KANT Deontological ethics suggests that there are certain moral principles which are so important that one should follow them as if setting a moral law for all time. Kant formulated his categorical imperative to suggest that there are some transcendent moral laws that are applicable to all situations, and cannot be waived no matter how dire the consequences (Kant and business ethics, 2013, RS). Anticipated positive consequences, according to deontological ethicists, do not excuse immoral or questionable behavior.

Kant's ethical notions contradict many accepted notions of firm behavior. For example, it is largely accepted that an organization has an obligation to make a profit to enrich its shareholders. Some business ethicists consider it immoral to take shareholder money and use it to engage in ethical initiatives because that is using other people's investment capital to satisfy the manager's own personal sense of morality. In Kant's view,...

He was considering investing in some stocks and mutual funds, thanks to a small inheritance he had recently acquired. However, many profitable investment opportunities involve companies which engage in immoral actions, such as cigarette companies which create a product that is destructive to human life. My friend, upon reviewing possible stocks, found virtually every possible option lacking in some fashion. Gas and oil companies are destructive to the environment; fast food companies create a product which causes obesity; discount clothing companies sell a product that is produced in sweatshops; 'big box' stores like Wal-Mart and Target hire workers for very low wages and pay them very little to keep prices…