Business Ethics Essay

315 WordsDec 20, 20082 Pages
As business ethics evolved parallel to the developments in the USA and Europe since 1960s, it gained a new dimension with corporate social responsibility issues. Late 1980s' corporate motto, "Increasing the value of the stockholders" has been modifıed as "Increasing the value of stakeholders". Since then, ethical practices of companies have been analyzed for each group of stakeholders. Although ethics is as old as the history of mankind and already exists since the early ages of commercıal activities, the understanding of ethics is different in a modern corporate setting. The subject of business ethics is analyzed thoroughly as to how it would function effıciently in an organization and which advantages would it offer in the long run. Corporate mission and targets are subject to change accordingly. Political barriers are less binding, as corporations are becoming global. Ali transactions are held with the support of modern communication systems and more flexible legal/commercial regulations. in the meanwhile globalization has brought new forms of competition which requires that fırms should seek differentiation that would bring a worldwide competitive advantage. Product, market, quality and technology differentiation that would guarantee long term success in the past can easily be challenged today. The tendency to achieve competitive advantage through ethical practices and social responsibility stems out from crises and scandals we often hear. Honesty, fairness, respect and trust are often subject to misconduct. Corporations aim at underlining their ethical practices in the eye of their stakeholders in order to achieve long term advantage in global competition. Vallace, E., (1995), "Business Ethics at Work", Cambridge University Press,UK. Murray, D., (1997), "Ethics in Organizations", Kogan Page Limited, London. Ed.

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