What is the definition of "business ethic" and why business ethics is considered "oxymoron"?
When a company's ethics will determine its reputation. Good business ethics are essential for the long-term success of an organization. implementing an ethical program will foster a successful company culture and increase profitability. Developing a business ethics program takes time and effort,but doing so will do more than improve business, it will change lives.
"Ethics" can be defined as the critical, structured examination of how we should behave,in particular, how we should constrain train the pursuit of self interest when our actions effect others.
While Business ethic can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. In particular, it involves examining appropriate constrains on the pursuit of self-interest, or profits, when the actions of individuals or firm affects other.
According Andrew Crane, Business ethic is the study of proper business policies, business situation,activities and decisions where issue of right and wrong are addressed.It show that all business have to concentrates on their moral standard in order to apply in their business policies, institutions and behavior.
When business people speak about “business ethics” they usually mean about things :-
(1) avoid breaking the criminal law in one’s work-related activity
(2) avoid action that may result in civil law suits against the company
(3) avoid actions that are bad for the company image
Business ethic is not law. it is ethic in the business life "structured
examination of how people and institutions should behave in the world of
commerce" but business ethics are often guided by law, while other
times provide a basic framework that business may choose to follow in order to gain.
Business ethic it has been claimed,is an oxymoron (Collins 1994).By oxymoron, that mean the bringing together of two apparently contradictory concepts like cheerful pessimist of deafening silence.
The main purpose of a business activity is to maximize profit. Many cases have been recorded till date on how ethics cannot be applied in business. Some of the famous cases on wrong conduct of business are the cases of Ferdinand Marcos guilty to money laundering and the cases of bribery in Malaysia.
Ferdinand Marcos, an ex-lawyer, was president of the Philippines from 1965 to 1986 before being removed from power by a popular uprising. During his reign he laundered billions of dollars of stolen public funds though bank in the US and Switzerland. It took the Philippines a massive operation, know as"Operation Big Bird," to retrieve the money (estimated as US$7.5 billion). As a memorable indication of Marcos' opulent lifestyle it is widely remembered that his wife Imelda owned over 2,500 pairs of shoes.
Bribery has become a serious issue here in Malaysia and many wrong
business conducts are happening and one of the recent cases was involving the
General Manager.the Sessions Court sentenced a company director to one day's
jail and fined her 25,000 ringgit in default of four months' jail for bribing a
TNB senior security supervisor with 5,000 ringgit.The money was to persuade
Mohd Sanusi not to take legal action against the company's factory in Ulu Tiram
for suspected electrical meter tampering.
