The paper "Importance of Ethical Behaviour in Business " is a perfect example of business coursework. Businesses in a capitalist system have a role to maximise profits for the owners. In fact, every well-run business is expected to maximise profits making it a central motive. Capitalism can be looked like a system where the main aim is to accumulate property for the sake of profits (Huerta deSoto, 1999). It is a system that is based on research shows that corporate and business capitalism has been becoming more unethical and immoral.
Ethics is the study of morality and very vital in modern business (Hursthouse, 2013). Most of the corporations and financial institutions have been found to violate ethics for the sake of profits. This is what has led to the current tension between democracy and capitalism. Corporate and business scandals have been common with cases such as Wells Fargo fraud and the collapse of Rana Plaza in Dhaka (Akhter, 2014). Given that the profit is a central feature in capitalism, this essay will explain the most important ways as a business leader one can motivate ethical behaviours.
This will include using of personal approach drawing on own abilities, strengths and values. Capitalism, profits and ethics The business should be profit-oriented but this should not be done at the expense of stakeholders since it is immoral. While capitalism does not have morality, this can be enforced through relevant authorities (Suciu, 2009). As a business leader, there is a need for moral education and enlightenment when carrying out business. Unethical business explores the inherent loopholes that exist in a capitalist economy with the aim of maximising profits.
In fact, high profits are vital for the survival of capitalism (Huerta deSoto, 1999). When the business underperforms or suffers a loss, it is highly likely that the shareholders will sell the shares and join firms with higher profits. When firms focus only on earning the maximum profits, they fail to concern themselves with the welfare of others. They seek to earn the most money as possible without looking at the consequences this has on society. Capitalism is dominated by such firms whose main aim is a pursuit for profits (Suciu, 2009).
The chain of scandals which has been witnessed of late in business has led to questions on the ability of capitalism to address greed, abuse and fraud in the business. A case in point is the collapse of Rana Plaza which killed over 1000 workers and injuring a lot more. The business was operating with low disregard of workers living with the aim of maximising profits (Akhter, 2014). As a business leader, it is evident that there is a problem with capitalism view on profits. The single-minded focus on earning maximum profits has led to the erosion of ethics.
This is due to the fact that profit focus is morally suspect. This is due to the fact that profit-seeking motives lead to unintended consequences which can affect society. Most important ways in which as a business leader, I expect to be able to motivate ethical behaviour Capitalism is seen in most cases as egoistic (Hursthouse, 2013). This is where the system works for profits where own needs are advanced at the expense of other stakeholders (Agbude et al. , 2015).
This has led to a lot of ethical issues. Despite the fact that capitalism is faced with ethical issues, I believe that as a business leader, ethical behaviour can be motivated. I believe that companies should worry less about making profits and become more responsible socially. This involves reducing the conflict between self-interest and the interest of all stakeholders. Business leaders must be ready to seek the interests of all stakeholders (Harris, Sapienza & Bowie, 2009). This is due to the fact that one can succeed by being ethical in business. There are several ways in which as a business leader, one can motivate ethical behaviour.
These are explained and analysed below.
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