• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss The Need For Ethical Business

Extracts from this document...


´╗┐THE IMPORTANCE OF ETHICAL OBJECTIVES IN BUSINESS As the world population is increasing day by day, the demand for food also goes through the roof. To satisfy the demand for food, firms try to produce as much food as possible and therefore, ethical objective is a very important factor that decides how firms follow the laws to produce healthy food and avoid food contamination. In addition, it also applies a set of moral principles to all interactions with stakeholders, such as its treatment of employees, customers, suppliers and shareholders. Therefore, firms have to set their ethical objectives in order to reach ethical values as well as maximize profit and improve their reputation. Moreover, setting ethical objectives will leave great impact on consumer psychology and society?s attitude towards the firms. Firstly, setting ethical objectives brings back many advantages that can strengthen the firms in the competition to their opponents. Two essential factors that decide the existence of firms are: profit and consumers? belief. If the consumers feel safe when they use healthy food from a particular firm, they will support for that firm and help the firm spread their reputation for ?free?. ...read more.


In this case, ethical objectives are the concerns of firms on their suppliers ? farmers. Firms help farmers on improving equipment, facility and plan of production but it is farmers? choice whether they want to do it or not; the firms won?t force them to do it. Reciprocally, the farmers will be able to approach new technology, increase the quality of product. It is slightly different between setting the ethical objectives and not setting ethical objectives in this case. If the firms don?t set the ethical objectives, they will constantly come back to farmers with the demand of upgrading equipment, the farmers don?t have choice, if they reject they face with the loss of contract and finally, the debt continually increases. That?s the way firms without ethical objectives keep farmers under control. This slightly difference makes difference in consequence. New farmers who haven?t lost much money in this ?trap? will leave firms and firms faced with the truth to be unmasked. As a result the firms will be down soon. On contrary, firms work with ethical objectives will have good chance boost their popularity and more farmers will come to them. ...read more.


Here, the consumers will be questioning about the quality of food that is produced by these firms. As a result, firms gradually lose their consumers when the truth is unmasked. On the other hand, if the firms carry out their work with ethical objectives as their rule of thumb, consumers will learn to trust ethical brands and remain loyal to them, even during difficult periods. For example, in 1982, Johnson and Johnson spent over $100 million dollars recalling Tylenol, its best-selling product, after someone tampered with bottles of the painkiller. The company followed its credo, a set of ethical organizational values, and the result was a boost in consumer confidence, despite the contamination scare. Society benefits from business ethics because ethical companies recognize their social responsibilities. In conclusion, firms increasingly recognize the need to commit to business ethics and measure their success by more than just profitability. This has led to the introduction of the triple bottom line, also known as "people, planet, profit." Ethical objectives play an important part in the existence and development of firms. It will decide whether firms are able to survive in the market or not. Firms that decide not to go with ethical objective will face to many problems from the consumers and public about their bad deeds. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Strategic Business Management - Cadbury

    SWOT ANALYSIS Environmental and internal environmental elements of Cadbury expressed through SWOT analysis? Explanation: Grading based on scale from 1 to 10. Grades - 7 to 10 express opportunities and strengths. Grades - 1 to 3 express threats and weaknesses.

  2. Owen & minor Inc

    sistema dei prezzi, spiegando come funziona il sistema e i benefici che avrebbero dopo la sua attuazione. Prima dell' attuazione la O&M dovrebbe lanciare un programma pilota e offrire aiuto e supporto ai clienti , per assicurare il successo dell' applicazione.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work