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.
Political competence is what can really make the CC part of it shine and in turn CC will make political competence shine. Political competence is one of the skills necessary to apply good cooperate citizenship. Both are related to ethics. Whereas good corporate citizenship is about an organization acting ethically toward society as a whole, political competence is one of the necessary skill required to apply good cooperate citizenship, which is a number of related skills. Good CC, for example, a company CEO of a HCO defines good corporate citizenship as meeting the growth and demands placed on health companies by society in an economically, environmentally and socially responsible manner (“The Power to Change: Mobilizing board leadership to deliver sustainable value to markets and society”, 2001).
Companies must view themselves as part of an ecosystem; one entity in an interdependent interconnected environment. Each part of this ecosystem of business is impacted by the decisions and operations of the other parts. The organization of today and tomorrow has to adopt a system-centric model of business or suffer the consequences, most of which being dire and unforgiving. The key to business success is to make sure no part of the system is overlooked and undervalued. Research has revealed that there is a strong correlation between a stakeholder conscious organization’s
Businesses get their worth from how they serve their customers. This will establish the accomplishments of the company. Those individuals who work for the business must be willing to serve. How well employees serve customers verifies the importance of the business. When we execute this, we believe God to meet our desires because we put the needs of others first.
The analysis will also show that, although the flexible leadership theory would be beneficial to APAC, it would not be supported based on the current culture of the company. DISCUSSION How does flexible leadership theory (FLT) apply to Costco's operations and leadership? The flexible leadership theory (FLT) emphasizes how organizations define effectiveness in providing their goods or services to their customers to achieve long-term success and survival. By using the “primary performance determinants” (Yukl 2010) of environmental adaptation, efficiency and process reliability, and human resources and relations, the cofounder and current CEO of Costco has created an atmosphere that encourages excellence. Based on the narrative of the Costco case study supplied by Yukl (2010), Costco has a combination of the clan
Aristotelian Approach is a way to look at individuals in a corporation the same way Aristotle looked at people in the environment, by taking individuals into consideration over society, it focuses on individual habits of character to do good. Aristotle believed rights are important but the concern is more with the individuals’ virtues. There are six dimensions of this ethics: Community, excellence, role identity, integrity, judgment, holism (University of Phoenix, 2009). An example of this business ethic in a leader today is Oprah Winfrey. Oprah Winfrey ethical theory is best described as a philanthropic, and falls in line with the Aristotelian Approach.
These days the way managers operate and strategize their business policies has taken a stance against the previous operational strategy that a business exists only to make profit without any consideration or regards to anything else in the world as said by the economist Milton Friedman in his essay “deriding the idea that a business had any responsibility other than to maximise its profits within legally and ethically acceptable margins, arguing that ‘a corporate executive is an employee of the owners of the business. A few new theories were introduced in the famous essay written
In this regard, Downs criticized economist who had concluded that bureaucrats and politicians were “perfect altruist” whose goal is to maximize social welfare. Contrary to Downs’ opinion, I believe that it is necessary to transit from the old perspective of government as a profit company to a non-profit organization, understanding the opportunistic characteristic of the bureaucrats and politicians. The social contract born as a pact to institutionalize non-profit organizations named governments in order to achieve specific goals as was already mentioned before. The same ideology is used when some citizens constitute non-governmental organizations (NGO). It is necessary here to clarify exactly what is meant by NGO.
1. Does a corporation owe its first loyalty and moral responsibility to the financial interests of its owners or to the local community and its employees who are affected by its operations? Based on the Union Carbide and the Bhopal Disaster case, there are a few ethical theories that can be used to argue such as egoism, utilitarianism, ethic of care and virtue theory. Ethical egoism is part of consequentialist theory that focuses on consequences when making judgement. Ethical egoism is the prescriptive doctrine that all persons ought to act from their own self-interest (Philosophy.lander.edu, 2001).
The rules and regulations of ethics and behavior are affected by the basic values of the goals of company with in the community. Even though there are some organizations that think the only social goal of a company is to gain benefit. With a different school of thought, other members think that the goal of a company is larger than just gaining profit and that everyone that is influenced by the firm's activity, suppliers, employees, shareholders, customers, and the domestic society have a concern and commitment in the firms activity. These commitments are very important to a company regardless of whether it is international or domestic in its activities. However, international companies have to deal with specific difficulties and requirements above and beyond those operating only in local markets.