Ethics and Values

Ethics and Values

Ethical Theories

Stakeholder Theory

The stakeholder theory is a theory about how to manage "good" company, where "good" has a technical and economic sense. It is primarily a theory (or strategy) to ensure that a company does not break, do well long term and get maximum benefit. But suppose recognition that achieving this requires that the organization and its individual members, to adopt certain values, and follow a pattern of conduct that do not match the classic recipes to maximize profit accounting, and (ii) benefit of identifying the plural mode: the benefit not only means the yield or capital gain, but also job creation, its quality, sustainability (low environmental impact, etc.).

Utilitarianism Theory

One of the most influential in business ethics is the theory of utilitarianism. The founder of the theory of traditional utilitarianism, Jeremy Bentham believed (1748-1832). In his writings, Bentham developed a methodology for finding objective criteria for measuring values, which should provide a simple and satisfactory from an economic point of view of determining the adequacy of social policy and social legislation (Gunz, 2002). In his opinion, the most effective criteria may be the extent to which course of action, and existing laws and the usefulness and harmfulness of activities (according to an assessment of its consequences).

Moral Theory

Nader insists that companies do not actually belong to the people who established it ultimately belongs "to the public." In this sense, Ralph Nader proposes that large firms include in their directory to consumers in this way, according to this criterion, to ensure that the public is benefiting. According to this line of thought, corporations should not aim to profit but to certain political and social objectives (Fraedrich, 1994). In this sense, it often forces generally large companies to "clean" environment but have not been responsible for making damage. According to this criterion, this is a good philosophy of the social meaning of the corporation. A diametrically opposite position is represented by Milton Friedman. Friedman argues that when a company establishes is making a promise to its investors and shareholders get the best return on investment possible and this is the ethical responsibility of managers. Needless to say that Friedman is not suggesting that the profit is exempt from rules based on moral standards of honesty, integrity, contractual, etc (Etherington, 1995). But within these basic rules which apply to each of us, the liability of directors of a company is to the return on investment for those who invested in the business.

Ethics and Politics

Ethics is based on honesty, openness, and loyalty to one's word; the ability to function effectively in the market in accordance with applicable laws, established rules and traditions. Business ethics has long served as an object of study and speculation around the world. Aristotle equated profit to usury (Emerson, 2007). Business is treated as one of the essential spheres of human activity. Business ethics begins to take shape only after the emergence of firms differentiated from the traditional small business, for their formal and hierarchical organization Separation ...