Business Ethics And Corporate Social Responsibility Analysis Essay Example
Business Ethics And Corporate Social Responsibility Analysis Essay Example

Business Ethics And Corporate Social Responsibility Analysis Essay Example

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  • Pages: 3 (565 words)
  • Published: January 10, 2017
  • Type: Essay
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In a market economy, businesses strive to maximize profits while also taking into account the interests of other businesses. Ethics pertains to a set of principles that guide individuals and organizations in making decisions. Ethical conduct is essential for all professions, including business, as it entails discerning between what is right and wrong when engaging in profit-driven product sales.

Adherence to specific rules in that meter is necessary. Sharing photographs or copyright materials of a company with a competitor without their knowledge is regarded as unethical. Normandale's actions, which involved selling alleged imitation products at a lower price, especially to a competitor, were highly unethical. According to Ha ; Lennon (2006), a counterfeit product refers to an unlawfully duplicated item designed to imitate the authentic product. Normandale was well aware that it was inappropriate to

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produce and sell counterfeit products at discounted prices through another entity.

Mathis has the right to complain because his company's act violated ethical standards and business ethics rules. A business violation occurs when actions are taken against other businesses, breaking specific laws. Normandale committed a violation by sending photographs and samples of the Mathis line to CLA, a competitor, and instructing them to create an identical line with Mathis's label at a lower price. Additionally, Normandile further violated business ethics by selling these counterfeit products for their own profit at a reduced price. Counterfeiting is considered a white collar crime.

According to Edwin Sutherland (1939), a white collar crime refers to a crime committed by someone of high social status and respectability during their occupation. The consequences of actions can have either positive or negativ

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outcomes for a company. In this situation, Normandale's actions have had an adverse impact on Mathis's company. Hence, it is essential that Normandale faces legal punishment for their unethical business conduct. These actions have led to sales and profit decline in Mathis's company, potentially leading to employee layoffs.

Mathis may have suffered significant damages, particularly in terms of loss of profit, due to Normandale's unethical actions. According to the concept of Proximate Cause, Mathis is vulnerable to such damages because it states that "recovery damage for loss of profits is subject to the general principle that damages must be proximately caused by the wrongful conduct of the defendant" (Don, Robert L., Recovery of Damages of Loss Profits, 5th edition, 1988). In this situation, Normandale would be considered the defendant. It is crucial for companies to adhere to corporate social responsibility as it involves achieving long-term goals that positively contribute to society.

Conducting business ethically and in the interest of the wider community is crucial. Normandale believes that selling Mathis's products at a lower price would be advantageous for consumers in the communities. Although there are opposing views on businesses addressing social issues, the free market perspective emphasizes creating wealth for shareholders. However, corporate social responsibility advocates for businesses to address social issues.

To ensure compliance and offer legal guidance, ethical codes are implemented. Normandale can adopt an ethical code to prevent potential issues, such as price fixing, by refraining from agreeing to manipulate prices or any related factors like discounts and credit terms. Ethics forms the fundamental basis of a business, as stated by Henry Craft: "The stability of the foundation prevents

the collapse of the building." The absence of ethics would lead to failure in numerous organizations, businesses, or corporations.

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