Business & Ethics don’t go hand in hand, A myth or a fact?

Ethics is knowing the basic difference between what is right to do and what we have a right to do. In today’s fast-paced, competitive world filled with immense pressure, it becomes difficult to maintain a balance between business goals and ethical principles. Ethics are often driven by social, cultural, and religious values, whereas business decisions tend to focus more on logic, practicality, and profit. Neither is inherently wrong, but they operate from fundamentally different mindsets.

Ethics teaches an individual to be selfless, virtuous, and responsible toward society. However, what is considered ethical can differ greatly from person to person, influenced by their upbringing, environment, and personal beliefs. These differences can lead to clashes of opinion and individuality. On the other hand, business being logic- and profit-driven provides a sense of satisfaction when tasks are completed or goals achieved. Unfortunately, this practical approach can sometimes lead to unethical behaviors like exaggerating product claims or prioritizing profits over fairness.

Why is it said that “Business and Ethics Do Go Hand in Hand”?

Many business practices raise ethical questions. For example, companies may sugarcoat product features or run unrealistic advertisements to influence consumer buying decisions. This is not limited to marketing alone; pricing strategies often raise ethical concerns as well. The difference between cost price and selling price is usually large to ensure profit margins, but this often affects the suppliers and end consumers negatively. Suppliers may be paid minimal amounts for raw materials, while consumers end up paying more than necessary for products. Meanwhile, businesses enjoy significant profits from these transactions.

This dual exploitation challenges the idea that business and ethics can coexist. But the reality is more nuanced. Many successful companies today realize that sustainable business growth is not possible without ethical practices. Businesses are increasingly held accountable by consumers, investors, and regulators to operate responsibly.

Can Business and Ethics Truly Coexist?

Yes, they can—and must. I believe business and ethics can work together—not perfectly, but to a great extent. It is the need of the hour for businesses to become more ethical than purely profit-oriented. This approach benefits not just consumers and suppliers but also the businesses themselves by building brand value, customer loyalty, and goodwill.

Being ethical in business means adopting transparency, fairness, and social responsibility. It means being honest about what a product can and cannot do and respecting the interests of all stakeholders. Ethical business practices foster trust, which is crucial for long-term success.

For instance, companies that invest in fair wages for suppliers and sustainable sourcing often experience better product quality and customer satisfaction. Consumers today are more informed and prefer to support brands that align with their values. On the other hand, unethical practices might yield short-term gains but can damage reputation, invite legal penalties, and cause customer attrition in the long run.

Ethics: The True Measure of Success

There is a saying: “Success is of no use if you don’t have anyone to enjoy it with.” Being unethical may take you closer to success initially, but ethics are what help you sustain that success over time while maintaining good relationships with customers, employees, and partners.

Ethics also create a positive work environment where employees feel valued and motivated. This increases productivity and innovation. Ethical leadership inspires trust and loyalty within the organization and in the market.

The Challenges of Upholding Ethics in Business

Maintaining ethical standards is not always easy. Businesses often face dilemmas where the right decision might mean sacrificing profits or market share. Competition is tough, and the pressure to achieve fast results can be overwhelming. On top of that, what’s considered ethical can differ from one culture or country to another, making it even harder for businesses that operate globally. But facing these challenges doesn’t mean businesses should lower their ethical standards. Instead, it shows why having strong ethical guidelines, good corporate governance, and leaders who value principles as much as profits is so important.

How Businesses Can Integrate Ethics Effectively

• Embed ethics into corporate culture: From the top leadership to every employee, ethics should be a core value reflected in daily decisions.
• Transparency: Open communication with customers, suppliers, and stakeholders builds credibility.
• Fair pricing: Ensure that pricing strategies do not unfairly exploit suppliers or customers.
• Corporate Social Responsibility (CSR): Actively engage in initiatives that benefit society and the environment.
• Regular training: Conduct ethics workshops and create channels for employees to report unethical behavior without fear.

I’m currently a student in the Vivekanand PGDM program, and what I’ve really come to appreciate at Vivekanand Business School (VBS) is how important business ethics are for building trustworthy and lasting organizations. The PGDM course here isn’t just about making profits—it’s about learning how to do business with honesty, fairness, and responsibility. Thanks to the hands-on learning approach, we get to face real business situations that challenge us to make ethical choices and think deeply about the impact of our decisions.

What stands out to me is the focus on values and the support from the Guru Shishya mentorship program, which encourages us to reflect on ethics not only in business but also in everyday life. VBS is known as one of the top PGDM colleges in Mumbai, and it prepares students like me with practical skills as well as a strong sense of right and wrong to handle the complexities of today’s corporate world.

In today’s fast-moving and competitive business environment, sticking to ethical practices is more crucial than ever. VBS helps shape professionals who know that success isn’t just about numbers—it’s about doing what’s right for customers, suppliers, employees, and society as a whole. This mindset gives us the confidence to build trustworthy brands, earn customer loyalty, and make a positive difference wherever we go.

Deepesh S. Jain
PGDM 2020–2022
Vivekanand Business School