“THE BUSINESSMAN’S MYTH ABOUT BUSINESS ETHICS”

WHAT IS MYTH?
A “MYTH” IA GIVEN BELIEF GIVEN UNCRITICAL
ACCEPTANCE BY THE MEMBERS OF GROUP, ESPECIALLY IN
SUPPORT OF EXSISTING PRACTICES AND INSTITUTIONS.
(SCHOOL, CULTURE, CHURCH, FAMILY AND BUSINESS)
5 MYTH IN BUSINESS ETHICS
• ETHICS IS A PERSONAL AFFAIRS AND NOT A PUBLIC DEBATABLE
MATTER.
•ETHICS AND BUSINESS DO NOT MIX
•ETHICS IN BUSINESS IS RELATIVE
•GOOD BUSINESS MEAN GOOD ETHICS
•BUSINESS IS WAR
 MYTH 1. ETHICS IS A PERSONAL AFFAIRS
AND NOT A PUBLIC DEBATABLE MATTER.
IN NO SENSE, THIS IS TRUE BECAUSE ONE’S CONCEPT OF MORALITY IS A RESULT OF THE
ENVIRONMENTAL FACTORS. ( EX. RELIGION, CULTURE AND FAMILY VALUES).
-ENVIRONMENTAL FACTORS LIKE RELIGION, CULTURE AND FAMILY VALUES THAT HAVE HAD A GREAT IMPACT
ON THE DEVELOPMENT OF THE ETHICAL OF A PERSON.
MAN IS ALSO A SOCIAL BEING
-BECAUSE MAN ALWAYS INTERACT OR IN RELATION WITH ANOTHER MAN. IT IS LAW OF OUR NATURE TO
MINGLE WITH OTHER PEOPLE, WE DEPEND ON THEM OR THEY DEPEND ON US IN SO MANY WAYS.
IF THE ETHIC IS A SUBJECTIVE THING, THEN IT WILL MAKE MORALITY VERY PERSONAL AND RELATIVE.
BUT IF MORALITY IS SUBJECTIVE, PEOPLE WILL MAKE THEIR OWN MORAL LAWS AND PRINCIPLE.
IN THE EXERCISE OF THIS VALUES SYSTEM, WE MUST ALSO CONSIDER THE IMPACT AND THE GRAVITY OF
OUR ACTIONS IN OTHERS. (THUS, ETHICS IS NOT A PERSONAL AFFAIR BUT A PUBLIC DEBATABLE MATTER.
MYTH 2. ETHICS AND BUSINESS DO NOT MIX
TO CLAIM THAT BUSINESS IS AN ACTIVITY WHICH IS INDEPENDENT OF
MORALITY AGAIN, A SHORTSIGHTED VIEW OF THE RELATIONSHIP
BETWEEN ETHICS AND BUSINESS.
THE BELIEF THAT ETHICS DOES NOT MIX WITH THE BUSINESS WILL ONLY
JUSTIFY ILLEGAL ACTIVITIES AND WILL MOST LIKELY PROMOTE
QUESTIONABLE PRACTICES IN BUSINESS ACTIVITIES. CERTAINLY, ETHICS
HAS A PLACE IN BUSINESS.
MYTH 3. ETHICS IN BUSINESS IS RELATIVE
SOME BUSINESS CLAIM THAT MORALITY IS RELATIVE.
THE TRUTH OF THE MATTER IS THERE ARE UNIVERSAL MORAL PRINCIPLES
THAT PEOPLE SHARE AND AGREE UPON REGARDLESS OF RELIGIOUS
ORIENTATIONS, CULTURES, AND VALUE SYSTEM.
THE STUDY OF ETHICS PAVES THE WAY FOR OUR COMMON
UNDERSTANDING OF THE FUNDAMENTAL IDEAS OF RIGHT AND WRONG AS
REFLECTED IN OUR HUMAN NATURE AND CONDUCT AS A HUMAN BEING.
IT GOES WITH THE SAYING “MIND YOUR OWN BUSINESS”.
MYTH 4. GOOD BUSINESS MEAN GOOD
ETHICS
THIS CERTAINLY A MYTH
THE STUDY OF ETHICS IN BUSINESS ENCOURAGES BUSINESS AND
MANAGERS TO LOOK CLOSELY INTO THE END AND THE MEANS OF DOING
BUSINESS.
THE END JUST NOT JUSTIFY THE MEANS, (“IT SHOULD BE THE END
JUSTIFIES THE MEANS”).
MYTH 5. BUSINESS IS WAR
BUSINESS COMPETITION IS A WAR THUS; THE PRINCIPLES OF MORALITY DOES
NOT APPLY.
BUSINESSMEN, THE MARKET IS AN ARENA OF GLADIATORS TRYING TO FIGHT
FOR SURVIVAL AND DYING FOR THE NUMBER ONE POSITION.
BUSINESS IS A GOOD HUMAN ACTIVITY. AND AS INTEGRAL PART OF THE
SOCIETY, IT MUST PROMOTE HEALTHY COMPETITION AND NOT DESTROY THE
COMPETITORS.
