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business ethics theories and concepts

This is because utilitarianism embraces that actions that cause suffering to minority in order to benefit majority are morally good. For example, if a company has a Christmas Party or some other type of festive function in which a member of the company becomes intoxicated and gets into an accident and kills someone, not only is the employee liable, but so is the company. Likewise if a sexual relationship ensues between a member of management and an employee, the employee may claim sexual harassment at a later date. All work is written to order. Money is saved on disposal costs.

Corporations trying to get away with polluting the environment or other kinds of objectionable actions may, it’s true, increase their bottom line in the short term. Rules should not be broken even if breaking them may improve an outcome. For example a person steals $100 from a billionaire and uses that money to feed 40 hungry kids on street, utilitarianism will agree that it is morally a good thing as it produces greater happiness. Kantian theory states that actions are morally right in virtue of their motives, which must derive more from duty than from inclination (Beauchamp & Bowie, 2004). See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. It was no longer enough to win money; his business had a moral responsibility to win for society and to win for the environment also. We must examine the principles of action to notice whether it shows respect for rational humanity or not. It’s true that they may own no stock, but they have a moral claim to participate in the decision-making process. Morality in the economic world is now about corporate directors sensing and responding to a broad range of obligations, ones extending through the town where the business is located and then out into surrounding communities and through society generally. Basic business ethics concepts should flow down from the top ownership and management of a company to all workers. Right has to do with actions. is composed of four obligations: Ethical theory studies different philosophies or systems used to explain and make judgments regarding right/wrong/good/bad. Kantian moral theory also has drawbacks mention by other ethical theories such as utilitarianism. The fair trade movementProponents ask businesses—especially large producers in the wealthiest countries—to guarantee that suppliers in impoverished nations receive reasonable payment for their goods and services even when the raw economic laws of supply and demand don’t require it. This essay briefly explains the purpose of an ethical theory and why no more than one ethical theory can be right. Ethics and business also revolve around honesty.

Under kantian theory, the man will be sentenced for life as any person who kills another person is being sentenced for life. Conservation of resources, therefore, becomes tremendously important, as does the development of new sources of energy that may substitute those we’re currently using. may begin. While these dilemmas continue to be important throughout the economic world, when businesses are conceived as holding a wide range of economic and civic responsibilities as part of their daily operation, the field of business ethics expands correspondingly. Do you have a 2:1 degree or higher? Utilitarianism will rephrase the claim that business actions are acceptable if it maximizes the benefits of consumers and shareholders. Broadly, there are three theoretical approaches to these new responsibilities: The title corporate social responsibilityIn general, the conviction that corporations are not only legal entities with responsibilities but also moral entities, and they hold ethical obligations comparable to those of citizens in a society. The man thought that they might also kill him and his son so he threw a beer bottle which he obtains near by to one of the thug and that stroked is head really hard. Define and discuss the three main theories of corporate social responsibility. Normally, the author and publisher would be credited here. The Luddites were a band of textile workers in Britain in the 1800s who saw (correctly) that mechanized looms would soon rob them not only of their livelihood but also of their way of life. *You can also browse our support articles here >. Two ethical theories covered in this discussion were Utilitarianism and Kantian moral theory. We're here to answer any questions you have about our services. Sustainability as a virtue means valuing business plans that may not lead to quick riches but that also avoid calamitous losses. Dependability and telling the truth are basic integrity ethics concepts that are used in all aspects of business from serving customers to hiring and firing employees.

This ethical theory is based on the idea that we all have a duty to perform certain things and not to perform certain things. Company Registration No: 4964706.

Obviously, if the firm does go broke and out of business, there won’t be any school visits in any case, so faced with financial hardship, lawyers are clearly obligated to fulfill their economic obligations before philanthropic ones. In an effort to establish some ethical guidelines for business, three normative ethical theories have evolved in Western capitalist societies. It also means keeping agreements and promises. In some situations, it just focuses on the rules and regulations a person should follow and disturbingly disregards the consequences. It lists and describes those individuals and groups who will be affected by (or affect) the company’s actions and asks, “What are their legitimate claims on the business?” “What rights do they have with respect to the company’s actions?” and “What kind of responsibilities and obligations can they justifiably impose on a particular business?” In a single sentence, stakeholder theory affirms that those whose lives are touched by a corporation hold a right and obligation to participate in directing it. Utilitarianism will deal with this claim by overlooking the legal aspect and will spotlight on the consequences, which is in this case are the consumers and shareholders.

Just as people won’t stand for pennies in wages while their bosses get millions, so too they ultimately will refuse to accept being treated as less dignified than the boss. The police found that Kris’s son was drunk and police found him at fault. As the victim would have been sentenced, there would have been no one left to take care of his three kids. Rule utilitarianism takes account of the legal business actions and concerns with the fairness of consumers and shareholders in this situation.

Travolta’s law firm existed to make money and operated by accepting only cases that promised big payouts. Leadership ethics also influence customer relations and how well the values are enforced in the workplace environment. Actually, innovation is favored as long as advances are made in the name of maintaining the status quo.

Ethical theories are based on the ethical principles. After checking things out, he races his Porsche back to Boston at the same speed. While returning home, accompanied by his wife and boy, some young youth attack him for some money. By contrast, a stakeholder theorist begins with those living in the surrounding community who may find their environment poisoned, and begins to talk about business ethics by insisting that they have a right to clean air and water. Make the money hurt. What gets left out, however, of the newspaper reports hailing the accomplishments of a Steve Jobs or a Bill Gates are all those other people who never made it—all those who invested family savings in a project that ended up bankrupt.

It is one of the more functional and commonly used theories today which is also sometimes called consequentialism. What’s certain is that stakeholder theory obligates corporate directors to appeal to all sides and balance everyone’s interests and welfare in the name of maximizing benefits across the spectrum of those whose lives are touched by the business. Even though ethics are really a part of one’s values and should be automatic, dishonesty is on the rise and companies suffer greatly because of it.

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