To a large extent, I agree with this statement. Many companies owners suggested that successful business depend on how profitable the business is, instead of their ethical responsibility to the society. On the other hand, From a business owner perspective, practicing business ethic is time-consuming and costly. However,many multinational companies, including HSBC, Coca-Cola Company, Visa...... embed business ethic into their operations. The truth is a business with poor business ethic is a poor kind of business, since it affect the reputation of the company, violation of law and employee performance.
Is good reputation vital to companies, since customers and investors ought to purchase goods and doing business with well-known companies. Having a bad reputation is more than notorious image , but also sales loss, or even a big chunks off a company's share price.For instance :Exxon’s share price plunged 20% after the Exxon Valdez incident, which is caused by a tank ship, Exxon Valdez. In addition,after the scandal of Hoi Tin Tong which about selling mouldy jelly and jelly with almost no turtle shell is revealed; most citizens criticized the management of the company, most of them even claimed for refund for the coupons they purchased, this not only post a great harm to sales, but also the stock market price.
A variety of laws and restrictions were instituted by government and NGOs for how a companies should be run. Companies which disobey or violate them often face large fines and other penalities.Eg:" McDonald's legislation"
A typical case of influencing the lawmakers to enact legislation that serve their own selfish and haem society. In 1972, The company founder ,Ray Kroc, made a rare donation of 250,000 to Nixon's reelection campaign in exchange for the legislation of allowing companies paid teenager employee 20% less than federal minimum wages.Later, it was classified as McDonald’s most disastrous cases of bad business ethics and spawned tons of negative publicity. Moreover, The Mattel's crisis of manufacturing Hazardous dolls.A caseof I 0...According to United Nations Global Compact; there are ten principles of citizenship in the areas of human rights, labour, the environment and anti-corruption, such as: