Ethics 1 of 27

by Bo D
Created on: March 29, 2008 You can look at the ethical considerations of a business in a macro sense and the benefits are immediately obvious. Bluntly speaking, clients like to feel good about their purchases ergo if you can help to make them feel better about buying from you and - by trading in an ethical manner say - then they are going to come back for more. It's a fundamental branding concept and just good common sense. And taking on green initiatives, charitable work, doing things that let your customers know there are some decent human beings sitting behind the corporate website is not only beneficial to their conscience and your bottom line - they greatly improve the quality of your sleep as a manager or business owner too. But what about the micro effects of ethical trading, the little things that the client often doesn't see? How you develop your staff for instance and the internal culture that you generate. The effects of an unethical work culture don't just directly affect your business, (although they very much do), they radiate out amongst the workforce and echo into the world beyond like a bad case of head lice. Most full time staff spend at least a third of their lives in the workplace, and long-term they are bound to be affected by its internal ethos; their behaviours and life strategies are going to shift and morph towards the qualities of that culture through simple osmosis. When these inherited traits are exacerbated by a strong corporate culture where common beliefs and practices are held up like golden chalices, the result can be positively demonic, and horribly destructive where there are a shortage of fundamental human values being taught. As a director of one of my former companies where there was a strong ingrained culture of creativity and personal achievement, I was dismayed and disheartened time and time again at bringing young talent into the firm - always bright, smiling, enthusiastic and willing to learn only to see them turn over the course of a year or so into arrogant, self centred popularity seekers who would, for the most part, sell their best friends if only to get a leg up or some personal credit from the managing director. In one case a member of staff was ostracized and subsequently driven out of the company only because he lacked the natural talent of a few colleagues and his personal ethics dictated a reluctance to work for a particular client - a big tobacco company. His impeccable work rate, great personal skills and willingness to develop his own abilities were completely overlooked and eventually and somewhat sadly he left under pressure. Was I angry about this? You bet. But there was never a better education in the golden value of training good internal and professional ethics. Whether he was right or wrong about his reluctance to work for the client is moot, the point is that the employee was shouted down merely for raising the question of what was morally acceptable in the business. This unfortunate incident happened for one reason - the ethical vision and values dictated by the company weren't tempered with humility, acceptance and empathy. Okay, I admit this sounds all very noble and rather liberal - if the company is making profit then so what, right? Wrong. The wider implications of this kind of culture to a business can be extremely detrimental to the balance sheet, and woe-be-tide the manager who doesn't take heed.

A poorly managed culture embracing a reluctance to accept and teach the significance of sound ethics in too many cases results in a profound 'me first' society, where diversity from the clique and any opposition to the company ethos becomes not only frowned upon, but is utterly stamped out. Of course this can be a good thing where there is a truly destructive bad apple hiding out amongst the staff, but generally speaking what you end up with is a stagnant and inflexible environment where its people are afraid to stand up and stand out by being different, or suggesting alternatives to the current reality. People lose the perspective to see the universe (and crucially the business) without themselves at the centre of it; the virus-like 'How Does This Directly Benefit Me' syndrome replaces more productive and mutually gratifying paradigm of 'How Can We Make This Better'. In a corporate world where creativity and flexibility are vital elixirs of profit across all domains from sales to delivery, who can afford to have an employee base stifled by a lack of humanity and the fear of its repercussions? This is particularly true of businesses who demand a strong internal culture in especially competitive marketplaces, it's a magnifying glass to personal values - good or bad. In my own case, a company which preached creativity, passion and drive with an almost Biblical vehemence, but which held up the complementary principles of humility, wisdom and learning as nice but unnecessary, what emerged perversely was a markedly increased turnover of staff, a granite-like reluctance to innovate and, ultimately, increasingly sluggish growth. That's just the immediate and visible damage lack of ethical vision can cause. The longer term effects of an ethically unprincipled and unguided culture are an inherent lack of trust, the loss of good employees, degeneration of reputation through poor word of mouth publicity (if an employee will so willingly sell his or her grandmother, do you really think they're going to be loyal to you?) and most worryingly a fear of speaking out against unethical practices in the business, from bullying to theft. Indeed a report by the Business Ethics Centre recently stated amongst its findings that, 'Ethical culture is the single biggest factor determining the amount of misconduct in your organization'. Basically, in an ethically barren environment people tend to keep their eyes averted and not get involved. Previously unacceptable behaviour becomes accepted by proxy and erosion of values escalates in a vicious cycle. All of this along with a generally flat and unhappy atmosphere in which you really don't want to spend the minimum eight hour day let alone working until the wee hours on a tight deadline. Is that the kind of business you want to work in? Ethics are easy and profitable, they're not an either/or management decision - one leads naturally from the other and they cost nothing. Teach your employees the value of empathy and they won't just learn to walk a mile in their colleagues' shoes, they'll learn to try on the boots of your best clients and produce work which better meets their needs. Teach them humility along with confidence and they'll discover that sometimes another idea is a better one, or that collaboration is the way forward, and that there's always something new to learn. As was once Penned by a famous William, 'Sense shines with a double luster when it is set in humility. An able and yet humble man is a jewel worth a kingdom.' I couldn't have said it better. Mostly teach the people in your organization how to be decent human beings in the face of the often magnificent pressures of business, and to deport themselves with rock-solid ethics

and values of trust, leadership, wisdom and integrity. Then model your company vision around those values and lead from the front with that vision held up high and your business will benefit immeasurably from a happy, skilled and loyal workforce which will reflect ultimately in the bottom line. Ethics in the workforce of a successful and future thinking business should be sought out as a quality as valuable as any MBA or all of the talent in the world. Learn more about this author, Bo D. Click here to send this author comments or questions. Profits 1 of 8

