Verified Document

Business Critical Thinking Term Paper

Business as an Ethical Calling: My Personal Philosophy The last several decades have seen American enterprises beset by a number of ethical scandals, spanning from the accounting fraud of Enron and WorldCom to that of the recent subprime housing debacle and credit crisis of 2008. As a result, there has been a call to integrate ethics into the business studies curriculum and to try to temper the cutthroat atmosphere amongst ambitious aspiring executives. Concerns about treating the environment with care, the need to respond demands for a more diverse workplace, and sustainability issues are all shaping the ways that corporations present themselves to the public. But the requirement for-profit corporations to be, well, profitable, remains. Examples of successful businesses that pay homage to ethical concerns do exist but the idea of the perfectly ethical business remains elusive. However, I personally believe that because of changes in the current corporate culture of America, the idea that ethics must invariably be sacrificed to profitability is false. While it is true that ethics can be a balancing act, and not every issue is as black-and-white as following the law vs. not following the law, a business must operate with some sense of an ethical mindset to sustain customer loyalty -- and even to cut costs.

According to classical theories of firm responsibility, however, firms are not supposed to prioritize ethics over profits. Shareholders, the de facto owners of a corporation, buy stock with the intention of gaining financially, and a CEO cannot use 'other people's money' to further his or her own agenda. If cutting workers' salaries are a feasible means to increase profits, then so be it. But there are a number of problems with this perspective, even from a self-interested point-of-view. For example, corporations that fail to take into consideration the safety hazards of products, even when they continue to technically obey the letter of the law, have met with lower sales, such as the beef manufacturers of the controversial additive 'pink slime.'

On a systemic level the idea that corporate ethics is an oxymoron is being challenged. At top Ivy League schools such as Harvard Business School...

Amid the unending financial scandal and the worst downturn in decades, the curriculum has shifted toward sustainability, long-term profitability, and integration of specialties" (Stonington 2011). The hope is that changing the mindset of the next generation of corporate leaders will foster the creation of a more ethical community, in which all enterprises do not put profits above people.
Some companies have attempted to capitalize upon current trends to increase profitability and sustainability in conjunction. For example, Interface Global, the world's largest producer of modular carpet, has set a "goal to source 100% of our energy needs from renewable sources by 2020" ("Energy," Interface sustainability, 2012). Interface uses renewable energy sources whenever possible, including solar and wind energy, and "as of 2010, eight of nine factories operated with 100% renewable electricity, and 30% of our total energy use was from renewable sources" ("Energy," Interface sustainability, 2012). Interface enables customers to return used carpet to be recycled to reduce waste. Cutting down its use of nonrenewable fuel and materials has resulted in cost savings and increased profitability for the company. Its lean model of enterprise works in harmony with its overall organizational goals.

Given that consumers are seeking more ethical corporate models in terms of the companies in which they purchase stock, ethical conduct on the part of corporations is often seen as a financial as well as a moral necessity. Some of the ethical scandals have beset corporations such as Nike and Apple have been particularly damaging in terms of public relations because of the fact that the companies are dependent upon young customers who are extremely sensitive to the image they project, in terms of what they are wearing. A company cannot simply use ethical rhetoric. Particularly in the age of the Internet, in which consumers can carefully research the companies whose products they are buying, discrepancies between the branding of the company and actual treatment of workers…

Sources used in this document:
Works Cited

"Community giving." Whole Foods. [20 Jul 2012]

http://www.wholefoodsmarket.com/company/giving.php

Conor, Michael. "Trying to break the sweatshop business model." Business Ethics. 18 Jul 2010.

[20 Jul 2012]
http://business-ethics.com/2010/07/18/1515-trying-to-break-the-sweatshop-business-model / "Energy." Interface sustainability. [20 Jul 2012]
http://www.interfaceglobal.com/Sustainability/Our-Progress/Energy.aspx
http://plato.stanford.edu/archives/fall2008/entries/ethics-business/
http://www.businessweek.com/business-schools/bschools-new-mantra-ethics-and-profits-11102011.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Critical Thinking
Words: 1679 Length: 5 Document Type: Research Paper

Business Critical Thinking To whom it may concern: 'Logically speaking...' How often do we say this simple phrase? There is a presumption that logic is not only good, but that the human mind can easily calculate the pros and cons of most decisions. However, the human brain did not evolve to naturally gravitate to an emotion-free, Spock-like way of evaluating options. "When people face an uncertain situation, they don't carefully evaluate the

Critical Thinking Paper "Current Issue
Words: 2431 Length: 8 Document Type: Research Proposal

It would also create intensifying competition, which would force purveyors of e-books to increase the quality of their products and services. In all, it would have the ultimate positive benefit of supporting the development of virtual reading. Customer choices As it has been previously mentioned, Kindle is not the first electronic reader, but it is the most popular one. Having observed the triumphs of Amazon, other producers are striving to enter

Critical Thinking in the Workforce:
Words: 919 Length: 3 Document Type: Essay

Radical retraining of staff was clearly necessary, but there was a need to avoid the mistakes of the past in the way training sessions were structured. Several approaches were considered. One solution was that management could improve 'quality control' of the worker's performance with customers. Management would inform the workers their phone conversations would be recorded and screened so this would not seem like a 'gotcha' method of enforcement. Screening

Critical Thinking Action Project the Fact That
Words: 1122 Length: 3 Document Type: Essay

Critical Thinking Action Project The fact that Manager Michael Lee Ray is in trouble "yet again" for an inappropriate interaction with the Tokyo office is a reminder that ExtraVert has not addressed its most serious problem. An observer can presuppose that Ray is intellectually or morally deficient -- but on the other hand, an observer doesn't know that but it is unlikely that a global organization would place a social outcast

Critical Thinking Action Project the Assumptions That
Words: 692 Length: 2 Document Type: Essay

Critical Thinking Action Project The assumptions that can be reached through deductive reasoning -- that there are most definitely problems between the home office and the foreign office; and that the two offices have different objectives -- are certainly not rocket science. These kinds of problems create tension and conflict, which detract from the objectives and mission of ExtraVert. The solution (or solutions) to the problem presented by this assignment --

Critical Thinking Styles and F
Words: 1405 Length: 5 Document Type: Term Paper

Critical thinking is the rationally closely controlled process of aggressively and competently conceptualizing, applying, analyzing, synthesizing, and assessing information gathered from observation, experience, reflection, reasoning, or communication, as a guide to belief and action. It involves the scrutiny of those structures or elements of thought implicit in all reasoning, purpose, problem, or question, assumptions; concepts; empirical grounding; reasoning leading to conclusions; implications and consequences; objections from alternative viewpoints; and frame

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now