Business_Ethics

Business Ethics MGT/216 January 4, 2010 Doreen Gounaris Business Ethics, “What is Business Ethics”' According to BNET Business Dictionary (2009), Business Ethics are defined as a system of moral principles applied in the commercial world, which provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. These behaviors or decisions in businesses normal operations often affect the organization and surrounding community in positive and negative ways. Depending on the situation the business may be praised or frowned upon for their choices in which they conduct business. We will examine three examples of business practices, ethical and unethical, and the effect of their choices and how they are viewed. Most people are familiar with the Intel Corporation, they are the world’s largest producer of microprocessors and are most likely powering many consumers home or work computers. Recently Intel had a federal antitrust lawsuit filled against them by Attorney General Andrew M. Cuomo. The suit charges that Intel violated state and federal anti-monopoly laws by engaging in a worldwide, systematic campaign of illegal conduct to maintain its monopoly power and prices in the market of microprocessor (Attorney General of New York, 2009). Intel’s decisions to operate unfairly or unethically to keep a firm grip on the market and ultimately keep their competitors at a disadvantage by undermining their potential sales. Intel is accused of bribing and coercing three of the nations largest computer makers, Dell, IBM, and Hewlett-Packard (Attorney General of New York, 2009). Through rebates given by Intel to computer manufacturers in the billions and Intel’s propensity to coerce manufacturers into not using AMD products (second largest microprocessor manufacture) all contribute to the view that Intel practiced business unethically. Intel’s profits rose whereas other computer manufacturers and consumers were hindered by Intel’s business practices. Unethical business practices are not limited to large multi-billion dollar corporations; individuals and small business use unethical practices alike. Late 2007 and early into 2008 San Diego saw a rise in scams by contractors and the companies who employed them. Toward the end of the year 2007 much of San Diego County and surrounding areas were hit by the wildfires of that year. In the aftermath of the destruction of the wildfires many homes and properties were damaged. San Diego saw an increase in scam artists or “cons” preying on the victims of the wildfires. Individuals and families who had just lost significant properties were prepared to move forward and rebuild or fix the damage left by the fires, were the contractors who rushed to San Diego concerned about ethical business practices' Many contractors solicited fire victims with price gouging and fraudulent schemes in search of any easy dollar. Contractors would overestimate the cost of repairs, assuming insurance companies are too busy to check bids (Wildfires, 2007). Convincing owners that their insurance would cover all the costs when the insurance won’t. Contractors would solicit elderly who couldn’t physically climb on top of their home, and tell them shingle work needed to be completed and then take their money for a false repair. San Diego reported large numbers of scams as they relate to the fires of 2007 and the contractors who bid jobs for there repairs. Yet another example of poor moral business practice at the expense of the individuals or families who were preyed upon by contactors and their unethical decisions Businesses and companies tend to receive the most coverage or attention when they practice unethical business decisions and principles; however, there are companies who choose to operate in an ethical or moral manner. I work for Starbucks and Starbucks recently made a corporate decision of high moral value in the increased purchase of Fair Trade Certified coffee. Starbucks is doubling the amount of Fair Trade Certified coffee it will purchase this year versus the amount of Fair Trade Certified coffee purchased the previous year. The dramatic volume increase will have a far-reaching positive impact in coffee growing communities throughout the developing world – it will send children to school, bring clean water to farming communities and enable struggling farms to put food on the table (Starbucks, TransFair USA & FLO, 2008). Starbucks Coffee and Farmer Equity (CAFE) practices along with the Shared Planet initiative promote their commitment to doing business responsibly. CAFE practices are Starbucks ethical coffee sourcing guidelines under the umbrella of the Shared Planet program. According to (Starbucks, TransFair USA & FLO, 2008), this is a comprehensive, industry leading program that addresses the environmental, social and economic issues critical to the stability and long-term health of coffee farms and farmers. Starbucks is just one example of how ethical business practices are affecting communities and organizations associated with Starbucks in a positive way. Establishing what defines business ethics, it is easier to identify, which companies or organizations operate their business in an ethical or moral manner. After looking at three examples of companies or organizations and their approach in conducting their day-to-day operations, ethical and unethical choices are made constantly. Intel and contactors of the wildfires of 2007 made decisions to operate unethically, one choosing to take advantage of their customers through lies and the other practicing techniques like bribery and coercion to move ahead in their field. In contrast, Starbucks has gone above and beyond what is considered ethical, taking care of smaller coffee farms who might otherwise not be competitive. Business ethics can be shown in a variety of ways some positive, and some negative. Consumers and other businesses judge those choices and decide whether to use those products or companies based on how they run their business. References Attorney General Cuomo Files Antitrust Lawsuit Against Intel Corporation, the World’s Largest Maker of Microprocessors. (2009, November 4). Retrieved January 2, 2010, from http://ag.ny.gov/media_center/2009/nov/nov4_09.html BNET Business Dictionary. (2009). Retrieved January 2, 2010, from http://dictionary.bnet.com/definition/Business+Ethics.html Starbucks, TransFair USA and Fairtrade Labelling Organizations International Announce Groundbreaking Initiative to Support Small-Scale Coffee Farmers. (2008, October 28). Retrieved January 2, 2010, from http://www.organicconsumers.org/articles/article_15377.cfm Wildfires 2007: Scam Alert. (2007, December 3). Retrieved January 2, 2010, from http:://sandiego.bbb.org/article/wildfires-2007-scam-alert-1896