guy's mind

Business ethics has become the topic of the hour, partly because recent accounting scandals (e.g., Enron, and WorldCom) have left the world in dismay. The change in global climate, growing differences between the western and the developing world, and other major concerns have called attention to companies’ ethical responsibilities. Even though mankind has been concerned about ethical behavior for several millennia, the link between ethics and business is quite new.

In a time when the vast majority of people in Switzerland need not worry about having enough food anymore, it has become important to them under what circumstances the goods and services they consume were produced. Most consumers feel it is not fair to maintain a high living standard at the expense of suppliers who cannot afford to enjoy western comforts and amenities. Sympathy for those in need has become more intense than ever: While several centuries ago people in Switzerland counted themselves lucky if they simply had enough food, many consumers are now greatly concerned whether the goods they purchase were produced ethically.

Whether it is Max Havelaar which stands for fair trade, Bio Suisse which guarantees organic cultivation, or Qualivo which assures animals’ health and happiness – labels that provide information on the production process of a good have come to fashion a new world of consumer awareness.

As William H. Shaw has observed, it is important to follow our moral principals in the business context. Companies should take consumers’ claims regarding ethical issues seriously as their (un)ethical comportment affects purchasing decisions. Because of the fact that customers are the only source economic profit can be made, a company’s ethical commitment may decide on its economic success.

Companies which intend to act ethically face the crucial question of what ethical behavior actually stands for in practice. A glance at the history of ethics shows that answers to this question provided in antiquity, medieval times, and modern times are confusingly different.


Due to the lack of longtime experience with business ethics, there is no magic formula that can successfully turn companies into ethical partners of our society. It is a fact, however, that customers’ interest in a company’s ethical commitment is increasing. The near future will prove business ethics’ ongoing relevance and clarify the patterns to be followed by companies.

(Based on an essay written in January, 2006)