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Ethical Theories In Business Ethics

Decent Essays
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
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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,
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