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Ethics relevancy to Business

Category: Social Sciences Paper Type: Report Writing Reference: APA Words: 550

Four reasons for why ethics is relevant to business:

       I.            Customer equity of the Ethical Issues

Customer equity and loyalty have great importance for organizations. Customers get attraction towards the organizations which have ethical practices and morality. Of course, frauds and unethical decisions are unacceptable for customers. Thus to keep customers in touch and loyal with the company, business ethics are essential. In the case study, if Michael will use information extracted or obtained from illegal and unethical way then the company would face negative response from customers also (Ethicaladvocate.com, 2016).        

    II.            Attract investors of the Ethical Issues

Companies ensure ethical practices to get the attraction of the investors. Definitely, investors would not take interest to invest in a company which does not have ethical policies and practice. Unethical practices will cause to make their investment risky. In case, the investors of Michaels Company get an idea about their illegal action they would defiantly alter their mind about investment.

 III.            Development of partnership contracts

The partnership also gets negative impact when a partner realize that the other one is involved in the unethical practices and actions. In this case study, Michaels Company would also face the same situation in case they work on unethical policies and plans of their boss regarding the use of illegally collected information about competitor companies (Clarkson, Miller, & Cross, 2010).       

 IV.            Better reputation in society

Better reputation in society is the prime requirement of the companies concerned with expansion and sustainable growth. Reputation gets influence when a company apply unethical policies. In the case of Michael’s company, Michael was confused because in his knowledge use of illegally obtained information about competitors could ruin the overall reputation of the company. In the world of digital technologies and social media companies need to be focused on ethical practices. Otherwise, the company's reputation can get negative impact.

Conclusion of the Ethical Issues

The whole discussion concludes that ethical issues are critical to the success and sustainable growth of the companies. Case study projected an example of unethical practises by the boss of Michael who collected information about the competitor company by taking illegal access to their data storage systems. Confidential and important data about the production system of competitor firm could benefit the organization in which Michael was working in financial terms however Michael was not ready to work on that information to avoid illegal actions and unethical practices. Case analysis conclude that Michael should blow whistle.       

References of Ethics relevancy to Business 

capsim. (2018). Five Ways To Shape Ethical Decisions: Fairness Approach. Retrieved from www.capsim.com: https://www.capsim.com/blog/five-ways-shape-ethical-decisions-fairness-approach/

Clarkson, K. W., Miller, R. L., & Cross, F. B. (2010). Business Law: Text and Cases: Legal, Ethical, Global, and Corporate Environment. Cengage Learning.

Ethicaladvocate.com. (2016, 09 02). Manager’s Role in Ethics. Retrieved from www.ethicaladvocate.com: https://www.ethicaladvocate.com/managers-role-ethics/

Gupta, A. (2018). THE EVOLUTION OF FRAUD: ETHICAL IMPLICATIONS IN THE AGE OF LARGE-SCALE DATA BREACHES AND WIDESPREAD ARTIFICIAL INTELLIGENCE SOLUTIONS DEPLOYMENT. International Telecommunication Union Journal, 1(2), 0-7.

Gurnani, R. M. (2015). Globalization and ethical challenges. The Business & Management Review, 5(4), 116-124.

Mill, J. S. (2017). Utilitarianism. Coventry House Publishing.

Scarre, G. (2002). Utilitarianism. Routledge. Retrieved 2019

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