Traditionally the business objectives of business were to maximise profits, sustainability, and shareholders’ value but after the advancement of stakeholder theory there has been a radical shift in the business objectives towards meeting stakeholders’ expectations in addition to maximisation of profit. Typical stakeholders of a company except shareholders are customers, employees, and suppliers. Today modern business objectives are to meet expectations of stakeholders as much as possible. Corporate social responsibility has emerged as a phenomenon that is born out of stakeholder theory.
These concepts have brought up various ethical behaviours that a business must demonstrate in its operating activities. In case of failure a business faces …show more content…
The following is a summary of the development in business ethics theories.
Moral objectivism refers to the values that differentiate the rights from wrongs in terms of behaviour of a company. The decisions of a company can either be morally right or wrong. These moral valuesvary according to the moral values of the society in which the business is working in and are dependent on a wide variety of factors including religion, culture, and social norms of the society.
Moral Relativism refers to the general belief that it is wrong to declare one culture superior to another culture. The corporations must acknowledge and respect the moral and cultural values of different culture in which they operate and should not impose one culture of a society on another (Bernstein, 2011).
Consequentialism is defined as a philosophy that if the consequence of a certain behaviour or objective is morally correct then any means in achieving that goal are acceptable. Therefore,regardless of the method the consequence of the behaviour should be morally right (Kreps and Monin,
Moral Relativism is defined as the belief that conflicting moral beliefs are true. This carries the impression that what you respect as a right behavior may be a right conduct for you, but not for me. Moral Relativism is an attempt to
Consequentialism and non-consequentialism are both action based ethical frameworks that people can use to make ethical judgments. Consequentialism is based on examining the consequences of one’s actions as opposed to non-consequentialism which is focused on whether the act is right or wrong regardless of the outcome (Burgh, Field & Freakley, 2006). The three sub-categories of consequentialism are altruism, utilitarianism and egoism.
Consequentialism refers to the idea that what is morally good or bad is all based on the consequences of one’s actions. It is derived from the Theory of Right Action which is a part of
The ethical relativism theory is that morality refers to the norms of a culture. This means that whether an action is right or wrong is dependent on the moral norms of the society it is practiced in. The same action may be morally right in one society, but morally wrong in a different one.
Moral Relativism is generally used to describe the differences among various cultures that influence their morality and ethics. According to James Rachels, because of moral relativism there typically is no right and wrong and briefly states : “Different cultures have different moral codes.” (Rachels, 18) Various cultures perceive right and wrong differently. What is considered right in one society could be considered wrong in another, but altogether all cultures have some values in common.
Business ethics refers to the consideration of moral decisions and responsibilities in the process of operating a business. Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company 's culture and can mean the difference between success and failure. Values drive behavior and therefore need to be consciously stated, but they also need to be affirmed by actions. Ethical business environments are created with foundations of integrity, accountability and commitment.
Utilitarianism is one of the best known and most influential moral theories. Like other forms of consequentialism, its core idea is that whether actions are morally right or wrong depends on their effects. Utilitarians believe that the purpose of morality is to make life better by increasing the amount of good things (such as pleasure and happiness) in the world and decreasing the amount of bad things (such as pain and unhappiness).(http://www.iep.utm.edu/util-a-r/). Ethical Relativism is the view that there are no ethical absolutes. It maintains that what is right or wrong depends on the circumstances, the person’s views, culture, etc.
Moral relativism puts forth the idea that all morals are relative to the culture or particular beliefs of an individual. To those that hold this concept as a fundamental value-yea, even a moral-it is wrong and judgmental for one segment of society to condemn any other different segment of society because of differing morals.
Cultural relativism also based on the concept that believes and values in one culture may consider as immoral while in another culture they may seem as moral. Fundamentally, the cultural relativism is the opinion that morality and ethics are culture dependent. There is huge diversity found between what is right or wrong among different cultural activities which ultimately originated the cultural relativism concept around the whole world. This term is widely accepted by all
“Consequentialism is the belief that acts are morally right or wrong depending on their consequences. Morally good actions have morally good outcomes, while morally bad actions have morally bad outcomes (Vaughn, 277). ” Consequentialism is not a system that I would use in my everyday morals. However, I do think that there can be a time and place for it to be used.
Consequentialism argues that what makes an action ethically right or wrong is the good or bad consequences of such action. Consequentialism does not start giving priority to ethical standards as it does Deontologism, but giving priority to the objective to be achieved, identifying with it a certain state of the good or valuable (a better world/universe) things. Therefore, consequentialism considers an ethically correct action one that, whatever it is, fosters that good or valuable state of things (the right end justifies the means), and an ethically wrong action one that fosters a bad state or disvalue.
Ethical relativism: means moral norms of particular groups or individual. Some action might right to one society but will be ethically wrong to another one. For instance, an action may serve a purpose in one culture, which is the
Consequentialism is a category of normative ethics theory which holds that morally rightness or wrongness of an action is sorely determined by the consequences of the movement. That is, it focuses decision making upon the potential outcomes of an action, and this outcome becomes the only standard of morality - the ends justify the means.
Consequentialism is a theory about the consequences of an action and why these are so important when taking an ethical decision to act. We can talk about two outcomes of consequences. One is creating the most good for the most people; known as utilitarianism, and the second ones is creating the most good for one’s self, known as egoism. In some cases the egoism doesn’t mean a selfish way to make the right decision, but can be the best interest for everyone to act in his own self-interest.