Is there really a conflict between business ethics and profit? To answer this question, I think first we should define what business ethics means. According to John Donaldson, business ethics can be described as “the systematic study of moral ethical matters pertaining to business, industry or related activities, institutions, or practices and beliefs. It is the systematic handling of values in business and industry.” As a professional working in the business world, what business ethics basically means for me is doing business in a morally right way. Morals can be a very broad and subjective term and may mean different things for different people, culture and society. Thus, bases of business of ethical systems can stem from legal, organizational codes, religion, philosophy and culture
Ethics in advertising is important, because by acting ethically with their advertising, a company is being responsible towards the needs of the customer. Ethical advertising evens the playing field for the consumer by giving them the information they need to make an informed decision on what products to buy and how these products will enhance their lives–whether they need the product or they just want that product. Companies need to show they have morals when advertising to consumers, because that makes consumers’ feel like the company cares about what they need. This shows that the customer is protected by a company that is behaving in a way that makes a difference to the community they work in. Companies need to work with the community in a way that is sustainable and keeps all the stakeholders happy. One way to ensure sustainability is hiring local employees when possible rather than outsourcing production to other people in other countries.
A superior inspiration for ethical behaviour is the advantage it gives, both personally and financially. Other than making the best choice, principled business direct can likewise be profitable. Ethical conducts may result in an excellent business.
According to Jon Bertilsson, when brands engage in ethical branding in order to separate themselves from their rivals and to interest ethically cognizant purchasers, it is just a matter of time before they have to begin making it important among ethic and profit. As an example, Ikea Collection. They have outlined this issue fairly where the Saudi Arabian catalogue where the womans were digitally embellished out in order to adapt to the locals and the Saudi Arabian Markets. In a long term, it subsequently appears to be difficult to believably wed the hidden theme of self-intrigue expansion with the basic interest in public good as basis for ethical behaviour.
Ethical companies are mission driven companies and such companies are coherent per se and exists in the self interest of all including the collective rationale of the economy. Their actions leads to efficiency in the economy to form. This will lead to better value for currency and protection of household wealth and in turns provide value to currency and enhanced purchasing power to citizen also based on low inflation in the economy to prevail. This situation creates the wages to remain normal and companies are not strained by frequent wage revisions in the upward directions due to their help in maintaining the economy in efficient equilibrium. So, their efforts pays off in the long run having lesser labour in protecting their wealth with strong and stable currency, efficient markets, equilibrium and stability in the economy, better welfare, low risk of market failures and satisfied and healthy consumer who come back more for their products as well as less worries on rising costs to production on a frequent basis. Overall whatever decisions they take, if it is transparent, coherent, scientifically anchored will be true to first principles and if so then it will be produce positive outcomes for their efforts thus reducing other types of incoherent labour needed to exist in an inefficient economy.
Along these line rather being contradictory to ethics, business ethics directs that the main duty of business is to stay beneficial and produce income from the investors and the public, or maybe it is unethical not to make any. This, the matter of first importance in ethical commitments of each business is to make profit for its investors, its presentative, banks and itself with that goal that it can release its social responsibilities and welfare responsibilities. Be that as it may, how much profit to make, what are the methods and strategies to make it and at what cost that is the moral inquiry.
An organization has to make their right decision. Stop saying “everyone does it”. Having unethical behaviour is the opposite of right and fair. It however reflects a company as well as their brands. People expects companies to be more professional. Instead, be those who expressed “Do the right thing.” Doing what is right is a choice. People often do the right thing because it is the right thing to do I trust that business ethics and profits can go as an inseparable unit. Be that as it may, it takes individuals with high respect for ethically great principals and moral qualities to set the tone on top on how things ought to be done in the organization. Sometimes in the not so distant future, I trust more pioneers will show others how it is done, picking and resolving the remain on the ethical route in the accomplishment of the organization’s objective. Business needs to stay ethical for its own good. Unethical activities and choices may yield results just in a very short run.
For the long presence and maintained profitability of the firm, business is required to act morally and to run activities in ethical lines. Doing such would establish a solid framework for the business to proceeded and maintained presence. Everywhere throughout the world, over and over, it has been exhibited that it is just mora associations that have kept on surviving and develop, while unethical ones have indicated results just as fleeting sensation, rapidly developing and considerably more rapidly passing on and overlooked. Business needs to work as capable corporate residents of the nation. It is that organ of the publics that makes and creates the wealth for the nation. Consequently, business can play a very exceptionally critical job in the modernisation and improvement of the nation, on the off chance that it does as such. In any case, this will initially expect it to turn out from its tight mindset and much smaller objectives and intentions. Some say that ethics is a slippery slope.
Many recommend that ethical companies have favourable position over their rivals. Proprietors of Ben and Jerry’s Ice cream quoted that “consumers are used to buying products despite how they feel about the companies that sell them. But a company driven by values earns the kind of customer loyalty most corporations only dream of – because it appeals to its customers on the basis of more than a product’.
Brady Rothschild (2015, December 13). Why it’s important to have ethics in Advertising….Especially to reach Millennials.
Retrieved from https://thegossagency.com/2015/12/13/why-its-important-to-have-ethics-in-advertising-especially-to-reach-millennials-2/Parimalendu Bandyopadhyay (2007, March 10). Business Ethics and Profits.
Retrieved from http://www.indianmba.com/Faculty_Column/FC529/fc529.htmlDavid E. M. Duboulay (n.a). Profitability Vs Ethics- which should come first in Business?
Retrieved from https://www.dazzlethemag.com/profitability-vs-ethics-which-should-come-first-in-business/