Profit Vs. Ethics: The Benefits Of Business Ethics In Business

Nowadays, Laws are used to as rules to set the standards of behaviors act by people. As the most advanced mammal on the earth, human beings also have morals to enforce the power of those standards or set up other groups of standards of right and wrong that influence people’s behaviors which are also unknown as ethics. That is the ethics for the society people live in, while there is another term called ‘business ethics’ related to rules, standards and moral principles those are set up in the world of business to guide business related behaviors. An increasing number of companies noticed the benefits of business ethics and the advantage of improving ethical behaviors, but there is always one issue which is profit versus ethics. As businesses …show more content…
Firstly, business ethical is essential for a company, no matter the company works for no-profit that create social value or it works for profit that creates economic value. In the short term view company social responsibility might bring the negative effect on shareholders’ value. But in the long term view it will make more profit to all the stakeholders. And the relationship between social value and economic value should be balance even supplement each other. Secondly, a company must be Social responsible or Corporate Social responsible, not just stops at the level of about legal issues. The company made more profit, the more it should contribute in the social responsibility. As the more it contributes in social responsibility the better reputation that the company will receive that is intangible assets of the company. Business ethics could be an advantage in the competition for a company in such a competitive word. “Ethical business practices increase their competitiveness in their respective industries, helping to further substantiate the notion that a culture of ethics is crucial to sustainable excellence” (Forbes.com, 2013). The company should keep its own interests while contributes and give feedback to the stakeholders, and the company would stand out in masses of competitors in this manner. To be an ethical business will bring you more benefits in the long term time frame. This is the only way that builds the good image of the brand so that the company gain more trust and favor from not just only internal stakeholder, but also external