by Carole Hill
Created on: March 28, 2008 You can't deny that making a profit is the motivation behind any business! After all, without sounding curt, they aren't there for their health! The heads of big corporations and for that matter, leaders of any size company, are all watching their numbers, as they say, and some spend endless hours writing reports, even drawing up those flow charts, that they think are going to inspire the employees. From my varied experiences of working in both large corporations and small companies, the message is the same. Leaders preach the same story to their employees to work harder and keep production rolling. However, in most recent years, big business has felt the economic pinch and in an effort to keep profits rolling, have had to cut corners to keep the numbers out of the red! This has been defined as "down sizing". In some cases, the employees are the ones who feel the pinch when those little extras are taken away, and bonuses are diminished, and in worst cases, the inevitable happens; the staff must be cut. As a company attempts to move forward, with less steam because fewer employees are left to do the work of more than one employee, trying to pick up the slack of those that were let go. Employees work twice as hard, but production is still threatened. This starts a snowball effect. When more is expected of existing employees, to keep longer hours by coming in earlier or staying later, sometimes working through lunch periods in order to complete tasks creates what I like to call "internal combustion." When employees are working harder, and probably for no overtime pay or other compensation (I say that because I have come to learn that overtime pay is not mandatory to a salaried employee), this creates stress, mental anguish, fatigue, low energy and even conflicts among the staff. An employee is not only put in a bad situation at work, but his home life is affected as well. A hard working employee now has new pressures to face, perhaps missing time with children who have already gone to bed, diet is jeopardized because this person either has to grab fast food on the way home, or eat a less nutritionally balanced concoction at

late hours. Simple home chores are neglected because this person is just too tired to do anything else around the house. He goes to sleep and repeats it all again the next day. Needless to say, the tensions and negativities lead to "low morale" at home and at work. I realize I am painting a desperate picture of how profit making can create desperate measures for the leaders and also for the employees. Hard to know if the profits made, as a result of causing so much conflict that trickles down, are really worth it. But I suppose it isn't a question of a leader wanting to cause all these conflicts; it just happens because the leader is under his own competitive pressures to keep the numbers soaring, to save his own neck. There may have been more concern about the ethical demeanor inside the halls of a company, but with economics taking precedence, it is often true that a company must make a profit in order to exist. It may seem callous to say, but for those employees that got let go during a financial crunch period, a business can always hire a new employee, and often times, a younger, less experienced candidate who will suffice to get the job done, at a lower rate of pay. As far as moral ethics are concerned, I believe most employees do try to make the most of their time at the office and do try to keep their associations with co-workers congenial. But I believe business ethics differ from the moral aspect of a business, and have an impact on the status of the employees, which in turn influences production and ultimately, the profits. Learn more about this author, Carole Hill.

Ethics 2 of 27

by T J OConnor

Created on: June 03, 2010 When corporations act unethically, they may improve their bottom line over the short-term. But if their aim is to enhance their profits by dispensing with prudence - for example, having their managers decree operational shortcuts that ignore standard procedures and do not take safety into consideration - then over a longer period of time such reckless behavior raises the odds of negative consequences. One can only tempt fate for so long. I would cite the recent explosion involving the Deepwater Horizon rig, and the accompanying dire environmental consequences for the Gulf of Mexico as support for this assertion. Its what I like to think of as a Karmic Boomerang. In other words, bad behavior brings with it bad consequences-said consequences arriving in a rather sudden, unexpected fashion. Kind of like a boomerang does. All corporations that were involved in the Deepwater Horizon oil drilling need to ask themselves some serious, basic questions pertaining to how they do business. Our legal

system needs to take a very close look at these companies, and in particular at British Petroleum. For years now, this corporations track record in the area of public safety has been called into question. There have been accidents that resulted in employee deaths, property damage, etc. In the wake of these accidents, there have been accusations of cost-cutting at the expense of worker safety. Such a corporation- one that is arguably preoccupied with profit and not acting with the public welfare in mind, will - sooner or later - receive a wakeup call that cannot be ignored. And the event that is without question the worst consequence to date of BPs habitual costcutting, shortcut taking philosophy is the aforementioned explosion and subsequent oil spillage into the Gulf waters. This open-ended spill is nothing short of catastrophic. The explosion that occurred five thousand feet below the surface of the ocean has so far caused-by even the most conservative estimate, millions of gallons of oil to stream into the Gulf of Mexico. This event raises a very troubling question; how is it that a company with such a dicey track record for public and employee safety gets issued a permit to drill a hole at such a depth? How did our government and the public become so blind to the potential consequences of such drilling? And how could the corporations involved in this operation have such little foresight for the contingencies involved? When corporate negligence is suspected as playing a role in a disaster such as the Gulf oil spill, the corporation has a choice. A good, honest, healthy corporate entity will acknowledge their failure and attempt a good faith effort to deal with and to minimize whatever damage they inadvertently caused. A dishonest, corrupt corporation, on the other hand, will immediately set about to influence public opinion by denying blame, diverting blame, and in general be less than forthcoming about their culpability in the affair. BP, Haliburton, and Transocean all owe the public and our government full cooperation and full disclosure. Such trustworthy behavior is critical to our future as a nation. This is not a time for business as usual. It is time for profit concerns to be put aside and for the public good to take precedence, as should have been the case all along. Learn more about this author, T J OConnor. Click here to send this author comments or questions. Profits 2 of 8

by Khoa Nguyen
Created on: January 26, 2010 Last Updated: January 27, 2010 In a strictly business topic, profit is the driving force of success and growth. One cannot deny that high revenues signal a strong business, and one CAN deny that without ethics a business will fail. For instance, pyramid schemes, which are just a plot to make money from others by giving the service of making money, serves no purpose and is unethical. However, we

