Why Businesses should be Ethical?

Today, I will continue on with the second part of my blog topic on business ethics. My goal toward the end of this journal is to answer the question why businesses should be ethical? As mentioned in my previous blog post, it pays a business well when it acts ethically. Throughout history, we have seen the rise and fall of several huge companies who have gone unethical. Again, take Enron or WorldCom and more recently Lehman Brothers in 2008. As I continue to study and learn about business ethics, I realize that ethics is the one that sets a long and lasting company from those that don’t. Take our case study for today which is the Ford and Firestone controversy. The case is very close to my heart as I drive my own automobile and it is very alarming to know that there can be conspiracies or connivance behind manufacturing companies which can be hazardous to the consumers.

            Ford and Firestone were both aware of the flaw in the suspension system of the Ford Explorers but they did nothing to address this rather when the accidents happen, both companies started blaming each other and ended up in the breaking the long lasting relationship of both companies.

            When companies act unethically, it does not only hurt the business but it also has an impact on all its stakeholders. As the saying goes, there is nothing in the world that can be left hidden forever. I hope that business leaders take this principle in their day to day decision making and to start looking beyond profits rather look on how their decision can have an impact to all its stakeholders.

            After our class, I reflected on the things I have learned and realized that being ethical should not start in the business rather it should start on every individual. Also, I have realized that being ethical should be a lifelong principle that each of us should practice every day. Thinking about it, all these corporations who collapsed due to ethical reasons are led by individuals with good scholastic records, with MBA degrees or even PHD’s however, one unethical act led to the fall of their large and powerful organizations and some of them even going to jail.

            I would like to end this post with my simple reflection and that is ethics is not only good for business but it is good for the whole world as well. If each and every one of us would act ethically, this world will be a better place to live in for us and for the future generations.