The second standard after profit

A sound business is the harmonious relationship between what is ethical, moral, and legal while earning profit. It is a corporate social responsibility to be ethical. But sometimes companies tend to seek profit in unethical way.

In my opinion, there is an inherent conflict between ethics and the pursuit of profit because what may seem to be profitable may not be ethical. But I think numbers do not lie. It is just a matter of how the decision-makers account and give an amount to unquantifiable costs the business will possibly incur.

In accounting parlance, businesses that are unethical are probably not recognizing the right amount of expenses. Accounting standards observes the principle of prudence or conservatism in presenting their financial statements wherein companies would prefer overstating their expenditures and understating their income rather than doing otherwise.

In the ford case, the company understated the expenditures they have considered if worst-case scenario will occur.  But of course, the human life is immeasurable and cannot be quantified. Moreover, the company did not take into consideration the consequences of not taking actions.

In my perspective, doing what is ethical means profit. It is the second goal an organization must obtain aside from earning revenues. It is in conjunction with the corporate social responsibility of an organization. Therefore, the business strategies must be aligned with what is ethical.

Ethics is the principles, norms and standards governing the organization. It is doing what is good in business. It is doing what is right, fair, and just. What is legal or right does not necessarily mean it is ethical.  We have to consider all circumstances and all aspects before taking actions.

In application, as a form of our CSR, we will be conducting a service learning program. As a starting point,  had our brainstorming. In that meeting, we have come with options but are not yet concrete. I am so excited to do social service once again. I recall my NSTP days wherein I helped build houses in cooperation with Gawad Kalinga. That time, it was an eye-opener for me to see how blessed I am and at the same time an eye-opener for me to do charity works.