Business Ethics Chapter 8 PDF

 Chapter 8 Ethics in business: Dispelling the myths  Myth 1: Dog eat dog Myth: The business environment is lonely and hostile; either you trample on others, or others will trample on you. Being ethical is to the detriment of your own interest. Fact: Business always consists of a...

 Chapter 8 Ethics in business: Dispelling the myths  Myth 1: Dog eat dog Myth: The business environment is lonely and hostile; either you trample on others, or others will trample on you. Being ethical is to the detriment of your own interest. Fact: Business always consists of a complex network of interpersonal and inter- institutional relations. It is social in nature. Therefore, finding a sound balance between concern for others’ interests and concern for your own is essential to running a sustainable business.  Myth 2: Survival of the fittest Myth: Business is a competitive struggle in which only the fittest will survive. Being ethical will undermine your competitiveness and your chances for survival. Fact: (1) competition does not exclude ethics, (2) ethics is a precondition for ongoing competition, and (3) cooperation is as important as competition.  Myth 3: Nice guys/girls come second Myth: It is impossible to be both ethical and successful in business. Either one is unethical and successful, or ethical and unsuccessful. Fact: Ethics is vital for cultivating dedication and creativity in people. When there is high morale in a company, employees work harder and are willing to make personal sacrifices to get the job done better. A company that treats any of its stakeholder groups unethically runs the risk of alienating them.  Myth 4: Unethical conduct is no serious Myth: Although unethical conduct is wrong, it is not really harmful to society. Fact: Unethical conduct can lead not only to financial loss but also to loss of life. It can also affect the company and economy detrimentally, and result in lower productivity and lower profitability.  Myth 5: When in Rome, do as the Romans do Myth: If unethical behaviour is the norm in a specific context or country, it simply has to be accepted that that is the way business is done Fact: When we start condoning unethical practices just because they are widespread, we abandon our ability to make judgements about what is acceptable and what is unacceptable. With the rapid advancement of information and communication technology globally, there is no place to hide and such business practices will be discovered and condemned elsewhere in th world, to the extreme detriment of the company involved.  Myth 6: All that matters is the bottom line Myth: Business is about one thing and one thing only, and that is profit. As ethics is not primarily concerned with the bottom line, business should not bother with ethics. Fact: To operate as a legitimate business, a company must be seen to provide products or services that at a minimum are not harmful to society. Ethics has a large impact on maintaining the intricate set of relations with stakeholders; protecting and enhancing the reputation of the business; and gaining the respect, dedication and creativity of employees.