Business Ethics Errors of the past Leads to better understanding and success for the future
Consider this short Lesson Learned on Business Ethics for few minutes.
In history, there is an event of torment and punishment for a society named Madian. Shoaib (or Etherian) was Moses’ father-in-law who lived in Madian, a prosperous village, which was located in area around Syria. Their punishment was a a dark cloud covering their village with a loud explosion and earthquake. The reason for their punishment was that this prosperous village was located on the route of business carnivals in middle of deserts, and since the carnivals needed water and other livelihood commodities, Madian merchants would trade their poor quality goods at very expensive prices, purchased the needy’s high valued goods at very low prices, and would use uneven scales to measure and settle the deal. Prophet Shoaib tried to correct their behavior and urged them to be more ethical and do the right thing, but Madian did not listen, therefore God punished them for their insistence on bad behavior.
PMP Lessons Learned
Many think of these stories as fairy tales, but don’t realize that the lessons learned are easily applied today, and that acting unethical would someday catch us and our children in insalubrious situations. The reason why today’s society is suffering from obessity, cancers, body and mind health problems, and pollution of environment are punishment for our bad behaviors. Not considering that short term gains would have long term side effects and that it would hurt us and our society in the future.
Acting ethical should not be only out of fear for punishment, it is the only logical and wise way to act. Since nature is based on goodness and virtuous principles, any decision that is in its opposite direction would eventually fail.
The story of Shoaib in today’s context means that we have to be perfectionist in producing our products. We have to be ethical in offering our services. Employees should be productive for hours being paid. Employers should be just in paying their employees what they deserve. Volkswagen should be honest in its claims to save the environment. McDonald should consider our children’s health in offering and pricing their products, correctly.
Importance of Business Ethics
Business Culture of a company and its Business Ethics concern its management and employees moral judgement about decisions of what is right course of action. This thinking will reject decisions in the route that would lead to the biggest short-term profit for more ethical behavior that would incorporate social responsibility and can bring significant benefits to a business in the long run. A short list of benefits mentioned in a case study include:
attracting more customers to the company’s products and services, thereby boosting sales and profits
increasing employees’ moral to stay with the company, thereby reduce labor turnover and increase productivity
attracting more employees wanting to work for the business, reduce recruitment costs and hiring most talented employees
attracting investors to keep company’s share price high and protecting the business from takeover
Unethical behavior and lack of corporate social responsibility in contrast, damages a firm’s reputation and make it less appealing to stakeholders therefore result in reduced business relations and profits in the future.