Table of contents

1.introdaction

2. Overview of business ethics

3. Practical business ethical violations in Ethiopia and Addis Ababa

3.1. Exploitation of workers

3.1.1. Case studies on the exploitation of workers

3.2. Environmental degradation by Industries

3.2.1. Case studies on environmental degradation by mining and urban area industries

3.3. Misleading advertisements

4. Legal business Ethical violations in Ethiopia and Addis Ababa

4.1. Tax Evasions

4.2. corruptions in government contracts

4.2.1. Legal implication of corruption

Introduction
In this paper we are going to look the legal and practical ethical violation in Ethiopia,
particularly in Addis Ababa. This paper tries to touch business ethical issues under five sections.
In the first section it gives the overview for business ethics. Under second sections it tries
explore the practical business ethical violations in Ethiopia as well as in Addis Ababa especially
it discusses on violation of ethical rights of the labors, the irresponsible actions of some
industries regarding to the sewage and waste material disposal, advertisements that misguide
the consumer and the corruption action in government contracts. In third section it highlights
business ethical violations like the inadequacies of legal frameworks concerning business ethics
issues, ineffective enforcement of Laws and lack of accountability.in fourth section it signifies
particularly existing business ethical violations in Addis Ababa. In final section it attempts to
uncover the causes of those violations as well as it sets forth the solution.

Overview of business ethics

“Business ethics studies the relationship of what is good and right for business” (Hoffman and
Frederick, 1995). According to Josie Fisher (2004, pp. 391-400), it is the code of moral principles
that sets standards of good or bad, or right or wrong, in one's conduct and there by guides the
behavior of a person or group. It is comprised of the norms, values and socio economies of the
society and the legal frameworks of the government bodies. business ethical issues study
topics such as product safety, employee health and safety, social responsibility and obligation
of the company

to the environment.

Concerning employee health and safety, all workers have a fundamental right to execute
their job contract in safe and healthy conditions. Employees may be exposed to extreme heat,
cold excessive noise levels, dust, chemical agents, or radiation. According to Brain Harvey
(1994), employees should be compensated sufficiently for risk they are asked to take both
through appropriate insurance and social security provisions.
 Businesses are expected to play social responsibility by contributing to the welfare of the
society. social responsibility focuses on the impact that business activity has on society (Josie
Fisher 2004, pp. 391-400). Lastly, they are also expected to protect communal ownership
natural resources like water, forest, wildlife, air, and others from pollution (McGee, 1992).

Business ethics is not confined to the above variables only, but also ethical issues with relating
to advertisement, shareholders, partners, suppliers, competitors, and the like are also the focus
of business ethics.

Practical business ethical violations

Exploitation of workers

In some sectors of industries labors are facing unsafe working conditions, low salary (i.e.,
they receive less money than the standard wage) and excessive working hours or days. These
ethical violations are generally seen both urban areas and rural areas of Ethiopia. For instance,
in rural areas of Ethiopia children are hired with low or even without salary to do difficult
agricultural works such as herding of cattle (traditionally job involves herding of cattle and other
domestic animals called “Irenya” by Amharic and “tikse” by Afan oromo), farming, fishing,
planting and harvesting khat and other cereals.

Case studies on the exploitation of workers

There are many studies were taken on the working and living condition of factory workers
invariably all studies indicate the violation of the right of the labors. For example the case study
of THE UNIVERSITY OF CHICAGO PRESS JOURNALS on the workers of Blue Apparel company
(BAC), Green Garment Company(GGC), Bole Lemi Industrial Park(BLIP) framed the Working and
Living Conditions as follows

Factory workers in BAC and GGC work more than 10 hours per day, Monday through
Saturday. The normal working hour is from 7:30 a.m. to 4:00 p.m., but workers are compelled
to work two or three hours of overtime every day. Workers at BAC work seven days a week,
including Sunday overtime. There is no such thing as work–rest balance. The company
apparently fails to recognize that such a balance benefits both the company and the employees
(Kristensen and Pedersen 2017). The company prioritizes work, production performance, and
profit-making while failing to recognize the positive effect of work–rest balance on productivity.
The work pressure and lack of taking breaks forces some workers to quit their jobs, but the
companies can easily recruit new workers in a short period of time. The availability of young
people looking for work in the market has an unavoidable impact on a company’s lack of
attention to a work–rest balance.

