January 31, 2023

HUTCHISON

BUSINESS DEVELOPMENT

Business Ethics

Nobel Prize winning economist, Milton Friedman, argues that using resources in ways that do not...

Nobel Prize winning economist, Milton Friedman, argues that using resources in ways that do not clearly maximize shareholder interests amounts to spending the owners’ money without their consent and is equivalent to stealing. The utilitarian approach, thus, puts focus on behaviours and their results, not on the motives for such actions. Government regulation regarding prod­uct safety, working condition, statutory warnings (on cigarettes and other harm­ful products), etc., are all supported by laws. These offer guidelines to managers in determining what are the acceptable standards and practices. 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.

business ethics

However, it might be considered a grey area – close to, but not quite, bribery – because the individual is then likely to be more inclined to give Company A a price break at the expense of getting the best deal for his own company. Business ethics is also related to political economy, which is economic analysis from political and historical perspectives. Political economy deals with the distributive consequences of economic actions. Establishing requirements for not only internal operations but also first-tier suppliers as well as second-tier suppliers to help drive environmental and social expectations further down the supply chain. Companies such as Starbucks, FIFCO and Ford Motor Company have implemented requirements that suppliers must meet to win their business.

Issues

For example, if a person has a prominent characteristic of being late to the office regularly then indiscipline is he/she personality factor. Patience – Patience refers to the degree at which the individuals can tolerate any delays in the fulfillment of their wishes or goals. Individuals with high degree of patience are not affected by delays in getting rewards for their accomplished tasks.

  • Many reasons have been offered for why deceptive advertising is wrong.
  • For example, if a customer purchases goods or services that turn out to be unsatisfactory, the business will do what it must to recompense the customer.
  • In response, it has been argued that there is a market for labor, and if workers want meaningful work, then employers have an incentive to provide it (Maitland 1989; Nozick 1974).
  • But some instances of price discrimination have come in for criticism.
  • Another is that it is yet another way that people can self-segregate by moral and political orientation as opposed to finding common ground.

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. Not only will businesses act ethically toward their clients, customers and employees, but also with regard to the community and the environment. Many companies look for ways to give back to their communities through volunteer work or financial investments. They will also adopt measures to reduce waste and promote a safe and healthy environment. These are typically called “multinational” or “transnational” firms .

Respect

A housewife may practically beat a thief to death, when threatened with the prospect of losing her ornaments or child. Situations like these, force people to change their ethics and respond in an unexpected manner. Through their reinforcing actions, , parents incul­cate high or low ethical standards https://www.wikipedia.org/ among children. Schools and Religion also greatly influence the formation of ethical values (such as truthfulness, honesty, sincerity, tolerance, etc.) at an early age. Such a loss-making company becomes a nuisance and a burden to the economy and has no right to exists in the marketplace.

Children tend -to obey their parents right from the time when they do not know anything about ethics. This makes their every act conditioned to their parents’ teachings and orders. 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.

Latest Publication

He held that corporations have the obligation to make a profit within the framework of the legal system, nothing more. Friedman made it explicit that the duty of the business leaders is, “to make as much money https://www.hutchisonandmaul.com/ as possible while conforming to the basic rules of the society, both those embodied in the law and those embodied in ethical custom”. Ethics for Friedman is nothing more than abiding by customs and laws.