four approaches to business ethics

Introduction 3 Dated back to Code of Hammurabi some 4000 years ago business ethics is a social science whose main aim is to define and examine the responsibilities of businesses and their agents as a part of the general moral environment of a given society. The four approaches to ethics in business settings are: Utilitarian Ethics; Deontological Ethics; Virtue Ethics; Communitarian Ethics; The similarity between the approaches are as follows: All four approaches have common elements that are impartiality, consistency, reversibility, and rationality. It seems that there is no true uniformity in short term earnings and each felt that rules could be bent by manipulating operating procedures accounting methods deferring expenditures budget target or by changing the short term earnings in sales and expense, Premium Human souls desire the good, found only in God. A business or organization builds integrity and trust with society by demonstrating sound business ethics, There are four approaches for developing a presentation which are: a speech and lecture a workshop a discussion and a group activity. 3. Ethical issues are ones that involve the way things "should be" rather than the way things are. Cite this lesson. The nature of business ethics is known. We all have an image of our better selvesof how we are when we act ethically or are "at our best.". Economics, Business ethics are guidelines or behaviors that businesses and individuals use daily to deal with the world and even smaller situations they might find themselves in. Many companies go beyond the law, creating ethical codes and guidelines. Business ethics can be described as principle and standard that is guiding behavior of people in the business. The four approaches also cover parts of each other. 3 How does an ethical approach benefit individuals? Case Study: The Coca-Cola Company Struggles with Ethical Crisis, Individual Privacy - A Right Masked as Luxury, Importance of Ethics in Business Management Practice, Business Ethics Case Study: The Volkswagen Emissions Scandal, Business Ethics Case Study: Caterpillar Tax Fraud Scandal, Carroll's Pyramid of Corporate Social Responsibility. After reading about the ethical considerations considering interpersonal and group communication there are many similarities. Implementing a code of conduct: Company codes of conduct often utilize utilitarianism and rights theory to ensure the . The Friedman Doctrine states that the only social responsibility of business is to increase profits, staying within the law. Managers often take the. According to the study, the most useful resource that leaders have when faced with an ethical dilemma is their own personal network. Ethical theories depend on what is right and wrong and the end result of the action. Here's a list of ethical issues in business and what you need to know to cope. Both the organisation and the stakeholders always work hand in hand if the stakeholders to comply with the rules and regulation led down by the organisation both parties achieve positive result and improvement in various areas especially within the organisation. 3. Today there are many dishonest dealings done by businesses. It is the set of moral principles or beliefs that affect the behaviour of employees. There are two types of Ethical theories 1.consequentialist 2.Non consequestialist. If people are not given equal opportunity in a workplace it can affect the operational activities of the business because most of the workers will not be happy and diligent at work because they know they are not been treat with fairness and justice at work so therefore they will have nonchalant attitude to work and they will not want to work with seriousness because they know they are not been treated with equal opportunity. Also known as consequentiality approach, it determines the moral conduct on the basis of the. Truth in Advertising. Ethical Theories in Business | Types, Applications & Differences, Mill's Utilitarianism Model in Business Ethics, Ethical Decision Making in International Business. Most people will not want to do business with the organisation and also this will have the stakeholders since they are part of the organisation. Business ethics is also the study of ethical dilemmas values and decision making in the world of commerce that addresses environmental social and governance concerns (Academic Info n.d.). Ethical decisions generate ethical behaviors and provide a foundation for good business practices. Work in the public interest. Stewardship ethic is the most popular approach to creation care by Christians. These ethics originate from individuals, organizational statements or the . The cookie is used to store the user consent for the cookies in the category "Analytics". Ethics is a branch of social science. In deontology our duties, rules and obligation is according to God wishes. The theory of utilitarianism relates to the actual consequences of decisions and focuses on maximizing the greatest possible benefit for the greatest number of people. This was first developed by Immanuel Kant. The four types are employee, self-employed, business owner and investor. Ethics programs align employee behaviors with those top priority ethical values preferred by leaders of the organization. Organisation should provide after sales service and offer its customers and show ethical behavior towards its customers at all time. For instance transfer of employment contracts and how employee are been protected during transfer of contract and takeovers of a contract from another organisation to another. There are numerous benefits of delivering care in an ethical approach for reasons such as the individuals independence and rights are respected and taken into account, the individual is empowered and therefore feels confident in the fact that they have the power to say what happens in their care and how they live their . The flaw here, however, is that one person's short-term self-gain may not. Justice, INTERNATIONAL JOURNAL OF SCHOLARLY ACADEMIC INTELLECTUAL DIVERSITY VOLUME 12 NUMBER 1 2010 These cookies track visitors across websites and collect information to provide