Business
The statement of McMurruan and Matulich can be validated by the fact that companies that observed ethical conduct in managing their business have flourished and those that were unethical were doomed to fail. The importance of ethics in every company will have a positive long term effect in the business since it enhances the productivity of the business. It is through formal ethics and legal compliance programs that ensure positive impact in every company (Trevino & Brown 2004, 73).
According to Smit (2009), the importance of ethics in business management will complement the sustainability of companies in the 21st century (Smit 46). Compliance with the law has been recognized as the minimum acceptable standard or the moral minimum standard in carrying out the ethical business behavior for the benefit of every company (Miller & Jentz, 2010). Business ethical standards can be applied universally since many companies across the world since the success of companies can be attributed to business ethics. When a company practices ethical conduct within the business, it aligns its cultural system to maintain the value of trust and the longevity of relationships with multiple stakeholders (Trevino & Brown 2004, 73).
When a company makes a decision that is compliant with the values of honesty, integrity, and respect for others and disregarding financial gain will promote the success of a company (Colins, 2009). One example of a company that faced an ethical dilemma is Apple Inc. Its CEO, Mr. Tim Cook had to resolve an ethical dilemma when one of Apple’s suppliers’ (Foxconn) workers threatened to commit suicide after they raised the issue of inhumane working conditions.
Apple had affirmed is strong commitment to practice corporate social responsibility after it became an active member of the Fair Labor Association to promotes the rights of the workers. An example of a company which did not comply with ethical practices is Merrill Lynch, when it gave out $3.5 billion bonuses to its employees and executives to the detriment of the shareholders. The failure of Merrill Lynch to practice ethical business conduct became the cause of its downfall.
Works Cited:
Colins, D. (2009). Essentials of Business Ethics: Creating an Organization of High
Integrity and Superior Performance. New Jersey: John Wiley and Sons, Inc.
Jakobs, R. (2014, April 21). Good Business: Why Placing Ethics Before Profits Pays Off.
Gulf Business.
McMurrian, R. C., & Matulich, E. (2006). Building Customer Value and Profitability
with Business Ethics. Journal of Business & Economics Research, 4 (11), 11-18.
Smit, Arnold. “Responsible Leadership Development through Management Education:
A Business Ethics Perspective.” African Journal of Business Ethics 7.2 (2013):
45-51.
Trevino, L. K. & Brown, M. E. (2004). Managing to be ethical: Debunking five
business ethics myths. Academy of Management Executive, 18(2), pp. 69- 81.