can definitely assume that the inventors of the pyramid schemes are sitting on top of their "business" making thousands, if not millions, of dollars laughing at the ethical man who cannot keep his own business afloat selling something with actual worth. We hope for ethics in this world and that one day our leaders, whether in business, government, or science, will keep us on the track of good consciousness for a better world, but for this moment in time in a business field, profit is key. All of our parents, teachers, and elders told us that working hard and doing good in the world is the key to success and wealth. They say that with a pure heart, one will one day reap the rewards they have given out as good deeds, and live a happy life. This is a speculation because one, we cannot tell the future, and two, it only works in a utopia. Mostly everyone in this world works for a profit, even people here, on helium, work for a profit (do to the fact the majority do not donate their revenues). Because everyone works for a profit, the idea that one will go out of his or her own way to enrich someones else's wealthiness without a clear return in value is considered "crazy." And its true, because humans find most other humans insignificant and even though another may show graciousness and generosity, most people will see the generosity with greedy eyes, not the person behind it. Therefore by starting and maintaining a business, an enterprise that exchanges goods or services for wealth, is exactly as its meaning, exchanging goods and services for wealth. Why is it that fast food chains in America, whose method of manufacturing food and marketing is considered very unethical due to the fact the food is considered "unhealthy" and it markets to children, are making billions of dollars. This contrasts the agencies that try to prevent obesity and promote good living, whose quarterly revenues cannot even match 10% that the big boys are making, even though they are ethical. This does not mean that banning ethics is the answer, no, it means that the primary focus of a growing business is profits and hopefully when one's business is large enough, it can be coupled with ethics that can change society for the better. A good analogy would be to portray a growing tree from a seedling. Should the tree try to grow apples for the inhabitants of the forest when it is young and fragile, or focus on growing big and tall to the point where it can make thousands of apples for the entire horizon. Therefore I say, profits should be the primary focus, whereas ethics should be the coupled together later on. Ethics 3 of 27

by Milton Johanides

Created on: October 05, 2009 For several centuries profit has been the primary goal of business, but this is not to say that it is the most important. A post capitalist business environment in the wake of financial turmoil will show that the real importance of business is to meet the needs of ordinary people in a fair and eco-friendly manner. Unless we make ethics the prime mover in our economic affairs, businesses will fail in the wake of social and natural upheaval. The message has been clear to

many enlightened souls for a long time, that pure profit driven activity goes nowhere fast and serves only to line the pockets of a few at the expense of people and the environment. But it is not an easy matter to alter the goal posts. The greed of big business is now legendary as well as infamous. How can we replace the money obsessed objectives of powerful organisations with real altruism? The answer can only lie in the creation of an aware and switched on consumer. As long as the demand continues to grow for ethical goods, the supply of product that harms no one and does zero damage to the environment, businesses must change to keep up. If we have learnt one thing from the recent economic turmoil, it is that markets cannot be left to regulate themselves along the lines of least resistance to profit. The drive for faster growth, greater profits, higher bonuses correlates to lower quality, poorer service and ultimately unwanted stockpiles of unsold goods. If the objectives were cleaner production, quality workmanship, the use of recyclable materials, fair pay for a good days' work, equal shareout of dividends, security of employment, and product life-cycles that last more than just a couple of years, business output might narrow, but the quality of that output would grow exponentially and save the world at the same time. We may even find that in the long run the economic gain is greater, because the overall benefits to society are so much greater. Less hospitalisation, fewer layoffs, less time off, a more congenial workplace and management, and the sense of all working together for the greater good, would save businesses a fortune in productivity returns. It is a truism of Zen philosophy that the faster you run after something the further away it recedes from you. There may be unrealised forces operating in the economic strata of countries that will reward ethical activities in ways we had never dreamed possible. In other words, stop chasing the fast buck, and witness the growth of real prosperity through improved ethical dealings.

Learn more about this author, Milton Johanides. Click here to send this author comments or questions. Profits 3 of 8

by Shawn Kew
Created on: March 28, 2008 Somewhere I heard that ethics are a luxury I cannot afford. As glib as this statement seems it has a bit of truth to it. Look at fair trade in your grocery store, most of the time it is the more expensive choice. Of course this is partly due to the difference in the supply of resources that can be made into fair trade goods. After all most fair trade farms are small family owned farms with a significantly finite acreage to grow food on. It's like sports, yes the small market teams(Fair trade coffee) can put together a good group of players(beans) for short runs, but eventually they have to sell the star players(acres) to teams like the Yankees(Nabob et al). The money advantage simply becomes to huge to overcome.

Even more important though is that having profitable companies within our economy makes us capable of making those ethical decisions. Lets face it things like CO2 scrubbers cost money, whether its the companies paying for it or the taxpayers. If the companies are successful they produce at the very least good paying jobs(at least at the management level) that provide the government with good sized tax revenues. This means that the country can afford to subsidize such things as CO2 scrubbers if necessary. Also because the company is turning a larger profit it can have the option to pay for it out of their own pockets, not that they will necessarily but that they may. What it really comes down to though is you and I. Like I said before fair trade items and other such ethical endeavors typically cost more than their unethical counterparts. The fact is that ethics are a luxury in the world of economics. The only way then that you are going to get a more ethical society is by generating more wealth, aka profit. Look at Britain, most of its labour force is involved in management of some kind. The disposable income has allowed the British citizens to become one of the main markets for fair trade food stuffs. Now granted this may partly be a result of some socio-psychological principles such as noblesse oblige, or upper middle class guilt, the fact remains that the change took place after they could afford it. So in the business world profits come before ethics because ethics are a luxury. Ethics 4 of 27

by Smruti Patel
Created on: March 29, 2008 Last Updated: February 11, 2010 I agree that ethics is more important than profits. I come to this conclusion because I work in business for a long time. When you run your business in a ethical way than profit comes on its own. Ethics for me is customer service, keeping all areas clean and presentable. Most important is phone skills. Answering the phone on the second ring and always answer every question and be respectful to others. I feel when you run a business all employees need to follow all of the rules and regulations. If it is clearly known than there would not be any misunderstanding. There is a lot of time spent making sure all employees have the necessary training. Running a business in a good reputation is very important. Treating clients with respect and trying to answer all questions will soon bring in more clients or repeat clients. In today's market the consumers are looking at the bargain but most importantly is the business ran ethically and not only on profits. These days every business is fighting for that one customer hoping they would walk in to the front doors. Once they are in and using your services than you have to make sure everything is to there standards and than they would come back.