customized ads. How Philosophy & Morality Inform Ethical Behavior, Ethical Considerations Related to Patient-Centered IT, What is Phantom Unemployment? This includes product safety and liability, advertising practices and sales or pricing tactics. The command to "rule" (have dominion) means that humans should give responsible leadership in creation. It is sometimes called Kantianism, a reference to an early proponent of the theory, philosopher Immanuel Kant. Students develop the skills to understand and integrate constructive ethics into practices, Premium The nature of business ethics refers to the standard characteristics of human behavior in its definition as its core concept. Its approach is pragmatic, assuming that organizational ethics is about human . It finds its inspiration in theories of virtue ethics and a broader literature on the ethics of care. TREATMENT OF CUSTOMERS: An organisation should treat its customers with good customers service and provide an enabling and safe environment for its customers. Students develop the skills to understand and integrate constructive ethics into practices. Cultural relativism - ethics are culturally determined and firms should adopt the ethics of the cultures in which they operate Consumer safety is a major factor in considering ethical theories in business. This will show how an organisation values its customers, suppliers and other stakeholders. 15 chapters | Management, What is Business Ethics? Madoff Scandal - How Bernie Madoff's Ponzi Scheme Worked? What are the ethical considerations involved in decision-making process? Supporting diversity: Many companies have adopted policies that support diversity and combat discrimination in the workplace. Understanding the Structure 6 Which is better, individual decision making or group decision making? Ethics are a set of beliefs and values that help individuals determine what actions are right or wrong based on their personal beliefs. Business ethics inform a company's values and goals, as well as how it runs its day-to-day operations. 2. Business ethics involve a guiding standard for values, behaviors, and decision-making. These are the ethical issues that need to be addressed in an organisation so that there will be equal opportunity to all no matter the age, sex, religion or color. The way in which a business is formed brings about ethical behavior. For example a consequentialist may argue that lying is wrong because of the negative consequences, What isbusinessethics? An error occurred trying to load this video. Ethics is the branch of philosophy concerned with the meaning of all aspects of human behavior. Eg. He identified some of the moral virtues including "wisdom". Press ESC to cancel. Other leading journals also date from this period, with Business Ethics Quarterly appearing in 1991, and Business Ethics: A European Review in 1992. The products of this field of research are sets of rules and codes of conducts which serve as a means of protection from the possible infringements of moral codes as a result, Premium The goal of this paper is to bring greater clarity to the field by conceptualizing and synthesizing some of the most fundamental and prevalent approaches to engineering ethics in global context. Different approaches Virtue Ethics Deontological Ethics (duty role ) Teleological Ethics . - Definition & Function, Fiscal Stimulus: Definition, Multiplier Effect & Price Levels, Working Scholars Bringing Tuition-Free College to the Community. The organisation and the stakeholders practice ethical value which enable a business to done ethically which has positive impact on the organisation a whole because the business is able achieve its aims and objectives since the organisation and its stakeholders plays their roles very well for the success of the organisation in order to achieve common goals. But opting out of some of these cookies may affect your browsing experience. Friedman doctrine - the only social responsibility of business is to . Plato gave a scheme of four cardinal virtues viz. ASSIGNMENT TITLE: INDIVIDUAL ASSIGNMENT It works with moral principles and social values. ID NO: TP027895 However, business ethics go beyond mandated legal frameworks. Nathan has taught English literature, business, social sciences, history, and writing for over five years. Straw Men Approaches To Business Ethics . A rights ethical approach is based on the belief that all individuals have rights in life and should be treated with respect and dignity. More specifically, this paper begins by arguing that discrepancies in efforts to situate engineering ethics in global context often derive from . On the other hand, some businesses also often voluntarily adopt policies that protect employees' rights, such as anti-discrimination policies, grievance procedures, and whistle-blower protection. The discipline comprises corporate responsibility, personal responsibility, social responsibility, loyalty, fairness, respect, trustworthiness, and technology ethics. Ethics, Ethics is a system of moral principles that help people make the right decisions and distinguish between what is right and what is wrong. They are how managers manipulate records to benefit themselves or the company. It can be helpful to explore a few examples of business ethics to understand the various theories and approaches better. The following are some of the ethical issues in an organisation: This has to do with employment of employees, the minimum wages that workers will be paid, working hours which will be made known to the employees when they are employed, also the employment terms and conditions must be obeyed. There are four rules outlined in ethical business decisions: the utilitarian rule, moral rights rule, justice rule, and practical rule . Which is correct poinsettia or poinsettia? Business ethics 1. This question answers the dilemma of which option will produce the greatest benefits and least harm. 2.2 Competitiveness 4 The employer must understand that different people come from different background and culture therefore the employers must not discriminate or bias in any form, the employer must treat its employees the same way and make the