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Business Ethics and the Role of the Corporation

Buy custom Business Ethics and the Role of the Corporation essay


Ethics in business is a crucial aspect of conducting business in modern society. With the increased awareness of people’s rights around the globe, it is important for business owners to adapt practices that are morally right. It has been noted that unless a law to regulate the behavior of the businesses is in existence, the business owners will tend to engage in unethical practices provided that they are going to gain from those practices. It is important for businesses to be aware of the fact that they cannot do without the society, in which they operate in, thereby they should engage in business activities that are ethical and morally right (Frederic, 2002).

The problem to be investigated in this essay is the relationship that exists between the rule of law and businesses, and the description of moral ecology by Dr. Novak in his essay on business ethics and the role of corporations. The paper will also investigate the two sets of responsibilities that Dr. Novak uses to define business ethics.


Dr. Novak uses the responsibilities of corporations as well as small business to define what business ethics is. He is of the view that the moral standards that a business organization should perform to are different from what other organizations, such as church, are expected to meet. He gives a number of responsibilities that should be used to set the ethics that a given business organization is expected to meet. The major seven responsibilities that a business is expected to meet usually arise from the nature of business that a given corporation is engaged in. These responsibilities include  wealth creation, creation of new jobs, meeting customer satisfaction, and giving dividends to investors among others.

Dr. Novak is affirmed that a great relationship exists the between rule of law and businesses. Businesses, “cannot survive without the existence of the rule of law.” The rule of law defines the rules and regulations that should be followed when people are conducting their businesses. It reduces conflicts between the authorities and corporations. The rule of law helps the relevant authorities to put measures that protect businesses from unfair competition (Jennings & Marianne, 2009).

Dr. Novak describes moral ecology as the situation, whereby the corporations should be morally responsible with the kind of advertisement they place on various media channels. It is up to the corporate executives to ensure that the type of advertisements they place advocates good moral values and principles. In the modern society, many corporations do not think putting their advertisements in places and advocate activities that are not morally right. It is, therefore, up to the executives of corporations to enhance good morals through the ads that they place in media.


Business ethics convey important guidelines that ensure that businesses are socially responsible. They define the types of responsibilities that a business is expected to perform toward the various groups of people that are affected by the nature of the activities of the corporation (Jones & Parker, 2005). It is the role of each and every corporation to conduct its activities within the business ethics principles at all times. Observation of ethics by a corporation enhances its corporate image. In conclusion, ethics should be encouraged at all levels of corporation operations.

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