Ethical Issues In Business (Essay Sample)

ETHICAL ISSUES IN BUSINESS
Introduction
Ethics play a crucial role in the day-to-day business practices. From smooth running to mutual and harmonious existence among companies, ethical considerations have significantly shaped the business world. ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"mJBO9I7U","properties":{"formattedCitation":"(Dans, 2020)","plainCitation":"(Dans, 2020)","noteIndex":0},"citationItems":[{"id":3448,"uris":["http://zotero.org/users/4013864/items/ZDA4YXDS"],"uri":["http://zotero.org/users/4013864/items/ZDA4YXDS"],"itemData":{"id":3448,"type":"webpage","abstract":"We live in a world in which the ethical standards of companies have fallen far below any reasonable bar: over recent decades, business leaders and politicians have learned that they can get away with lying as they doggedly pursue their short-term interests.","container-title":"Forbes","language":"en","note":"section: Leadership Strategy","title":"Why Business Ethics Are So Important If We're Going To Save The Planet","URL":"https://www.forbes.com/sites/enriquedans/2020/09/28/why-business-ethics-are-so-important-if-were-going-to-save-theplanet/","author":[{"family":"Dans","given":"Enrique"}],"accessed":{"date-parts":[["2021",4,19]]},"issued":{"date-parts":[["2020",9,28]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} Dans (2020) reiterates that business ethics go beyond fines and penalties but rather a sense of responsibility for every key player in the business industry. On the contrary, blatant violation of ethical guidelines should not only attract heavier sanctions but also demand for sincere public apologies and meeting of the incurred damages. Taking the Alibaba Group as a case study, this paper discusses the importance of compliance to ethics, the effects of non-compliance and the corrective measures a company can take following a breach in the ethical requirements and guidelines.
Company Overview
The Alibaba Group Holding Limited, popularly known as Alibaba Group is a giant Chinese tech company that offer global services in e-commerce, retail, internet, and technology. The company was founded on 28 June 1999 by Jack Ma and 17 other friends and provides manufacturing sourcing options for different sized businesses at significantly lower prices ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"7MkDNz4z","properties":{"formattedCitation":"(Ibrahim, 2018)","plainCitation":"(Ibrahim, 2018)","noteIndex":0},"citationItems":[{"id":3450,"uris":["http://zotero.org/users/4013864/items/IE48PZMT"],"uri":["http://zotero.org/users/4013864/items/IE48PZMT"],"itemData":{"id":3450,"type":"webpage","abstract":"Everything you need to know about buying from Alibaba to source products in 2021. Get all your Alibaba questions answered today!","container-title":"The BigCommerce Blog","language":"en","title":"Buying From Alibaba: Security, Sourcing, Shipping Costs & More","title-short":"Buying From Alibaba","URL":"https://www.bigcommerce.com/blog/alibaba-faqs-security-shipping-taxes/","author":[{"family":"Ibrahim","given":"Deniz"}],"accessed":{"date-parts":[["2021",4,20]]},"issued":{"date-parts":[["2018",2,6]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Ibrahim, 2018). The company’s major sales services include consumer-to-consumer, business-to-consumer, and business-to-business, using its own web-based shopping portals and e-payment systems. According to a report by ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"QNOKX7J7","properties":{"formattedCitation":"(Baker, Toonkel and Vlastelica, 2014)","plainCitation":"(Baker, Toonkel and Vlastelica, 2014)","noteIndex":0},"citationItems":[{"id":3452,"uris":["http://zotero.org/users/4013864/items/2ID6EBP9"],"uri":["http://zotero.org/users/4013864/items/2ID6EBP9"],"itemData":{"id":3452,"type":"article-newspaper","abstract":"Alibaba Group Holding Ltd's shares soared 38 percent in their first day of trading on Friday as investors jumped at the chance for a piece of what is likely to rank as the largest IPO in history, in a massive bet on China's burgeoning middle class.","container-title":"Reuters","language":"en","source":"www.reuters.com","title":"Alibaba surges 38 percent on massive demand in market debut","URL":"https://www.reuters.com/article/us-alibaba-ipo-idUSKBN0HD2CO20140919","author":[{"family":"Baker","given":"Liana B."},{"family":"Toonkel","given":"Jessica"},{"family":"Vlastelica","given":"Ryan"}],"accessed":{"date-parts":[["2021",4,20]]},"issued":{"date-parts":[["2014",9,19]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} Baker, Toonkel and Vlastelica (2014), the 2014 ranking had Alibaba Group posting the largest IPO in history, which rose to nearly $25 billion, together with a market value of $231 billion. The company is also listed among the top artificial intelligence firms basing on its use of sophisticated Machine Learning Platform for its clients ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ZRIRQH2l","properties":{"formattedCitation":"(Maguire, 2021)","plainCitation":"(Maguire, 2021)","noteIndex":0},"citationItems":[{"id":3454,"uris":["http://zotero.org/users/4013864/items/L3TH8T54"],"uri":["http://zotero.org/users/4013864/items/L3TH8T54"],"itemData":{"id":3454,"type":"webpage","abstract":"Artificial Intelligence is reshaping business. Explore highly successful AI Companies & those who are investing in AI.","container-title":"Datamation","language":"en-US","title":"Top Performing Artificial Intelligence Companies of 2021","URL":"https://www.datamation.com/artificial-intelligence/top-artificial-intelligence-companies/","author":[{"family":"Maguire","given":"James"}],"accessed":{"date-parts":[["2021",4,20]]},"issued":{"date-parts":[["2021",4,9]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Maguire, 2021). Other prominent entities associated with the company include gold supplier memberships, cloud computing, FinTech, and online payment platforms.