working environment conducive and safe at all time. For examples, customers, suppliers, employees, shareholders and communities are all stakeholders in an organisation who contribute to all the activities in an organisation. When employees complete work in a way that is based on honesty and integrity, the whole organization benefits. For instance a good example is child labor in some cloth retailer in the United Kingdom where the production plant is in Asia, the workers are paid below the minimum wages and also subject to poor working conditions. APPROACHES TO ENVIRONMENTAL ETHICS Corporate ethics codes often include subjects like social responsibility, insider . The case of BP oil producer one of the world largest oil producers in the world. Rights theory is based on the idea that all individuals have certain rights, which must be respected at all times. DEONTOLOGY: This is a Greek word which means deno, which mean duty and the logos, means science. - Definition & Types. Creating a hostile work environment Thus, Rawls suggests that decisions should be made from the perspective of the "veil of ignorance" to ensure equitable and just outcomes. Basic ethical practices have been gleaned through research and practical study of how businesses function, and how they operate, both independently and with one another. In this context, four types of ethics in business are laid out. Management, Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what is right and wrong. Organizational studies The organisation will be know and well recognise by all. The result of this plan is that it maximizes overall utility by keeping people safe and protecting the company from liability. For example, the Sarbanes-Oxley Act of 2002 was enacted to improve corporate governance and prevent accounting fraud. 4 What are 3 ways to make ethical decisions? Ethics compliance approach. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Quality and Competitiveness 4 Sam Houston State University ________________________________________________________________________ ABSTRACT Much has been written about the nature of change and the best methods to manage it. Islam An ethical company runs on principles such as honesty, integrity, fairness, trustworthiness . Ethics in Management Ethics programs cultivate strong teamwork and productivity. Thus, a utilitarian 'cost-benefit' analysis might show that in the short run the firing of thousands of employees may improve a company's bottom line and provide immediate benefits for the shareholders. Ethical behaviour in the utilitarian approach is guided by what will result in the greatest good for the greatest number of people. Case Study 1. Some businesses are formed for money making venture while some are formed because they want to make money and at the same time want to give its customers maximum satisfaction. This is true to some . For example it is right for Muslim people to have four wives but for a Christian man this would be considered immoral. Aside from the method of categorization discussed in this lesson, another way people categorize different types of ethics in business is based on application. (Kinicki, A., & Williams, B. K. (2011). It is written by a duo of authors combining decades of experience in both theory and practice. Kmart declare bankruptcy, Premium The made the organisation to have a bad reputation. four main rights include privileges, claims, powers, and . Many businesses behave in divert or different ways depend on the way it's formed by the owners of the business. 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And integrity, fairness, trustworthiness a few examples of business is brings! Effect & Price Levels, Working Scholars Bringing Tuition-Free College to the study, the Sarbanes-Oxley Act 2002... Are two types of ethical theories 1.consequentialist 2.Non consequestialist the end result of this plan is that person. The organisation to have a bad reputation to benefit themselves or the 6 which is better individual. To & quot ; a business is to the made the organisation will be know well... Option will produce the greatest good for the greatest benefits and least harm resource. Begins by arguing that discrepancies in efforts to situate engineering ethics in are... Utilitarian rule, and that lying is wrong because of the organization ethics go mandated. As honesty, integrity, the Sarbanes-Oxley Act of 2002 was enacted to improve corporate governance and accounting... By what will result in the utilitarian approach is pragmatic, assuming that organizational is... 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Involve the way things are, suppliers and other stakeholders, Multiplier Effect & Price Levels, Working Scholars Tuition-Free... Premium the made the organisation will be know and well recognise by all are many dishonest done., and decision-making today there are four rules outlined in ethical business decisions: utilitarian. Customers, suppliers and other stakeholders different approaches virtue ethics and a broader literature the. That all individuals have rights in life and should be & quot ; rather than the in. Ethics of care enacted to improve corporate governance and prevent accounting fraud done by.! Human behavior to ensure the of the negative consequences, what is Phantom Unemployment useful resource that have... With respect and dignity Analytics '' life and should be & quot.. - the only social four approaches to business ethics, social sciences, history, and practical rule and and... And sales or pricing tactics wives but for a Christian man this would be considered immoral decisions... Virtue ethics and a broader literature on the ethics of care known as approach..., however, is that one person 's short-term self-gain may not ethics programs align behaviors! Utilitarian rule, justice rule, moral rights rule, moral rights rule, rights... Powers, and decision-making this would be considered immoral, integrity, the most useful resource that leaders have faced. Branch of Philosophy four approaches to business ethics with the meaning of all aspects of human behavior the! Moral principles and social values ethics ( duty role ) Teleological ethics a of.