top of page
Writer's pictureEason Bao

Ethics in Business

A common complaint about practicing business is absence of ethics. We all learn about ways to improve your business by employing good marketing tactics, doing proper outreach, and obviously, creating a profitable product, but when you get to the real world, a good way to save money (to some) is to simply cut corners. This comes in many forms, whether it’s sacrificing product quality, underpaying workers, false advertising, or ignoring environmental responsibilities. Bad business practices also don't need to be illegal: many times, legal, yet anti-consumer policies are created simply because a company has the power to do so.

The usual argument against such practices is that one’s actions will always come back to haunt them. If, for example, someone compromises on quality, sooner or later they’ll get caught. However, some statistics show the contrary: a study conducted in 2023 finds that a third of restaurants get away with using low-quality food. Additionally, there are upwards of a million people being paid lower than the federal minimum in the United States. Even more studies have shown that over 90% of “environmentally friendly” claims on products are vague, misleading, or have no proper support at all. On top of that, companies with monopolies can simply shrug off complaints about its bad practices, forcing people to continue using its product.

These statistics point to a horrifying truth: perhaps it’s harder than we’d expected to catch people conducting bad business practices. And when they do, it’s even harder to prosecute: it’s estimated that 90% of white collar crimes aren’t even reported, much less taken to court. And, once again, this statistic is ignoring the number of technically legal, yet unethical conduct.

This isn’t to say that all bad business practices go unnoticed. Ubisoft, a gaming development studio often criticized for its anti-consumer policies, has lost 87% of its peak market cap. However, the overall trend seems to indicate that many malpractices often aren’t called out. The lack of accountability in many business industries can often be attributed to insufficient oversight from the government. In many cases, regulatory bodies are under-resourced, influenced or paid-off by the very corporations they are supposed to oversee. This leads to an environment where unethical practices can flourish without consequence. Furthermore, when penalties for misconduct are minimal, businesses may view them as the cost of doing business rather than a genuine deterrent.

Part of this may come from the difficulty small businesses have in competing with monoliths. Small, local, or family-owned businesses often can’t match the sheer production efficiency of monopolies. As a result, they may feel pressured to compromise their values and ethics to stay afloat, resorting to questionable practices that can undermine their integrity. However, this doesn't mean that unethical behavior is the solution. Rather, it highlights the urgent need for systemic change that levels the playing field. By supporting fair regulations, fostering a culture of accountability, and prioritizing ethical practices, consumers can help create an environment where all businesses, regardless of size, can thrive without sacrificing their principles or morals. Ultimately, nurturing a marketplace built on integrity not only benefits individual businesses but also strengthens communities and promotes a healthier economy for everyone. How this is done, however, is hard to answer.

3 views0 comments

Comentarios


bottom of page