INTRODUCTION Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large. Using ethical theories to guide moral reflection, business ethics can help businesses avoid scandalous conduct that could harm the society. UTILITARIANISM Utilitarianism places high emphasis on the consequences and outcomes of one’s action. It is premised on the general principle that an action is right and ought to be performed insofar as it leads to overall happiness or benefits, as opposed to pains or costs (Chan & Shenoy, 2010). However, many businesses have a sole objective of maximizing its profits and shareholder value. While focusing on the interest of its internal stakeholders, the interest of its external stakeholders is often neglected. The subprime mortgage crisis of 2007 highlights how financial institutes acted out of their self-interests and neglected the consequences of their actions on the community and society at large. Investors pursued after higher returns through engaging in risky investments involving subprime mortgages. When the housing bubble burst, the subprime mortgage industry collapsed and caused a financial liquidity crisis (BusinessWeek, 2007). The action of the financial institutes had a spill ove... ... middle of paper ... ...companies-with-extremely-questionable-pay-practices-2011-11?IR=T&op=1 Fisman, R. (11 May, 2009). The real reason CEO compensation got out of hand. Retrieved from Slate: http://www.slate.com/articles/business/the_dismal_science/2009/05/comparison_shopping.html Morgan, D. (28 April, 2011). Most Americans say U.S. in recession despite data: poll. Retrieved from Reuters: http://www.reuters.com/article/2011/04/28/us-usa-economy-gallup-idUSTRE73R3WW20110428?feedType=RSS&feedName=domesticNews Starbucks Coffee Company. (2011). Business Ethics and Compliance: Standards of Business Conduct. Retrieved from Starbucks: http://globalassets.starbucks.com/assets/eecd184d6d2141d58966319744393d1f.pdf Treanor, J. (11 February, 2014). Barclays condemned over £2.4bn bonuses. Retrieved from The Guardian: http://www.theguardian.com/business/2014/feb/11/barclays-hikes-bonuses-profits-slide
n this reflective journal entry, we are going to look at that the ethical issues that were presented in the Ethics Game simulations, the decision-making steps that were completed to address ethically the issues, and the ethical lenses that I used to make decisions throughout the simulation. We are also going to take a look at how these different ethical lenses influenced my decision and the how I could use the concepts that I have learned in my workplace.
When running a business ethics plays an important role in the success of the business. “Ethics is the study of those values that relate to our moral conduct, including questions of good and evil, right and wrong, and moral responsibility” (pg. 2). Every individual will have a different set of moral codes. Moral codes are shaped by your personality, environment and religion. In this scenario and throughout this paper you will come to understand how our moral code of ethics plays a role in our daily decisions.
In Utilitarianism the aim of our actions is to achieve happiness for the greatest number of people. “Actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness.” (Mill, 1971). Utilitarianism directly appeals to human emotions and our reactions to different events. Emotions are a fundamental Way of Knowing and influence both ethical and economical theories. In most cultures there are fundame...
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
Discussion One Having a sound understanding of ethics gives a certain trust relationship between stakeholders and those who governs the organization. Organizations should exhibit not good ethics but great ethics. Typically, when a business shows no concern for ethics within its structure that business tend to struggle or fail. There are certain expectations that society place on
Starbucks takes the standards of business conduct very seriously. Starbucks “support(s) the global business ethics policy and provide(s) an overview of some of the legal and ethical standards” (Starbucks Coffee) around the world and in every store they serve their customers. Another important factor is that Sta...
Today’s society has transformed the term “business ethics” into an oxymoron. The field of business bears an unfavorable connotation; the profession is surrounded by such unpalatable ideas as fraudulence, corruption, and trickery, and such names as Donald Trump. On the other hand, ethics is often paired with unpolluted ideals such as morality, righteous conduct, and pure conscience. Although “business ethics” is widely viewed as an oxymoron, the phrase did not originate as so. Prior to the 1980s, to most people, business was a noble profession; business management was generally regarded as “a stewardship and expect[ed] to operate the economy as a public trust for the benefit of all the people” (J.D. Zellerbach, 1956).
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
Every individual has certain rules and guidelines by which they do everything. There are certain rules that determine people’s actions and these rules may differ from one individual or group to another. These rules are the principles that direct an individual’s actions and are collectively known as ethics. Ethics is important because it helps one differentiate between what is right and wrong when making decisions. Ethics also includes the moral codes or values that a person holds, which are more personal than the codes of ethics.
As a function, ethics is a philosophical study of the moral value of human conduct, and of the rules and principles it should govern. As a system, ethics are a social, religious, or civil code of behavior considered correct by a particular group, profession, or individual. As an instrument, ethics provide perspective regarding the moral fitness of a decision, course of action, or potential outcomes. Ethical decision-making can include many types, including deontological (duty), consequentialism (including utilitarianism), and virtue ethics. Additionally, subsets of relativism, objectivism, and pluralism seek to understand the impact of moral diversity on a human level. Although distinct differences separate these ethical systems, organizations
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
In the business world there are many fundamental aspects and situations that can lead to several issues. In order to find an optimal and professional solution, business decision makers need to apply moral and ethical standards. And it is at that moment in which business ethics perform its role. Business ethics, which is in charge of examine how companies and individuals should act in business situations, is very essential in order to reach a common agreement and to work within the laws of business and solve an arisen dilemma. Working of the hand of ethical business companies, employees, investors, directors, and even individual officers can be beneficiated and obtain most favorable outcomes.
Business ethics is defined as “a specialized study of moral right and wrong that focusses on moral standards as they apply to business institutions, organizations, and behavior” (Velasquez, 2014, p.15). Business ethics is the study of moral standards that focusses primarily on how these standards may apply to social systems and/or organizations. For this paper I will be focusing on one of the great minds of business ethics, John Locke, his ideas and contributions to business ethics.
Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.
Ethics is a system of moral principles and a branch of philosophy which defines what is acceptable for both individuals and society. It is a philosophy that covers a whole range of things that have an importance in everyday situations. Ethics are vital in everyones lives, it includes human values, and how to have a good life, our rights and responsibilities, moral decisions what is right and wrong, good and bad. Moral principles affect how people make decisions and lead their lives (BBC, 2013). There are many different beliefs about were ethics come from. These consist of; God and Religion, human conscience, the example of good human beings and a huge desire for the best for people in each unique situation, and political power (BBC, 2013).