Is it ethical?

Business ethics deals with what is normative in the business world. It's a broad and abstract topic, which is why it has been hotly debated by many philosophers and theorists. Ethics are not always straightforward or black-and-white in the business world, so understanding this can be quite complicated. If we break down business ethics into its simplest form, it may help make things easier to understand.

Ethics deal with how people should behave for the sake of being good as well as moral individuals. Ethical behavior follows certain principles of conduct that is desirable and acceptable for all human beings involved, regardless of their individual cultural background or point of view on morality. It is about trying to act right so that we can be good people.

Is business ethical?

Business is inherently ethical because it is a human activity, if it were not, then no one would be doing it. Whether or not an action is ethical depends on how the individuals involved in that particular situation perceive the behavior of others around them. If they perceive that the particular action will harm another person then they are likely to behave unethically and vice versa. Business ethics surrounds how firms behave towards each other as well as their customers, employees and shareholders. It has become an increasingly important topic within business due to its multi-faceted nature and the global context in which business operates today.

Ethical behavior from a firm's point of view, involves trying to do everything in a way that will benefit them by earning more profits and therefore being able to continue to offer goods or services to those who want them. On the other side of this, un-ethical behavior would be breaking the law or deceiving customers or colleagues for personal gain.

Good business ethics is about trying to act right so that we can be good people. It's all about knowing what is right and what is wrong, so as much as possible we should avoid taking any action that is going not going to harm another person in any way whatsoever.

It is important to know what is right and what is wrong so that we can do the right thing and not harm another person either. This is also true for our customers and shareholders as well as our colleagues in the business. It's very difficult to know right from wrong if we don't know who to trust or where to look in order to find out what's wrong or right.

Lets talk about some unethical business practices in relation to the law.

Financial manipulation . The manipulation that takes place between different banks and companies when it comes to deciding a certain interest rate for loans or raising capital through a bond sale. If we don't have accurate information about what is happening in the market or if we don't fully understand all the financial schemes, then our company would be at risk of being financially manipulated by another company who knows what is going on better than you do, so this could be very damaging to your business.

Legal manipulation . This is manipulated by people who have no scruples when it comes to making as much money as possible out of other people's misery and pain. These people manipulate others so that they can make money out of their misfortune. It's often been a disastrous problem in the past and is still going strong today.

Hiding the truth . This is a very common problem in business mainly because if the truth is revealed then you may be putting yourself open to all kinds of legal actions but at the same time you are also putting other people at risk, this also applies to customers and shareholders. If they know what's going on they may not buy your product or if they do it could damage your reputation.

Ethical behavior from those who have to follow the law . Knowledge, understanding and adherence to the law are all essential when following an ethical code of conduct. A good understanding of the law is fundamental in determining whether or not a particular course of action will be viewed as ethical or unethical.

Some examples of legal manipulation are:

The use of unfair contracts know as one-sided contracts by big companies. These types of contracts are put together with no regard for the interests and welfare of the people who sign them up. It's often said that ignorance is an excuse, but in these circumstances it's quite clear that ignorance is not a justification for such crimes, if it were then these companies would just keep on deceiving their customers without any thought to their well-being, however this isn't what happens in reality.

Malicious lawsuits . These lawsuits are often caused because someone feels they have been wronged in some way by the business or organization that they work for. In this situation their only avenue of recourse is to go to the law and try to fight their grievance in a court of law. This is not only expensive but it can be a very long and stressful process for all involved, especially if you win the court case because then you may end up having to pay all the costs yourself.

Payment mis-representation . A person or company deliberately misrepresenting the price of goods that they charge. This is a serious act of deception and deceit and it may be illegal as well. A good example of this would be charging a customer more than you originally agreed to or charging them a different price for the same item when they have already paid you for it.

In essence, no matter what the situation is, if you want to be good in business and stay out of trouble then you should always try to avoid hurting someone otherwise you will find yourself in a lot of trouble.