4. DEFINITION “Business ethics is t

4. DEFINITION
“Business ethics is the reflection on the ethical behavior of business organization” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404). It not only reflects the activities between managers and employees in organization, but also reflects the business operation in community. There are two concepts of business ethics. The first one is “Good ethics is good business” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404) which means that company just follows the law in doing business and it is synonymous with ethical behavior. And next concept is “the pursuit of economic self-interest by firms is fundamentally opposed to ethical conduct” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404). A company which does unethical business will have more opportunities to achieve higher profit than its competitors. Thus, profit and principles cannot be aligned until there is a trade-off from the pursuit of profits or the pursuit of ethical behavior.
5. THE IMPACT OF ETHICS IN ORGANIZATION.
A. The importance of ethics in organization
One of the most important key values to put together a business plan, take decision or determine business success or failure in company is ethics. Business executives make key decisions every day. If these decisions are unethical, both stakeholders and company’s interests will be harmed. “If it performs this function well, it will be rewarded by loyal costumers who support the business and help it to grow; if not, the business will ultimately go broke as customers cease purchasing bread from that particular bakery” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 407). Loyal customers or investors are considered as an important property of the company. They help the company to develop and create the good advantages in the competition with other companies. An operating company with legal activities could attract many loyal customers or investors who have been contributing to the development of the company. Otherwise, consumers can be cheated only one or two times and then these poor quality, harmful and fake products will be boycotted. Company will lose current and potential investors and its image will get worse in public. In September 2008, Vedan Vietnam, the Taiwanese monosodium glutamate maker, was caught by government inspectors dumping its untreated wastewater into the Thi Vai River in the southern Dong Nai Province. The company had avoided detection by hiding pipes deep in the river, and had been sending toxic liquids through those pipes for 14 years, inspectors found. The 2009 report indicated that Vedan should compensate farmers in Dong Nai Province, Ba Ria-Vung Tau Province and Ho Chi Minh City with a total of VND1.7 trillion for the damages it had caused, including the destruction of sea farms and damages to land crops on the banks of the river (Dien, 2010). As you can see, the consequence is always bad if we skip the ethics in business. In other words, unethical business will give a short-term success, but it is not a good plan for the longterm development. Friedman (1982, cited in Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p.407) argues that business should stay within the rules of the game and must not engage in illegal or criminal activities. According to this point of view, the corporation can do everything as long as it follow the law of this country – so it morality. To multinational companies, they do have many possible ways to take advantage of the gaps in business laws in the developing countries which have uncompleted law system. In truth, business executives of these multinational companies often place great attention to profits.
In the first case of Coca-Cola, this fizzy drink should be banned in previous years. In a survey of Miami University (US), some matters in soft drinks or Coca-Cola that were originally and previously concluded harmless for our health are now confirmed by scientists to create a serious impact on human health (Châu, 2012). Those people who drink Coca-Cola daily will have more risky to get heart disease, cancer and liver complaint (Châu, 2012). Moreover, drinking Coca-Cola also leads to aggressive or violence behavior on children. However, Coca-Cola is still continuing unethical business although they have been warned of the health dangers in their drinks. According to that, Coca-Cola is carrying bad public image in customers’ awareness. Customers will not feel safe whenever they use that products anymore. Nowadays, customers are recognized as smart consumers. Thus, they will not use products which come from unethical business company. And the profit will decrease as a result.
In the second case of Coca-Cola, this problem is really difficult to solve. In Vietnam, we have no a complete tax law system about transfer pricing. Therefore, some foreign corporations have taken advantage of this point to avoid paying tax such as Coca-Cola, Pepsi and Metro (Chi, 2013). This problem happened due to Coca-Cola made an excuse that they had to buy exclusive material with high price from the supplier. By doing this, Coca-Cola has performed an unethical business. In Vietnam, they do not break the law, but they break the business ethics when exploitation natural resources and do not contribute to the community. Coca-Cola Company could do anything to increase the net profit without keeping the ethical concerns. As a result, Vietnamese consumers are organizing an unofficial event to boycott Coca-
Cola’s products (Liễu, 2013). And if it spreads through Vietnam, the business of this company will really fall into crisis. It is not only adverse effect to profit in VN, but also effect to public image all over the world. For this reason, CocaCola should have a positive change in current strategy in order to ensure the long term and steady success in the future.
B. The benefit of creating and maintaining high ethical standard in business.
For Coca-Cola Company in particular and other corporations in general, business ethics are compulsory for survival when these companies operate in other countries. “You could argue that if it is doing good and putting resources where they would not otherwise go, if it is also marketing” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 410). This is a new way of marketing in business nowadays. Obviously there is a loss to company which promotes business ethics; however, it could improve the company’s image in customers’ mindset. It is emphasized as the core of business to set up prestige and belief to consumers. Moreover, the trade name can be widely and positively recognized by customers, thereby increasing revenues and profits. It also helps managers to attract and keep their excellent employees for business and reduce company’s recruitment costs. Furthermore, business ethics are also important to establish a good and friendly relationship between corporation and society. This relation is showed in quality, price, and service of product or philanthropic activities. And the satisfaction of society will result in coasting downwind of the business. The company can sell more products, increase profit and business will be expand more. Corporation tax which is submitted to the State Treasury will be used by the local government to boost the economic development of the country. This is a mutual relationship. It is not only advantageous for company but also for the community and the local country’s economy. Corporation that place emphasis on long term business objectives often realize and create cultures that focus on rewarding ethical behaviors. In truth, this is the most important key for business to survive and grow in the future.
