Unity University Department of Mba Ethics and Legal Environment Assignment

Unity university
UNITY UNIVERSITY
DEPARTMENT OF MBA
Ethics and Legal Environment Assignment
Netsebrak Abera
Id. O223/12
Submit to: Yidnekachew (phd)
Submitted Date: 25/01/2020
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Unity university
Ques#1. why do we, as part of the society,care about business ethics?
Because, Ethics is important to every society as it plays a critical role in shaping the
individuals behaviours with in society.
Business Ethics is a form of applied ethics or professional ethics,that examines
ethical principles and moral or ethical problems that can arise in a business
environment.It applies to all aspects of business conduct and is relevant to the
conduct of individuals and entire organizations.
Ethics and society focuses on sustaining, growing & sharing value, not just for
business and their shareholders,but for stakeholders and the societies in which they
operate.
This vein of study encompasses ethical decision-making ,examination of how
business can and does impact society,implications for policy principle of moral and
instituational leadership and tents of stakeholders.
Employees make better decisions in less time with business ethics as a guiding
principle;this increase productivity and over all employee moral.The system of moral
and ethical beliefs that guides the values,behaviours and decision of a business
organization and the individuals with in that organization is known as Business
Ethics.
Ethical concern an individual's moral judgements about right and wrong.

Decision taken with in an organization may be made by individuals or groups,but
who ever makes them will be influenced by the culture of the company.
The decision to be have ethically is a moral one;employees must decide what they
think is the right course of action.This may involve rejecting the route that would
lead to the biggest short-term profit.
Ethical behaviour and corporate social responsibility can bring significant benefits to
a business
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Such as they may:
• attract customers to the firm's products, there by boosting sales and profits
• make employees want to stay with the business,reduce labour turn over and there
fore increase productivity.
• attract more employees wanting to work for the business, reduce recruitment
costs and enable the company to get the most talented employees.
• attract investors and keep the company's share price high, there by protecting the
business from take over Employee understand the company's corporate values is
achieved by the statement of 'our business principles' which makes clear the
behaviour it seeks from employees.
Business Ethics Benefits in Society

The important of business ethics reaches for beyond employee loyalty and moral or
the strength of a management team bond.As with all business initiatives, the ethical
operation of a company is directly related to profitability in both the short and long
term.The reputation of a business in the surrounding community, other business,
and individual investors is paramount in determining whether a company is a worth
while investment.If a company is perceived to not operate ethically, investors are
less in clined to buy stock or otherwise support its operations.Companies have more
and more of an incentive to be ethical as the area of socially responsible and ethical
investing keeps growing.
The increasing number of investors seeking out ethically operating companies to

invest in is driving more seriously.With consistent ethical behavior cames an
increasing positive public image, and there are few other considerations as
important to potential investors and current shareholders.To retain a positive image,
business must be commited to operating on an ethical foundation as it relates to the
treatment of employees, respecting the surrounding environment and fair market
practices in terms of price and consumer treatment.
Ethical behaviour and corporate social responsibility can bring significant benefit to a
business.
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Ques#2. Can ethics and profitability co-exist?
make a critical reflection by raising the contending arguments on the issue.

First let us see that if ethics important for profitability.
Many factors play an important role in making a business profitable which includes

dedicated and productive employees, expert management teams, and consistent
consumer demand.
By following ethics in business, organizations can make correct judgements and
decide what is right and wrong for them
Do business ethics and profits go together?
Being ethical limits profits Companies who claims to be ethical, often

have ethics only in their words, not in action.Business is done with the aim of
producing maximum profits whereas ethics is about what is right and wrong.
These two can't go together, if we want success immediately.There are many

