5. EFFECT OF ETHICS IN THE ORGANIZATION.
A. the importance of ethics in organizational
core values important to put a business plan, it determines the company's business success or failure of the company have done good ethics. the company operating the business but the important decisions every day. If non-ethical decisions, both stakeholders and the interests of the company will be lost. "If it performs this function, it will be rewarded by loyal costumers who support the business and help it grow; if not, the business will eventually go broke as customers stopped buying bread especially since wheat bread "(Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p. 407). Customers and investors are considered an important asset of the company's survival. They assist companies to develop and create competitive advantage possible with other companies. A company that works with legal action can attract more loyal customers or investors who have contributed to the development of the company. If not, the consumer can be fooled only once or twice and then poor quality, harmful and counterfeit products will boycott. Profit is one of the factors necessary for the survival of a business and the basis for evaluating the ability to maintain business operations of the business. However, if the business managers misunderstand the nature of profit and as it is the main and only goal of the business, the existence of the enterprise may be threatened. The company will lose existing investors and potential and its image will get worse in the region. September 2008, Vedan Vietnam, Taiwan manufacturer of monosodium glutamate, was blocked by government inspectors dumping untreated sewage into the river its urban fabric in the southern province of Dong Nai. The company has avoided detection by hiding pipes deep in the river, and was sent hazardous liquids through the tube for 14 years, inspectors found. The 2009 report indicated that Vedan to compensate farmers in Dong Nai and Ba Ria-Vung Tau and Ho Chi Minh City with a total of VND1.7 trillion for the damage it has caused, including the destruction of marine farms and crop damage to land on the waterfront (electricity, 2010). As you can see, the result is always bad if we ignore Ethics in Business. In other words, unethical business will provide a short-term success, but it is not a good plan for the long-term development. Friedman (1982, cited in Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, p.407) argue that business should stay within the rules of the game and not to engage in illegal activities or Criminal. According to this view, the company can do everything as long as it is done in accordance with the laws of this country-so it ethical. For multinational companies, they have many possible ways to take advantage of the loopholes in the law business in developing countries with high legal system. In fact, business executives of multinational companies often put great attention to profitability.
In the first case of Coca-Cola, carbonated drinks should be banned in the previous year . In a survey by the University of Miami (USA), a number of problems in the beverage or Coca-Cola was the original and previously concluded harmless to our health now been confirmed by the science to create a serious impact on human health (Zhou, 2012). People who drink Coca-Cola every day there will be more risk to get heart disease, cancer and liver complaints (Zhou, 2012). Furthermore, Coca-Cola also lead to positive or violent behavior in children. However, Coca-Cola continues to unethical business even though they were warned about the dangers of health in their drinks. Accordingly, Coca-Cola done bad public image in raising awareness of customers. You will not feel safe whenever they use the product again. Today, customers are recognized as intelligent consumers. Therefore, they will not use products that come from unethical business companies. And profits will fall due.
In the second case of Coca-Cola, the real problem is difficult to solve. In Vietnam, we do not have a complete system of tax law on transfer pricing. Therefore, a number of foreign corporations have taken advantage of this time to avoid paying taxes as Coca-Cola, Pepsi and Subway (Chi, 2013). This problem occurs because Coca-Cola makes an excuse that they had to buy the exclusive materials at high prices from suppliers. In this way, Coca-Cola has made a non-ethical business. In Vietnam, they did not break the law, but they break business ethics when exploiting natural resources and do not contribute to the community. The Coca-Cola Company can do to increase net profits without holding the ethical concerns. As a result, consumers Vietnam held a formal event not to boycott Coca-
Cola products (Willow, 2013). And if it spread through Vietnam, the business of this company will actually fall into crisis. It is not only affecting profitability in Vietnam, but also in effect for the public image throughout the world. For this reason, CocaCola need to have a positive change in the current strategy to ensure the long-term stability and success in the future.
B. benefits of creating and maintaining high ethical standards in business.
For Coca-Cola in particular and other general corporate, business ethics is mandatory for survival when the This company works in other countries. "You could argue that if it's done well and put resources where they would not otherwise go, if it is marketing" (Stewart Clegg, Martin Kornberger, Tyrone Pitsis, 2011, page 410). This is a new approach to marketing in today's business. Obviously there is a loss for the company that encourages business ethics; However, it can improve the company's image in the perception of the customer. It is emphasized as the core of the business to establish credibility and confidence to consumers. Furthermore, the brand can be widely recognized and positively by customers, thus increasing sales and profits. It also helps managers to attract and retain great employees for their business and reduce the cost of hiring companies. Moreover, business ethics is also important to establish a good relationship between the firm and friendly and social. This relationship shows that quality, price and service of products or charity. And social satisfaction will lead to coasting downwind of the business. The company may sell more products, increase profitability and business will expand more. Company shares that paid taxes to the state treasury to be used by local authorities to promote the economic development of the country. This is a mutual relationship. It is not only advantageous for the company but also for the community and the economy of the local country. Joint stock company focused on long-term business goals often recognize and create cultures that focus on rewarding ethical behavior. In fact, this is the most important key for businesses to survive and thrive in the future.
6. COMMENT AND SOLUTIONS
I totally agree with this view Coca-Cola has been banned in universities in the UK and in schools throughout California in the United States. A number of factors could cause bad results for human health. This is a good decision not only for students, but also for those who have health problems with carbonated beverages. We can replace this by carbonated drinks fruit juice or spring water in vending machines. Add to this point, a propaganda campaign across the country should be done and society should provide more information about the damage of carbonated beverages for consumers to raise awareness of people and then they will feel free to stop taking it. Concerning the second case I mentioned, Coca-Cola can not be punished because we have no evidence. We need banks databases, documents, and receive from their country to prove their criminal actions. Of course it is very difficult because we lack experience in this situation. And multinational corporations have experienced some balance to deal with us. We can only improve the capacity of the first tax. And then, for suiting the current economic development in Vietnam, we have completed the tax law system to gather information, monitor and evaluate the situation of corporations that move using g
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