State Why You Believe It Is Important for Businesses to Act Ethically

Question 1: State why you believe it is important for businesses to act ethically.

Business ethics is “the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities”. (Investopedia) I think that it is important for businesses to act ethically, because they want to stay in business, right? Well, owning or having a business is a very competitive market and there are millions of different types of businesses out there. Those that don't behave or act professionally and ethically will surely suffer. Businesses need to stay professional in order to protect itself. People in society want to work with professional, reputable companies. A business wants to be credible and provide the best for its clients.

You want the business to be established and well trusted. Having an ethical business is the only way to do things right, and is the only way that one could succeed. Businesses are not only good for peoples lives, but they help contribute to economic growth and can help finance schools, hospitals and other public services. Ethical behavior by businesses and corporations is the right way to run a business.

Question 2: Some believe that a company’s only responsibility is to maximize shareholder value. Others feel that an organization has a responsibility to a larger group of stakeholders. State which view you support and justify your position.

In my opinion, I think it would be in the businesses best interest to take care of the larger group of stakeholders. I think that organizations should always work towards the objectives and goals of all its stakeholders, not just its shareholders. Stakeholder value creation can ensure longevity and growth in a business. With no stakeholders, the business will