If you are only concentrating in profits than you do not seem to care about the consumers. Consumers are looking for any discounts and more for their money. These days earning money is hard and every day expenses are raising higher and higher. For example gas prices, food, electrical bills and other bills has gone up. In this time everyone who is running a business knows the times are difficult and have to do anything to bring in clients. I do not know if you agree with this or not but I think most people in business will agree with me in some points. It's not always only profit or only ethics, it's both. To run a business you need a well balance organization. So in conclusion yes running a business is challenging and being ethical bring in more clients than that is what need to be done. Profits is important but in this economy that can not alway be the case to survive in a business. After all bills need to be paid some how or you can get fined and be out of business. Learn more about this author, Smruti Patel. Click here to send this author comments or questions. Profits 4 of 8

by Gloria Straight
Created on: September 29, 2008 I sure wish ethics were more important in the business world. However, the present need for a governmental bailout of Wall Street, to save main street, seems to confirm, profit is most important. Middle America, presently described as, those with only enough money to live from paycheck to paycheck, view the business world differently then the wealthy! The location of where we live, also shapes our view of the financial world. In all honesty, when I first heard of ethics v.s.. profit my first thought was customer service! I'm wondering, do we citizens know anything about businesses when it comes to their ethics? Seems this subject has little to do with us-except for how much we're being charged and in most cases, how do we know it's fair? Most that live in small towns, know that good ethics helps much-as word of mouth can make or break a small business. Good ethics, result in greater profit for a business this size, during good times. During hard financial times, residents are forced to pay higher prices, due to the lack of competition, and ethics go right out the window! Not all business, cash in on hardships of others. It is these establishments, that now cut prices the best they can for the very folks that help keep bread and butter on their table. It's only the knowledge of knowing these businessmen personally, that gives one- a small town advantage.

It's my personal opinion that the larger the cities are the less apt customers are to know, what goes on behind the scenes, when it comes to the administration. The citizens of these cities, have no idea of the business overhead cost, and the actual product cost, compared to the prices charged. Few, know the owners of these huge businesses personally, thus having no inside knowledge of their profit.

Wealth makes a big difference in how we view ethics and profit! Most people living paycheck to paycheck, have little or no money to invest so Wall Street-is very far away for the average person.. It would be impossible to comprehend having so much money, one could live off the interest alone. Money here becomes invested -where it becomes impossible to know who actually runs the show. This arena is all about profit! Fast moving nobody cares about ethics they haven't got time to check! It is so obvious,that we have put ethics on the back burner! We have allowed greed and power, to run our finances. Our stewardship, we took too lightly and now across the globe all eyes are on us waiting to see what our country will do. What will the American People demand? Do we want ethics or profit-is there a way to have both? Ethics 5 of 27

by milkdaddycool
Created on: February 12, 2009 "Profits or Ethics matter more in Business?" is that the question at hand?! Well, it's quite a controversial topic, nowadays. This usually implies that there's plenty of opinions on the matter, something which would discourage me in most cases from stepping up. But this particular question is an exception. The very fact that it is being discussed vigilently suggests that there hasn't been reached a common understanding yet. I'm a bit disappointed but not that surprised. The bare-naked truth about this matter is that the answer lies within the mindset of the person contemplating this issue. What this statement means, broken down, is the following: "Profits" and "Ethics" should not be evaluated as being of equal essence. "Profits" is an ambiguous concept, dependent entirely on the person's value and belief system. There are many entrepreneurs who would use the term, to mean not only monetary value, but altogether growth along the criteria which they have established to be crucial to their business. In the case where this question is debated by someone who hasn't put in the time and thought into delineating such criteria for themselves, and their business, than they simply need to step back and do just that, before continuing with the argument. A most prime directive in Project Management is the tenet that "You can't control what you can't measure" This applies especially for one's enterprise. In order for it to grow and prosper, the entrepreneur must be perfectly clear, even intimately comfortable with the nature of the key factors which generate "Profits". In it of itself this means that they must be perfectly clear with what "profits" means

to them, the direction in which they want their business to evolve, ... and the rest of that whole tactical exercise. While "ethics" - well, ethics are rather uniform in their meaning. Of course, if two or more parties' interests were concerned, than they would sit down and pretend to have diverging viewpoints on what "ethics" are, but to everyone else, the meaning of the word is pretty clear. Ethics are the core foundation of any business relationship. Were they void from one, wouldn't that constitute an intended usurpment of the agreement. Anyone involved extensively in trade, commerce, business will agree that enduring expansion of the business activity is closely dependant on the mutually benefitial (called 'symbionic' in biology) relationship between everyone involved. (vendors, customers, producers... everyone). How could such relationships be developped void of ethics? (rhetorical). This said, profits - are not at all appraisable along with 'ethics'. They're more rather the natural deliverable from the practice of ethics. I haven't rested for a second from writing on this topic, since I first saw it articulated; and I could keep going on untill I'm ready to publish, but I'll rather leave it for a later time. I'd just like to solidify my point with two very explicit and revealing scenarios: a business approach where profits are with less priority than ethics, and the reversed case - ethics being with less priority in a business, than profits. In the latter case, those profits might be impressive at first, but really - there isn't a lightly derived profit, which couldn't be spent faster than it's been amassed; all in all, regardless of the precise number - such profits are short-lived. Now, if we examine the former scenario, where a businessman decides to stick with their principles, ethics, instead of going for the "quick and easy buck", they might struggle initially, but it's very likely that for years to come ahead, they will experience a steady profit - enough to keep them going, in the worst case. More often than not such businesses build up a loyal customer base, which in my individual opinion is the highest profit-factor that we could touch upon. Well, I hope I was able to shine a brighter viewpoint on this debated issue. Please feel free to contact me with any comments on the matter, since undeniably it's one I take close to heart. Live long and prosper!

Created on: March 29, 2008 "It's the Profits, stupid!" would be the only honest answer you get from the business owner if you ever dare asked the obvious about the raison d'etre of a business organization. However , having said that, even for an organization whose very existence is built upon nothing but the purpose to make profits, ought business ethics be push to the back burner? My take is, empirically, in this day and age of Information Technology and the free flowing of information on a global scale on a 24/7, 365days basis, doom is the ultimate destiny for any organization, business especially, if ethics are chronically sacrificed in the quest for profits. Therefore, for the long term sustainability of the business organization, due care and diligence ought to be placed in adhering to at least a minimum level of corporate citizen

