Kant says that people in business should act out of duty alone, not self-interest or desire to earn huge amounts of money. For example motivating bankers through huge bonuses would be wrong. Kant would also apply the categorical imperative, to derive the duty of a businessman. However, whether Kantian ethics is the best approach in comparison to theories such as utilitarianism is debatable. One issue surrounding business is the relationship of the business to the consumers.
Scholars such as Friedman suggest that treating the economic responsibility as the most important responsibility of a business, is called a profit-maximising view, and “the social responsibility of a business is to increase its profits.” This kind of view states that a company should be operated on a profit-orientated basis, with its sole mission being to increase profits. This approach would seem to benefit stockholders, as well as stakeholders, as the stockholder is going to benefit from the profit made by the company and will gain something back from the company, however problems can occur when the businesses and companies do not balance their ethical responsibility, as they can therefore be perceived as greed and unable to balance their corporate social responsibility, and will cause a bad name for a business. So although the stockholder may also be gaining profit by doing this (what the company sees as doing the right thing) is not necessarily the right thing to do in terms of stakeholders. However, Friedman would argue that as long as the business is maximising its profit, that is the main point and so the loss of the stakeholders is less important. This argument can be deemed as weak as Friedman’s approach does not mean that stakeholders can be benefited alongside stockholders, and so disagrees with
The Ford Pinto Case: Kantianism In the business world there is one goal, to make profit. The people in charge of the businesses try and create the most revenue for their stakeholders as well as themselves. However, if a company’s one and only goal is to make money, ethical problems are due to arise. Many times, what is best to make money is not what is best for the general public. Should people’s well-being and safety be compromised in order to benefit the people who have a stake in the company?
Why are ethical behaviour and government regulations important to marketing? Ethical behaviour is used within many businesses to ensure the business provides accurate information to customers as well as other businesses to engage in fair competition. It is important for a business to have ethical behaviour in relation to the marketing side of the business so that goods produced, promoted then sold do not provide misleading information. If identified by consumers, it can have a major impact on all functions of the business as it has the potential to ruin the business’s reputation placing the business at a declining stage of the business’s life cycle. In a similar manner government regulations are also important and must be overviewed by all functions of a
ALL WK 1, DQ’s: WK 1, DQ 1: What is a business’s obligation to build an ethical culture and balance its desire for profit with ethical responsibilities to employees, customers, society, and the environment? Ethics is different from one person to the next, so it is imperative that business clearly define the norm for staff members and management. The decisions organizations make influence more than business partners, affiliates, culture, and others. It is important for organizations center of attention on maximizing shareholder revenue. Therefore, maximizing profit without causing destruction to the business culture can be a balancing act for most organizations.
When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
Ethical standards are the code of conduct required by the organization for workers to follow. The relationship between organizational culture and ethics is that the organizational culture guides workers when faced with ethical problems. If the organization culture counters what they are required to do ethically, workers may put the organization in jeopardy by not act ethically. When a worker is faced with a decision that others within the organization think as appropriate, though it is unethical, the worker may follow what is acceptable as per the culture. It is the relationship between organizational culture and ethics that can get businesses into significant trouble in the long term.
When you break down what a manager means to a business. The manager is so much more than just a manager, their the educator, planner, analyzer, resource and whatever else the company needs to move forward. Whether it’s Amazon, GE or the NBA a manager takes advantage of market inefficiencies or finds previously undiscovered niches. Managers that can take advantage of these findings take on the characteristics of entrepreneurs, however, they are not entrepreneurs because they work to redirect the inputs of existing companies rather than create new forms of product. According to Berri, D. J., Leeds, M. A., Leeds, E. M., & Mondello, M. (2009) Jack Welch, did not create any new financial services, but did transform GE’s focus from manufacturing to financial services at a time when manufacturing was declining.
Abstract Leadership comes in many different forms and many different views. However, this is about ethical duties, the difference between business ethics and individual ethics and how they play the role within an organization. We are going to look at what ethical stewardship, leadership and trustworthiness is and how it affects an organization. Leadership: Trustworthiness and Ethical Stewardship The problem to be investigated is what the meaning of ethical concepts means and how is it applied towards business ethics, if it is at all. There are so many different interpretations of what ethics consist of, how do we tell which is right?
Those profit making courses are assuming you already took the decision. In fact, having a business is not at all about profit. If you are serious about it, and if it proves to be a good and mature choice, you will have to face the profit challenges sooner or later. It’s in a business nature to have profit in order to survive. But making profit the most important part in having a business is just wrong.