THE RELATIONSHIP BETWEEN ETHICS AND BUSINESS
• ETHICS PLAYS AN IMPORTANT ROLE IN BUSINESS, WITHOUT MORALITY,
BUSINESS WILL BE CHAOTIC HUMAN ACTIVITY.
• ETHICS IS NOT A STUDY OF POSITIVE LAWS INTENDED TO GOVERN AND
REGULATE THE ACTIONS OF THE PEOPLE DOING BUSINESS.
• ETHICS AS A PHILOSOPHICAL SCIENCE IS TO DISCOVER THAT THERE ARE
UNWRITTEN LAWS, WRITTEN IN THE HEART OF MEN THAT SOUND GOVERN
OUR HUMAN CONDUCT WHERE POSITIVE LAWS MAYBE ABSENT, IN SOME
CASES, THEY ARE NOT VERY CLEAR.
WHY ETHICS IS IMPORTANT IN BUSINESS
ETHICS PLAY AN IMPORTANT ROLE IN BUSINESS, IT IS CONCERN AN
INDIVIDUAL MORAL JUDGMENTS ABOUT RIGHT AND WRONG. DECISIONS
TAKEN WITHIN AN ORGANIZATION MAY BE MADE BY INDIVIDUAL OR GROUPS,
BUT WHOEVER MAKES THEM WILL INFLUENCED BY THE CULTURE OF THE
COMPANY. THE DECISION TO BEHAVE ETHICALLY IS A MORAL ONE;
EMPLOYEES MUST DECIDE WHAT THEY THINK IS THE RIGHT COURSE OF
ACTION. ETHICAL BEHAVIOR AND CORPORATE SOCIAL RESPONSIBILITY CAN
BRING SIGNIFICANT BENEFITS TO A BUSINESS.
FF. ARGUMENTS JUSTIFY THE SIGNIFICANT ROLE THAT
ETHICS PLAYS IMPORTANT ROLE IN BUSINESS.
BUSINESS IS AN INTEGRAL PART IN OUR SOCIETY. THEREFORE, THE ACTIONS OF INDIVIDUALS AND
INSTITUTIONS IN BUSINESS MUST BE SUBJECTED TO MORAL RULES AND MORAL EVALUATION.
BUSINESS AS IN ANY OTHER ENDEAVORS “WHAT IS LEGAL MAY NOT NECESSARILY BE MORAL”. PEOPLE
TEND TO CONFUSE LEGALITY WITH MORALITY. AN ACTION MAY BE LEGAL BUT NOT NECESSARILY MORAL.
LAW ARE INSUFFICIENT, THEY CANNOT COVER ALL ASPECT OF HUMAN BEHAVIOR. LAW ARE SOMETIMES
ABSENT OR UNCLEAR IN SOME AREAS OF OUR HUMAN CONDUCT. ETHICS IS UNWRITTEN LAW, WRITTEN
IN THE HEARTS OF MEN. IN THE ABSENCE OF LAW, ETHICS WILL HELP US DISCERN THE CORRECT
CONDUCT TO FOLLOW BASE ON THE DICTATES OF CONSCIENCE AND REASONS.
FF. ARGUMENTS JUSTIFY THE SIGNIFICANT ROLE THAT
ETHICS PLAYS IMPORTANT ROLE IN BUSINESS.
IN TODAY’S TECHNOCRAT-ORIENTED BUSINESS EDUCATION, THE TREND IS TO TRAIN MANAGERS TO
MAXIMIZE PROFITS BY QUANTIFYING THE OPERATIONS OF BUSINESS. CERTAINLY, THE OPERATIONS OF
BUSINESS MUST BE AIDED BY QUANTITATIVE INSTRUMENT TO MEASURE AND PREDICT EXPECTED
OUTCOMES. HOWEVER, THIS IS ONLY ONE SIDE OF MANAGING THE ENTERPRISE. MANAGE4RS AND
BUSINESS LEADERS MUST ALSO BE PREPARED TO RESPOND TO COMPLEX SITUATIONS BEARING ETHICAL
CONSEQUENCES.
PETER DUCKER ARGUES THAT BUSINESS ENTERPRISES IS AN ORGAN OF SOCIETY AND ITS ACTIONS
HAVE DECISION IMPACT ON THE SOCIAL SENSE. HE SIMPLY US THAT A BUSINESS CORPORATION IS NOT
JUST CREATED TO MAKE PROFIT BUT ALSO CONSIDER ITS MORAL AND SOCIAL OBLIGATION TO ITS
STAKEHOLDER. BUSINESS ORGANIZATION SHOULD NOT JUST LOOK AFTER THEIR OWN INTEREST BUT
ALSO THE INTEREST OF COMMON GOOD.
UNETHICAL BUSINESS PRACTICES CAN ONLY LEAD TO BAD
BUSINESS.
