Ethics is an innate behavior of humans when it comes to things that affect another human being. But as of late ethical issues have been subsided for economic gain and power. "There is so much hypocrisy in today’s world that even totally ethical behavior is questioned since many people think it is some new negotiating technique (Spinelli, Jr. & Adams).” Therefore every entrepreneur should understand the implication of their actions and take the high ethical ground which will eventually result in a good decision for business. But in doing so they must be able to communicate it as genuine act as well. Let us discuss some examples where taking the ethical ground has resulted in a positive ending which not caring for ethical issues has done the opposite.
Let us take a recent example from right here in Kathmandu. An eatery that was gaining popularity and had been able to brand itself among so many other similar eateries, Bajeko Sekuwa, has not gone under and was forced to be sold off. The reason was that the owner was found to be involved in illegal smuggling of gold and was eventually caught. This unethical decision on the part of the owner reflect negatively on his business so much so that it had to be sold off. "The special investigation committee probing the 33 kg gold scam raided the outlets of Bajeko Sekuwa, a popular chain restaurant in Kathmandu. The committee today screened through the outlets in Anamnagar, Sorhakhutte, Samakhushi, Battisputali, Kamalpokhari and Gairidhara. Following the raid, the committee sealed off the outlets (RASTRIYA SAMACHAR SAMITI, 2018).”
Comparing this with the issue in Starbucks, where two men from African American decent were arrested and this caused a public negative view of the brand. Keven R. Johnson the CEO of Starbucks, released a statement saying that he hoped to meet the accused and apologize face to face. He also informed the public in the statement to investigate the issue and change practices to prevent such situation from happening in the future (Stevens, 2018). Such swift ethical decision by the CEO on addressing the issue stopped the incident from escalating and help restore the image of the company.
These are two examples where we can see the decisions taken by the owner of the company and how it affected their success. Therefore taking ethical decision is a good decision for business.
References
RASTRIYA SAMACHAR SAMITI. (2018, June 13). Smuggling probe committee raids, seals Bajeko Sekuwa outlets. The Himalayan Times .
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.
Stevens, M. (2018, April 15). Starbucks C.E.O. Apologizes After Arrests of 2 Black Men. The New York Times . doi:nytimes.com/2018/04/15/us/starbuck...
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Ethics is an innate behavior of humans when it comes to things that affect another human being. But as of late ethical issues have been subsided for economic gain and power. "There is so much hypocrisy in today’s world that even totally ethical behavior is questioned since many people think it is some new negotiating technique (Spinelli, Jr. & Adams).” Therefore every entrepreneur should understand the implication of their actions and take the high ethical ground which will eventually result in a good decision for business. But in doing so they must be able to communicate it as genuine act as well. Let us discuss some examples where taking the ethical ground has resulted in a positive ending which not caring for ethical issues has done the opposite.
Let us take a recent example from right here in Kathmandu. An eatery that was gaining popularity and had been able to brand itself among so many other similar eateries, Bajeko Sekuwa, has not gone under and was forced to be sold off. The reason was that the owner was found to be involved in illegal smuggling of gold and was eventually caught. This unethical decision on the part of the owner reflect negatively on his business so much so that it had to be sold off. "The special investigation committee probing the 33 kg gold scam raided the outlets of Bajeko Sekuwa, a popular chain restaurant in Kathmandu. The committee today screened through the outlets in Anamnagar, Sorhakhutte, Samakhushi, Battisputali, Kamalpokhari and Gairidhara. Following the raid, the committee sealed off the outlets (RASTRIYA SAMACHAR SAMITI, 2018).”
Comparing this with the issue in Starbucks, where two men from African American decent were arrested and this caused a public negative view of the brand. Keven R. Johnson the CEO of Starbucks, released a statement saying that he hoped to meet the accused and apologize face to face. He also informed the public in the statement to investigate the issue and change practices to prevent such situation from happening in the future (Stevens, 2018). Such swift ethical decision by the CEO on addressing the issue stopped the incident from escalating and help restore the image of the company.
These are two examples where we can see the decisions taken by the owner of the company and how it affected their success. Therefore taking ethical decision is a good decision for business.
References
RASTRIYA SAMACHAR SAMITI. (2018, June 13). Smuggling probe committee raids, seals Bajeko Sekuwa outlets. The Himalayan Times .
Spinelli, Jr., S., & Adams, R. (n.d.). New Venture Creation . New York City: McGraw-Hill Irwin.
Stevens, M. (2018, April 15). Starbucks C.E.O. Apologizes After Arrests of 2 Black Men. The New York Times . doi:nytimes.com/2018/04/15/us/starbuck...