Understanding Business Ethics Myths: A Critical Discussion for Week 1

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WEEK 1 Discussion (No more than 350 words)
What is a myth? Which, if any, of the five business myths discussed in this chapter do you not accept as a MYTH (i.e., you believe it is true)? Explain & discuss.
1.4 Five Myths about Business Ethics
Not everyone agrees that ethics is a relevant subject for business education or dealings. Some have argued that “business ethics” is an oxymoron or a contradiction in terms. Although this book does not advocate a particular ethical position or belief system, it argues that ethics is relevant to business transactions. However, certain myths persist about business ethics. The more popular myths are presented in Figure 1.5.
A myth is “a belief given uncritical acceptance by the members of a group, especially in support of existing or traditional practices and institutions.”46
Myths regarding the relationship between business and ethics do not represent truth but popular and unexamined notions. Which, if any, of the following myths have you accepted as unquestioned truth? Which do you reject? Do you know anyone who holds any of these myths as true?
Myth 1: Ethics Is a Personal, Individual Affair, Not a Public or Debatable Matter
This myth holds that individual ethics is based primarily and often only on personal or religious beliefs and that one decides what is right and wrong in the privacy of one’s conscience. This myth is supported in part by Milton Friedman, a well-known economist, who views “social responsibility,” as an expression of business ethics, to be unsuitable for business professionals to address seriously or professionally because they are not equipped or trained to do so.47
Five Business Ethics Myths
Although it is true that individuals must make moral choices in life, including business affairs, it is also true that individuals do not operate in a vacuum. Individual ethical choices are most often influenced by discussions, conversations, and debates and made in group contexts. Individuals often rely on organizations and groups for meaning, direction, and purpose. Moreover, individuals are integral parts of organizational cultures, which have standards to govern what is acceptable. Therefore, to argue that ethics related to business issues is mainly a matter of personal or individual choice is to underestimate the role organizations play in shaping and influencing members’ attitudes and behaviors.
Studies indicate that organizations that act in socially irresponsible ways often pay penalties for unethical behavior.48 In fact, the results of the studies advocate integrating ethics into the strategic management process because it is both the right and the profitable thing to do. Corporate social performance has been found to increase financial performance. One study notes that “analysis of corporate failures and disasters strongly suggests that incorporating ethics in before-profit decision making can improve strategy development and implementation and ultimately maximize corporate profits.”49 Moreover, the popularity of books, training, and articles on learning organizations and the habits of highly effective people among Fortune 500 and 1000 companies suggests that organizational leaders and professionals have a need for purposeful, socially responsible management training and practices.50

Myth 2: Business and Ethics Do Not Mix
This myth holds that business practices are basically amoral (not necessarily immoral) because businesses operate in a free market. This myth also asserts that management is based on scientific rather than religious or ethical principles.51

Although this myth may have thrived in an earlier industrializing U.S. society and even during the 1960s, it has eroded over the past two decades. The widespread consequences of computer hacking on individual, commercial, and government systems that affect the public’s welfare, like identity theft on the Internet (stealing others’ Social Security numbers and using their bank accounts and credit cards), and of kickbacks, unsafe products, oil spills, toxic dumping, air and water pollution, and improper use of public funds have contributed to the erosion. The international and national infatuation with a purely scientific understanding of U.S. business practices, in particular, and of a values-free marketing system has been undermined by these events. As one saying goes, “A little experience can inform a lot of theory.”

The ethicist Richard DeGeorge has noted that the belief that business is amoral is a myth because it ignores the business involvement of all of us. Business is a human activity, not simply a scientific one, and as such, it can be evaluated from a moral perspective. If everyone in business acted amorally or immorally, as a pseudoscientific notion of business would suggest, businesses would collapse. Employees would openly steal from employers; employers would recklessly fire employees at will; contractors would arrogantly violate obligations; and chaos would prevail. In the United States, business and society often share the same values: rugged individualism in a free-enterprise system, pragmatism over abstraction, freedom, and independence. When business practices violate these American values, society and the public are threatened.

