Ethics in Business

what is Ethics?

Ethics is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior - in both how we think and behave toward others and how we would like them to think and behave toward us. - Ghillyer, A. (2010). Business Ethics: A Real World Approach. 2010. McGraw Hill: New York. Page 6.

is there any ethics in business?

I learn Business Ethics in my graduate program, but somehow I feel that there is no such thing called "ethics" in business. As far as I am aware, a corporation - with profit orientation - will do anything to gain profit and more profits in any possible way.

I do not say that all corporations with profit orientation run their business unethically. I just have not found any successful company without a lawsuit or a complaint related to business ethics.

Previously, I was working in a corporate law firm - so called "the best law firm in Indonesia for 7 years in a row". The firm is full of talented and hard-worker staffs and lawyers. They are working for more than 12 hours a day and they are feeling bad whenever they cannot come to the office. It is the corporate culture inside the firm that build their characteristics. The firm always put their clients needs as a number one priority, they will do anything to serve and give the best service to the clients. The staffs and lawyers will be available anytime no matter what, and they will do anything to make sure their clients projects are going well. No matter how much money they will spend - expenses will be charged to the client anyway, and in any possible way - literally.

Well, if we look again to the firm purpose is to give the best service to the clients - the corporate culture is inline with the purpose. It is inline in term of how the people inside the firm behave, how they do their jobs and everything - to fulfill the purpose of the firm.

Is it ethical to make their employees work for more than 12 hours a day? is it ethical to do "anything" to get the job done?

The employees are willingly to do it - mostly because of the payroll, some because of they said that they like the jobs. "anything" is need to do since in our country, in order to do something here we must be able to do "anything". - i know the last sentence is not clear, it is my intention to make in unclear ;)

Therefore "ethics" in this case can be seen from two sides; internal and external.

Internal of the firm may said that this situation is "ethics" since the employees are aware of how the firm works and willingly to cope and adjust with the corporate culture. The firm may argue that if an employee does not like the corporate culture, he/she can submit resignation letter to the firm. As for the "will do anything" part, most of business organizations in Indonesia are aware that in order to conduct business in Indonesia "anything effort" is needed.

External view may have a contrast opinion. People outside the firm may see the firm as an unethical corporation. The reasons are because they keep their employees work for more than the regular working hours and will do anything to get the job done.

I am not say that the firm is an unethical corporation or ethical corporation, since I do not have any competency to say anything related to it - paragraphs above are just a mere discussion only.

What I am trying to say here it is that many big corporations - especially, the successful corporations- always come with contrary opinions in public eyes. Take McDonalds, Wal-Mart and IKEA as examples. McD is being criticized related to the obesity rate in the society; Wal-Mart is being criticized related to their workers and employees; and IKEA is being criticized related to tax avoidance.

The point is I have not found any successful corporations without "ethics problem" while they are running their business. Therefore I come into conclusion that business is just not go well with ethics. Ethics in business is somehow only legal formality especially for public companies that care of public opinions since they are trying to get public to buy their shares. As for private companies, ethics is just a lip service thing and they could always argue that we do business to make profit not to be a good citizen..

So if you know any ethical successful companies please let me know... I would be very happy if I could find any evidence on business and ethics can go well :D

Peace TakeCare GoodLuck

Erma

7May2010