A business is a member of the community and there are roles expected of that business in the community. In too many organizations “ethical issues are often positioned in opposition to the more important questions of organization profitability” (p. 4). However, in the new paradigm, shareholders cannot be seen as the only, or the most important stakeholder.
Too many companies sadly will only look at embracing and enforcing a code of ethics in terms of what it costs, rather than the benefits it will gain. Business ethicists have two basic problems with the enlightened self-interest answer to the question of why managers should be ethical.
Virtue and Role: Reflections on the Social Nature of Morality,â€ Lisa Newton (Business Ethics Quarterly July 1992). When good conduct and morals are applied in all the levels of an organization’s structure, that is, from the junior employees to the management staff, the company is most likely headed for success.
Than in times like these with possible reorganizations, staff morale will be influenced too. It means adhering to moral principles, being guided by particular values, and behaving in a way people ought to act. If the company makes huge profits in unethical way then individual who joins the organisation would also have to practice unethical things to survive in the company.
However, as populations grew, the necessity for incorporating the best business practices into a company became somehow less important because there was always another customer around the corner and the owner of a business was rarely the focus of attention in a community the way he or she may have been in the past.