Finally, the belief that businesses operate in totally “free markets” is debatable. Although the value or desirability of the concept of a “free market” is not in question, practices of certain firms in free markets are. At issue are the unjust methods of accumulation and noncompetitive uses of wealth and power in the formation of monopolies and oligopolies (i.e., small numbers of firms dominating the rules and transactions of certain markets). The dominance of AT&T before its breakup is an example of how one powerful conglomerate could control the market. Microsoft and Walmart are other examples. The U.S. market environment can be characterized best as a “mixed economy” that is based on free-market mechanisms but not limited to or explained only by them. Mixed economies rely on some governmental policies and laws for control of deficiencies and inequalities. For example, protective laws are still required, such as those governing minimum wage, antitrust situations, layoffs from plant closings, and instances of labor exploitation. In such mixed economies in which injustices thrive, ethics is a lively topic.
Myth 3: Ethics in Business Is Relative
In this myth, no right or wrong way of believing or acting exists. Right and wrong are in the eyes of the beholder.
The claim that ethics is not based solely on absolutes has some truth to it. However, to argue that all ethics is relative contradicts everyday experience. For example, the view that because a person or society believes something to be right makes it right is problematic when examined. Many societies believed in and practiced slavery; however, in contemporary individuals’ experiences, slavery is morally wrong. When individuals and firms do business in societies that promote slavery, does that mean that the individuals and firms must also condone and practice slavery? The simple logic of relativism, which is discussed in Chapter 2, gets complicated when seen in daily experience. The question that can be asked regarding this myth is, Relative to whom or what? And why? The logic of this ethic, which answers that question with “Relative to me, myself, and my interests” as a maxim, does not promote community. Also, if ethical relativism were carried to its logical extreme, no one could disagree with anyone about moral issues because each person’s values would be true for that person. Ultimately, this logic would state that no right or wrong exists apart from an individual’s or society’s principles. How could interactions be completed if ethical relativism were carried to its limit? Moreover, the U.S. government, in its vigorous pursuit of Microsoft, certainly did not practice a relativist style of ethics.
Myth 4: Good Business Means Good Ethics
This myth can translate to “executives and firms that maintain a good corporate image, practice fair and equitable dealings with customers and employees, and earn profits by legitimate, legal means are de facto ethical.” Such firms, therefore, would not have to be concerned explicitly with ethics in the workplace. Just do a hard but fair day’s work and that has its own moral goodness and rewards.
The faulty reasoning underlying this logic obscures the fact that ethics does not always provide solutions to technical business problems. Moreover, as Rogene Buchholz argued, no correlation exists between “goodness” and material success.
It is also argued that “excellent” companies and corporate cultures have created concern for people in the workplace that exceeds the profit motive. In these cases, excellence seems to be related more to customer service, to maintenance of meaningful public and employee relationships, and to corporate integrity than to profit motive.
The point is that ethics is not something added to business operations; ethics is a necessary part of operations. A more accurate, logical statement from business experience would suggest that “good ethics means good business.” This is more in line with observations from successful companies that are ethical first and also profitable.
Finally, the following questions need to be asked: What happens, then, if what should be ethically done is not the best thing for business? What happens when good ethics is not good business? The ethical thing to do may not always be in the best interests of the firm. We should promote business ethics, not because good ethics is good business, but because we are morally required to adopt the moral point of view in all our dealings with other people—and business is no exception. In business, as in all other human endeavors, we must be prepared to pay the costs of ethical behavior. The costs may sometimes seem high, but that is the risk we take in valuing and preserving our integrity.55

Myth 5: Information and Computing Are Amoral
This myth holds that information and computing are neither moral nor immoral—they are amoral. They are in a “gray zone,” a questionable area regarding ethics. Information and computing have positive dimensions, such as empowerment and enlightenment through the ubiquitous exposure to information, increased efficiency, and quick access to online global communities. It is also true that information and computing have a dark side: information about individuals can be used as “a form of control, power, and manipulation.”
The point here is to beware the dark side: the misuse of information—misinformation and disinformation, as well as the “weaponization” of information—especially on social media. Ethical implications are present but veiled. Truth, accuracy, and privacy must be protected and guarded: “Falsehood, inaccuracy, lying, deception, disinformation, misleading information are all vices and enemies of the Information Age, for they undermine it. Fraud, misrepresentation, and falsehood are inimical to all of them.”
Logical problems occur in all five of the above myths. In many instances, the myths hold simplistic and even unrealistic notions about ethics in business dealings. In the following sections, the discussion about the nature of business ethics continues by exploring two questions:
• Why use ethical reasoning in business?
• What is the nature of ethical reasoning—and can it be taught?
References
Molchanov, A., & Stangl, J. (2024). The myth of business cycle sector rotation. International Journal of Finance & Economics, 29(4), 4419–4442. https://doi-org.ezproxy1.apus.edu/10.1002/ijfe.2882
Kimble, C., & Milolidakis, G. (2015). Big Data and Business Intelligence: Debunking the Myths. Global Business & Organizational Excellence, 35(1), 23–34. https://doi-org.ezproxy1.apus.edu/10.1002/joe.21642

Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

Step-by-Step Guide to Writing Your Week 1 Discussion Post

Step 1: Understand What a “Myth” Means in This Context
Begin by clearly defining a myth using the definition provided in the reading. Avoid personal interpretations at this stage—use the academic definition to ground your response.

Tip: One concise sentence is enough. This shows you understand the framework of the discussion.

Step 2: Identify the Five Business Ethics Myths
Briefly acknowledge that the chapter presents five common myths about business ethics. You do not need to summarize all five in detail—this discussion focuses on one myth you challenge or believe is true.

Step 3: Choose ONE Myth to Focus On
Select one myth you do not accept as a myth (meaning you believe it holds some truth), or one you strongly reject.

Ask yourself:

  • Do I agree or disagree with this myth?

  • Why do I hold this view?

Step 4: Explain Your Position Clearly
State your position early and clearly. Then:

  • Explain why you agree or disagree

  • Support your reasoning with examples from the reading, real-world business practices, or current events

Tutor Tip: Strong posts connect theory to reality. Even a simple workplace or corporate example strengthens your argument.

Step 5: Engage in Critical Discussion
Go beyond summary. Consider:

  • How this myth affects organizations or employees

  • Whether the myth creates ethical risks in business decision-making

  • How organizations challenge or reinforce this myth today

This is where higher-level thinking earns stronger discussion credit.

Step 6: Stay Within the Word Limit
Your response must be no more than 350 words. Aim for:

  • Clear paragraphs

  • Focused explanations

  • No unnecessary repetition

Step 7: Write in a Professional, Academic Tone
Use respectful language, avoid slang, and write as if contributing to a professional discussion forum. Proofread before submitting.

Helpful Academic Resources

Students may use the following credible resources to support their understanding:

 

 

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