Myths About Business Ethics

Graphics courtesy of MediumOpens in new window Not everyone agrees that ethics is a relevant or necessary subject for business dealings or education. Some have argued that business ethics is an oxymoron, or a contradiction in terms. While we do not advocate or promote a particular ethical position or belief system in this literature, we do see that ethics is relevant to business transactions.

Over the years, lack of involvement from organizational leaders in the field of business ethics has spawned a great deal of confusion and misunderstanding among them about business ethics.

Often, when someone brings up the topic of business ethics “it tends to bring up cynicism, righteousness, paranoia, and laughter.” Many leaders believe business is religion because it seems to contain a great deal of preaching. Or, they believe it to be superfluous because it seems to merely assert the obvious “do good!”

Certain myths persist about business ethics. Some of these myths arise from general confusion about the notion of ethics. Other myths arise from narrow or simplistic views of ethical dilemmas.

1. Ethics is personal. This myth holds that individual ethics is based on personal or religious beliefs and that one decides what is right and wrong in the privacy of one’s own conscience.

2. Business ethics and ethics do not mix. This popular myth holds that business practices are basically amoral (not necessarily immoral), since businesses operate in a free market. This myth also asserts that management is based on scientific, rather than religious or ethical, principles.
3. Business ethics is more a matter of religion than management. Behind this myth lies the confused belief that ethics are a means of altering people’s values.
   
   
   The reality is different. An ethical culture deals with managing values between the individual and the company, to best handle the inevitable conflicts that crop up in every organization.
4. It’s easy to be ethical. This myth ignores the complexity surrounding ethical decision-making, particularly within business organizations. Ethical decisions are seldom simple. For example, people often do not automatically know that they are facing an ethical choice and any given individual may not recognize the moral scope of the issues involved.
5. Good business means good ethics. The reasoning here is that executives and organizations that maintain a good corporate image, practice fair and equitable dealing with customers and employees, and earn profits by legitimate, legal means are de facto ethical. Such organizations, therefore would not have to be concerned explicitly with ethics in the workplace. Just do a hard, fair day’s work and that has its own moral goodness and rewards.

6. Business ethics is relative. This myth holds that no right or wrong way of believing or acting exists. Right and wrong are in the eye of the beholder.
7. Hire only ethical people, so further time on business ethics is not needed. This is usually an excuse for not developing ethical policies and practices. These can be as simple as how to handle customer overpayments, or more complex in how to handle the choices every employee may face between conflicting customer and company interests.
8. Information is neutral and amoral. This myth holds that information and computing are neither moral nor immoral, but are amoral, that is, they are in a “gray zone,” a questionable area regarding ethics.
9. Business ethics is still a fad or a discipline touted by philosophers, academics, and theologians. Many believe that business ethics is a fad or movement, having little to do with the day-to-day realities of running an organization. They believe business ethics is primarily a complex philosophical debate or a religion.
10. Ethics can’t be managed. While codes of behavior do not guarantee an ethical culture, they do clarify desired behavior and articulate for employees what is expected of them. Every business has complex and diverse dilemmas which are not specifically covered in documented procedures, so employees need clear values leadership for guidance.

11. We’ve never broken the law so we must be ethical. Many perfectly legal actions can still be deeply unethical. As an example, organizations often realize that faulty products are slipping out, but they delay a recall, sighting that strictly legal requirements are being met. Unethical behavior can even be something low key which initially goes unnoticed.
12. Unethical behavior in business is just due to a few “bad apples.” In reality, most unethical behavior in business happens because the environment tolerates it, usually through benign neglect. When it comes to ethics, even good people tend to be followers, and if told to do something, they will do it, without considering the ethical implications.
13. Business ethics is superfluous. It only asserts the obvious—”Do Good!” Many people react that codes of ethics or lists of ethical values to which the organization aspires are rather superfluous, because they represent values to which everyone should naturally aspire.
14. Business ethics is a matter of the good guys preaching to the bad guys. Some claim a moral high ground while lamenting the poor condition of business and its leaders. However, those people well versed in managing organizations realize that good people can take bad actions, particularly when stressed or confused.

15. Ethics can’t be managed. Some are still skeptical about business ethics, believing you can’t manage values in an organization.
16. Business ethics is just a matter of laws and regulation. This is not just false, but dangerous. The tendency to confuse ethics and law is tempting, especially in an age in which the business section of the newspaper increasingly refers to “ethics laws” and “ethics regulations.”

Logical problems occur in all of these myths. In many instances, the myths hold simplistic and even unrealistic notions about ethics in business dealings. While each of the myths can be refuted they continue to persist in the minds of many who will never believe that ethics is relevant or necessary to business dealings or education.