companies which are following ethics and are successful.They survived because of
their commitment to follow ethics and provide the best products.Being ethical is the
only way for an industry to survive for long term.Compromise with ethics for
business may reap short term benefits but it could not ensure your success for long
periods.Some businesses cannot follow ethics. For example if we take a successful
non-veg restaurant, it cannot kill animals, if it follow ethics.
The definition of ethics is understood differently by different people.
There comes a clash when determining what is ethical and what is unethical.
Being ethical takes so much time for success which can deprive you of several
opportunities.
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While handling pressure, stress and competition, being ethical in business makes us
face many more difficulties.In to day's world, more importance is given to how much
money you can earn. Being ethical limits profits.Business is run by the mind, not by
heart and values. Business needs a person to be professional and practical.
Companies who claims to be ethical, often have ethics only in their words, not in
action.Business is done with the aim of producing maximum profits whereas ethics is
about what is right and wrong. These two can’t go together, if we want success
immediately.Being unethical will not make you reliable in the market. Even if
someone earns well by being unethical, their business will be collapsed once their
unethical acts come into limelight.
What remains with a business or a person is their values and morality. Business and
Ethics can go hand in hand. And there are many live examples for that.
The are some low let us see
• Law of Jungle
In the first stage, business were run on brute strength ; business decisions were
driven by the philosophy of "might makes right".
Business ills like price fixing etc are common in the

stage.
• Anything for profit
In the second stage of "Anything for profit", business was ready to do any thing to
make a profit.Businesses at this stage had only one goal i.e profit.To generate profits,
business resort o false representation of products, bribery of government officials,
tax evasion etc. Business in this stage of ethical consciousness strongly
believe that" anything goes as long as one get caught by the law or by the
customers."
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• Profit maximizing in the short - term
In the third stage, maximizing profits in the short-term, business operated on the
socially and generally accepted business practices. In this stage, business believed
that "good business is good ethics". The performance of business was measured
based on short-term growth in sales and profits. The performance of business was
measured based on short term growth in sales and profits. The main aim of business
in this stage was to maximize profits within the constraints of the law.
• Profit maximizing in the long - term
The fourth stage, maximizing profits in the long-term, saw a shift in focus from
'business' to 'ethics'. In this level of ethical consciousness, business acknowledge that
" sound ethics is good business' in the long run. Although the interest of the
shareholders remain primary concern of business, there was equal concern to be
profitable over the longer term, even if other alternatives might produce greater
short- term profits.
At this stage of consciousness', firms created the post of an 'ethic officers' to

supervise the ethical aspect of the business.
• Stakeholder concept
In the fifth stage, "stakeholders concept" companies concentrated on profits to have

a social as well as economic mission. In this stage business objective included profit
sharing, development of community service projects, and philanthropy.
This chapter examines the effects of two moral ethical philosophies—deontological
and teleological—on profitability. Drawing on the source-competitive advantage-
performance theory, it is argued that firms that are perceived ethical are more likely
to have a positive impact on profitability than firms that do not.
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Based on data from Indian businesses, the results of the regression models indicate
that ethical business practices lead firms to a superior profitability through
acquisition of the competitive advantage.
However, the results also suggest that the effects of such ethical practices on
profitability are initially negative but turn positive with higher levels of ethical
orientation.Implication for managers is that they can command, even in emerging
markets, a premium price for their products, if their firms are perceived ethical.

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Unity university

Ques#1. why do we, as part of the society,care about business ethics?

Ethical concern an individual's moral judgements about right and wrong.

Such as they may:

Business Ethics Benefits in Society

The increasing number of investors seeking out ethically operating companies to

Ques#2. Can ethics and profitability co-exist?

make a critical reflection by raising the contending arguments on the issue.

Many factors play an important role in making a business profitable which includes

Do business ethics and profits go together?

Being ethical limits profits Companies who claims to be ethical, often

These two can't go together, if we want success immediately.There are many

The definition of ethics is understood differently by different people.

The are some low let us see

Business ills like price fixing etc are common in the

• Anything for profit

• Profit maximizing in the short - term

• Profit maximizing in the long - term

At this stage of consciousness', firms created the post of an 'ethic officers' to

In the fifth stage, "stakeholders concept" companies concentrated on profits to have

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