decency to project a less than malicious profit grabbing ogre company, something business owners will do well to be mindful of. If businesses manage to at least portray in the eyes of the public, a perception of an image of non malign corporate responsibility in that businesses exist to make profits in order to be viable and sustainable, any reasonable consumer can accept this. Any reasonable person knows that the organizations that serve him with goods and services ought to be viable to continue to be sustainable and the fault is not in the making of profits per se but how the profits are made, at what cost, real and hidden; legal and as well as ethical. If the basic concern and expectation management of the public perception with regard to the adherence and upholding of ethics against the greedy obsession to make profits at any and all cost have been addressed, then making profits as far as corporate objectives are concerned ought to be of paramount importance, naturally. The argument as to whether business ethics or profits are more important therefore ought not be a dilemma. Businesses that had to constantly pit profit objectives against business ethics ought to reexamine its very vision, mission and business objectives to see if they really have a place in the modern competitive and globalized marketplace. The question of deciding over to do or not to do something on reasons of ethics over profits and vice-versa ought not to arise at all. If a business is engaged in activities that are constantly in conflict with business ethics and though it may be engaged in legitimate legal business activities, it can nevertheless be rendered history should consumer opinion turn against it through the cash register. In conclusion, there is no question that businesses exist to make profits, but if the foundation where it stands on is not built on solid basic decent ethical material, it is built on sand. Sooner if not later, the tide of consumer sentiments will turn and it will be brought down in tsunamic proportion.

Ethics 6 of 27

by Nancy Seddens

Created on: January 07, 2010 Watching the bottom line is very important when one is in business but even more important is keeping a vigilant eye on ones business ethics. To have business ethics means treating all

stakeholders fairly and to treating people and other businesses fairly is showing them respect.

Putting business ethics first means that employees will be loyal not out of fear but out of respect. It means a less stressed work environment which in turn means less employee sick days. Customers are willing to spend a little more if they feel certain that they will be treated fairly and wont have to worry about being cheated. Vendors will be more inclined to extend credit to a company that has a reputation for being above board in its dealings. Businesses that always behave in an ethical manner will spend less on lawyers and wont need to spend as much on advertising as their less trustworthy competitors do. For a business to put profit ahead of ethics is the same as being penny wise but pound foolish. Sure there is gain today but at what cost? Customers can be mislead, vendors can be strong armed, and accounting corners can be cut to fool the investors but like a house built upon the sand it falls apart eventually. The general person may seem stupid to some top executives but eventually that customer smartens up and notices the bait and switch or the inferior merchandise or the out of date product and begins to shop somewhere else. Oh, the customers may continue to shop at a store that they feel has been less then honest with them but only for the really good sales, everything else they will buy somewhere else. No store can exist selling only their come on or loss leader items. Vendors that are left hanging or who are threatened with a boycott of their products if price demands arent met may have no choice but to play along but you can be sure they tell other vendors how they were treated. Companies know that if they gear up production to supply Wal-Mart then they must sell to Wal-Mart at the price Wal-Mart demands or they will be dropped and left with a glut of product and no place to sell it. This has caused several companies to have to move their production out of the U.S. in order to cut their product costs and stay in business. Certainly profits must not be ignored after all that is why businesses are in business but trying to realize a profit while ignoring or only paying lip service to the ethics of ones business will not work in the long run, even Wal-Mart will eventually succumb to this fact of life. Its Karma, it got Enron and one day it will get to Wal-Mart because what does around comes around. Learn more about this author, Nancy Seddens. Click here to send this author comments or questions. Profits 6 of 8

by Laura Houston
Created on: March 29, 2008 I would love to say ethics is important to any business, but unfortunately it is not. Without Profits you can not exist, and without ethics you can still exist.

It takes profit to run any business, from the moment you open the door it is all about the money. It would be great it you could for go the profit for ethics, but you can't pay your employees, and they can by groceries with and over abundance of ethics. It takes profit to repay the business license and start up costs, and profits to employ those necessary to run the business. Depending on the type of business profit may be necessary to buy what is need to supply the business as well as employees. Morality and ethics may be close to the same thing, but they are rarely considered at least not until a business has an abundance of profits sitting to one side. However, when that happens there are other hands out that require you to continue to look toward the profits and not the ethical side of a business. Humanity has made it impossible for the current business owner to maintain a business that does not think of profit first. Unlike many years ago when a store owner might mark something down because they know you can't afford it as is. But I am talking many years ago like "Little House On the Prairie Days" When peoples feelings, and economic status were taken into consideration before pricing and profit. When you could barter or trade one item for another without thinking of how much extra you were getting, because you just needed what you traded for, and nothing more, no profit needed. Nowadays however it is all about the bottom line. There is no existence without it. There is nothing else considered without the profit being taken into consideration. It is sad that this is the life business have taken on. We can certainly thank our government for that. Because it all started with charging taxes. Prices had to be raised, profits increased to cover the taxes being charged by the government. So now we have no choice but to push ethics to the side. Along with ignoring ethics we have chosen to ignore morality, or have any consideration for the underdog who is unable to meet the rising costs, that push us to our profits Ethics 8 of 27

by Justin Cayce
Created on: September 21, 2011 Those who employ Machiavellian methods of doing business will always put companies with ethical standards to shame. Having faith in ethical standards and making it the companys core philosophy will destroy almost any company in todays ruthless business environment. If your executives and managers do not maintain vigilance they will be taken advantage. They will fall foul of resource-wasting bidding for pre-allocated (under-the-table) project work. Their high ethical standards create a blind spot for toxic deals. Customers dont care if a company has a reputation for integrity and ethical dealing when they buy products; they buy name brands or buy cheap. These are all facts

