The selected article by Svanberg and Carl emphasizes the moral need for traditional business ethics. A careful review of around thirty business ethics literature by the authors demonstrates that many ethicists maintain the common notion that morally decent behavior is altruistic. The selfless attitude means that businesspeople have a negative opinion of their self-interest regarding the profit motive. Due to these significant consequences, businesspeople are more likely to acquire riches through honest methods and to serve their communities. The focus of the study is consequently on ethically restraining businesspeople and not enabling their self-serving desire to make money regardless of ethical considerations (Svanberg & Carl, 2021). It also underlines the anti-egoism assumptions that have a moral impact on firms, displacing the profit incentive. Furthermore, the study emphasizes traditional ethics and asserts that there is no moral basis for economic profits. It also lists the three standard ethical theories: utilitarian, Christian, and Kantian (Svanberg & Carl, 2021). The theories deny self-interest and the profit motive, arguing that traditional ethics only justify the operational features of a corporation, not its final profits. The argument has value, yet several weaknesses may be refuted by pertinent research and facts. In this regard, the authors assert that conventional ethics conflict with and are incompatible with the profit motive, that traditional ethics imply that running a business solely for profits is immoral and that conventional ethics only justify the means of conducting business and not the end profits; therefore, there is no moral justification for profits. Therefore, this paper critically examines these assertions and identifies the arguments’ flaws with concrete recommendations based on facts and research.
The article’s primary flaw identified concerns the authors’ perceptions of traditional corporate ethics and post-driven self-interest. They argue these two are irreconcilable based on the assumption that most people are in business for their advantage and not the welfare of others (Svanberg & Carl, 2021). This suggests that traditional ethics are incompatible with the self-centered aims of these businesspeople. Conventional ethics specify unequivocally that enterprises should be run for the greater good of society, rejecting egoism and personal gain, hence encouraging altruistic behavior. However, evidence from B-corporation suggests that traditional ethics and profitability are mutually antagonistic and cannot coexist. The B-corporation movement altered the corporate attitude by asserting that social and environmental performance should be weighted alongside profit-making (Haddad, 2022). The non-profit organization in the United States developed a certification system that facilitated the combination of ethics and economics, allowing businesses to establish themselves as both ecologically and socially responsible while still generating a profit. The firm also categorized productive enterprises as those that flourish over time and positively benefit the community (Haddad, 2022). The B-corporation movement in the United States has recognized several firms, like Patagonia, which have aggressively pushed for social and environmental causes while earning a profit (Haddad, 2022). Other businesses, such as Abel & Cole and Vivobarefoot, are also a member of the B-corporation movement, clearly showing that traditional ethics and commercial goals are compatible.
The other flaw in argument relates to the views on the unethicality of traditional ethics. Herein, the authors hold that traditional ethics indicate unethicality when a financial benefit is the driver of a company’s conduct. In this context, immoral goals may not always imply acts of violence; instead, they refer to the selfish actions of self-interest and egoism, in which individuals do business for their gain or well-being (Svanberg & Carl, 2021). The authors illustrate how actual businesspeople, such as Bill Gates, are reviled while others, such as Mother Teresa, are revered. Bill Gates is assumed to be profiting from their self-interest and gain and is thus disliked. Still, Mother Teresa is revered for her legendary life, manifested in her activities primarily for the greater community. However, there is evidence that operating a corporation only for profit is neither unethical nor selfish. After earning a profit, which is the main objective, the business operations may be used for charity causes; hence, making a profit is not immoral based on the social effect of the firm on the community (Ware, 2021). It is ethically acceptable for enterprises to create a profit so long as they adhere to legal and ethical practices. Besides, there is a link between profit-making and increased social influence. Even if such enterprises are unethical, they may be created to produce a profit, and their social contributions might be valued. Without money, companies cannot have a social or environmental influence on the community; thus, the positive connection suggests that for-profit enterprises are not immoral.
The final flaw identified relates to the perceptions held by the authors regarding the moral justifications of profits. The article argues that there is no moral justification for profits since traditional ethics only validates business methods, not profits. This is plainly stated in the text, which requires firms to continue operating ethically regardless of the results, whether profits or losses (Svanberg & Carl, 2021). In this setting, the profit incentive is ignored since shop owners are required to help the community regardless of whether or not they earn a profit. Since egoism and self-interest are primarily neglected in favor of the charitable impact, there is little moral justification for the profits gained by corporations. Nevertheless, customary ethics justify both the methods of doing business and the final yield. According to Samantha (2018), a good association between ethics and profitability extends from the company process to the final profit. In most circumstances, the more a company applies, the greater its likelihood of long-term profitability. Typically, more gains are associated with more significant social repercussions; profits and ethics extend from the beginning processes to the profit stage (Samantha, 2018). B-corporation research demonstrates that firms should function and profit as long as they follow ethical procedures to create money (Haddad, 2022). Therefore, commercial earnings are morally justifiable so long as they have a favorable social and environmental effect.
In conclusion, the article’s claim has appeal but is flawed in several ways that may be refuted by pertinent research and data. The authors assert that conventional ethics are incompatible with the profit motive, that traditional ethics imply that running a business solely for financial gain is immoral and that conventional ethics only justify the means of business and not the end profits; therefore, there is no moral justification for profits. The first problem might be remedied by elaborating on the incorporation of both ethicality and profitability in business since they are not mutually exclusive, meaning that both can be attained simultaneously, with the firm adhering to ethical standards while still generating a profit. The second one might be corrected by making it evident that operating enterprises just for profit is moral, so long as they follow ethics, which are crucial success factors for businesses. It is ethically acceptable to establish a for-profit firm so long as it follows business principles. Additionally, enterprises are morally permitted to contribute to the community. The third problem might be corrected if it were plain that traditional ethics support both the methods of doing business and the final profit. B-corporation guides business conduct from its inception to its ultimate profit stage, moral justification for earnings in most American companies.
References
Haddad, S. (2022). B corp: Is it more important to be ethical than profitable? Raconteur. Web.
Samantha, M. (2018). The relationship between ethics and profits. Holy Brook. Web.
Svanberg, M. K., & Carl, S. F. (2021). Is there such a thing as a good profit? Taking conventional ethics seriously. Philosophia, 49(4), 1725–1751. Web.
Ware, A. (2021). Does making profit make you an unethical business? Clear Voice. Web.