How ethics can help improve a business

. Consider this statement: "Doing well by doing good." In your opinion, what does this mean in relation to business? Identify a business that you feel is a good example of this. Explain why you feel that way

This statement refers to the need to consider all stakeholders when making important or wide-ranging business decisions. Historically, management often believed that the sole purpose of an organization was to maximize shareholder wealth. However, the most profitable companies often look to provide society benefit other than those derived from profit making incentives. Companies such as Tesla look to leverage their technology to reduce society’s dependence on oil and gas products that can ultimately damage the planet. Fast food companies such as Chipotle look to use recycled products to help reduce waste that can also be harmful to the environment. Due to these initiatives, both companies have enjoyed higher profit margins and brand loyalty than their much more profit focused peers. Here, consumers recognize that these companies, in addition to making profit, also benefit the world at large.

2. Think of one question you might ask potential job candidates during the hiring process that might give you an idea of a candidate's ethical standards. Why do you feel this question would be good at uncovering ethical standards?

I would ask the potential job candidate the following question:

1. If your boss asked you to lie for them, what would you do?

This question would help to uncover the candidates ethical decision making when faced with immense pressure from a superior. In many instances, employees often feel obligated to acquiesce to their boss in an effort to obtain a promotion, increased responsibility, or to avoid reprimand. This question looks to decipher if a candidate will sacrifice their ethical standards to help appease his or her boss. This is a great question at uncovering unethical standards because if the employee is willing to lie for their boss, they are often willing to lie to their boss as well.

3. How can domestic companies that outsource to foreign factories ensure that their vendor adheres to ethical standards? List at least 2-3 ways. Why would this be important?

First, domestic companies must stringent observation and monitoring standards to ensure that foreign factories are behaving in an ethical manner. Here, this could include surveillance cameras, third party observations, or other forms of observation. Second, the company should promote a company culture that celebrates whistle blowers or those who report unethical actions to senior management. Finally, the company should have strict punishments for those who violate ethical standards. This is important as it indicates to the entire company that senior management takes ethics very seriously and will not compromise these standards, even for short term profits.