Business Ethics Reflection Prompt #1 Summarize Three

Business Ethics

Reflection Prompt #1

Summarize three of the ethical theories that are explained in Chapter 1 of Introduction to Business Ethics. Explain how people running businesses would construct their companies if they utilized these ethical theories. For example, you might personally think that people should act to increase the overall happiness for the greatest number of people (utilitarianism). You would explain utilitarianism and then explain how a company based in utilitarian ethics would function. In other words:

What products would they make?

How would they treat their employees? How would they treat their customers?

How would they manufacture their products?

How would they utilize their resources and profits were they to become successful?

At the basis of the ethical considerations rests the question of whether or not ethics are static or they are relative. The example is give of Lockheed Martin who was caught offering a quarter of a billion dollars in bribes overseas. On one hand, bribery represents a factor that unfairly influence what otherwise could be free and fair markets in which businesses can compete on their competitive advantages. However, on the other hand, bribery is common in some cultures and if a company does not offer any sort of compensation to the decision maker in the form of a bribe then they could actually be disadvantage in the selection process. Thus the case can be made that morals are subjective and depend on the culture in which the decision is being made.

However, many philosophers, such as Plato, believe that ethics are something more solid and there is an external reality that exists outside the mind. The three most common ethical principles that are used are virtue ethics, duties, and utilitarianism. The virtue of temperance helps individuals avoid the sins of excess. When someone engages in excess then they are not living a life that could be considered virtuous. There are many different forms of addiction, including drugs, alcohol, and the love of money, that can represent an unfilled life in regards to ethics. Another ethical principle is that of duty. This principle asks questions such as "why responsibilities do we have to other people and society in general?" As a member of a society, we can have certain responsibilities to that society that should not be violated. Finally, the utilitarian principle holds the greatest good for the greatest number of people as the ideal ethical objective.

Companies that act ethically will treat their customers, suppliers, and employees fairly and create value for all stakeholders. They will manufacture products or provide services that are good for people as well as the environment. Although profitability will always be a key concern, the company will use broader metrics to evaluate its social and environmental performance as well. These metrics will dictate the company's products and processes and the company will operate in as close to a sustainable way as feasibly possible.

Reflection Prompt #2

Analyze three of the punishments that corporations undergo when they have acted unethically (i.e., name them, define them, explain what they are). In addition, explain three threats to running an ethical corporation. Finally, from your own perspective, explain whether or not a corporation should have to function by the same codes of morality that individual people in society have to abide by or if they should be allowed to get away with certain actions that people in society cannot get away with.

The harm principle: when people or organizations act in a way that is harmful to others. There are different types of harm that can be done such as physical or psychological. Punishments for the violation of this principle can come through civil litigation as well as criminal punishments depending on the violation.