Business EthicsEssay Preview: Business EthicsReport this essayBusiness ethicsFrom Wikipedia, the free encyclopedia.Jump to: navigation, searchBusiness ethics is a form of applied ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons who are engaged in commerce.ÐЃh Generally speaking, business ethics is a normative discipline, whereby particular ethical standards are assumed and then applied. It makes specific judgements about what is right or wrong, which is to say, it makes claims about what ought to be done or what ought not to be done. While there are some exceptions, business ethicists are usually less concerned with the foundations of ethics (metaethics), or with justifying the most basic ethical principles, and are more concerned with practical problems and applications, and any specific duties that might apply to business relationships.
Contents[hide]1 Related disciplines2 Typical issues3 Conflicting interests4 Ethical issues and approaches5 Corporate ethics policies6 Ethics officers7 Religious views on business ethics7.1 Jewish business ethics7.2 Christian business ethics7.3 Muslim business ethics8 See also9 References9.1 General references9.2 Jewish references9.3 Christian references9.4 Muslim references10 External links[edit]Related disciplinesBusiness ethics arent identical to the philosophy of business, the branch of philosophy that deals with the philosophical, political, and ethical underpinnings of business and economics. Business ethics operates on the premise, for example, that the ethical operation of a private business is possible — those who dispute that premise, such as libertarian socialists, (who contend that “business ethics” is an oxymoron) do so by definition outside of the domain of business ethics proper.
The philosophy of business also deals with questions such as what, if any, are the social responsibilities of a business; business management theory; theories of individualism vs. collectivism; free will among participants in the marketplace; the role of self interest; invisible hand theories; the requirements of social justice; and natural rights, especially property rights, in relation to the business enterprise.
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. It asks who gains and who loses from economic activity, and is the resultant distribution fair or just, which are central ethical issues.
[edit]Typical issuesWhile hardly exhaustive, some typical issues addressed in business ethics include:accounting and financial standards, and “creative accounting”advertising deceptionblack market salesbribery and kickbacksbusiness intelligence and industrial espionagepolitical contributionscompetition versus cooperationcorporate governance, including hostile take-overs, fiduciary responsibility, and shareholder rights issuescorporate crime, including insider trading, price fixing, and price discriminationcompetitive disinformationdiscrimination, affirmative action, and sexual harassment;employee issues, such as rights, duties, illicit drug testing, key employee raiding, and professional conductenvironmental issues, animal rights (e.g., in agriculture), and related social concernsLabor issues such as union strikes and union bustingMarketing, sales, and negotiation techniquesProduct issues such as patent and copyright infringement, planned obsolescence, product liability and product defects[edit]Conflicting interestsBusiness ethics can be examined from various perspectives, including the perspective of the employee, the commercial enterprise, and society as a whole. Very often, situations arise in which there is conflict between one or more of the parties, such that serving the interest of one party is a detriment to the other(s). For example, a particular outcome might be good for the employee, whereas, it would be bad for the company, society, or vice versa. Some ethicists (e.g., Henry Sidgwick) see the principal role of ethics as the harmonization and reconciliation of conflicting interests.
[edit]Ethical issues and approachesPhilosophers and others disagree about the purpose of a business in society. For example, some suggest that the principal purpose of a business is to maximize returns to its owners, or in the case of a publicly-traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines,
[2]Philosophers consider all activities that directly affect a person to be ethical and to be inadmissible. That is, unethical actions (such as selling goods, wasting time) which are expected to satisfy ethics and ethics rules are likely illegal. However, if there is a conflict of interest, they may even be morally neutral.[3]Philosophers also accept that there are ethical questions surrounding the operation or success of companies, and they take issue with the following examples:[4] The fact that many large, highly profitable corporations are failing to expand, but do so under pressure from various government programs (tax credits, training etc) may lead to ethical questions. [5] Some see that some form of legal intervention can, if one were to find out about it, raise ethical questions. [6] A similar issue is also raised about the ethics of the transfer of assets with no regard for the well-being of other people.[7] This may be a direct conflict of interest and, in addition, could lead to ethical issues that would in turn lead to conflict of interest issues.Philosophists have expressed concerns about this situation at various levels. The main issue is whether the transfer of wealth, or some other activity such as a sales process, could legitimately and clearly be viewed as unethical.[8] Those who hold these views also hold some common ethical views regarding the law as a whole. Such a view may include:[9] A general proposition that private businesses can do things the company can’t.[10] An opinion that private enterprises can act on their own without legal oversight.[11] An opinion that individuals have less to say than private individuals.[12] A view that only a small group of business owners are likely to feel ethical.[13] A common view that a market is the only place that ethical issues can lead to conflict.[14] [4] As the above quotes clearly demonstrate, an individual can freely choose whether to accept the business’s offer of legal services or risk the consequences of it to those who choose to do so. Furthermore, individual liberty is a fundamental value within a business as well as within a society. If a given company may be able to raise a significant amount of capital, it is at the service and benefit of one individual. The more that a private individual chooses to exercise certain rights and duties of governance that may be related to the business, the less that the business can possibly operate without being held accountable or involved in conflict.[15] The case for private enterprise in many contexts has been made by the libertarian theorist John Stuart Mill.[16][17] Mill’s view of free enterprise was that the process of free enterprise was a process of “making out facts that might be useful. The greater the benefit of a well-functioning state, or of doing business, the more difficult it is to make them up, because those facts are not useful.”[18] Mill’s belief that society’s free enterprise requirements are all that makes such a system possible has been repeatedly challenged or challenged