I know some western companies executives debate idealist considerations about which companies are virtuous and which are is villainous. But a senior employees duty is to maximizing profits, not maintain integrity, not to decide which companies are socially responsible, not to fund their personal ideals at the cost of the company and thus threaten the existence of the whole corporation; and endanger the livelihood of everyone in that company. Most of the well-to-highly-paid, socially cushioned senior staff like to believe that in the long-term, companies that are managed without regard to ethics, will fail for their evils. They would like to believe in karma. But reality and history has shown that it really doesnt work that way. Malevolent companies benefit in the short-term by saving on environmental measures and employee wages or by more devious, under-the-table dealing and Machiavellian management. But over time, these actions will result in errors of judgment that will destroy the company. Really? Yes, really! -But the reality is that the bad boys already know this and they all have their golden parachutes ready for the day when they are found out. And yes, the company fails but all the money has been sucked out and the company entity is a hollow shell and the creditors will howl and demand their cash in vain. The evil senior servants have slipped away with all they can get their greedy hand on. This is the very essence of capitalist principles. In the end, decisions involving which deals to pursue, and which to avoid should not be based merely on sound ethical considerations. Every company has to decide whether to take the touchstone of ethics as the core philosophy that will doom the company to oblivion - or to tackle the business professionally. And all football fans know what I mean by a professional tackle. Any sportsman who is not prepared to play dirty for his team is not going to get into the premier league. The capitalist principle is that the ideal company is the one that survives. Morality is maintaining employment for members and the highest vigilance is in knowing when to get out. This is the reality created when good guys finish last. It is too late for idealism to counter this; Machiavellianism is already seven steps ahead and has corrupted every system from within to the extent that there is no way for the good guys to grab the power to change the systems without them also joining the corrupted minions of the god of cold hard cash. And this is such a sad indictment upon the human race, because the core of ethics is morality, honesty and integrity. How is it that we have built a world where money is needed more than truth.

Learn more about this author, Justin Cayce. Click here to send this author comments or questions. Profits 8 of 8

by Laurie Mueller
Created on: March 28, 2008

Are business ethics or profits more important? A business exists to make a profit. If the business doesn't make a profit it will cease to exist. That's the bottom line, the most basic fundamental about business. That being said, ethics can have a major effect on the profitability of a business. Customers can, and do, purchase with ethical considerations. Laws are written to ensure that businesses act above a certain ethical line. Ignoring those things negatively impacts the bottom line, and could even force a company to close. An excellent example of a business using ethics to its best advantage would be the recent advertisements of pharmaceutical companies. A few years ago there was a lot of backlash against pharmaceutical companies. There customers were purchasing their product in foreign countries and online because of a large pricing disparity. Insurance companies were successfully arguing that the large price increases in pharmaceutical costs were forcing them to pass increases on to their customers. Municipalities were encouraging their employees to purchase their prescriptions from Canada. Congress was considering laws to shorten patents and interfere with pricing policies. People weren't able to afford the prescription drugs they needed to keep them alive. In response the pharmaceutical companies added programs to help low income people obtain needed medications. Those programs are a central part of their advertising, along with making sure the public knows about how they supply aids drugs in Africa and help get antibiotics to suffering children worldwide. The ads also inform us of the life saving research done by the companies. The problems existed long before they made headlines. These companies didn't react until these problems made headlines and caused a reaction that affected their bottom line. If people were going to Canada to buy prescriptions where they were cheaper, the company made less profit on each prescription. If laws were passed limiting the amount the companies could charge for new drugs, the companies would be forced to change their pricing policies, making less profit. The companies responded to the pressure on their bottom line, not the ethical needs of the community. Watch the recent ads for the oil companies and see how they're using the same techniques. A good business knows how to respond to the ethical needs of its customers, and how they affect its ability to keep a solid bottom line. Ethics 12 of 27

by Alexander Mutua
Created on: August 05, 2008 Last Updated: August 06, 2008 Business ethics lead to profits. They improve the corporate image that equally nurtures their profits which pivot on good consumer relations. Products and services that are presented to the mass audience or consumers inter-depend with ethical business activities. Consumers pursue goods and services of specific companies due to the embed of their conscience with considerate factors one drawn from the corporate image.

Honesty in business gives a desirable impact when enhancing consumer relations that ultimately prove their worth on regular basis or in the future. The entrust of a consumer brings forth effectiveness in business activities. When a business is honest to its consumers they equally trust its products and services. This draws and maintains the consumers market which result to the growth of business entities. Good consumers relations constitute the empowerment of both the consumer and business interest. Its a two-way relationship that nurtures both parties facilitating successive transactions. Its reasonable to have pricing rates that reflect the value of products or services. Ideal the consumer might pursue the transaction without the appropriate price rate. Within a period of time the consumer will encounter another point of purchase. On en quiring the price of the relevant product or service information, the consumer is bound to realize that the previous rate of sale was inappropriate. This will withdraw the consumer from acquiring commodities or services from the relevant point of transaction. Word of mouth in marketing is powerful and consumers possess a desirable empowerment in persuading other consumers to pursuit products and services. On the account of the inappropriate transaction they might spread the word to prospective consumers who will withhold from the specific point of business. Bringing forth the significance of business ethics that if not streamlined might impact on future profits. Corporate image is ideally empowered by business ethics. With adequate business ethics encompassing the structures of a business. It will forth internal and external source of sales and profits. Permanent consumers might withdraw from a corporate that has substantially poor business ethics. It taints its image within and relatively in the business market decreasing profits at undesirable rates. Rejuvenation of this corporate depends on enhanced and improved business ethics that wouldn't have been required to far-fetch their own consumers or prospective consumers. Competition in the business market is always intense it has significant effects on any business that's after the mass consumer market. But fair play between business entities has its background in securing good relations within the market. In the unpredictable economic times and trends business need mergers, association and aid within the relevant expertise. It embraces their business or consumers with utmost satisfaction in provision of products and services. Moreover, merged businesses present the most formidable entities in the competitive market. Its evident that it acts as an embed of making profits in consumer sales. Unfortunately, agreements wouldn't prevail if the playing field had an impact on the en quired and required business. The aim and goal might be curtailed by the previous unfairness in competition. Emancipating to non-progressive relations that might have propelled profits to greater heights. Substantially, interests of both parties are hindered. Business ethics outweigh profits they serve a purpose that strengthens the structures of business. Ethics 14 of 27

