Ethical Theories Essay

It is vital for fe bes to understand the importance of morals in this fighting(a) surround. Organizations that ar committed to long term success recognize and befool that creating a culture where honorable behaviors be rewarded and encouraged is the ultimate nominate to survival and growth. According to Joseph 2003, business ethics refers to clear standards and norms that help employees to distinguish unspoiled from hurt behavior at work, while in the separate hand estimable theories argon theories that involve learning what is right and wrong and doing the right thing besides the fact that the right thing is non straight forward brings in the subject of ethical dilemmas. Norm tout ensembley ethical theories can be broken up into devil separate groups, teleological and deontological. teleological theories go out to the rightness of carry throughs and are determined by the come in of good consequences they produce and focus on outcomes that are found on decisions. I n teleological theories these bodily processs are justified by the impartiality of what the actions achieve, so singler than some feature of the actions themselves.In natural(prenominal) words, decisions that benefit the overall coating and/or objective is collectively believed as a way to rid what is right or wrong. The philosophy of utilitarianism is one of the most commonly utilise and accepted ethical theories in the teleological group and is linked to Jeremy Bentham and outhouse S Mills. According to Crane and Matten (2010) utilitarianism is defined as an action which is morally right if it results in the greatest arrive of good for the greatest tot of people affected by the action. This convention focuses solely on the consequences of an action and it weighs the good results against the bad results. It besides encourages the action that results in the greatest amount of good for all people involved. Utilitarianism is very powerful in business since it puts at the centre of the moral decision a variable which measures the cherish of an action. Deontological by contrast to teleological, consequences are irrelevant when determining what is right and wrong. Deontological possibility states that people should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person allow follow his or her obligations to early(a) individual or society because up prop ones business is what is considered ethically correct. For instance, a deontologist will alship canal control his promises to a fri devastation and will follow the law.A person who follows this scheme will produce very consistent decisions since they will be based on the individuals set duties. Deontological ethical systems are require-to doe with with the nature of an action that is macrocosm judged, whereas teleological judges the consequences of the act quite a than the act itself. Founded by Immanuel Kant, Kantian Ethics is the iconic representa tion of deontological theories. Kantianism emphasizes the principles cigarette actions rather than an actions results. Acting rightly thus requires being motivate by proper universal principles that treat everyone with respect. When youre motivated by the right principles, you overcome your animal instincts and act ethically. Until the great jalopy of the people shall be filled with the sense of responsibility for each others welfare, companionable justice can never be accomplish (Helen Keller). John Rawls, an American moral and semipolitical philosopher, whose major work, A system of Justice, had a profound impact on ethics and political possibleness, believed thither must be an alternative view of justice than the view of the Utilitarianism where the action that benefits the greatest is the best. Rawls believed that the principles of justice and candidness among individuals must be fair.John Rawls, social justice theory seeks to create a society where the principles of jus tice and fairness are appropriated and to ensure the protection of equal access to liberties, rights, and opportunities, as wellhead as taking care of the least advantaged members of society. The concept is based roughly a social contract, which is the voluntary agreement among people with each other(prenominal) and the government which results in an organized society. On the other hand, the philosophy of virtue ethics, which primarily deals with the ways in which a person should live, has puzzled philosophers from the radical of time. Recognized as one of the greatest philosophers in the world, Aristotle explains virtue as a character trait that manifests itself in habitual action. This theory claims that virtues are traits of character that you must practice actively so that they execute a part of you and shapes you into becoming a virtuous ethical person. So when you are a virtuous person, you will lead a prosperous carry through life. Since thither are many contrasting int erpretations regarding a precise commentary of virtue, Aristotle theory repugns that the individual needs practical wisdom, which is what a person needs in inn to live well.On the contradictory side there is Milton Friedman, who is known as one of the greatest and most influential economists and man intellectuals in theworld. He was a firm believer of free-market capitalism which would in turn contribute and adequately administer wealth throughout the nation. right economists, such as Milton Friedman, claim that business is most responsible when it move overs earnings efficiently, not when it misapplies its energy on social projects, Friedman determines that it is in the best interests for firms to maximize salary. With this Friedman is invoking a deontological, not consequentialist, theory. A consequentialist reading Friedmans work would look to identify an ends justifies the means sense of reasoning. Friedman however makes clear the means of achieving the ends are importa nt, as profits need to be maximized within the regulatory environment and important focus. Along the same steps as Friedman we have Friedrich Hayek, who follows the libertarianism theory. Libertarianism is a set of related political philosophies that uphold liberty as the proudest political end.This includes emphasis the primary of individual liberty, political freedom, and voluntary association. This theory and Hayek try on that the market will take care of itself, the ideal market is self-moving and it limits government intervention and/or involvement in the marketplace. Libertarianism expresses that people have certain natural rights and deprivation of those rights is immoral. The entitlement theory just like Hayek, also supports a market system with little to none government intervention, this theory of justice is known by Robert Nozick. Nozicks entitlement theory is based on the following three principles one, a person who acquires a holding in accordance with the principle of justice in acquisition is entitled to that holding second, a person who acquires a holding in accordance with the principle of justice in transfer, from someone else entitled to the holding, is entitled to