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Legal and Ethical Issues in Business

Ethics in Business

Three normative ethical theories were developed in Western capitalist societies in guiding the ethical conduct of business (Fort, 2014). The stockholder theory considers the maximizing of profits as the sole objective of business and above all considerations. It does not recognize social responsibility. It is completely utilitarian and one-sided. The stakeholder theory considers the welfare and needs of customers, suppliers, owners and employees along with maximizing profit. When called for, it believes that the interests of stockholders should be sacrificed in order to insure its survival. It developed from Immanuel Kant's philosophy, which respects the dignity and participation of all people. And the social contract theory is the most widely used business theory. It draws from the 18th-century philosophies of Thomas Hobbes and John Locke. Their philosophies argued that business should be dedicated and committed to the interests of humanity itself. It should hold integrity as an inviolate principle. It must be built on social welfare and justice. It is characterized by very high standards of social responsibilities (Fort).

Dobson: the Virtue Concept in Today's Business Ethics

This concept is increasingly in use for two basic reasons (Dobson, 1994). One is because...

MacIntyre explained that these concepts failed because other conceptual foundations themselves failed too in the broader realm of moral philosophy. Business ethics was found to be without logical foundation. Analyzing business ethics would show that it is basically opposed to the competitive spirit, structure and goal of business enterprise itself. Those in business just cannot cultivate or uphold virtue. In order to combine ethics and the true goal of business, the discipline must broaden its very concept of market-driven competition (Dobson).
"Depositories of Dishonesty"

This is how the recent media describe American businesses today (Norman, 2014). A survey for Lawyers.com found that 58% of office employees admitted to using or taking company property for their personal use. A global study sponsored by the International Association of Business Communicators reported that 2/3 of surveyed companies provide minimal or no training on ethics for their employees. And a Hewlett-Packard study on board members who committed security breaches said they publicly revealed confidential information, for which five company officials were later sued and later charged for criminal fraud for illegal investigative tactics. An annual Gallup poll revealed that nurses were the most honest professionals and telemarketers the least honest from a range of 21…