Business Ethics and Rules Essay Example for Free

Business Ethics and Rules EssayPersonally, I agree that Solomons ethical fundamentals are a good moral foundation for a trading. Business ethics is the study of what constitutes right and wrong (or good and bad) human conduct in a commercial enterprise context. (p25) From the lecture, we know that ethics matters because how organizations behave have important implications for how they fulfill their social and economic roles and their success as head as the success of their employees, customers, etc. Thus, outpouring a headache ethically is good for business. Applying Solomons three Cs of business ethics and the eight rules of cerebration ethics in business make good sense.The three Cs of business ethics include compliance, contri andions and consequences. The first C is the need for compliance with the rules, including the laws of the landand such habitual concerns as fairness. (p36) As a saying goes, Nothing can be accomplished without norms or standards. Rules in busi ness are intended to assert business structure or to control or influence the behavior of the business. Lets take EU-Rent for example. EU-Rent is a car rental company owned by EU-Corporation. EU-Rent sets up rules about rentals, returns, servicing and customers.For example, EU-Rent keeps records of customers, their rentals, and bad experiences. This information is used to decide whether to approve a rental. If EU-Rent doesnt comply with these rules, it may not organize well. The uphold C is the contributions business can make to order, through the values and quality of ones products or servicesand usefulness of ones activities to the touch community. (p36) For instance, economists conventionally assume that organizations primary goal is to maximize profits. Many successful organizations are gradually aware of the important relationship surrounded by profits and contributions to society.Starbucks has seen its profits rise as it has increased its investment in social issues. Tho se organizations who are making profits and dont contribute to society may receive criticism from the public. As the article The Sichuan Earthquake and the Changing Landscape of CSR in China, which was written by Ariel McGinnis, James Pellegrin, Yin Shum, Jason Teo, and Judy Wu (University of Pennsylvania), mentioned, In the old age and weeks following the Sichuan earthquake, many another(prenominal) multinational corporations(MNCs) pursued a global CSR (corporate social responsibility) policy in line with their international standard.While some multinationals pledged cash, many others pledged a combination of cash, equipment and services. Domestic firms, by all accounts, out-donated multinationalsThe popular perception was that international firms relief contributions not only did not match those of topical anesthetic Chinese companies in end points of scale or timeliness, but also were not commensurate with their presence in the Chinese market. Chinese consumers quickly seized upon this distinction by openly attacking major MNCs, calling for a boycott of their products The Chinese public soon gave these affected MNCs the nickname of international iron roosters. The term refers to a bird that never gives up a single feather, and its usage highlights the perceived stinginess of these international firmsDespite their additional donations, iron-rooster MNCs continued to face angry consumers end-to-end China, resulting in severe public backlash, including protests at several McDonalds and blockades at KFCs throughout Sichuan province and the rest of China. From this example, we can see how important the contributions that organizations should make to the society are.The troika C is the consequence of business activityincluding the reputation of ones own company and industry (p36) Why the consequences of business activity are so important? Lets have a look at the following example. Once, Sanlu was one of the oldest and most popular brands of infant formul a in China. It went into bankruptcy after the Sanlu milk scandal. establish on the media, By November 2008 China reported an estimated 300,000 victims, six infants dying from kidney stones and other kidney damage, and a further 860 babies hospitalized. Since the Sanlu Group didnt solve the problem and recall the products in time, it leaded to a horrible incident. Doubtlessly, what did organizations do may affect their development and even the well-being of the public. Organizations should not blindly pursue for profits only but also be responsive to society. To become successful, a business needs to be driven by ardent ethical values. If a corporation fails to adopt ethical values and cannot be responsive to society, it will fail, just like the Sanlu Group.Besides the three Cs of business ethics, Solomon also stated the eight rules of thinking ethics in business, which are also good moral foundations for a business. The eight rules include care other peoples well-being, including the well-being of nonparticipants think as a member of the business community and not as an isolated individual obey, but do not depend solely on, the law think of yourselfand your companyas part of society obey moral rules think objectively select the question What sort of person would do such a thing? and respect the customs of others, but not at the expense of your own ethics. (p40, 41) Based on the above statements, it is obvious to see that they are mainly about the concept of three Cs. According to the text, thinking ethically means thinking in terms of compliance with the rules, implicit as well as explicit, thinking in terms of the contributions one can make as well as ones own possible gains, thinking in terms of avoiding harmful consequences to others as well as to oneself. (p40) In the case of Sanlu milk scandal, one of the main reasons behind