Is business ethics an oxymoron

Business Ethics

Is business ethics an oxymoron?

I do not believe that business ethics is oxymoron. Like Collins (1994), I agree that businesses should seriously consider the role of ethics in the organization. In fact, I believe that good ethics is synonymous with good management. The perception that business and ethics are contradictory is based on a generally accepted view of what managers are supposed to do.

While traditionally efficiency has been the key indicator for measuring the productivity of the business, but in recent years, the 'values' and "ethics" have become as important as efficiency. Although every business makes countless of decisions everyday, most of these decisions do not create the dilemma of ethics. In some situations, however, organizations are struggle, because they only look at the short-term goals of the company. These managers believe that the core activity of business is the production of goods and services. However, this self-interest goal of management ("making as much money as possible") provides a short-term emphasis. The management fails to recognize that the lack of ethics in business is going to be expensive for the firm in the long- run.

Although ethics has been defined differently, but in summing up, it becomes clear that an ethic is a philosophy or system of morals, and is as open to individual interpretation. So the understanding that a person, company or business has ethics simply means that each has decided upon a set of rules to live by, and subsequently abides by it. However, following these rules is not enough, rather a firm should seriously consider and reframe the issue what is good for the customers and the society in the long-run. For example, if a toy manufacturer knows that a particular kind of toy contains harmful metal in the production of the toy, it becomes ethical responsibility of the manufacturer that it recall all of the toys from the market and the customers. However, often firms face dilemma: should they recall the product and suffer loss or should they be silent? An organization that takes its ethical responsibilities seriously would recall the products, because it knows that in the long-run, consumers will trust the company and will have high confidence with the company's responsibilities.

Another thing that management needs to consider is that traditionally belief of firm relies on a 'win and loss" strategy. That means, if a business gains benefit, someone else will bear the costs. However, in the present time, the philosophical outlook has changed, which relies on a "win/win" strategy. That means, if a firm that follows ethical rules seriously will win as well consumers win by buying the reliable products and services from the company.

Recognizing interdependence between business and society, therefore, becomes important for managers for clearly visualizing the role of the ethics for the organizations. By clearly able to look at the interdependence, management begins to see how the profitability of the firm is linked with the profitability of the society. Managers who fail to see such linkage often take actions that seek to justify as necessary means for attaining the ends of profits, but that are dysfunctional in an environment of interdependence.