by Rex Coker
Created on: February 01, 2008

If you own your own business or work for some one that relies on business ethics,look at how they handle customers. A successful business owner knows if you have good ethics, the profits will come. Building a good foundation is far more important in the start up of a business. Good business ethics contribute more to the profitability and success of a business, rather than just looking from the profits point of view. Customer base businesses that rely on the customer coming back are detrimental in keeping a business out of the red. If you run your business with a firm base of ethics, the customer sees this as reliability in service and salesmanship. People pay close attention to how businesses are run. People often do not like to take chances when it comes to making money, but if you only look at the profit side of business you are loosing sight of what you are trying to achieve. The customer does not want to be a number in a long line, ready to give you their hard earned money. You have to be ethical to the customers needs, providing a helpful service to them and providing them with the attributes to keep them coming back. Customers want the services of companies that hold ethics high. It shows commitment and prestige. The set standards that are in place will provide the customer with a assurance that you stand behind what you sell. Work ethics, customer ethics, business ethics keep the business owner in the green. Setting an example to others that work in competitive environment that the job is being done at high quality standards. If you want to see a company that works off of profits other than ethics, Look at the IRS. The only thing they care about is the money you owe to them. They do not care how hard it is on you. They just want the money! We deal with them, because we have to. They are a branch of business type government that has no ethics, just margins and profits. Credit card companies are the same way, they want you to default on your on time payments, they make more profits that way. When you default on one missed payment, they can raise the interest payments from a low percentage to a higher risk percentage. The over all ways to look at good business ethics, would be like what would Bill Gates do? He made it to the top by having good business ethics. Supply and demand with his Microsoft business. The

profits came later, after he established a customer base for his product. We could get carried away by only thinking about the money and leaving every thing else on the back burner. We could only think of our selves as we travel down the business highway, leaving the customer to choose for them selves. We could do a lot of things different but like people, businesses are different to. Ethics and people go hand in hand and that is what makes a business a success. Ethics 15 of 27

by Will Powerz
Created on: February 15, 2010 When discussing business, i think it's helpful to take a step back and reexamine what we mean by that. It's easy to think that large corporations run the same way that small private businesses do. But is that really the case? I admit I haven't read Adam Smith's Wealth of Nations yet, but I have read his book The Theory of Moral Sentiments. In it contains a chapter on utility and a description of the "poor man's son". It's a very enlightening passage, which I implore you to read, if you have the chance. Smith claims that people place more importance on the means rather than the ends. So, a business man runs his business for the sake of making money. The money is the end - the goal, but the business itself is the means by which he reaches it. The business man runs his business for its own sake, with money being the measure of success. The business itself is like a pet or a child that the owner has a personal stake in maintaining. Smith describes it as a "perpetual satisfaction", like the pride one feels in watching one's child grow up. Now, being that business is about providing a sevice to people, there is a direct correlation between the quality of the service provided and the success of the business. Because the businessman's focus is on keeping a well-run operation, and the operation's focus is on helping people, the businessman's focus - by association - is on helping people. The heart of the matter is his personal stake in the business itself. This, I believe is Smith's idea of true capitalism. In large corporations, however, there is simply a chain of a uthority; a hierarchy of resposibility. I find it difficult to believe that even the CEO would have the same relationship to his corporation as the one I described above. Certainly not if he were elected to that position. They feel a responsibility to the sharehelders insofar as it allows them to keep their positions and their salaries. I don't believe these corporations have a place in Smith's world. There is no personal stake in keeping the corporation running smoothly for its own sake. So, do ethics outweigh profits? Of course they do; for the same reason that parents enjoy helping their children grow. Just as children are the objects of our pride and joy, so

businesses bring a sense of continual enjoyment. Money is only the measure of success, the way our children's happiness is theirs. Ethics 16 of 27

by Thaxton Lewis
Created on: March 30, 2008 The whole problem with the world today is gluttony. Not simply gluttony in the sense of consumerism or in the sense of eating, but in the sense of wealth addiction. Companies no longer take chances or wait to see a product develop, or retain good labor. Cutting costs, laying people off, getting cheaper and lower quality products, outsourcing, these are all things done to ensure that the shareholders make profits. But the repercussions are vast. The repercussions affect the world economy, they turn American into a third world shopping mall. When the quality of the products worsens so that profits are made, and the poor people of China and other countries work for pennies a day seven days a week, and we continue to buy cheap products and poor tasting food because many of our jobs have been outsourced and our economy is poor. The military corporate industrial complex continues to fuel its greed for money with the blood and life of young people and people around the world. When you are a billionaire, why do you need more? Why does someone or a group of billionaires need to cut costs by getting rid of all their employees who make more than ten dollars an hour? Why do they need to keep getting cheaper and cheaper products made and lowering the quality of our food and clothing just for an extra few cents? The gluttonous greed and the wealth addiction, along with the power and desire to control our government through lobbyists, making deals with the politicians, who are supposed to represent the interests of we the people, puts the proletariat, the average citizen, in a great deal of trouble and at a huge disadvantage. Due to the profits over business ethics mentality has lead to a wartime economy, it has lead to more layoffs, it has lead to less quality in both product and customer service, and as the cost of living goes up and the wages and quality go down, why shouldn't business ethics prevail. After all, if we utilized business ethics and treated people good, and put forth the extra few dollars, our economy would be stronger in the long run, our workforce would be intelligent and good at what they do, and the quality of life would change drastically.

Things would improve and then stay improved. The profit mongers want it now now now, it is like they have Veruca Salt Syndrome or something, they do not care when, they do not care how, they just want it now. It is really sad that anyone who is intelligent could believe that profits should come first. Many of the great writers and artists of our species have been poor throughout their lives. Money us not everything, nor is it the root of all evil. The evil comes from greed, and it comes from the need to control others and to dominate our experience as human beings. This is just unfair and it jeopardizes the health of millions of human beings, and I do not think a small percentage of the species deserves to benefit from millions of poor human beings slaving away for the benefit of these elitist overfed few. Business ethics could help save the environment, slow the overpopulation issue, help deal with the toxicity of our air, and reinvigorate a species that overall has been always suffering under the elite few. The downtrodden many could use a lift and so could the human race, and business ethics could let the majority if humanity experience a reality beyond mere indentured servitude. Ethics 17 of 27

by Todd Pheifer

Created on: April 10, 2008 When you talk about "importance", you are getting into the realm of values, versus practice. Of course, people will argue that practice is the manifestation of values, but the fact remains that we like to talk about what we "value", even if we choose to take other actions or pursue other systems of beliefs in our daily live. Much also has to do with your personal philosophy. We talk in this world about "doing the right thing" or following the "Golden Rule", but at the same time personal wealth is highly valued, at least in the western world. Democracy actually means capitalism, which for many people means as much profit as possible. If people need to adopt an attitude of "moral flexibility" in order to reach certain profit levels, they may go down that road. Here are a few specific thoughts on whether business ethics or profit is more important in today's society. ETHICAL BEHAVIOR Again, one has to have a reason to pursue ethical behavior. For some people that is religious beliefs. For others it is just an ingrained philosophy of human compassion and caring. What is crucial for business ethics is to articulate why they exist. It is one thing for an organization to define their ethical standards. However, it is quite another to define why they wrote them in the first place. In the absence of reason, people start to set principles aside because other desires are more powerful and more tangible. Do I want to do the "right thing", or do I want to get a big bonus so I can buy that nice car that I deserve?