At BAC, the line between work and rest is also not clear. Workers start working at 7:30 a.m.
and leave the factory at 6:30 p.m. The company arranges extra working time based on
retailer/buyer’s orders. Due to the high cost of living in Addis Ababa, thousands of BLIP factory
workers live in the nearby town of Laga Xafo and on the outskirts of the city. They take the
company-provided service bus before 6:00 a.m. and leave the factory around 6:30 p.m. They
get home around 7:30 p.m. and get up around 5:00 a.m. to prepare for the next day. Thus,
seven days a week, from 5:00 a.m. to 7:30 p.m., they are either at work or on the road back and
forth between home and the factory. One of the girls said, “We leave home early in the
morning, and we come back in the night. We do not have time to wash clothes, visit relatives,
or prepare food. Even on Sunday, we do not have rest; they forced us to work.”

Studies also revealed the existence exploitation on mining sector workers. Some mining
company exposes their workers in an insecure and unsafe working condition without providing
the insurance services.

Environmental pollutions by industries

Some industries such as textile, manufacturing, leather and mining discharge their wastes in
to the rivers in an irresponsible way. These discharges have severe effect on the health and
well-being of a society as well as the ecosystem. For this reason, it is accounted as the violation
of ethical principle of respect for inherent dignity of the individual such as the right to have safe
and healthy environment.
 Case studies on the environmental degradation by mining and urban
area industries
many researches were taken on this issue by different institution, in various part of the
country. For example, Hunegnaw Abebaw (02-2015) from Addis Ababa Universities studied with
a title: Leather Industry and Environmental Challenges. His studies generally focus on HAFPLC
tannery company which is located in Sebata municipality administration. His research reveals
that HAFPLC is not complying adequately the environmental standard set MOEF. It also
mentioned about the existence of gap in environmental policy, standards, and regulation.

The other case studies on leather industries such as “impact Assessment of leather industry on
Environment in Addis Ababa” by Tadesse Abebe and Tesfaye Melaku (2020, from the Jimma
university) and “The effect of leather industries on Mojo city” by Mehret Milkeso(2021) ,
criticize irresponsible swage disposal of those factories.

The other area that affects the wellbeing of the society and the environment is mining
sector. According to the case study of Ijibara university department of Geography and
Environmental study severe health related problems (due to release of toxic chemical used for
extraction of gold into the river) the society faces around Guji, shekso by Gold mining company
privatized by MIDROC PLC. The other studies like “Assessing the Environmental Impact of
Artisanal Gold Mining Activities on the waters and sediments around Meli, Northwestern
Tigray” also stated the irresponsible action of the company on sewage release.

Misleading Advertisements
Regarding ethical issues of advertising the view of Schultz (1990) is worth mentioning.
According to him, advertising should not be untruthful, deceptive and misguide consumers.

In Ethiopia, some businesses engage in misguiding advertisement. For instance, some Food and
beverage manufacturer companies advertising their products, advertising that ‘it contains all
natural ingredients” but in practical they used some. In cosmetics industries also misleading
advertisement is seen. For instance, some lotions and skin creams producer deceive a
consumer by advertising “it whitens your skin in 3 days”, even though, it failed to give the
promised results. Those types of advertisement are able to mis guide the user by creating
unreal anticipations about the potency of the products. The same things also exist in in Real
State and Electronics & appliances business sectors.

Legal business ethical violations

Tax Evasion
Many researchers pointed out that tax evasion and tax avoidance are the most serious
problems faced by Ethiopia in terms of taxations.it results in the unfair businesses advantages
between the competitors who are follows business ethics and those who does not follow
business ethics. Tax evasion results undoubtedly deprive the tax revenue of the government,
resulting in the poor accessibility of social services and infrastructure as money needed for
those services is not collected appropriately. Tax evasion is usually committed by reporting
fewer income rather than their true income, by exaggerating their expenses, by providing
fictitious supporting documents. Besides tax evasion, contraband is another ethical problem
that affects the ethical businesses as well as the economy of the country.

Corruption in government contracts

Businesses related to government contracts are highly affected by corruption. These may
manifest in the form of Embezzlement, Nepotism and Bribery. These actions distort fair
competition as the business that involves in corrupt process obtain unfair advantages and
treatments over their competitors. Many reports emphasize the cases where businesses are
forced to paid the briberies, to secure their contracts or permits.

Legal implication of corruption

In Ethiopia, the Ethics and Anti-corruption commission was established in 2001, to fight against
corruption, but the enforcement of the law is too weak, due to lack of the resources, training

and independence necessary to operate efficiently. The combat of corruption also requires the
active and full participation of the public and unreserved commitment of, among others, each

and every government institution.

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