Many people wonder if business ethics is just a buzzword that has been tossed around lately, due to some of the aggressive tactics we have seen them as we enter the 21st century. Unethical businesses can be profitable on the short run, but can never be truly successful. At the same time, however, you should also try to come up with an innovative marketing strategy that will work for your purpose. Ethics involve what’s going on outside the company walls, like the environmental footprints, and the way you handle your obligations in the community, with your customers, and even with your vendors.
Rather, all stakeholders must be seen as equally important for the organization to avoid a narrow economic focus which may lead to lapses in ethical behavior which in the end, lead to severe economic and legal consequences for the organization and its stakeholders (p. 4).
Examples like Texas Instruments show how a new paradigm is developing in organizations regarding the managerial focus on ethical behavior. A proactive business leader formulates a statement of organizational values that employees of the company are expected to embrace – at least while performing duties in the service of the company.
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.
New managers and leaders must focus time and energy not only on making the organization profitable, but they must learn to help individuals in the organization recognize situations which may cause ethical dilemmas and ways in which to apply ethical behavior in a way that satisfies all stakeholders.