the world of business.
Decisions are influenced by the culture of the company/Business. Decisions may be made by
individual’s or groups. Decision to behave ethically is a moral one, in Business Employee’s
must decide what they think is the right course of action. Even though immoral judgements
may lead to short-term profits, Employees must act morally rejecting the short term profits.
There are multiple views on relationship between Business and Ethics

 Unitarian View
 Separatist view
 Integration view

We should avoid breaking criminal law in one’s work related activity, avoid action that may
result in civil law suits against the company, avoid actions that are bad for company’s image.

Ethical behavior and social responsibility can bring significant benefits to business –

 Attract customers increasing sales and profits

 Retain Ethical employees, and reduce labour turnover and increase productivity
 Enable Business to retain moral and talented employees

Unethical behavior may damage firm’s reputation, and stakeholders may withdraw from
investing to the company’s business, resulting in fall of Profits.
Company need to ensure that employees understand the company's corporate values is achieved
by the statement of 'Our Business Principles' which makes clear the behavior it seeks from
employees.
 2. What should Ibrahim do – Analyse the issue of Ethics and Personal survival
in such action. Who can be faulted? GM or VP or the customers? State your
reasons.

Ibrahim considering his ethics and morality to the Companies Business should not inform the
local television, but instead should try to discuss with the company Manager and Vice
President again on how to control this activity by other supervisors.
Ibrahim can try to explain his concerns with Managers and VP with respect to client and
consumer’s safety and health in the long run. He could -

 call in for a meeting with the manager and Vice President and try to make them
understand that in the long its effects client and consumer’s safety and health.
 Reduce pressure on Supervisors for minimum number of orders to be complete
 Should explain to management on how they could lose the potential customers in long
run, by just satisfying short term goals

Even after his continuous efforts, if the management is not able to change his unethical behavior
towards its customers. Ibrahim should try to search for a new job - change his job for his Personal
survival, then try to warn the company management about its way of working, even if no action
is taken, Ibrahim can then provide the fudged details anonymously to local TV station in view of
his ethical responsibility toward the society.

All of the 3 - GM or VP or the customers can be faulted here –

GM – As this was the matter of health concerns of its clients and consumers, GM should have
shown some interest to investigate this case, rather than asking for evidence. His concern should
have been towards saving its clients from harmful chemicals, should have also tried to save
company’s ethical value. Company would not have included in its technical manual or signed a
contract order, if it was not harmful. This means that the GM is not following company’s ethics.

 VP – As the VP already knew about this issue, he should have planned alternative ways to
improve the company’s profit rather than pressurizing supervisors for more orders. Even
after knowing that the chemicals is harmful, he being the VP should not neglect such
issue, as this would effect the company business in long term, he should not go for Short
term profits of orders. The VP should know that on any deaths to customers, there could
be legal actions taken against the company as it is illegal and unethical. If any case filed
by its customers, company’s reputation will be spoilt and existing orders may also be lost.
Customers – here Customers are not being ethical to their customers in 2 cases
1. Should have taken proper precaution in first place to maintain cleanliness and not ot have
pests, this is effecting their own customers
2. After chemicals are used to control pests – they are exposing their customers to these
harmful chemicals, just by opening the shops within a day.
In both cases Customers are also only thinking of making profits than considering the ethical
value of minimizing the risks to chemical exposure to their own customers.

Customer can plan for other natural ways of pest control or can use the chemicals on some long
holidays which would not affect their business.

3. Can there be alternate to solve the issue without hitting the company?

 Can look at redefining the process to control the pest that is not toxic or harmful for
humans.
 It can also look at including chemicals, which reacts only on Pests but not on human
beings.
 In order to help its clients, company can invent few pest control chemicals, which will not
require the client business to close for more than a day.
 Reduce pressure on Supervisors for minimum number of orders to be complete
 Call a meeting with all its clients/customers and explain the harm caused to human if the
shops are opened within a day and plan for long vacation days to use pest control
 Should not allow to use the place within a day as per the contract
 Company should not compromise on safety standard’s as it is unethical and illegal. If any
case filed by its customers, company’s reputation will be damaged and existing orders
may also be lost.
 Company should look at educating their customers of the long term side effects that
would harm the human life. By doing this not only its ethical values are protected , its
consumers are also saved from long term health issues.