Theory of Business Ethics
Social organization moves from self-serving predation towards more enlightened forms of self-interest and social cooperation.

Ethical standards derive from business problems of the past. They are a reflection of what works and what does not. Standards are a good thing as they help businesses maintain long-term profitability and stability. A peaceful business climate helps productivity and profitability. Good management is an essential ingredient in running an ethical and profitable business. If a business is poorly managed it perpetually operates in a crisis state in which rules are bent and broken in the name of a company's survival. The first order of business in a small business is "doing business in a business like way" with an eye on building a future for the company. If a business person does not act professionally he or she can be exploited by friends and customers. They can easily be drawn in to legal problems and employees can more easily take advantage of the chaos and drive a business into the ground. Once the short-term needs of a business are taken care of ethics becomes an important consideration. A significant amount of business is generated by word-of-mouth referrals.* It is important then that one's reputation in the community is well-maintained. One simply cannot appear to be an honest businessman they must also be honest to a certain extent. In "real time," however, businesses cheat and bend the rules for many reason. Some reasons are more legitimate than others. Businesses will cheat because it is customary for example, to knowingly mix good fruit with bad and sell the mix as high quality produce. Real estate agents and escrow companies tactically conceal significant facts from their clients until the last minute when the client is least able to complain. These business standards are what are called customary ethics. Customary ethics deal with ways to bend the rules in an acceptable way without harming a businesses long term stability and profitability. They are, however questionably ethical practices.

     What customary ethics says to a business is that it is good to put profits before people emphasizing profitability so long as you can get away with ethically questionable actions. Thus, wizened advise from successful business people might encourage a struggling business to think more of profit and less of principles. There is no doubt that maintaining high principles can stunt business growth and profitability. But, rejecting ethical consideration in such a way harmfully adds to a climate of cheating that exists in every corner of the world. In the very long-term it is desirable to have societies become more civilized, less predatory, and more peaceful. Civilization building becomes stagnant in a world that will not recognize that what has been acceptable will not build a better world in the future. There is some separation in this respect between the ethics of the moment, and the theory of what should be in the long-term.

     The theory of business ethics is not so far fetched to be impractical in the moment. Actions discernibly inspire consequent reactions and even overreactions. Once the fighting begins a business is losing time, money and energy that they could be using to build a business. So, cheating is not all desirable as it looks. Here a business person is endlessly beating their heads against the wall becoming jaded, insensitive, and more corrupt all the while, not to mention health issues that go along with maintain such stress. Being professional following the rules can minimize conflicts to the point they rarely exist, giving the business person an opportunity to focus on their business and grow it larger and faster than some of their competition. Crime does pay, cheating does give businesses an advantage, but most people are likely to find running a business professionally and ethically is the better path to take.