The Importance Of Ethics In The Business Environment

In a business environment, there are many moral and ethical principles that surround business practice (Robbins et al, 2013). Firms are motivated by growth, expansion and profit, and as these rules bind business practices, many can be disregarded or avoided by individuals or entire firms, to cut corners in the pursuit of wealth. Competition drives efficiency, innovation, growth and raises incomes, however it also makes firms look to cut costs, their prices and indirectly destroy entrepreneurial opportunity. Businesses have to have the willingness to be ethical, as there will always be cheaper, easier, unethical ways to save money and time, but competition, as opposed to greed, promotes ethical behaviour in the long run (Shleifer, 2004). As competitive pressures lead firms to unethical behaviour, it also raises incomes and consumer’s …show more content…
However, some of the motivations of multinational firms have been subjected to scrutiny, under basic ethical guidelines. As competitive pressures rise, firms have to look for more ways to remain ethical in the business environment, as sometimes it can be proven to be costly, inefficient and not explicitly beneficial. The motivations of firms can sometimes sway over the blurred line between ethical and immoral practices, however in order to remain competitive in the contemporary business environment, organisations must find a balance between remaining as ethically as possible, while also finding ways to achieve their primary strategic directives. Some may ask if competition destroys ethical behaviour, despite competition, as opposed to greed, promotes ethical behaviour in the long run (Shleifer, Andrei. 2004). Proving that it will always be not necessarily profitable, but beneficial to remain ethical in making all strategic