In business, ethics and law

By: Joseph Brochin

The main objective of a business is to make money. Why an individual or a group of people start a business if it did not make money? An argument that is generated by some is: "if profits are the only function of a company?"

The desire for companies to make money can sometimes lead to what is considered business practices unethical. Keep in mind the words unethical and illegal are two separate terms with two distinct meanings. One side of the U.S. argument that ethics should not play a role in business as long as the company respects the law of the country then they should not be concerned with ethical behavior, but they must act in best interest of the organization. The other side of the argument that the state for an economy to function in a capitalist mode that companies should act ethically, regardless of whether their actions are legal under the law.

Milton Friedman argues that the only responsibility of business is to increase its profits. Robert Almeda maintains that if capitalism is to survive, it must act in a socially responsible manner, that go beyond profit. The views of these two individuals are at the heart of the argument. This author believes that, after reading their records that the views of both are exaggerated. I believe that the responsibilities of a company exceed what is legal. A company has a responsibility not only for owners or shareholders, but also for the consumers who trust the company not only acts in a lawful manner, but safe and ethical manner. If a company comes out of his way of acting unethically, then the company has broken their trust with the consumer. Once a company loses the trust of their customers and profits will fall. Seeing that profits are the main function of a company while it is in the interest of companies to maintain a relationship of trust with consumers and continue to act safely and ethically.

Bearing in mind that this is not the goal of a firm offer or dictate legislature, nor the ethical behavior of the individual, a company should not be held responsible for what a small population consumers consider unethical. If the practice of business is outdoor and the dangers of their products are easily produced and does not present the possibility of death and involuntary consumption legislature should not dictate ethical behavior for companies or individuals that question.

About the author

Joseph Brochin owns and operates http:Brochin.net. An IT & Telecommunications Solutions Provider and consultant.http: brochin.net