The Ethical Issue
The Alibaba is among the organizations recently accused of breaching business ethics. In April 2021, the company hit the headlines after being fined a record $2.75 billion by the Chinese government for anti-monopoly violations. According to ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"ZlST8yWK","properties":{"formattedCitation":"(Murdoch and Stanway, 2021)","plainCitation":"(Murdoch and Stanway, 2021)","noteIndex":0},"citationItems":[{"id":3456,"uris":["http://zotero.org/users/4013864/items/XUR675EX"],"uri":["http://zotero.org/users/4013864/items/XUR675EX"],"itemData":{"id":3456,"type":"webpage","abstract":"China slapped a record 18 billion yuan ($2.75 billion) fine on Alibaba Group Holding Ltd on Saturday, after an anti-monopoly probe found the e-commerce giant had abused its dominant market position for several years.","container-title":"Reuters","note":"section: Retail & Consumer","title":"China fines Alibaba record $2.75 bln for anti-monopoly violations","URL":"https://www.reuters.com/business/retail-consumer/china-regulators-fine-alibaba-275-bln-anti-monopoly-violations-2021-04-10/","author":[{"family":"Murdoch","given":"Scott"},{"family":"Stanway","given":"David"}],"accessed":{"date-parts":[["2021",4,20]]},"issued":{"date-parts":[["2021",4,10]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} Murdoch and Stanway (2021), the fine is valued at approximately 4% of the company’s 2019 domestic revenues even as China closes down on tech giants with heightened enforcement of the antitrust laws. The probe on China’s largest tech company was launched in December 2020, when concerns were raised on Alibaba’s engagement in monopolistic practices. The company was investigated for constraining its vendors from selling goods on other platforms, raising ethical concerns over anti-monopoly violations. Soon after fine imposition, the company issued a public apology, promising to “seriously study and strictly comply with all regulatory requirements and commit full efforts to fulfil all related work” ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"MRit1Fm4","properties":{"formattedCitation":"(Zhong, 2020)","plainCitation":"(Zhong, 2020)","noteIndex":0},"citationItems":[{"id":3458,"uris":["http://zotero.org/users/4013864/items/ZNK4SS8R"],"uri":["http://zotero.org/users/4013864/items/ZNK4SS8R"],"itemData":{"id":3458,"type":"article-newspaper","abstract":"Jack Ma and other entrepreneurs prospered under Beijing’s laissez-faire attitude toward the business side of the internet. The dynamic is shifting as the companies have grown in power.","container-title":"The New York Times","ISSN":"0362-4331","language":"en-US","section":"Business","source":"NYTimes.com","title":"With Alibaba Investigation, China Gets Tougher on Tech","URL":"https://www.nytimes.com/2020/12/23/business/alibaba-antitrust-jack-ma.html","author":[{"family":"Zhong","given":"Raymond"}],"accessed":{"date-parts":[["2021",4,20]]},"issued":{"date-parts":[["2020",12,24]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Zhong, 2020). The fine also comes after China’s pronouncement on strict enforcement of antimonopoly regulations to combat the growing anticompetitive behaviors propagated by the tech giants.
Ethical considerations are vital in business operations and a breach in any of the guidelines may have derogatory effects on the organisation. ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"0s0zRWLt","properties":{"formattedCitation":"(Nuseir and Ghandour, 2019)","plainCitation":"(Nuseir and Ghandour, 2019)","noteIndex":0},"citationItems":[{"id":3460,"uris":["http://zotero.org/users/4013864/items/9BJ8UYJS"],"uri":["http://zotero.org/users/4013864/items...