Ethical Theories Business 670 Legal Environment August 10, 2010 The purpose of this paper is to discuss Ethical theories and their foundations from this week’s reading material. One is to describe the theories, discuss plus add one more that is not in the book. To understand l theories one needs to know understand that a theory is based on observation or testing, there is really no right or wrong answer to what a theory is. One does need to understand what is ethical?
Ethical is basically the understanding of what one has learned throughout the years, the thought process of right or wrong. Sometimes we may feel that something is not ethical, but based on the facts and other details it is considered ethical. What is the meaning of Ethical being in accordance with the rules or standards for right conduct or practice, esp. the standards of a profession? One may not always agree what the company accepts as ethical, but in theory it has worked and will continue to work until one discovers another theory.
Ethics is based on a set of moral and ethical values. These values must be absolute – that is, you must take them seriously enough to override any human rationalization, weakness, ego, or personal faults. When all else fails, you will always look back to these core values to guide you. Unfortunately, life is not that easy and there’s always disagreement about what values should reign supreme. What does Theory mean in philosophy, refers to contemplation or speculation, as opposed to action? Theory is especially often contrasted to “practice” (Greek praxis, ?????? a concept that in its original Aristotelian context referred to actions done for their own sake, but can also refer to “technical” actions instrumental to some other aim, such as the making of tools or houses. (From Wikipedia, the free encyclopedia) In the reading of the chapters it talks about the four ethical theories that is discusses is the Rights theory, Justice Theory, Utilitarianism and Profit Maximization. Some of these theories focus on the results of our decisions or actions, do our decision produce the Right results?
Theories that focus on results of a decision are Teleological Ethical Theories, justifies layoffs for the benefit of the share holders. A Deontological theory may find unacceptable that any competent employee loses his job, even if the layoff’s effect is to reduce prices to consumers and increase profits. Rights theory encompasses a variety of ethical philosophies holding that certain human rights are fundamental and must be respected by other humans. The focus is on each individual member of society and her rights. As an actor, each of us faces a moral compulsion not to harm the fundamental rights of others.
Justice theory is the philosophical underpinning for the bureaucratic welfare state. Rawls reasoned that it was right for governments to redistribute wealth in order to help the poor and disadvantaged. He argued for a just distribution of society’s resources by which a society’s benefits and burdens are allocated fairly among its members. Utilitarianism requires a decision maker to maximize utility for society as a whole. Maximizing utility means achieving the highest level of satisfactions over dissatisfactions. This means that a person must consider the benefits and costs of her actions to everyone in society.
Profitmaximizationas an ethical theory requires a decision maker to maximize a business’s long-run profits within the limits of the law. Ethics CodesMany large corporations and several industries have adopted codes of ethics or codes of conduct to guide executives and other employees. The Sarbanes–Oxley Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers, Basically saying that the company code of ethics is in place and expects all employees to follow than and not question the Code of Ethics set forth.
There are many theories that is not discussed in the book is “this study compares the ethical decision-making processes of Turkish, Thai, and American businesspeople, considering Perceived Moral Intensity (PMI), Corporate Ethical Values (CEV), and perceived importance of ethics (PIE). PMI describes the ethical decision making at the individual level, CEV assesses the influences of the organization’s ethical culture on the decisions of the individual, and PIE reveals what the businesspeople believe about the relationships among business, ethics, and long-run profitability,” scientists in Istanbul, Turkey report.
In summary these theories, accept the known theories as being acceptable, although some do not agree with them, it has become acceptable in some business ventures. Many business have adapted these theories although at times have changed theories depending on the country they are dealing with for the best possible solution and working relationship. In summary, is the really a right or wrong answer to Ethical Theory and what is acceptable in the business world, which is the best theory to use? Research says there really is no right or wrongs answer it is how one perceives the theory and what the business expect of one and their opinion.
References: Mallor. Custom book for Ashford: BUS 670 Business Law. McGraw-Hill Primis Custom Publishing, 38503. 2010 AUG 14 – (VerticalNews. com) Sim, M.. (2010). Rethinking Virtue Ethics and Social Justice with Aristotle and Confucius. Asian Philosophy, 20(2), 195. Retrieved August 8, 2010, from ProQuest Religion. (Document ID: 2101270601). Ethical Values for Business Success By Mark S. Putnam From Wikipedia, the free encyclopedia | | |. |