Business Ethics extends beyond the obvious
Business Ethics has been defined as “the behavior that a business adheres to in its daily
dealings with the world” (Wisegeek.com)
In considering this I must draw from happenings in business during the course of the
past few years. The dishonesty, price fixing, collusion and suspect business practices
leads me to question if we as business people have any concept of the meaning and
application of business ethics.
Business ethics are very diverse and apply not only to how business is conducted, how
business deals with customers and how business leaders interact with each other.
Far too many businesses are concerned with one thing only - making money and
satisfying the shareholders. Making money is not wrong and satisfying the shareholder’s
is not wrong what is wrong is when this is done at the expense of others, when this is at
the expense of the customer and consumer. It is the manner in which businesses
conduct themselves and make profits that brings the question of business ethics into the
equation.
Good business ethics should be a part of every business. There are many factors to
consider. When a company does business with another company in the knowledge that
company is considered unethical, does this make the first company unethical by
association? YES - they are condoning and supporting unethical behaviour and this
makes them guilty by association.
Example of unacceptable business ethics is the impact the need for profits and satisfying
shareholder’s is having on medical aids, insurance companies, pensions and investment
institutions, suppliers of food related products and other industries that impact on the
basic essentials of life and survival. It is a fact these institutions must make profit but
when such profits are achieved through unethical practices (as we have seen over the
past few years) then such companies must be dealt with in the harshest possible
manner. The CEO’s and directors of such companies must be held accountable.
Unethical practices for example in the “rip off” of the medical aid companies by
unscrupulous clinics and hospitals must be stopped – is this done with the knowledge of
the medical aids? Chemists charging twice to three times the price because medicine is
prescribed must be stopped. Escalating premiums and contributions to policies and
pension plans at exaggerated rates just to make additional profits must be stopped.
Inflating food prices for various unethical reasons must be stopped.
Many businesses, in fact most of the major brands, do not think too highly of good
business ethics or corporate governance issues. Many major corporations, as we have
recently seen, have been fined millions for breaches of business ethics and corporate
laws. The bottom line is that it always comes down to making money and increasing
profits.
When companies break the law or behave unethically they are fined amounts of money
which when compared to the profits made, at the expense of the customer, are
insignificant.
Many companies object to being regulated by laws, rules and regulations and these are
usually the companies who are “ripping off” their customers and who are stealing from
the public. Theft is theft and is a criminal offence. It is time companies faced prosecution
and that directors of such companies were held accountable.
We the consumers, we the public, we the members of the medical aids and the clients of
the insurance companies need to take a firmer stand against unethical business
practice. We need to source companies who pride themselves on their ethical practices
and give these companies our support – problem is that they are few and far between.
© Des Squire (Managing Member)
AMSI and ASSOCIATES cc
Cell 0828009057
des@amsiandassociates.co.za