Effects of Economic Conditions on Business Performance

Effects of Economic Conditions on Business Performance

Businesses are required to monitor their external environment by noting changes that may impact their operations. Addressing and adapting to these changes is essential since it ensures business long term survival. In this case, small businesses feel the changes in economics more compared to bigger businesses. When the economy is strong, nearly all enterprises enjoy prosperity (McQuerrey, 2019). During this time, companies enjoy a high disposable income, low unemployment, and consumer confidence, which increases their spending (McQuerrey, 2019). The downside of the economy is characterized by mass layoffs of employees to sustain their operations, business failure, reduced sales an income, among others (Tugade, Fredrickson & Feldman, 2004).

Can a Business Be Ethical?

Yes, a business can be ethical. In most cases, people in business conduct themselves ethically as a way of creating loyalty with the customers and enhancing transparency (BusinessEthics, 2020). There exists a deep connection between ethics and businesses. Besides making a profit, businesses also aim to make people’s lives better. Also, business involves bringing people from various diversities to provides goods and services to people. Some rules and regulations govern such conduct, and therefore it implies that ethics are fundamental conduct of the business (BusinessEthics, 2020). Therefore, doing such an undertaking requires trust. It is the set of ethics that generates such trust.

Goals of Competitive Intelligence

Competitive Intelligence (CI) is defined as the act of gathering the information that is available in the public domain regarding the business competitors and the use of such information to gain a competitive edge (TechTarget, 2020). The CI has the following goals: understanding potential business opportunities and risks as well as enabling a faster reaction to competition events and actions (TechTarget, 2020).

Is it ethical to gather competitive intelligence?

It is ethical to (CI) information. Some of the sources from which this information is obtains include; company documentation, legal findings, and directories (Tugade, Fredrickson & Feldman, 2004). It can also be acquired from documentations from regulatory institutions and agencies. However, it is recommended that people should refrain from illegal activities such as disclosing their identities, corporate affiliations, and should provide reliable and honest information regarding their investigations (Tugade, Fredrickson & Feldman, 2004).


BusinessEthics. (2020). Retrieved 20 March 2020, from https://youtu.be/OTpwUUNe.

McQuerrey, L. (2019). The Economy’s Effects on Small Businesses. Smallbusiness.chron.com. Retrieved 20 March 2020, from https://smallbusiness.chron..html.

TechTarget. (2020). What is competitive intelligence (CI)? – Definition from WhatIs.com. WhatIs.com. Retrieved 20 March 2020, from https://whatis.techtarget..

Tugade, M. M., Fredrickson, B. L., & Feldman Barrett, L. (2004). Psychological resilience and positive emotional granularity: Examining the benefits of positive emotions on coping and health. Journal of personality, 72(6), 1161-1190.



Hello Everyone,

In short a business can be ethical. There is quite a few things to discuss when it comes to ethics. Moriarty, J. wrote (2016) “Questions in business ethics are important and relevant to everyone. This is because almost all of us do businessi.e., engage in a commercial transactionalmost every day. Moreover, many of us spend a major portion of our lives engaged in, or preparing to engage in, productive activity, on our own or as part of productive organizations. Business activity shapes the world we live in, sometimes for good and sometimes for ill.” (plato.stanford.edu). While we do not think about it we often times have tried to practice ethical business.

Competitive intelligence is something that most businesses do even to themselves. An example would be if a person from say Pizza A were to go to Pizza B and buy a pizza to take back to see what makes it special. Often times it is how a business will stay competitive in the environment. Some of the goals are to see pricing, quality, among other things are compared to the current business. There are legal, ethical and moral limits to this though some have crossed that line.

To me for the most part it is ethical for a business to gather intelligence. The reasoning behind that is due to the nature that we have done it in one way or another for years. Mostly it helps the market and keeps a business competitive thus preventing a monopoly or something to that nature. There are limits to this however as businesses have gone too far and have caused issues resulting in fines and being shutdown because of the situation.

I want to say I wish you all the best in future endeavors.



Hello Class,

What is ethics? Ethics according to Velazquez, Andre, Meyer states that it is based on a well-founded standards for right and wrong prescribe of what human out to do. Ethics is the business world applied all of the definitions meaning however, it must be made and acted upon and open communication that that allows people to hold themselves based on fairness, firmness and have a lot of integrity and ethical mind.

A business can be ethical. A business that shows capabilities to work together and collaborate as a whole to succeed can hold ethics in their business. The only reason why is because companies that are greedy and are self-centered are usually the ones that dont care about the company but just the money. It can also be ethical but at the same time it has the how each business will work things out. The goal that competitive intelligence uses is that they should only focus on everything you have. Ethical father completive intelligence can be ethical. The reason why I believe it can be ethical is because of the way the material was obtained. For example, if a business gathered information uses not the correct of ways and its considered manipulation or cheating than the ethical value of the business has fail. On the other hand, if a business acted the way corrected in receiving information than theres no harm to the business ethic believes.

Santa Clara University. (n.d.). What is Ethics? Retrieved from https://www.scu.edu/ethics/ethics-resources/ethica…



Even though we all are skeptical when it comes to businesses, it is actually possible for a business to be ethical. In that line of thinking, it would be beneficial for a business to run their business ethically because it also shows that the customers of that company are able to trust in the company. In a way, a business would need to be ethical in order to be fully successful. One essential part of business is competitive intelligence. This is the systematic collection and analysis of publicly available information about competitors (McCubbery, 2009, p. 245). The reason that ethics become a question when people talk about competitive intelligence is due to the manner in which a company gains that information. The primary goal of gathering intelligence on a competitor is to gain an advantage. Companies always look for ways to get the competitive advantage over other companies. When speaking about publicly available information, it refers to any type of information that can be obtained legally such as company directories, or government documents (Rouse, 2012). This type of research is legal, it is considered overt, which means, the company that is conducting the research is doing it in an open way. The Society of (SCIP) has a code of ethics that helps keep companies ethical with regard to gathering information. They state that those conducting CI investigations must refrain from illegal activities, disclose information about their identity and corporate affiliation prior to any interviews, and provide honest and reliable information as a result of the investigation (Rouse, 2012, para. 3). As long as companies conduct their research in an ethical manner, it is ethical to gather competitive intelligence. The way that the world is now, being so open and online makes gathering this information much easier, breaking down barriers that used to be there (Ingrid, 2019).


Ingrid. (2019, April 9). Ethical competitive intelligence: the difference with corporate espionage. Retrieved from https://datascouts.eu/2018/06/26/ethical_competiti…

McCubbrey, D. J. (2009). Business Fundamentals [Global Text]. Retrieved from http://textbookequity.org/Textbooks/McCubbrey_Busi…

Rouse, M. (2012, October 3). What is competitive intelligence (CI)? – Definition fro

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