6. COMMENT AND SOLUTION
I totally agree with this point that Coca-Cola has been banned in universities in UK and in schools across California in US. Some of its elements may cause bad result for human health. This is a good decision not only for students, but also for people having health issues with fizzy drinks. We can replace this fizzy drink by fruit juice or spring water on vending machines. Adding in to this point, a nationwide propaganda campaign should be implemented and society should supply more information about the harm of fizzy drink to consumers to raise the awareness of those people and then they will feel free to stop drinking it. In relation to the second case that I mentioned, Coca-Cola cannot be punished because we have no evidence. We need bank database, document and receipt from their country to prove their criminal act. Of course these things are very difficult because we lack of experience in this situation. And multinational corporations have supernumerary experience to cope with us. We can only improve the capacity of taxation firstly. And then, for suiting the current economic development in VN, we have to complete tax law system for collecting information, monitoring and evaluating the situation of corporations that use transfer pricing in order to avoid tax.
7. CONCLUSION
According to some cases that I mentioned above, Coca-Cola is facing with some obstacles in business not only in US, UK and Vietnam but also in India (Singh, 2011), Swaziland (Anon., 2011), Bolivia (Antunes, 2012) and Mexico (Bell, 2006). Profit is not the most important thing. Pride and honor are more important. If the strategy of the company is just focused on profit, these problems will increase with the extent and impact. In order to survive in the long time, this company should pay more attention to the welfare of the society. Coca-Cola has to put business ethics as the top priority in operating in order to be more successful and gain more public image in the future.

Kết quả (Việt) 1:

4. ĐỊNH NGHĨA "Đạo đức kinh doanh là sự phản ánh về hành vi đạo đức của tổ chức kinh doanh" (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404). Nó không chỉ phản ánh các hoạt động giữa các nhà quản lý và nhân viên trong tổ chức, nhưng cũng phản ánh các hoạt động kinh doanh trong cộng đồng. Đó là hai khái niệm của đạo đức kinh doanh. Người đầu tiên là "đạo đức tốt là kinh doanh tốt" (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404) có nghĩa là công ty đó chỉ theo pháp luật trong kinh doanh và nó là đồng nghĩa với hành vi đạo Đức. Và khái niệm tiếp theo là "theo đuổi tự quan tâm kinh tế của công ty về cơ bản trái ngược với hành vi đạo đức" (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 404). Một công ty mà làm phi đạo đức kinh doanh sẽ có nhiều cơ hội hơn để đạt được lợi nhuận cao hơn so với đối thủ cạnh tranh. Do đó, lợi nhuận và nguyên tắc không thể được liên kết cho đến khi có một sự đánh đổi từ theo đuổi lợi nhuận hoặc theo đuổi các hành vi đạo Đức. 5. ẢNH HƯỞNG CỦA ĐẠO ĐỨC TRONG TỔ CHỨC. A. tầm quan trọng của đạo Đức trong tổ chức One of the most important key values to put together a business plan, take decision or determine business success or failure in company is ethics. Business executives make key decisions every day. If these decisions are unethical, both stakeholders and company’s interests will be harmed. “If it performs this function well, it will be rewarded by loyal costumers who support the business and help it to grow; if not, the business will ultimately go broke as customers cease purchasing bread from that particular bakery” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 407). Loyal customers or investors are considered as an important property of the company. They help the company to develop and create the good advantages in the competition with other companies. An operating company with legal activities could attract many loyal customers or investors who have been contributing to the development of the company. Otherwise, consumers can be cheated only one or two times and then these poor quality, harmful and fake products will be boycotted. Company will lose current and potential investors and its image will get worse in public. In September 2008, Vedan Vietnam, the Taiwanese monosodium glutamate maker, was caught by government inspectors dumping its untreated wastewater into the Thi Vai River in the southern Dong Nai Province. The company had avoided detection by hiding pipes deep in the river, and had been sending toxic liquids through those pipes for 14 years, inspectors found. The 2009 report indicated that Vedan should compensate farmers in Dong Nai Province, Ba Ria-Vung Tau Province and Ho Chi Minh City with a total of VND1.7 trillion for the damages it had caused, including the destruction of sea farms and damages to land crops on the banks of the river (Dien, 2010). As you can see, the consequence is always bad if we skip the ethics in business. In other words, unethical business will give a short-term success, but it is not a good plan for the longterm development. Friedman (1982, cited in Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p.407) argues that business should stay within the rules of the game and must not engage in illegal or criminal activities. According to this point of view, the corporation can do everything as long as it follow the law of this country – so it morality. To multinational companies, they do have many possible ways to take advantage of the gaps in business laws in the developing countries which have uncompleted law system. In truth, business executives of these multinational companies often place great attention to profits. Trong trường hợp đầu tiên của Coca-Cola, đồ uống có ga này nên bị cấm trong năm trước đó. Trong một cuộc khảo sát của đại học Miami (Mỹ), một số vấn đề trong nước giải khát hoặc