ETHIC AND THE TRIPLE BOTTOM LINE

 In the wake of the high profile scandals of Enron, Tyco, World Com, and Martha Stewart, as well as a growing awareness that the health of the global community suffers from unethical and irresponsible corporate practices,then  The Triple Bottom Line which are now part of the expanded scope of corporate concerns. The triple bottom line by John Elkington, the sustainability refer to the long-term maintenance of systems according to environmental, economic and social considerations.

Discuss the triple bottom line on the business ethics??

• Environmental perspectives
• Economic perspectives
• Social perspective

Environmental perspective

The basic principles of sustainability in the environmental perspective concern the effective management of physical resources so that they are conserved for the future. All biosystems are regarded as having finite capacity, and hence sustainable human activity must operate at a level that does not threaten the health of those systems. Even at the most basic level, these concerns suggest a need to address a number of critical business problems, such as the impacts of industrialization on biodiversity, the continued use of non-renewable resources, such as oil, steel, and coal, as well as the production of damaging environmental pollutants like greenhouse gases and CFCs from industrial plants and consumer products.

Economic perspective

The economic perspective on sustainability initially emerged from economic growth models that assessed the limits imposed by the carrying capacity of the earth. The recognition that continued growth in population, industrial activity, resources use, and pollution could mean that standards of living would eventually decline led to the emergence of sustainability as a way of thinking about  ensuring that future generations would not be adversely disadvantaged by the activities and choices of the present generations.

Social perspectives

 The development of the social perspective on sustainability has tended to trail behind that of the environmental and economic perspectives and remains a relatively new development . Primary, it would seem, in response to concerns regarding the impacts of business activities on indigenous communities in less developed countries and regions.

Dear Abah....

Definition

Ethics is a good attitude of behavior, concern with morality and natural right or human right. The related of definition business ethics still the same concept with definition of ethics but the differentiate of it, business ethics more be highlighted about the activities, situation and decision making of business. Depend on the individual perception about the situation of activities is right or wrong behavior, avoid from illegal activities of business, how their manages their employees fairly, avoid from any fraud in the business and such.

Consider the Business Ethics is NOT Oxymoron


Business Ethics and Oxymoron are two apparently contradictory concept, refer to definition of business, business is the activity that provided the goods and services to consumer to earn the profit  and ethics is a good attitude of behavior, concern with morality and natural right or human right. But nowadays, most of people do not followed the ethics in the business and when the individual started to aim the gain profit quickly, they have to involve in bribes and fraud, this situation had burden to others and it is call an unethical behavior. So the business ethics is not consider as oxymoron.


Corporate Governance

The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of many stakeholders in a company. These include its shareholders, management, customers, suppliers, financiers, government and the community. Coporate governance also provided the framework for achieve a company's objective, it included practically every sphere of management, from action plan and internal control to performance measurement and corporate disclosure.

Based on 1992 pressing issue about a breach of corporate governance had be corrupted by internal authority, they had made the accounting of companies been fraud bankrupted high profile companies and that's had been happened to Enron and WorldCom. The ethical of employee and employer in their ability to the Corporate governance had most important to avoided from any unethical dilemma in the company.

Most companies strive to have a high level of corporate governance. These days, it is not enough for a company to merely be profitable, it also need to demonstrate good corporate citizenship through environmental awareness, ethical behavior and sound corporate governance practices.

by: Siti Maisarah Binti Mansor
Id No: 62289113066