This action might not be possible to undo. Are you sure you want to continue?
Nelson Pizarro Corrales Human Resource Mgmt 2Fall 2010 Marcie Cudmore
the United States. What kind of training they are receiving future entrepreneurs? Is private conduct should be geared solely to generating profit? What limits should govern the competition? These are just some of the questions that have crossed the business forums. because "business is part of human activity and therefore is inherently moral. From these discussions. have proliferated publications. When . seminars and other forums of discussion on ethics in business. Perhaps much of this sudden and renewed interest in good corporate act has to do with the many financial scandals that have occurred since early 2001. and culminating in Inverlink group in Chile. starting with Enron. many have argued that unethical behavior is inevitable in an economic system based on free competition and profit maximization. there are employers to justify questionable actions under the pretext that "business is just business.Introduction Since a time to now. Fortunately. Thus. but in the ethical standards prevailing in the business world in general." But this is not true. the public debate has not focused exclusively on executives and accountants responsible for these financial turmoil.
The free market right next to an act of business is possible. whether to accept or not the practice of bribery to obtain sales and business. whether to deceive or not the consumer with communication. when you take all these decisions cannot separate the technical from the moral. . multiple studies show that investing in ethics is perhaps one of the most profitable for businesses. In addition.acting as a person and makes a decision about what advertising campaign launch or what kind of product do.
" But this is not true. whether to accept or not the practice of .Means and ends Business ethics is about how a company integrates a set of moral goods such as honesty. whether to deceive or not the consumer with communication. The unethical behavior in an economic system based on free competition and profit maximization. proper ethical conduct in business has to do with the means chosen to attain the good of the company (its consolidation through the generation of profits) with the aim of effectively contributing to the members of the corporation (workers and employers) and society (consumers) reach their fullest. trust. respect and justice in their own policies and practices as well as in decision making at all levels. there are employers to justify questionable actions under the pretext that "business is just business. When acting as a person and makes a decision about what advertising campaign launch or what kind of product do. because "business is part of human activity and therefore are inherently moral. And although there is no proper business ethics. several principles and exercise of certain virtues which fit under this heading. From a theoretical point of view. Thus.
it fought with courage. there are those who fight the ethical considerations related to the business. And as in any good war. ³Others have a more nuanced position and argue that the best companies are those that are prepared to fight another breaking a rule: "The ethical standards governing companies are like the rules governing a game of poker". when you take all these decisions can not separate the technical from the moral. multiple studies show that investing in ethics is perhaps one of the most profitable for businesses. is a faithful exponent of this thesis: . In addition. the father of neoliberalism. a vision that attaches only to companies seeking profit. The free market right next to an act of business is possible. bravery and without morality. Milton Friedman.bribery to obtain sales and business. Such statements derive most of the time. In fact. However. Some characterize the corporate world as a jungle where all forms of competition are valid: "In business to be fought like a war.
fulfillment and development. Quite the contrary. As maintained by an entity dedicated to corporate social responsibility: . namely free and open competition without falling into fraud or deceit". nor can be. since they use their resources properly and produce goods and services the market demands. But is not the profit motive as bad thing itself. In fact. But the profit motive is not."There is one and only one social responsibility of business: using its resources and engage in activities designed to increase profits while respecting the rules of the game. for work is one of the occupations most dignified human beings. profit-making is only the means by which business helps women achieve happiness. The beauty of being ethical Contrary to what one might think. better results than those who do not. Profitable firms are precisely those that endure over time. the essential mission of the company. empirical evidence shows that firms with a strong ethical culture obtained in the long run.
shareholders and tax law. In the United Kingdom. A recent survey conducted in 25 countries by Environics International found that nearly 50% of consumers thought punishing a fruit company that considers negative social actions."Be kind to workers. Indeed. environmental costs and demand loss may be catastrophic situations. two in . So. business ethics creates the following effects: a) Improved financial performance. A 1999 study conducted by DePaul University (USA) at 300 large companies found that the market value of the firms that made an explicit commitment to adhere to its code of ethics was twice the value of those companies that do not did. b) Go up the sales and enhance corporate image. makes the company more attractive in the eyes of the public. and that nearly 30% have avoided buying products from a company for this very reason. everything is cheaper. the environment and the community in which we live. because of strikes.
A survey made in America by Walker Information found that only 6% of employees think their leaders do not behave correctly prefers to stay at your company. considerably raise the costs of private activity. c) Strengthen the loyalty and employee engagement. which. there is a risk that the public machinery and implements stringent audit provisions unreasonable. although not be effective in their work. Another U. this time the Hudson Institute. according to public relations firm Quentin Bell Organization. d) Increase the up regulation of the markets. In fact.three consumers have boycotted at least one brand to fall into unethical behavior. job commitment and loyalty. commit fraud and do not fulfill their commitments. survey. .S. found a positive correlation between high ethical standards. while 40% of those who believe that their superiors are ethical wishes continue in his current job. and concluded that employees who feel engaged in ethical environments are six times more loyal than those who believe that their organizations are not . If companies and their workers do not act with honesty.
the financial scandals of recent years have created laws that reduced the scope for action by U. e) Avoid losing business. there are precedents that show that governments are willing to suspend agreements or penalize companies that are perceived as frivolous. The confidence and assurance that a company will meet its commitments directly impacts the easy availability of other resources to develop their projects. the Sarbanes-Oxley Act tightly regulates audits. A bad corporate reputation can be . business analysis and other services related to the financial market. safety and environment. Large companies extend their own ethical practices to their suppliers as well as supplying firms without such habits can see canceled their contracts and / or lose future business. companies. Today. Similarly. f) Provides greater access to financing.S. In 1999. For example. in 1998 Shell canceled contracts with 69 companies that had failed in its adherence to its policies on health. the Japanese government revoked the license to conduct business at a European bank for improper financial accounting practices.
closed altogether or excessively expensive the possibility of taking bank loans or issue bonds in the capital market. .
. shook the business community because it hit the base of the free and competitive economy: trust. or have an almost negligible or very indirectly. especially those that occurred in Chile. While some believe that moral concerns have no place in the world of business. the fact is that both theory and corroborating evidence that full respect certain principles and virtues have a very positive impact on enterprise development.Conclusion The global financial scandals. This provides an excellent opportunity to highlight and promote a greater concern for corporate ethics.
³Ética y Negocios´en revista Intus Legere n° 1. Rafael Mies. 3.bsr. 5. 1968. ³The social responsibility of business is to increase its profits´ en The New York Times Magazine. Anuario de Filosofia. . ³The dangers of social responsibility´ in Harvard Business Review n° 58507. Business for Social Responsibility. pp.References: 1.cfm?Document ID=48815. September 13 of 1970. ³Ética y mercado: ¿son compatibles?´. Milton Friedman. ³Overview of Business Ethics´ en Issue Briefs. Albert Z. 1958. ³Is business bluffing ethical?´ in Harvard Business Review n° 68102. 135-144 2. published in internet: http://www. Theodore Levitt.Álvaro Pezoa. 1998.org/BSRResources/ Issue Brief Detail.Lecture dictated at Duoc UC. 4. Carr. Historia y Letras de la Facultad de Humanidades de la Universidad Adolfo Ibáñez. 6.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.