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MORAL PHILOSOPHY &BUSINESS:1) Concept & Nature of Business Ethics 2) Business Ethics & Profits.
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Nature of Ethics.
1) Firstly, the Concept of Ethics deals with Human beings only, because only Human beings have been endowed with the freedom of choice and the means of Free Will. Only a Human being can distinguish between good and evil, between right and wrong. Only a Human being can distinguish between the end which he wishes to pursue and the means to gain the end. Hence, only for a Human being, does the Question of Ethics, Values, and Moral Conduct arise. Secondly, the study of Ethics today has become a set of Systematic Knowledge about Moral Behavior and Conduct. Hence the study of Ethics is a Science-a field of Social Science. Thirdly, the Science of Ethics is a Normative Science. Normative Sciences Judge the value of facts in terms of an ideal. Hence, Ethics is concerned with Judgment of Value or What Ought To Be. Ethics seeks to determine the nature of the Norm, Ideal or Standard, and seeks to enquire into the fitness of Human Action to this Ideal. Fourthly, Ethics deals with Human Conduct, which is Voluntary Human Conduct and not forced or coerced by other persons or circumstances. That is exactly why injuring or even killing a person who has to come to kill you is not considered as a Moral or Legal Offence, where as a cold 3 Blooded Murder is considered to be the highest kind of Moral and Legal Crime.
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To whom are Top Managers Responsible? Whose interests should they Serve? What Goals should they strive to achieve? The following are the answers to these three questions: Managers as Economic Actors. According to widely accepted view, the Managers Role is to make sound Economic Decisions that enable the Firm to succeed in a Competitive Market. They have an Obligation to operate a Corporation in the Shareholders Interest. Managers As Trustees. Managers are entrusted with enormous assets and given charge to manage these assets Prudently and Profitably. Employees, Suppliers, Customers, Investors, and other so called Stake-holders have a stake in the success of the Firm and Managers are expected to meet all their Legitimate Expectations and to balance any conflicting interests. Managers as Trustees have a Fiduciary Duty to act in all matters in the interest of the designated Beneficiaries. Managers As Quasi-Public Servants. Managers have many Attributes of Government Officials , such as Power to make Major Investment Decisions for Society. They participate in Political Process and Co-Operate with Political Bodies, including Regulatory Agencies. Managers are expected to 12 demonstrate Corporate Leadership.
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There are basically Three Views on Relationship between Business & Ethics: The Unitarian View: This view is of the Opinion that Business is only a sub set or sub-structure of Moral Structure of the Society. According to this view, Business and Morality cannot be separated and Businesses should play the Rules of Morality and Ethics of the Community, which guides the activities of the Community. This view was emphasized by the Church and other religious institutions, which said that Businesses must exist only to do good for the Society. The Separatist View: Dramatically opposite to the Unitarian View, classical Economists like Adam Smith and Milton Friedman asserted that the only Goal of Business should be Profit Maximization and the Ethics and Morality play no role in Business Conduct and should be left to Churches& Government Agencies. The Integrated View: This view was proposed by Talcott Parsons wherein he sought to Integrate Ethical Behavior and a New Area called Business Ethics. This view states that Business is an Economic Entity and it has the Right and Need to make Profits, but it must also discharge its obligations to the Society where it exists and operates. Profit is certainly not a Dirty Word, but neither is Morality and Ethics in Business.
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Ethics in Business matters, because there is much evidence to prove that Unethical Behavior can cost a Company its Reputation, affect its Share Price and lower its Profits. Some of the Scandals in Business World have their origin in scant regard to Morality. Business Ethics are Rules of Business Conduct by which Propriety of Business Activities may be judged. There is a growing realization all over the world that Ethics is Vitally Important for any Business and the Progress of the Society. Experience has shown that Good Ethics is Good Business. Commerce through Corruption, Administration through Bribery and Politics through Blackmail in India has become the Rule rather than exception. Corruption, Bribery and Nepotism are nothing but degradation of Values and Professional Ethics. Ethics and Human Values can save a Soulless Society from total death. We must remember that Business satisfies only Hunger of Body. Values satisfy Hunger of Heart and Soul. 14 Ethical Behavior is essential for Long Term Success in
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