In today's business world, competition is the most
important thing. On the other hand, it became quite difficult to survive and
ensure a sustainable development for the businesses. Achieving success in the
global world requires not only to be productive and creative, but also to give
importance to ethical values. While conducting ethical behaviors in business
life provides profitability and competitive advantage, unethical behaviors add
additional costs to businesses. However, ethical values sometimes vary from one
society to another. While the behavior of a firm is unethical according to one
society, it may be considered as normal according to another. In such cases,
firms may have difficulties in making decisions. In this study, when there is a
dilemma between making a profit and behaving ethically, which of the
enterprises should be preferred is evaluated in terms of ethical and cost
relation. Moreover, the reasons behind the decision are explained. In addition,
the types of unethical behaviors of firms and the effects of these behaviors on
the costs were investigated. As far as it is known, this study is expected to
contribute significantly to the literature because there is no study linking
ethical behaviors of businesses to their costs in the current literature. According
to the results of this theoretical literature review, the reasons such as
political structure, economic situation and legal regulations affect the needs
of the enterprises. For this reason, enterprises should first follow through
the objectives of cost minimization and profit maximization, then consider
ethical values. In other words, the costs incurred by enterprises not behaving
ethically are better than the profit loss by behaving ethically.
Primary Language | English |
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Journal Section | Articles |
Authors | |
Publication Date | April 1, 2019 |
Submission Date | February 20, 2019 |
Published in Issue | Year 2019 Issue: 1 |