What Are Advantages and Disadvantages of Ethical Behavior in Business?”
Some commentators, such as Milton Friedman, believe that the "primary and only responsibility of business is to make money" while abiding by the law. Supporters of this point of view argue that companies' self-interested pursuit of profit benefits the whole of society. Profitable businesses clearly benefit shareholders, but other commentators, such as Edward Freeman, argue that businesses should also benefit other stakeholders. Stakeholders are people and groups with whom the business has a relationship. This includes shareholders, but extends out to include employees, their families, the community within which the business operates, …show more content…
Retain Good Employees
Talented individuals at all levels of an organization want to be compensated fairly for their work and dedication. They want career advancement within the organization to be based on the quality of the work they do and not on favoritism. They want to be part of a company whose management team tells them the truth about what is going on, such as when layoffs or reorganizations are being contemplated. Companies who are fair and open in their dealings with employees have a better chance of retaining the most talented people. Employees who do not believe the compensation methodology is fair are often not as dedicated to their jobs as they could be.
Positive Work Environment
Employees have a responsibility to be ethical from the moment they have their first job interview. They must be honest about their capabilities and experience. Ethical employees are perceived as team players rather than as individuals just out for themselves. They develop positive relationships with coworkers. Their supervisors trust them with confidential information and they are often given more autonomy as a result. Employees who are caught in lies by their supervisors damage their chances of