Ethics leads to good business<\/p>\n
By A.B. Susanto<\/p>\n
This is the first of two articles on good business practice.<\/p>\n
JAKARTA (JP): Questions about the ethics of business have been
\nincreasingly asked recently. They are heightened by blatant
\nexamples of irresponsible behaviors by \"big business\" and the
\nexposure of environmental damages and the tragic loss of human
\nlives.<\/p>\n
In general, ethical questions ask, \"What, in a given
\nsituation, constitutes morally good and just behavior, what is
\nright and wrong?\"<\/p>\n
These questions burden us all with the responsibility of
\nunderstanding moral principles and of developing evaluations, and
\napplying criteria for our behavior. Corporate ethics is the
\neffort to answer these questions for one's business relationships
\nboth inside and outside the firm.<\/p>\n
A distinction must be made between the institutional dimension
\nof corporate ethics, which is demonstrated by the corporation as
\na whole, and the personal dimension, which is demonstrated by the
\nexecutives.<\/p>\n
Whenever it is asked whether a corporation should have an
\nethical conscience, the answer is usually affirmative.<\/p>\n
Society has the right to expect ethical behavior from business
\nplayers. But the underlying question remains: What, under
\nspecific circumstances, is the right conduct or ethical behavior
\nfor a business corporation?<\/p>\n
Business ethics look at corporate profits, not for their own
\nsake, but with respect to the achievement of some basic human
\ngood. What is the basic human good to which individuals and
\ncorporations are supposed to contribute and at what price or
\nother social cost?<\/p>\n
Answers to these questions are often not only inherently
\ncomplex, but also depend on complex cultural and personal values.
\nEthical judgments are easy to arrive at in extreme cases of
\nmisconduct, but difficult to make more generally and especially
\nin dilemma situations.<\/p>\n
Different trades may pose different challenges to the
\nimplementation of business ethics, but there is no need for
\nspecial business ethics for each and every trade. Possibly with
\none exception, the pharmaceutical industry. Drugs are used
\nbecause people are sick, dying or have mental disorders. Consumer
\nsovereignty -- the freedom to choose or refuse a product -- is
\nlimited in this industry's market.<\/p>\n
Recently, society's image of private industry, and
\nparticularly of large companies, has been shaped by skeptical
\nunease. Many believe that a company cannot simultaneously have
\nhigh principles and high profits. It is common to see many
\ncompanies are pursuing their profits unscrupulously at the cost
\nof the environment and the safety and health of consumers.<\/p>\n
Within management circles, there is also widespread doubt.
\nLower level executives or middle management often seem to feel
\nunder pressure from upper level executives to achieve corporate
\ngoals even if it is at the expense of personal moral standards.<\/p>\n
Ethical conflicts seem to appear more often in the external
\nthan the internal relations of a corporation. Marketing situation
\nranks as those causing the most ethical conflict among
\nexecutives. This is due to the fact that executives are appraised
\nalmost exclusively according to their financial short term
\nresults, being rewarded for increases in sales, profit
\nimprovements, and cost reductions, without considering long-term
\nsocial consequences.<\/p>\n
Although many assume otherwise, there is not an \"either\/or\"
\nrelationship between ethical corporate conduct and profit. It is
\nthe \"gray areas\" where the necessity for ethical reflection is
\nmost needed.<\/p>",
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"sponsor": "Okusi Associates",
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