The Importance of Ethics in Business Emily Chengsi Li BUSI 530

Managers’ goal is to maximize value

For a growing business, it is always good to have enough assets and funds. Corporations usually get funds by borrowing and then reinvesting their profits back to the firm. In order to make a profit, managers need to make good financial strategy plans that clarify their investment decisions and financing decisions. While the managers’ goal is to maximize value, can they still be good ethical people? The answer is yes! They may sometimes be tempted to use illegal financial tricks to gain wealth, but intelligent managers know that those types of actions will destroy a company’s value eventually (Brealey, Myers, & Marcus, 2015).

Ethics are extremely significant for doing business

Money is important for any business, but what is more important is to create an ethical working environment. Research by Leigh (2013) supports that most employees are willing to earn less for working at an ethical company rather than earn more for working at an unethical company.

The bible has stated that: “for the Lord gives wisdom; from his mouth come knowledge and understanding. He holds success in store for the upright, he is a shield to those whose walk is blameless, for he guards the course of the just and protects the way of his faithful ones” (Proverbs 2:6-8, New International Version). God will provide what you desire if you serve him. Be a good boss, mentor, and friend to your fellow business workers and God will never abandon you. According to Brealey et al. (2015) that a corporation is a team effort, and managers should keep in mind to always act nicely and show justice to all the employees. This is because only with every member’s effort, the company can provide systematic financial accounts and present true and fair value to the public.

Tragedy of Foxconn company in 2010

As one of the world’s largest contract electronics manufacturers, Foxconn is a Taiwanese-owned multinational organization that produces products and components for Apple and other top brands. There was a tragedy that 12 Foxconn employees committed suicide during the first 5 months of 2010. The company has come under criticism during the rash of deaths, with some employees accusing its inhumane working conditions. The decline was in line with the broad disadvantage that directed the Hang Seng index down 2.4% (Chan, 2013).

Foxconn’s suicide crisis has exposed this company’s unethical working conditions like under average wages and overtime working hours which had disappointed their employees. According to Xu and Li (2013) that Foxconn’s failure is that their stakeholders did not consider their employees as important assets of their company. This case reveals that a successful company should not only care about profits, it should also care about the employees who work for them. It is important to create a good working environment that makes employees feel happy and comfortable.

Conclusion

In Romans 8:5 (New International Version), it says that “those who live according to the flesh have their minds set on what the flesh desires, but those who live in accordance with the Spirit have their minds set on what the Spirit desires.” Every morning when we wake up, we need to be sure that we do have a purpose to work hard in our business. It is not for glorifying ourselves or our bosses, it is for glorifying our Lord!

It is comprehensible that managers’ goal is to maximize value for their shareholders, but they should accomplish it without hurting employees' benefits. The Bible says that each Christian contributes to the body of Christ. In a similar way, a company’s success heavily depends on what each employee would contribute. While making profits is the most important and common goal, companies need to put more emphasis on employee’s welfare.

References

Brealey, R., Myers, S., & Marcus, A. (2015). Fundamentals of Corporate Finance. New York, NY: McGraw-Hill/Irwin.

Chan, J. (2013). A Suicide Survivor: The Life of a Chinese Worker. Journal of Managerial. DOI: 10.1111/ntwe.12007

Leigh, A. (2013). Ethical Leadership: Creating and Sustaining an Ethical Business Culture (1). ProQuest ebrary. Retrieved from http://site.ebrary.com.ezproxy.liberty.edu/lib/liberty/reader.action?docID=10768788

Xu, K., & Li, W. (2013). An Ethical Stakeholder Approach to Crisis Communication: A Case Study of Foxconn's 2010 Employee Suicide Crisis. Journal of Business Ethics: JBE, Dordrecht 117.2: 371-386. Retrieved from http://search.proquest.com/docview/1441788857/fulltextPDF/A2A080CFE61845A2PQ/1?accountid=12085

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