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Business Ethics

Introduction

People or countries all over the world are coming under one umbrella. Whatever the development happening in one country whether it is positive or negative will affect the other countries as well The trends in the business sector have changed drastically for the last 2 decades after the implementation of Liberalization and Globalization. Ethics in business is always a much debated term. The fluctuations in world economy in the past decade affected almost all types of business badly not only in U.S. but all over the world.

Even the multi billionaire companies found it difficult, to exist in the market. The concepts of business negotiation have been changed a lot in the modern century. Earlier the ultimate aim of a business negotiation was the success in getting an order for the organization at any cost. Now the business negotiation process is nothing but building relationships. To capture business from the customers now lot of new strategies are implemented by organizations.

The principles of business ethics also changed a lot. The business method which was unethical earlier is ethical nowadays.” Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer” (Garry Crystal-What is Business Ethics? )

Businesses are more likely to succeed when they base themselves in ethics—in honesty, integrity, and quality Businesses must look at the “triple bottom line”: financial, environmental, and social impacts (and this will require major pressure: currently” (Business Ethics Pledge). I have a friend working in Dubai for an Advertising company as a Marketing Executive. He has told me an incident in which he was able to capture a big business without violating any ethics in business.

He got a project for Philips Company, from an Advertising Agency for making some dispensers to showcase their new “Philishave” products all over the Gulf region. The Ad Agency Production Manager was a smart guy and he has divided the entire project in to two categories. He allotted the difficult project to my friend and the easier one to another company. The Production Manager was well aware that the though the prices of my friend was high compared to others, the quality also good which others cannot compete.

The easiest part which can be managed by others, he has allotted to another company since their prices were much lower than my friend’s. After studying the sketches of the dispenser my friend has called the Production Manager and told him that it is better to do the entire project under one factory since two portions made at two different factories may not fit properly while assembling it even if both of the manufacturing units adopt the same standards. He asked the Production Manager to either allot the entire work to him or to the other company. Finally the Production Manager got convinced and he has allotted the entire package to my friend.

There is nothing unethical in this incident though the competitor think other way. My friend has not violated any Business Ethics. He has identified a probable anticipated headache for the Production Manager and made him aware of it. It is his duty to advice the client about the possible problems which may arises while executing the project. The Production Manager has conveyed his gratitude to my friend for making him aware of the possible headache.

The Production Manager has developed more faith in my friend’s abilities and has started to allot him more and more projects. Though the end result was positive for my friend, the competitor may not have such good feelings about my friend since they lost one big project. In business such feelings don’t have any place. My friend never told anything wrong about the competitor but

Business Ethics 4

asked the Production Manager to allot the entire package to one company. So nobody can complain that the Business Ethics standards are violated.

“Employees must understand that ethical behavior is demonstrated not only in how they act toward others but also in how they treat property that doesn’t belong to them. The key to success is understanding, who owns what and what boundaries exist for its use”(Business Ethics) . But unethical approaches are common in business nowadays. Because of the tight competition and the bonuses offered to marketing executives for capturing new business has led the way to lot of unethical incidents.

One of the most common unethical methods of capturing business is influencing the person who is responsible collecting estimates from various service providers. This person can give the details of the estimates he received from other suppliers to the person or company to whom he have bribe contracts. Based on the details received from the estimates already supplied the intruder company can prepare his estimate to attract the top management of the company who is allotting the projects.

This behavior is totally unethical to the business concepts. The ideas or prices developed by a company after a hard work will be made use by another company by using bribes. This is a case in which the followers can undercut the leaders in the market. But the problem behind such illegal things will be the spoiling of mutual relationships.

In the above case the person who is collecting the estimates can just convey his favored supplier and other suppliers that he has got competitive prices and specifications for the same project from different customers without disclosing the details. The favored supplier and others can re- work and re-submit a new quotation for the same project giving details for re-submission.

This is totally in line with the ethics of business. Thus the unethical method can be made ethical and thereby both the suppliers and the company providing projects will get mutual benefits. it may be up to the public to make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between.

Sources

  1. Business Ethics Pledge – Retrieved on 11/11/08

 http://www.business-ethics-pledge.org/

  1. Business Ethics – Retrieved on 11/11/08 http://humanresources.about.com/od/businessethics/Business_Ethics.htm
  2. Garry Crystal – What is Business Ethics? – Retrieved on 11/11/08

http://www.wisegeek.com/what-is-business-ethics.htm

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