Business ethics
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Institutional Affiliation
Business ethics
Business performance and long-term profitability depend on the entity’s behaviors and how they relate to other stakeholders. The management must strive to create an accepted code of conduct governing how an entity conducts its operations to maintain a good relationship with other businesses, employees, and customers (Ugoani, 2023). Firms in the United States have followed ethical or unethical practices depending on the entity’s objectives and its strategy of operations. For instance, Walmart engages in unethical operations that affect its performance. I decided to analyze Walmart’s operations since its business affects the operations of various entities across the globe. The firm engages in unethical practices as management needs a better system of supervising suppliers in different countries and mishandling employees. The company works with a philosophy that encourages attracting more clients through charging lower prices compared with their competitors. The firm management invents strategies aimed at reducing commodity prices, including squeezing suppliers and creating a non-conducive environment. The entity gives unrealistic prices to its customers and pays low wages to reduce the cost of production.
On the other hand, Starbucks Company engages in ethical practices to create a harmonious relationship with its stakeholders. The company management strives to create an environment where all its employees feel appreciated, and other stakeholders are treated with dignity (Petrova et al., 2024). I analyzed Starbucks’s ethical practices as the business values its employees and other stakeholders. The company management engages in ethical practices as they have responsible purchasing practices that ensure that customers are charged reasonable prices for all their commodities. The company also supports its suppliers to ensure the farmers remain in business and appreciates their efforts to ensure a steady commodity supply. The entity management also has programs for protecting the environment and creating a good space for all stakeholders to carry out their operations.
Walmart’s reputation was tarnished when individuals discovered that the business was engaging in unethical practices. The firm’s damaged reputation affected its sales volume, reducing the profit margin the business was getting before engaging in unethical deeds (Oldak, 2023). For instance, the firm charged unrealistic prices to ensure that the business realized the desired profit margin. The entity employee’s morale towards work changed once they realized that the firm management was using them for business gains without considering their wellbeing. Besides, the firm supply chain schedules were affected negatively as suppliers were not willing to partner with them once they realized that the business was working towards maximizing their profit margin at their expense.
Starbucks management has realized growth in its operations and profit as a result of engaging in ethical practices. The firm management also protects its reputation, which helps the entity management to attract and retain customers (Petrova et al., 2024). For instance, individuals view Starbucks as an ethical entity and prefer engaging in business with the firm. Besides, the company’s engagement in ethical practices changed the business’s and its employees’ relationship, boosting their productivity. Individuals prefer working for entities that value and appreciate their efforts. The business also helps other entities working with it to make ethical decisions using the facts provided by the management, creating a suitable environment for all stakeholders.
Businesses must abide by ethical principles to realize desired growth and increase revenue. Companies that create an ethical environment will change their employee’s behaviors as it will impact their ethical reasoning (Oldak, 2023). For instance, a study carried out by Harvard University established that 60% of employees’ behavior at work relates to the set norms that govern the entity’s operations. Besides, the firm’s management needs to embrace the idea of implementing business ethics as it improves the entity’s profitability. For example, a study carried out in 2022 by the Consumer Federation shows that 75% of customers prefer buying from an enterprise that aligns with their values. An entity that adheres to the set principles helps create a proactive culture that discourages individuals from engaging in unethical deeds. The anti-fraud collaboration in America carried out a study that established that 50% of employees’ behaviors depend on the ethical principles embraced at their workplace.
References
Oldak, D. (2023). Supply Chain Collaboration Under a Christian Business Ethics Lens.
Petrova, A., Karintseva, O., Tarasenko, S., & Wojciech, H. (2024). Business ethical aspects for sustainability: contemporary analysis and assessment.
Ugoani, J. N. N. (2023). Business ethics. In The Palgrave Handbook of Global Sustainability (pp. 1763-1782). Cham: Springer International Publishing.