the holding and third, no one is entitled to a holding except by restate applications of 1 and 2 (Anarchy, State, and Utopia 1974, p.151). According to the entitlement theory, people should only possess what they are actually entitled to according to these principles. Many of these theories are seen throughout the cases from the have got Ethics and the Conduct of Business by John R. Boatright. Case 3.2 merchandise Pollution is perfect example that includes different sights and insights into such theories.The case summarizes as follows, Rebbeca Wright, an assistant to the vice president of environmental affairs at Americhem, savors the prospect to apply hertraining to public policy analysis that her company faces. She is confident(p) that cost-benefit analysis, her special ty, provides a rational decision-making tool that cuts through personal feelings and lays bare the fractious economic realities. Jim Donnelly, Rebeccas boss, started her with a draft of a memorandum that she musical theme would create a furor if it were ever do public. Jim is preparing a memo of where to establish the companys new(a) location of their chemical plant. The main problem is that atmospheric pollutants caused by the plant will produce a persistent haze and some of the particles have been known to cause colorful cancer in a small portion of people exposed. quaternion main points about this location are further discussed of what would happen if this new plant opened. Milton Friedmans, Kant, and deontological ethics can be seen in this case.Friedmans perspective for this case would have Rebecca to follow her duties because this would be doing what would bring the most profits and doing what the stakeholders would want. For deontological and Kants perspective on the other hand, it may be argued two ways. Rebecca must follow her duties no matter of the consequences she is working towards, because she has a specific duty she must perform. If she follows the rules she would benefit herself, the company, and all the stakeholders. At the time Kantian ethics still implies that one must follow moral law regardless of the consequences. So because this new plant may cause liver cancer and inflict pain on others, Rebecca can disagree with the companys decision on manufacturing the new plant. For this case, it depends on which side Rebecca wishes to stand as to what is ethical or not. Whether to support or not the construction of the new plant has ethical attributes with twain benefits and consequences.Lavish Pay at Harvard is another example great example that applies to some of the theories explained. jackstones R. Meyer, the head of Harvard Universitys $20 billion natural endowment stock was under pressure to diversity the compensation plan for the funds top investing music directors due to the high amount of endowment the top five employees were receiving. A few Harvard alumni protested, their collective concern was that they thought the amount of money being paid to those folks was obscene. The compensation of the endowment fund managers far exceeded the salaries of Harvard efficiency member and administrators, including the president, who made around half a million dollars. Also, the 5% hike n breeding for Harvard assimilators in 2004 was equalto the $0 million paid to the two highest earners. Although Harvard has the largest university endowment, the salaries and bonuses paid to the managers greatly exceeded the compensation paid at any other school. In response to the critics, Mr. Meyer noted that the alumni failed to recognize that the amount of bonuses paid does not add up to the value they are giving the university.The schools large endowment was used in many ways to benefit students such as the coverage of 7 2% financial aid for undergraduate students, no tuition for families earning less than $60,0000, and it also enable the school to increase the faculty in growing areas and to expand facilities. In the end, Harvard decided to cap the compensation of fund managers. The result was that jacks Meyer and his team of managers left to start their own investment companies, at which many could earn 10 times than they did at Harvard. Teleological and Utilitarianism theories are two great theories that can be applied to this case. With both of these theories we can argue that the amount of money that was being used to deliver these managers/employees was a reasonable pay due to what they were giving back to the college. Millions of students and faculty were benefiting from Mr. Meyer and his team, which thats the main focus on both of these theories actions are right if they are useful or are for the benefit of the majority and the end justifies the means. Although they were getting paid large amounts of money their return on the student population had a higher impact. Some of Nozicks beliefs can be seen in Case 3.4 A Sticky Situation. Kent Graham is an fib manager for Dura-Stick Label Products, which has a well-deserved reputation for quality, technical knowledge, and service that enables the company to didactics a premium price for its products in a very militant market.Kent has been with Dura Stick for 2 years and his accomplishments have been going declivitous and fears his time with company may end leaving his wife and children to provide for. Kent calls Jack Olson at Spray-On Inc. about landing a large account. Jack informs Kent of a new product of theirs they would need labels for, which Jack promises they can do. Although, Kent afterward finds out Dura-Stick cannot make the desired products so must use another company and mark up the prices so Dura-Stick can still make profit. Kent uses the companys image as leverage to convince Jack to take the deal. This si tuation can be argued in different ways for Kent and Dura Stick. Kent knows that he has to land a big timeaccount and he knows he must do so in order to provide for his family. Though he does lie to customer, he isnt doing anything illegal. Nozicks belief of just acquisition is an excellent example in this situation. As long as the seller had rightful ownership, the transaction is just and proper, but if not, then possession is not proper and victims have to be even up or transaction undone.In contradictive of Nozick, Aristotles theory of virtue would argue that this case is exactly what a person with virtuous ethics shouldnt do. Virtues are traits of character that you must practice actively so that they become a part of you and shapes you into becoming a virtuous ethical person. Because of his actions, Kent is putting in jeopardy his honesty, loyalty, self-control virtues, shaping him in the wrong ethical approach. These theories emphasize different aspects of an ethical dilemma and lead to the most ethically correct resolution according to the guidelines within the ethical theory itself. batch can use these theories and the wisdom of these philosophers to determine what is ethical and what is not. Though all decisions have their advantages and disadvantages, by applying this knowledge one can come close to making the right ethical decision.