Business Ethics Stanford Encyclopedia Of Philosophy

The committee members should be conscious about the corporate culture and ethical concise of the organisation. Ethics committees can rise concerns of ethical nature; prepare or update code of conduct, and resolve ethical dilemma in organization. The growth of a business is dependent upon ethical practices performed by the businessman. If a custom is adopted and accepted by businessman and public, that custom will become an ethics. What are the obligations of a business, is open to interpretations. While discharging its obligations to the society, the company not only fulfils its own duties, but also paves the way for a stronger and more ethical foundation.

Andersen claims that IPR has increasingly become an instrument in eroding public domain. A common approach to remedying discrimination is affirmative action. The term ‘business ethics’ came into common use in the United States in the early 1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten casebooks supported by professional societies, centers and journals of business ethics. European business schools adopted business ethics after 1987 commencing with the European Business Ethics Network.

Since the demand for pay typically exceeds the supply, the question of how pay should be distributed is naturally analyzed as a problem of justice. In the 1980s, Beech-Nut advertised as “100% apple juice” a drink that contained no juice of any kind. Beech-Nut was fined $2 million and two of its executives went to prison. As of this writing , Red Bull is marketing its energy drinks with the slogan “Red Bull Gives You Wings,” but in fact Red Bull doesn’t give you wings.

As a result, when an authoritative person orders the individual to do an unethical act, he/she tends to obey him/her as well. This happens due to the conditioning of their mind to obey orders right from their childhood. Tolerance – It helps to maintain cordial relationships among the employees of an enterprise. Tolerance refers to increase in the level of adaptability of an employee to various organizational changes. The individuals need to be permissible and receptive to the challenges of their work.

For example, Deepak Parekh , Narayan Murti , Ratan Tata , H V Kamath have tried to integrate their personal values in their organizational values. A sick and bankrupt organisation is a social liability and can hardly contribute in the area of social responsibility. Hence the first responsibility of a businessman is to generate surplus for his business. At the same time however, he must do so ethically, carry on his business on morally sound principles and go out of his way to assume social responsibilities beyond the legal minimum. From a managerial standpoint, it is important to know that values are those concepts, principles, things, people or activities for which a person is prepared to work hard and even make sacrifices for.

According to deontological theories certain actions are right not due to some benefit to self or others but due to their basic nature or the rules underlying them. For example, bribery by its very nature is wrong irrespective of its consequences. All the business activities and transactions should be well informed with justified manners with their different stakeholders and society. – Every businessmen are required to create and develop their role and behaviour to establish pleasure and happiness with other persons and the society at large.

But sooner or the later, a number of incidents around the world proved that businesses should carry out their operations ethically for the sake of basic survival. Companies adhering to principles of fairness and respect will pay their employees a fair wage for the work they do based on their experience, education and the nature of the work. They will also regularly review employee compensation and adjust it to make sure it continues to be a fair representation of the employee’s position and experience. Businesses will often reward outstanding performance with employee bonuses. These are a good incentive for employees to work hard and remain with the company. They are also a way for the business to express gratitude for the employees’ efforts.