Coca-Cola đã được ban đầu và trước đây kết luận vô hại cho sức khỏe của chúng tôi bây giờ được xác nhận bởi các nhà khoa học để tạo ra một tác động nghiêm trọng về sức khỏe con người (Châu, 2012). Những người uống Coca-Cola mỗi ngày sẽ có nhiều rủi ro để có được bệnh tim, ung thư và khiếu nại gan (Châu, 2012). Hơn nữa, uống Coca-Cola cũng dẫn đến tích cực hoặc hành vi bạo lực trên trẻ em. Tuy nhiên, Coca-Cola vẫn đang tiếp tục phi đạo Đức doanh nghiệp mặc dù họ đã được cảnh báo về sự nguy hiểm y tế ở thức uống của họ. Theo đó, Coca-Cola thực hiện xấu hình ảnh công cộng trong nâng cao nhận thức của khách hàng. Khách sẽ không cảm thấy an toàn bất cứ khi nào họ sử dụng sản phẩm đó nữa. Ngày nay, khách được công nhận là người tiêu dùng thông minh. Vì vậy, họ sẽ không sử dụng sản phẩm mà đến từ phi đạo đức kinh doanh công ty. Và lợi nhuận sẽ giảm do. In the second case of Coca-Cola, this problem is really difficult to solve. In Vietnam, we have no a complete tax law system about transfer pricing. Therefore, some foreign corporations have taken advantage of this point to avoid paying tax such as Coca-Cola, Pepsi and Metro (Chi, 2013). This problem happened due to Coca-Cola made an excuse that they had to buy exclusive material with high price from the supplier. By doing this, Coca-Cola has performed an unethical business. In Vietnam, they do not break the law, but they break the business ethics when exploitation natural resources and do not contribute to the community. Coca-Cola Company could do anything to increase the net profit without keeping the ethical concerns. As a result, Vietnamese consumers are organizing an unofficial event to boycott Coca-Cola’s products (Liễu, 2013). And if it spreads through Vietnam, the business of this company will really fall into crisis. It is not only adverse effect to profit in VN, but also effect to public image all over the world. For this reason, CocaCola should have a positive change in current strategy in order to ensure the long term and steady success in the future. B. The benefit of creating and maintaining high ethical standard in business. For Coca-Cola Company in particular and other corporations in general, business ethics are compulsory for survival when these companies operate in other countries. “You could argue that if it is doing good and putting resources where they would not otherwise go, if it is also marketing” (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 410). This is a new way of marketing in business nowadays. Obviously there is a loss to company which promotes business ethics; however, it could improve the company’s image in customers’ mindset. It is emphasized as the core of business to set up prestige and belief to consumers. Moreover, the trade name can be widely and positively recognized by customers, thereby increasing revenues and profits. It also helps managers to attract and keep their excellent employees for business and reduce company’s recruitment costs. Furthermore, business ethics are also important to establish a good and friendly relationship between corporation and society. This relation is showed in quality, price, and service of product or philanthropic activities. And the satisfaction of society will result in coasting downwind of the business. The company can sell more products, increase profit and business will be expand more. Corporation tax which is submitted to the State Treasury will be used by the local government to boost the economic development of the country. This is a mutual relationship. It is not only advantageous for company but also for the community and the local country’s economy. Corporation that place emphasis on long term business objectives often realize and create cultures that focus on rewarding ethical behaviors. In truth, this is the most important key for business to survive and grow in the future. 6. COMMENT AND SOLUTION I totally agree with this point that Coca-Cola has been banned in universities in UK and in schools across California in US. Some of its elements may cause bad result for human health. This is a good decision not only for students, but also for people having health issues with fizzy drinks. We can replace this fizzy drink by fruit juice or spring water on vending machines. Adding in to this point, a nationwide propaganda campaign should be implemented and society should supply more information about the harm of fizzy drink to consumers to raise the awareness of those people and then they will feel free to stop drinking it. In relation to the second case that I mentioned, Coca-Cola cannot be punished because we have no evidence. We need bank database, document and receipt from their country to prove their criminal act. Of course these things are very difficult because we lack of experience in this situation. And multinational corporations have supernumerary experience to cope with us. We can only improve the capacity of taxation firstly. And then, for suiting the current economic development in VN, we have to complete tax law system for collecting information, monitoring and evaluating the situation of corporations that use transfer pricing in order to avoid tax. 7. CONCLUSION According to some cases that I mentioned above, Coca-Cola is facing with some obstacles in business not only in US, UK and Vietnam but also in India (Singh, 2011), Swaziland (Anon., 2011), Bolivia (Antunes, 2012) and Mexico (Bell, 2006). Profit is not the most important thing. Pride and honor are more important. If the strategy of the company is just focused on profit, these problems will increase with the extent and impact. In order to survive in the long time, this company should pay more attention to the welfare of the society. Coca-Cola has to put business ethics as the top priority in operating in order to be more successful and gain more public image in the future.