Understanding Business Ethics and Stakeholders

Ever wondered why some companies seem to care more about people than profit? Business ethics is all about the relationship between businesses and their stakeholders - basically anyone who's affected by what a company does, from workers to customers to entire communities.

There's a massive debate about what businesses should actually focus on. Milton Friedman famously argued that companies exist purely to make money, whilst others like Maxwell claimed business ethics doesn't even exist. On the flip side, many believe companies have a moral responsibility towards everyone they impact.

Real examples make this crystal clear. The Body Shop built its reputation on ethical practices, whilst massive corporations like Apple face criticism for poor working conditions in their supply chains. Cadbury proved you can maintain good ethics and still rake in serious profits.

Key Point: Stakeholders include employees, consumers, shareholders, suppliers, and local communities - basically anyone affected by business decisions.

Exploitation remains a huge issue, especially in developing countries where young workers face terrible conditions. Meanwhile, externalities like pollution show how businesses often pass negative costs onto society whilst keeping the profits for themselves.