Nicole Bornales

ETHICS ON BUSINESS The purpose of a business is to widen and maximize the profits for its stakeholders, while of course maintaining corporate social responsibility which is to increase profits to generate and redistribute the gain, and also it has the means to offer and serve the market through the products and services that are essential and desirable need by the customers. It is vital to create and innovate businesses to an anticipating community or a society that desires to reach its peak of success. Business is one of the major pillars that strengthens and generates a community, without the businesses that secure the needs and wants of the community, this will force the people to live in an incessant state of violence. I also find Drucker’s argument relatable to this topic, According to Peter Ferdinand Drucker a management consultant, and known as the father of business consulting, made a very profound statement that “Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.” By this statement of Drucker’s, it is made clear that the purpose of business is to create and fulfill a need or solve a problem in a way of being sustainable. The sustainability in the means of this context is that it can provide reliability and availability for consumers of a product, and as well to help the community or the society to provide a means of livelihood for those involved with the business. Let us take a look at (CSR) or the Corporate social responsibility this action is taken usually by the businesses under the tourism industry such as hotel, restaurants, and so on but it is applicable to all businesses under different industries most especially those who have an extravagant interaction with the community, society and the environment. The purpose of this (CSR) is to take responsibility for the possible impact of the business activities on society. This is viewed as ethically acceptable since it aims to protect and to sustain the natural resources that might be affected by the business and the people within the community because of the commitment that the business has for them, it is ethical in a way that the business does not only think of their own good but also have a concern of its stakeholders. In a sense, we conclude that may be it's a business strategy to earn more profit because you see as a business has taken this action it tends to protect its stakeholders whereas the stakeholders are the one who is responsible for making the business grow, once the stakeholders aren't in good condition it will reflect the business as well so the business made this (CSR) for the growth of their businesses but the fact that this (CSR) benefited everyone and does not break any code of conduct it will remain as ethical. The world is already bombarded with many forms of corruption that are caused by poverty and so much competition between individuals and markets, which when traced will all boil down to “money” as the material root. –With regards to that many businesses most often choose unethical choices, wherein among being ethical, showing care for the environment, and large profits, profits always weigh the most. But we all know that business is not all about profits. As individuals who are going to be a part of an organization in the future, it is significant that we must keep in mind the good reasons not to use profits as the primary business purpose. We believe that profit is not the only thing that motivates the salaried staff who make success happen, customers don't appreciate being seen just for their revenue, and consumers focus on values and contribution to society when choosing who to do business with. There are many businesses that use similar strategies or practices to make a profit and keep the business running. In some areas, it is important that these procedures/ strategies are done ethically to make your business better. Companies or businesses that work to develop and maintain work ethic are more likely to succeed financially and have more production and productive employees. For this purpose, it is the company’s choice to follow ethical practices. Some strategies promote ethical values where the first important step is to legitimize expectations and make clear which behaviors are acceptable and unacceptable. This should remove any confusion and ambiguity about your company's ethics and keep everyone on the same path or goal, which can be seen as the success of the business. The success of a business can be also viewed as the success of an organization and can be perceived as the fruit of all the trust of customers, employees, and the general public combined together. And The best way to gain that “success” is to demonstrate ethics and integrity in business practices. One of the many existing ethical business strategies\practices that we are aware of is linked with a customer Value strategy. The Ethical standards in business are built off of a customer focus and commitment to providing value to its customers. It is explained that When an organization is committed to improving the lives of its customers, it would be when there is a violation of that trust that would cause concern from a strategic perspective. Second is the accounting Practices, Wherein careless accounting is known to limit the Organization’s ability to operate good financial management. One of the focuses of Accounting practices is Financial honesty and transparency. The third is Truth-in-Selling, which can be perceived as when an organization markets a product or service, they are obligated to deliver what was promised to the customer. Fourth is Integrity in Management Practices. Management practices are Known to be the underlying foundation for organizational integrity –Influence integrity in managing by creating a code of conduct and ethics policy. Teach employees the importance of its content and the organization’s commitment to ensuring that all employees adhere to the policy. The fifth is linked with Customer Service Integrity, the Service after the sale is what service integrity is all about. It is easy to make promises before a sale but following up and ensuring a great customer experience is what makes some organizations stand out. And lastly is personal and product integrity. It is important for business leaders to live a lifestyle of honesty, integrity, and high ethical standards because what these leaders do can harm the reputation of the organization. Product integrity is important to those of us who purchase products and services. This is when public perception and brand recognition come into play. It is significant to incorporate Ethical practices and Strategies into the core fabric of such an organization, not because it is a legal requirement but because it is the right thing to do. The practices that are used by a certain business affect the integrity of the whole organization including all its customers and every area of its operations from production down to its valuable target markets. The awareness of an individual to the degree of poor decision-making prior to business is a big thing and must not be taken for granted. Knowing that the world is being filled with corruption where shady business moves are being practiced and spread, we should all work towards learning about such instances that when we become professionals and enter our future jobs, we can stay ethical in all that we do even when faced with temptations. According to the readings, “there is one and only social responsibility of business--to use its resources and engage in activities designed to increase its profits so long as it stays with the rules of the game, which to say, engages in open and free competition without deception or fraud”. In the business industry, gaining profits is the most important thing to consider so most of the time some of the actions, practices, or strategies are being done unethically. Some of those are mistreatment of the employees, misleading product information, unfair competition, and bribery. Unethical practices must not be maintained in business culture because when they worsen it is very difficult to control and solve. For example, mistreating employees has become a familiar scenario in small and big companies that make employees work for long hours and underpay them. Similarly, many employees face stressful conditions, mental and even sexual harassment. Mistreatment in the workplace can affect the employee’s confidence and also the name of the company a lot. One of the most effective strategies in running a business is to always bear in mind that being a morally right person is way more important than the incentive of money. Through this Organizations will be given a chance to choose to make integrity an important part of cultural expectations. This will send a message to employees and customers that the priority is a sustainable success over short-term opportunism.