Tuesday, February 7, 2012

“Business ethics are the rules of conduct concerning practices and behaviors that are acceptable and unacceptable in business” (ProQuest). Business ethics are very important because they are meant to hold a certain level of conduct in the workplace. They are instilled to create a safer, more efficient work place. I think that business ethics are a very crucial part of today’s business world. If they were not in place and enforced, many companies would be inefficient on a severe level. Businesses also cannot be called ethical if they are practicing with other unethical businesses. The chain of supply has to ethical for one business in the chain of supply to be ethical. Examples of suppliers not being ethical would involve child labor, sweatshop production, violation of basic rights for workers, and/or health standards. That is only one area of business. There is also advertising, pricing, contracts, and personal selling. Without business ethics, businesses could price how they wanted or have cheap labor. A classic example of an unethical business was Enron. In this case, accountants “cooked the books” to add more assets than they really had in the books, making their revenue ridiculously high. Also, they sold energy to the public. They ended up having high prices and created rolling blackouts for the west coast by turning off electricity and saving it, while consumers still paid for bad service and no electricity. Before they declared for bankruptcy in the fall of 2000, Enron had revenue of about $101 billion. The case with Enron did not scare off bad business practices though. Business ethics need to be more harshly enforced.

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