• BUSINESS THAT EXHIBIT AND PROMOTE STRONG CORPORATE CODES OF ETHICS ARE
MORE PROSPEROUS IN THE LONG RUN BECAUSE THEY SHOW COMMITMENT TO AN
EXPECTATION OF SOUND MORAL BEHAVIOR.
• IT IS ALSO ENHANCE A COMPANY’S REPUTATION IF THEY BECOME COMMONLY KNOW AS
AN ETHICAL COMPANY AND THIS BRINGS MORE VALUE TO THE ORGANIZATION.
• CHEATING OR LYING DO NOT BRING VALUE TO BUSINESS, AND IT IS ALSO AFFECTS
EMPLOYEE MORALE. EMPLOYEES AND REPUTATION ARE TWO VERY VALUABLE ASSETS.
LEGAL VS MORAL
LEGAL
IS SOMETHING THAT HAS BEEN APPOINTED, ESTABLISHED, OR AUTHORIZED
BY THE LAW THAT HAS CONSEQUENCES IF VIOLATED. ALL CITIZEN OF SOCIETY
MUST OBEY THESE LAWS, EVEN IF THEY DON’T NECESSARILY VALUE THEM.
MORAL
IS CONCERNED WITH THE PRINCIPLES OF RIGHT AND WRONG THAT ARE
BASED ON ONE’S PERSONAL FEELINGS, VALUES, AND OPINIONS.
PROFIT-MOTIVE
WHAT IS PROFIT MOTIVE?
- THE DESIRE FOR FINANCIAL GAIN AS AN INCENTIVE IN ECONOMIC
ACTIVITY.
- THE MOTIVATION OF FIRMS THAT OPERATE SO AS TO MAXIMIZE
THEIR PROFITS.
- THE INTENT TO ACHIEVE MONETARY GAIN IN A TRANSACTION OR
MATERIAL ENDEAVOR.
2 SIDES OF PROFIT MOTIVE

•THE GOOD SIDE OF PROFIT MOTIVE

•THE BAD SIDE PROFIT MOTIVE
GOOD SIDE PROFIT MOTIVE
1. MOTIVES PEOPLE TO DO SOMETHING MEANINGFUL.
2. PROMOTES INGENUITY AND CLEVERNESS IN A RUNNING BUSINESS.
3. MAKES PEOPLE PRODUCTIVE. BECAUSE OF THEIR DESIRE FOR MONEY,
BUSINESSMAN HAVE BECOME PRODUCTIVE AND SOME OF THEIR PRODUCTS
HAVE BEEN USEFUL AND HAVE ENHANCED THE QUALITY OF HUMAN LIFE.
4. GENERATES POTENTIAL CAPITAL FOR THE BUSINESS. PROFIT POTENTIAL
CAPITAL, SOMETHING THAT CAN BE INVESTED TO ESTABLISHED NEW
BUSINESS.
BAD SIDE OF PROFIT MOTIVE
1. PROMOTES RIVALRY AMONG COMPETITORS. SOMETIMES THE COMPETITION BECOMES SO STIFF THAT
IT RESULT INTO A “DOG-EAT-DOG” WORLD OF BUSINESS WHERE SUCCESS IS ACHIEVED BY COMPETING
WITH OTHERS AND PUSHING THEM DOWN IN ORDER THAT ONE’S BUSINESS MIGHT SUCCEED.
2. MAKES PEOPLE FOCUS ONLY ON MAKING MONEY, THAT IS TO SELL AS MANY GOODS AS POSSIBLE
WITHOUT CONCERNING WHETHER OR NOT THESE PRODUCTS SATISFY THE NEEDS AND WANTS OF THE
CONSUMERS.
3. TURNS A BUSINESSMAN FROM BEING A REFLECTIVE AND QUESTIONING PERSON BECAUSE HE FOCUSES
HIS ATTENTION ONLY ON THE PRACTICAL ACTIVITY OF MONEY. THUS, A LIFE CENTERED ON PROFIT ONLY
RESULTS INTO NARROW VIEW OF EXISTENCE, DEFICIENT IN MANY IMPORTANT DIMENSIONS OF HUMAN
LIFE.
4. PROMOTES SELF INTEREST RATHER THAN THE COMMON GOOD. IT HAS, TO SOME EXTENT, BENEFITED
SOME BUSINESSMEN BUT IT HAS ALSO CREATED SOME SOCIAL COSTS THAT MANY PEOPLE.
REASONS WHY PEOPLE GO INTO BUSINESS
• YOUR LIFE NEEDS THE FLEXIBILITY
• CREATE YOUR OWN CAREER OPPORTUNITY
• THERE’S DEMAND OF WHAT YOU ARE SELLING
• YOU WANT TO MAKE MONEY OR LIVELIHOOD
• WANTED TO HELP OTHER/SERVICE TO THE COMMUNITY AND TO EMPLOYEE
• PERSONAL SATISFACTION
• HATE YOUR DAY JOB
• COMMON REASONS IS TO MAKE PROFIT AND SOME BUSINESSMEN CONSIDER PROFIT
AS A REWARD OR COMPENSATION.
THE END…

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