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Chapter 8

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9 views

Chapter 8

Uploaded by

tunganaazola7
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 8

Ethics in business:
Dispelling the myths
Myth 1: Dog eat dog
• Myth: The business environment is lonely and hostile;
either you trample on others, or others will trample on
you. Being ethical is to the detriment of your own
interest.
• Fact: Business always consists of a complex network of
interpersonal and inter-institutional relations. It is socia
in nature. Therefore, finding a sound balance between
concern for others’ interests and concern for your own
is essential to running a sustainable business.
Myth 2: Survival of the fittest
• Myth: Business is a competitive struggle in which
only the fittest will survive. Being ethical will
undermine your competitiveness and your
chances for survival.
• Fact: (1) competition does not exclude ethics, (2)
ethics is a precondition for ongoing competition,
and (3) cooperation is as important as
competition.
Myth 3: Nice guys/girls come second

• Myth: It is impossible to be both ethical and


successful in business. Either one is unethical and
successful, or ethical and unsuccessful.
• Fact: Ethics is vital for cultivating dedication and
creativity in people. When there is high morale in a
company, employees work harder and are willing t
make personal sacrifices to get the job done better
A company that treats any of its stakeholder group
unethically runs the risk of alienating them.
Myth 4: Unethical conduct is not seriou

• Myth: Although unethical conduct is wrong, it is


not really harmful to society.
• Fact: Unethical conduct can lead not only to
financial loss but also to loss of life. It can also
affect the company and economy detrimentally,
and result in lower productivity and lower
profitability.
Myth 5: When in Rome,
do as the Romans do
• Myth: If unethical behaviour is the norm in a specific
context or country, it simply has to be accepted that
that is the way business is done.
• Fact: When we start condoning unethical practices just
because they are widespread, we abandon our ability t
make judgements about what is acceptable and what i
unacceptable. With the rapid advancement of
information and communication technology globally,
there is no place to hide and such business practices w
be discovered and condemned elsewhere in the world,
to the extreme detriment of the company involved.
Myth 6: All that matters is
the bottom line
• Myth: Business is about one thing and one thing only,
and that is profit. As ethics is not primarily concerned
with the bottom line, business should not bother with
ethics.
• Fact: To operate as a legitimate business, a company
must be seen to provide products or services that at a
minimum are not harmful to society. Ethics has a large
impact on maintaining the intricate set of relations with
stakeholders; protecting and enhancing the reputation
the business; and gaining the respect, dedication and
creativity of employees.

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