Business ethics in a capitalist world assignment

Having set the background that most modern societies depend on open markets or market forces to progress (irrespective of their formal classification) we set out to explore how these systems can be bettered for he common good. Doing Well by Doing Good A very interesting phenomenon has started emerging in the developed nations. Companies have started noticing their customers are not only more loyal to them when they are perceived as more ethical and responsible, but they are even ready to pay a premium to be assured of such behavior. How is this explained?

How is that customers are ready to pay a higher price for a product when it has been sourced in an ethical and responsible way? Clearly customers are not involved into the procurement phase of the business and they are not connected with the comma nineties with which the seller is partnering with. Some anthropologists have attempted to explain it using Amasses hierarchy of needs. They argue that when humans fulfill their lower needs of Physiology, Safety, Social, and Esteem they try to move up to the highest level that is selfsameness.

Apart from the joy and satisfaction of running an ethical company, this provides clear Financial incentives for the management/promoters of a company in running it in high standards, the most obvious being Talent Retention – talented and creative people tend to care less for compensation and more for a fair and transparent system Reduced cost of Turnover – due to low attrition, the company does not have to spend on Damage control PR exercises, recruitment and Selection costs, ND additional training for new joiners.

Getting the Investors on Board Continuing the trend of consumers and employees, Investors who form the other vertex of the trinity have shown increasing propensity to invest in firms who they consider run their business ethically. Apart from the good reputation it generates, it also helps save costly regulatory penalties and litigation costs when the companies fall foul of unethical activities. It is perhaps no wonder then, that most successful and long running company sees like GE are also the most ethical. Viii ix Case Study: The consequences of Unethical Business Practice: Ford Pinto

Planet Account – a measure of the environment sustainability of its operations, including how much is the company doing to restore the balance it is inherently tilting as a result of its operations. Profit People Triple Bottom Line Planet To this end, the TAB can be looked upon as a Balanced Scorecard that ensures a high score only when the all three aspects of the trinity are worked on. It is however, not easy to assign comparable scores to actions and events instigated by the company. But it can serve as a useful guide on which direction the system should be thinking.

Governments and regulators in both the developed and developing worlds have started exploring similar frameworks to regulate and/or incentive organizations. Going by the trend it is a matter of time by when these will be become regulations. Conclusion Through the course of this discussion we have discussed how capitalism blinded by Short Term Profits as goals has been blinded. The rift between the rich and the poor has only widened in the recent decades, much to the detriment of the society and the environment.