Some people may argue that Businesses are encouraged to do whatever they can do make a profit, because corporates are profit-oriented. I, however, am against the idea that companies can participate in every activity for gaining return. The reasons for this are that businesses cannot violate certain laws, even if they are losing money, and that corporates have a moral obligation to conduct themselves in an ethical manner.

To start with, businesses cannot engage in illegal activities despite some loss. In other words, a business cannot defraud its clients or shareholders simply because it is not making a profit. Clients and shareholders are main stakeholders in running business. If companies betray their stakeholders, it means that they turn their back on profit providers. Thus, this requires them to do business at least in legal boundary. For one thing, there were some milk powder companies in China several years ago. They used illegal ingredients for making milk powder, because those ingredients are less expensive. This resulted in incidence of some infants’ death. After those accidents, consumers did not want to buy domestic products anymore; they got focus on busying import items. Due to their illegal behavior, in turn, they were in peril for continuing their businesses. This indicates that they should abide by the law in order to keep good relations with their stakeholders.

What is more, businesses are bound to conduct corporate activities in an ethical way. To illustrate, Oil companies and diamond dealers in Third World countries are often viewed negatively by local people. This is because some of them exploit natural resources in developing countries with unequal contract conditions. They use up resources and sweat-shop laborers at low price, because they do not care about morality in Third World. It sometimes brings about deprivation of one country and the people in there, because it means that immoral corporate act harms the people and the environment of the country with another embodiment of imperialism. Hence, they are recommended to do business in Third World as if they do business in their homelands requiring them to observe high ethical standard.

In conclusion, Businesses should obey ethic as well as lawful standard when running their corporates. All things considered, I agree with the idea that companies are asked not to do everything only because of benefit.