PROFIT MARGIN In some ways we use profit in this country as an excuse to set vague ethical principles aside. We like to use phrases like "I have to feed my family" or "it isn't personal, it is just business". Or, we shift the ethics to the organization and say, "we have a responsibility to our shareholders". That takes the decision-making away from the individual and puts it in the hands of a nameless, faceless entity of stockholders. When you are working to appease another group, ethics can be set aside because the outside group has become the ethical barometer. Since profit is easy to understand, then people gravitate towards that goal, rather than trying to understand the vague philosophies of ethical constructs. Overall, I would like to think that business ethics are more important in society, but I have seen too many people that "talk a good game" about ethics and then put profit first. Again, what we say and what we do can be different, but ultimately our actions determine who we are, despite the values that come out of our mouth. Ethics 19 of 27

by Joseph Malek

Created on: March 28, 2008 Last Updated: July 18, 2008 Ben Franklin said: "If you are good at what you do, people will beat a path to your door." That much is as true today as it was during a time when people desired to remove the economic extortion imposed by King George III and the vast imperialism of the Empire of Great Britain. You see, the idea of interchangeable parts as a means to produce arms for the American Revolution proved to be a major factor for "We People of the United States of America" to, at last, cast off the bonds of serfdom, in favor of a better way in which to stay healthy and alive. Well, that better way is known to all of us as Democracy. So too, when our Democratic System of Government fails to insure the well being of the majority, something is clearly wrong somewhere. The struggle to remain free of economic repression should be one fought on a daily basis by every person within the United States of America. Recessions and depressions are the result for people within Countries where the elected Politicians do nothing in which to maintain a stable economy where inflation is a very slow and a nearly imperceptible factor in the economic equation. So too, the shock and awe of war is nothing more than a clever diversion, by President Bush and his Republican Administration, to restore the practice of serfdom, World-Wide, as a means to control the resources and the people of the entire World. Prove me wrong. Some say that President Bush and each and every member of the Republican Party are nothing more than the bank-rolled and the elected "Yes People" of the richest people on Earth. The legalized extortion of the majority is just as bad as the imposed repression of King George III. Can this mean that the rule of Royalty is again joisting for a position at the top of our social order and our belief in a Democratic way of life?

Well, until the Pope or some such Religious Leader proclaims that President Bush, as part of a Religious Ceremony, was selected by God to be the Leader of His people, President Bush will remain nothing more than the worst representation of the Number One Symbol of Democracy that "We People" elected or will ever elect to the Office of President of the United States of America. You see, he did nothing but support the richest minority of the richest people on Earth and he and his follow Republicans used our hard earned money to continue that work. That is why the rate of inflation is rising higher than a kite in a hurricane. That is why the owners and the controllers of those Multinational Corporations are allowed to continue to export our jobs to Foreigners within Foreign Countries. That is why our record balance of payments deficit rises higher with each passing minute. When all of the wealth is sucked out of the people within the United States of America, then what? Will we have another Revolution or another Civil War for the purpose of protecting our God given rights, or will "We People" simply become homeless and die on the streets within the once beautiful cities within the once beautiful Country of the United States of America? Sure, any business must earn a profit, in order to remain in business. Then again, when that's the only business in town and that business gives back little or nothing of value for the consideration received, that business will be profitable, no matter how high its prices for all of the things that "We People" need, in order to stay healthy and alive. That, Dear Reader, is not only unethical but it is also immoral and truly is contrary to all that "We People" hold so dear to our heart. Who will you vote for in 2008? More important, who will you vote out of Public Office in 2008?

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Are business ethics or profits more important?

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by Jose Astorga
Created on: March 29, 2008 I am continuously amazed at how there are two sides to every story; every issue. This duality points to the diversity of thought among the populace. It is why politicians can't agree on anything. Differences of opinion can lead to the resolution of complex issues if biases are removed from the analysis of issues and the resulting debates-a very difficult thing to do. On the question of ethics versus profits, I didn't expect to see anything on the profit side. How nave. I suspect that individuals with movable ethical boundaries would be highly successful executives-short term and without any real loyal following. I've known individuals that compromised ethics in order to achieve profits or objectives, and my associations with them were short lived. I severed relationships not because I was morally offended, but because I saw how their personalities changed and how they treated anyone perceived to be in their way. Sometimes, I did not recognize these moral dilettantes.

Let's make one thing clear; business exists to make money. There is no other reason. However, the business or executive that does not profit ethically will eventually pay a price. We've seen it over and over again over the last few years. From what I understand, even the current sub-prime mortgage debacle that has caused so much financial ruin can be attributed to questionable business practices and a lack of ethics. What am I missing? Ethics does not have to revolve around religion, human rights or animal rights. The ethical person does not require a label to guide her behavior. Business ethics is simply doing the right thing within a particular business context. Unfortunately, it sometimes takes one person to take a moral position for questionable business practices to receive attention, as in the story presented by Liz Roberts about the Body Shop and Anita Roddick. Nice story where one person made a difference. We are not all Boy Scouts all the time. There is no question our moral foundation can be rocked, but it doesn't have to break. I've often acted ethically from an innate grounding. I have also acted ethically from a desire to avoid unwanted repercussions for me or my colleagues. I look out for my comrades even though they don't always look out for themselves. Business and ethics are not discordant. Most of us adhere to personal rules that govern our social and business behavior. But, I have one rule that is cast in stone and has never nor will it ever be broken: no success will be achieved at the expense of another. Business can be a brutal competitive force leaving many casualties behind on the road to success. However, we must always respect and appreciate the difference between the byproduct of capitalism and the victims of greed and gluttony. Beware of those who practice situational ethics; at some point, it will be practiced on you.