Sustainable development and business ethics are interrelated in many respects. Sustainable development is understood as a form of human development where resource use aims to ensure as human needs are met the natural systems and the environment is sustained. Business ethics on the other hand refers to the principles that govern the acceptable conduct in business organizations. Any business organization that has sober set principles can easily respect the legal procedures that govern the use of resources found in the natural systems and environment. Many states have ratified laws that protect and regulate the use of resources fostering economic growth and industrialization without environmental degradation or damage. In this paper, several articles such as Sustainability and The third World by Adams W. M and Why Business Ethics? By John Hooker, are going to support the basis of my perceptions on Sustainable Development and Business Ethics.
The “Why Business Ethics?” Article explores fundamental issues that many business owners rarely take into consideration. Many business owners assume that there must be incentives or motivation for one to abide to business ethics. Business ethics in my opinion are same as good deeds where an individual should not strive to be good in order to be rewarded but rather to be good because being good is good. Ethics were created specifically because they do not always coincide with self-interest but rather the greater well-being or good in the business environment. Business ethics show that one can be ethical and succeed in business. Many businesses ethics argue that all managers want to do something positive with their lives and investigate how to accomplish this through business. I disagree with Milton Friedman that is adversely mentioned in this article arguing that the social responsibility of any business is to increase its profits. Friedman further advances two main arguments for this. First, the managers and directors of any business are only qualified to create profits only and not making any social policies. Second, corporate officers have no right or mandate to do anything other than maximize profits .These arguments are faulty in the modern day business. A company’s reputation is built on its impact on the surrounding environment which encompasses the community, employees, natural resources and ecosystem. A good reputation goes a long way in enhancing a business image and acting as the ultimate marketing tool that will see many customers and profits streaming in. The inadequacy of Friedman’s philosophy is particularly prevalent in the business international front as there less legal restrictions. The Nestle corporation case cited in this article is a clear explanation of this. The nestle company were justified as they were churning out a legal and profitable product but ethically wrong as the product caused young babies to suffer. Ethics thus are essential as they touch on how a company’s decisions affect everything. The ethics operate on globally encompassing concept that influences relations with all stakeholders.
Sustainability and the world development is the next article that cites the various decisions made by the United Nations in managing the environment with the rapid economic growth and industrialization. In my view the strategies observed in this article such as maintenance of essential ecological processes and life support systems, preservation genetic diversity and sustainable utilization of species and ecosystems are strong. The maintenance of essential ecological processes and life support systems involves soil regeneration and protection, nutrients recycling and the cleansing of waters. The preservation genetic diversity dwells on protection of the range of genetic material found in the world organisms. The sustainable utilization of ecosystems and species ensures wildlife, forests and grazing lands is preserved and used consciously. These strategies however have to be backed up with proper specificities that define how they are to be implemented. The global multilateral cooperation is vital between the rich and poor nations to achieve the aforementioned strategies. Many third world countries lack the means the environmental preservation policies as they lack the funds and the political goodwill to do so. The Brundtland Report captures this as it deliberately broadened this debate. In 1986 it led directly to UNCED in two ways one, debate on the report in the UN assembly and secondly the adaptation of the green growth declaration. The Assembly debate came up with incentives that sought to persuade both the rich and poor countries to negotiate on the going green initiative. The negotiation, however, in my view took long because of vested interests from all parties. The proper resources utilization is key for any country’s economic growth.
The policies set by the United Nations if followed to the letter will shield the bad exploitation of the natural systems and ecosystems in the developing countries. Sustainable development is possible if many businesses stick to the set code of conduct. Many multinational companies that are driven by profits alone have a great disregard for business ethics. Ethics will ensure that resources are utilized with respect to the laws of the land and also with consideration on the impact on the surroundings. For instance a mining company ought to resettle any individuals it must have displaced in its mining activities. This is ethical and may not necessarily be part of the firm’s agenda but may have an impact on the well being of the surrounding community. Sustainable development can only prevail if moderation is put into place. The ethics offer a number of features that provide conceptual framework that makes one aware potential consequences of one’s actions in the business world. The sustainability framework propagates ethical concern to future generations. The industrialization and human activity currently consumes natural resources faster than ever before. It is prudent for any business to take this into consideration and abide by the ethical practices. The power of technology and markets is behind the replenishing of the scarce natural resources in the name of acquiring raw materials and manpower.
Nevertheless, business ethical theories assume a normative perspective on sustainable development, idealizing how firms ought to act in a sustainable world. In reality, the world is not near sustainability as we would want it to be. This is not least a result of national legal and economic policies maintaining structures and conditions that continue to enhance liberalization of markets. It is my view that the combination of fierce competition and firm’s opportunities to take advantage of weak legal systems in developing states pushing firms to further subscribe to an instrumental approach to business ethics. The businesses managers can promote sustainability if they contribute to solutions to the social and environmental problems of our time. The quest of sustainability thus results from business opportunities combined with ethical convictions.
References
Lemons, J. & Brown, D. (2011). Sustainable development : science, business ethics, and public policy. Dordrecht London: Springer.
