A. Video 47: Ethics: Business Ethics an oxymoron?

Question: Isn't the term "business ethics" an oxymoron?

People often joke that "business ethics" is a contradiction in terms. What they are
referring to is the apparently inherent conflict between morality and the pursuit of
profit. The implication is that if a company has to choose between profits and doing
the right thing, profits will always win. If business is about making a profit, can we
really do so while still acting ethically?

The answer is that businesses can and do act ethically. And they do so because good,
ethical behavior is the best long-term strategy for a company. That's not to say that
ethical behavior always pays off financially or that unethical behavior is always
punished. Actually, doing the right thing can sometimes be quite costly for a business,
and doing something unethical may pay off, at least in the short term. What we mean
by "the best long-term strategy" is that for the most part and over the long run, acting
ethically can give a company a significant competitive advantage over companies that
do not act ethically.

In fact, several studies have looked for a correlation between good ethics and good
corporate performance. There are plenty of examples out there of consistently
profitable companies that also have a longstanding history of ethical conduct -- for
example, Patagonia, Home Depot, Levi Strauss, and The Body Shop. Other studies
have looked at how socially responsible firms perform on the stock market, and have
concluded that ethical companies probably provide higher returns than other
companies. It is true that some studies show no real correlation between ethical
behavior and corporate profits. But we do know that no study's been able to prove a
negative correlation between ethics and profitable operations.

Beyond studies, though, there are other more basic ways in which ethical conduct
figures in a business's long-term strategy. Business -- like human life -- is a
cooperative activity. Its very existence requires some minimum ethical standards. No
business, just like no community, can survive if its members begin to believe that it's
OK to lie to one another, to steal from each other, or to go back on promises. This
kind of unrestrained self-interest results in a breakdown of society. Without minimum
ethical standards in place in a society, its business activities will also collapse. If you
don't believe that, just look at the long term breakdown of business activity in war-
torn areas like Lebanon and Afghanistan, or even temporary business interruptions in
Buenos Aires or Los Angeles, as a result of political uncertainty and distrust, civil
unrest, and ultimately rioting.

Next, remember that businesses act rationally when seeking profits. That rational self-
interest might actually dictate acting unethically when there's something to be gained.
Doing the right thing is almost always costly, at least in the short term. But because
business involves reputation and relationships, unethical behavior usually backfires in
the long term. If a business takes advantage of its employees, its customers, or its
suppliers, these groups and maybe even others will often find a way to retaliate - by
refusing to work for or buy from the company. Over time, unethical behavior can
undermine good relationships with all of the stakeholders of a business: employees,
creditors, customers, suppliers, shareholders, and even the community in which the
firm is located. Ultimately, unethical behavior tarnishes a business's reputation.
Particularly with the advent of the Internet, more information than ever is available
 about corporate conduct, both good and bad. Because most people prefer justice and
fairness, they are more likely to want to do business with a company that does good
than one that does not. In the end it is unethical behavior that becomes costly, and
conversely ethical behavior creates its own competitive advantage.

No, "business ethics" is not an oxymoron. The corporate pursuit of profit can and
should survive -- and even thrive -- alongside ethical behavior.

http://www.swlearning.com/blaw/wdvl/wdvl/student/ai/ai_03_script.html#:~:text=Doing%20the
%20right%20thing%20is,backfires%20in%20the%20long%20term.&text=No%2C%20%22business
%20ethics%22%20is%20not%20an%20oxymoron.

B. Introduction

Business ethics refers to application of rules and regulations that govern business conduct by
both individuals and organizations (Shaw 35). It forms a basis for the philosophy that gives a
business or an organization a purpose to operate. The complexity and demands of business in
today’s world have changed how business is executed. Business owners determine what is
ethical and what is unethical (Duska 73).

Business and ethics are incompatible and that is why business ethics is an oxymoron. The main
purpose of a business is to make profits. However, this is difficult to achieve without adopting
stringent measures considered unethical by the society such as aggressiveness and competition.
These measures ensure that business transactions are profitable and lead to growth of a business
despite being considered unethical.

