The Impact of Business Ethics on Society

Business Ethics

2) Business ethics (Business corruption/ Tax fraud/ Tax havens, crimes/ Politics and the economy)

Business ethics are moral principles that guide the way of a business behaviour.
Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice. As an ethical behaviour, company must avoid the pollution or the use of children for their activities. A measure for solve this is to make codes behaviour in the companies. Another type of business ethics is to pay the taxes and don't avoid it. Tax avoidance could be legal if a businessman finds a legal vacuum in the rules of the tax system, but the question is if it is ethical. Evidently, the answer is negative, as the spirit of the laws is not this. Paying an amount of taxes in the countries where they operate is socially responsible because is necessary to catch funds for the part of the government to supply the citizens public services such as healthcare, education and infrastructures. Tax avoidance has been branded by some people as immoral and unethical practice that jeopardize the integrity of the tax system. Another important term related to the bad business ethic is the business corruption. The most important types are bribery, fraud, embezzlement and kickbacks.

Bribery is the most famous. It can take place between two private individuals or a public official and a private individual. Bribes take many forms. The major of the times is referred to as "grease" money, where public employees may require payment before granting
businesses permits or licenses. Fraud is another form of business corruption by which officers of the company misuse their office for personal gain. In cases related to businesses owned publicly, executives convert public dollars to private gain by authorizing bonuses for themselves. Embezzlement is to take the company's goods or funds for personal gain. It can involve taking small amounts of money over time, called "skimming," or taking large amounts of goods or money at one time. Finally, the kickbacks. It is the payment of something of value as compensation or reward for providing favourable treatment to another part.