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Essay / Unethical Business Ethics Essay - 1339
Are businesses that behave unethically doomed to failure? Currently, businesses face increasing societal pressure to operate responsibly and sustainably. Western cultures have become more aware of the effect of their consumption on the environment. Additionally, companies are under pressure to treat labor and, where appropriate, animals with more care. However, this is to some extent optional and it is often argued that corporate social responsibility is assumed voluntarily by the company and that compliance with laws regarding ethical trading is only a prerequisite for "taking responsibility". companies” (Enderle, 2014, pp 723 - 735). Some companies have monopolized the added value of ethically sourced products, promoting a positive brand. According to the definition of Ucbasaran D. et al, I would consider business failure only as “the cessation of involvement in a business because it has not reached a minimum threshold”. for economic viability as stipulated by the entrepreneur” (2012). Ending projects and strategies is a long-term maneuver from which a stakeholder will see no return. Unethical accounting firms often have the most disastrous effects and, although CEOs have been replaced for it, many companies have not survived the scandals. If the company has undergone significant investments, this can lead to irreparable damage. An example of this business failure is the Enron scandal of 2001, in which the unethical actions of CFOs impacted the company, losing $63.4 billion in assets. CFOs misled shareholders by hiding millions of dollars in debt and steering the committee into high-risk accounting practices, leading to the company's bankruptcy. Other companies such as Hollinger International, WorldCom and Tyco have all found their CEOs changing their accounts (accounting-degree.org,