Business Management: Impacts Of Business Ethics In A Business Environment

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2.1. The essential elements in Business ethics According to Kenneth (2015), stated that in a business environment, the essential element in business ethics is to conduct business with integrity, honesty and all business must committed to treat all the employees and customers fairly. In contrast, an unethical business can be referred to as an act of unlawful action and morally vice activity within the business setting (Babalola ,2009). 2.2. Impacts on the Environment i. Garment industry According to Scott (2015), he reported that of about 400 billion meter square of fabric is sold globally in a year and the textile industry are using more than 8000 chemicals to produce textile. Jackson (2014) also comments that 8000 synthetic chemical…show more content…
He also points out that the Wal-Mart has over 2.1 million employees globally and it’s the world’s largest employer in 2010 (Cited from Sethi, 2014, p. 427). The successful business strategy offering the Everyday Low Price strategy has brought significant success to gain market share. However, the implication of this business model has caused its management to engage with unethical practice and decision. An example unethical practice by the Wal-Mart…show more content…
The positive consequences are the firm is able to achieve lower cost of production and the manager is able to serve the interest of its stakeholder as well as gain higher market share hence, obtain greater profits. Furthermore, from individual perspective such as the consumer, Wal-Mart is offer low price so these benefit the consumer having cheaper price of product and reduce their daily expenses. On the other hand, the unethical practices that is Wal-Mart manager are only considering to pursue on it business model strategy that is EDLP which results management decision to compromises the workers well-being to achieve their own interest. From ethics perspective, this can be relate to ethical egoism theory whereby it refers to ‘people should do what benefits them the most and to consider an actions that is best for them.’ Hence, the negative outcome is that the workers are the ones who face consequences from the unethical business decision. The companies violates the working conditions of the workers that is not giving fair wages to its works and exposing them to unhealthy working condition, thus, against the workers’ rights and

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