Discussion

Business ethics is an oxymoron because business and ethics are incompatible. Therefore,
businesses should focus on what they do and leave ethics to individuals. Looking at their
respective definitions gives an indication of two contradictory sets of principles. To ensure
success in business, it is necessary to prioritize personal interests.

This requires aggressive competition with other businesses, an insatiable appetite for money and
power, and stringent business principles. It is difficult to achieve these business ideals by being
overly ethical (Shaw 43).
The contradiction presented by business ethics is similar to that which faces employees when
required to make decisions that involve conflict of interest. Business and ethics have different
objectives that are incompatible. Business values conflict whereas ethics does not.
The globally accepted concept of business is competition for available resources while trying to
hoard as much resources as possible (Duska 77). Aggressive competition leads to creation of a
hierarchy that divides people into different economic classes leading to elimination of those who
are unable to compete. This is considered unethical because it does not give equal opportunities
to everyone. However, that is the foundation for success in business.

Business ethics does not play a role in the business world where making profit is the motivation
for setting up and running a business (Duska 78). Examples of contemporary use of unethical
measures include Enron, Bernie Madoff, and the subprime mortgage scandal that led to the great
recession.

The examples show that even though business ethics is lauded as vital in business, it does not
apply in the business world and only exist as a concept (Shaw 55). In most cases, high profits are
attained by engaging in unethical practices. In addition, business ethics involves doing the right
thing.

Businesses prioritize by first doing what is right for their operations and then what is right for
customers. Furthermore, business ethics is an oxymoron when looked at from an altruistic
perspective. For example, in some religions such as Islam, taking interest is unethical. However,
it is ethical in many other religions (Boatright 63). This view represents an extreme side of
business ethics that is determined by religion.

Many business decisions and operations involve intricate situations that are neither fully ethical
nor fully unethical. As such, it is difficult for businesses to do the right thing. Values such as
respect, honesty, and trust determine an individual’s ethical behavior. However, they are
disregarded during tough situations that demand stringent measures. The same principle applies
to business. Some situations are so difficult that they necessitate measures that are otherwise
considered unethical (Boatright 66).

Businesses deal with numerous challenges such as inappropriate use of resources and
mismanagement of business operations. These activities are executed by unethical individuals
who fail to put the interests of the company first. It occurs automatically that businesses are
forced to share the consequences of these unethical behaviors among all stakeholders (Boatright
68). Otherwise, they fail to achieve their goals and objectives.

It is the responsibility of a buyer or customer to conduct due diligence to ensure that a product or
service on sale is of high standards (Duska 84). Businesses should focus on providing the
product. Businesses provide goods and services that match the financial abilities of customers.
For example, during an economic recession, customers have little money to spend.
Therefore, businesses cannot provide the same goods and service they provide when customers
have a lot of money to spend (Shaw 58). This is because products of high quality have more
expenses and that is why they are expensive. However, customers consider it their right to
receive the same quality of service all the time. To businesses, this is hard to achieve unless
customers are willing to spend more money. Otherwise, services will be of a lower quality.

Conclusion

Business ethics is an oxymoron because of the incompatibility between business and ethics. They
both have different aims. Success in business requires practices that are considered unethical by
the society. For example, aggressive competition and elimination of competitors by stringent
measures is considered unethical because it denies other businesses an opportunity for
prosperity. Business and ethics are incompatible. Therefore, businesses should focus on what
they do and leave ethics to individuals.

Works Cited
Boatright, John. Ethics and the Conduct of Business, 6/e. New York: Prentice Hall, 2000. Print.
Duska, Ronald. Contemporary Reflections on Business Ethics. New York: Springer, 2007. Print.
Shaw, William. Business Ethics. New York: Cengage Learning, 2010. Print.

https://ivypanda.com/essays/business-ethics-is-an-oxymoron/