M00882525 Business Ethics 28/07/2022 Intensive Academic English Course Summer 2022 – Postgraduate level Business Ethics Essay I acknowledge that the content of this essay is my own work and that any external sources that have been used have been fully referenced: Student’s name : Zeinab Dolatshah Teacher: Monica Fairbairn Page 1 of 4 M00882525 Business Ethics 28/07/2022 Business Ethics is one of the most important subjects in the world. Applying ethics and moral standards to the business and CRS must be followed based on a logical evaluating process (Velasquez,1998). Over the past decades, both employers and organizations were attempting to promote whatever they wished and made as much profit as possible without considering any consequences. As a result, the appearance of harmful effects was predictable. In particular, most organizations are following a framework of law and their success is dependent on their efficient function through economic and law frames. However, Boatright argues that “Both economics and law are critical to business decision making, but the view that they are the only relevant considerations and that ethics does not apply is plainly false” (2009,p12). The essay will discuss three arguments that are including the economic, the law, and the moral in order to bring ethics in business and CSR. The first argument is the economy. A part of society has an idea that organizations and businesses should follow financial activities as their own main aims. Businesses must be profitable as much as possible, therefore companies have to produce goods and provide services that the members of society want (Velasquez,1998). Free competitive markets are the key to making the maximum profit. Under the competitive situation, firms are attempting to provide high-quality goods or services, thus society’s satisfaction can lead to an increase in the demand for outputs (Boatright,2009). However, there is a counter-argument to destroy the economic argument. The assumption claims that a free competitive market does not exist. There is not an exact definition to know how 'free market' can be objectively defined. Moreover, industrial output and products can hurt people or society (Velasquez,1998). For instance, pollution can be released into the environment and affects public health, as well as harmful effects on society are Page 2 of 4 M00882525 Business Ethics 28/07/2022 consisting of bribery, fraud, price fixing, and evasion of tax. Another idea professes, that although businesses claim that there is accessibility for whole individuals, the poor part of society is deprived to access to the markets, so a considerable part of society is not involved in the markets (Corballis,2011). The second argument is the law. This theory explains clearly that law is enough. Businesses and individuals should consider the law as a guideline, so there is not any necessity to bring ethics into the businesses. firms and people are safe until they obey the law(Velasquez,1998). Boatright asserts that “business activity takes place within an extensive framework of law, and some people hold that law is the only set of rules that applies to business activity “ (2009,p14). In contrast, a counter-argument smashes the law argument. The idea explains that law and morality are not constantly on the same side (Velasquez,1998). For example, Discrimination on the basis of religion or gender is not against the law in Saudi Arabia, but it is unethical (Corballis,2011). Also, the lack of a developed law system is another counter-argument to refusing the law argument. Although the law system is a partly perfect guide for companies in well-developed countries, many other nations are suffered due to undeveloped legal systems. Also, the lack of international laws can introduce ethics as an important guideline for business in the world (Boatright,2009). The last argument is the loyal agency argument. Employers must serve employees in order to achieve their own aims. The argument asserts that whatever employers want, employees must do and they have to follow the business framework. Actually, it can be an act on behalf of the managers to justify unethical acts in businesses. There is a counter-argument that demonstrates nobody can put workers under pressure to do something illegal or unethical. Moreover, this is essential to consider ethics in business as routine office work. All managers and employees must Page 3 of 4 M00882525 Business Ethics 28/07/2022 follow the ethics in business because it can lead to producing maximum benefit to society and business (Velasquez,1998). To conclude, this is important to consider the economy, the law, and the moral argument to bring ethics and moral standards into business and CRS. The main consideration should be to utilize ethics and morale in the business world. It can be profitable to take advantage with regard to reducing harmful sides in society. References: Boatright, J. (2009) Ethics and the conduct of business .6Ed. Upper Saddle River, NJ: Pearson Education Inc. Corballis, T (2011), Business Ethics Lecture, Business School, University of Middlesex Velasquez, M.G(1998) Arguments for and against Business Ethics; in Business Ethics, New Jersey: Prentice Hall Page 4 of 4
