Business Ethics And Surrounding Theories Philosophy Essay

Business Ethics And Surrounding Theories Philosophy Essay Business ethics for quite some time now has been a global issue as the case maybe in business deliveries. Business ethics may be defined as way managers take decision that will make their business reputation to be morally sound in business transaction. It entails that transparency is involve in decision making, ethical issue in business delivery is very vital to protect the image of the company (Boatright 2007). Business ethics helps managers to take the right decision in business transaction in other to keep their business moving at a rapid growth in the economy (Nash 1990) Ethics can also be defined as the study of how morality are involve in human decision to build their business reputation (Borland 1999).Ethical solution to business transaction has a lot possible solution to make business to deliver it objectives. The term ethics also has another, quite different use as the case may be which is to denote the field of moral philosophy. Every manager has a way to show transparency and accountability to the business approach, in other to make the right decision in business. ETHICAL THEORIES Teleological frameworks: these are the conduct of an individual or the outcome of an individual action.(mill, 1864).Ethical egoism entails that the decision that individual take will be in mutual interest of the organisation and balance it to be mutual beneficial in business transaction. Ego is derived from a Latin word meaning self, ethical egoism allows for self-interests to play a role in the actions of the individual as long as there are also positive benefits for others. The level of rationalization may evolve into the justification that pursuing a person self- interest is necessary to generate a positive outcome for others.(Beauchamp and Bowie 1997). Deontological frameworks: This aspect focuses whether the action is right or wrong on ethical issues. The duty of the person taking such decision is highly considered as the case may be in ethics. Ethical theories; these theories involves the way or approach which are linked with philosophical empiricism and utilitarianism.(George 1999). The act of utilitarianism deals with the decision that one will take which will make him feel relax in business transaction and the outcome of the business will be positive depending on the application. The rule utilitarian states that the decision the managers will result in potential rules of action. (Graham 1990). Business reputation in the context of business to business, deals with a way manager relate with other vital issue which will protect the image of the company. If adherence to the rule produces more positive result than otherwise, it is a rule that morally will be highly considered. The distinction between act and rule utilitarianism is based on the outcome should be highly considered in calculating the effect on business related issues. UTILITARIANISM: According to utilitarianism, our obligation or duty in any situation is to perform the action that will result in the possible balance of good over evil. ln classical utilitarianism, pleasure is taken to be more beneficial to compare with pain and harms which are evil. Rule or outcome of utilitarianism stipulated some issue which are questionable in its conduct in decision making process, in some specific circumstances the outcome is not favourable. Rule utilitarianism add, however that some times their are level of consideration in decision making that managers will take in other to make the right decision in business delivery. However, within rule utilitarianism there is a distinction between the strictness and absolutism of this particular branch of utilitarianism. Strong Rule Utilitarianism is an absolutist theory, which frames strict rules that apply for all people and all time and may never be broken. According to John Stuart Mill that managers should be keen in taking decision that will produce a positive output in business transaction. An example would be utilitarian might say do not lie, if the decision will yield profit that managers should consider the decision. EGOISM: All philosophical egoism holds that there are relationships between how people react to business decision that will influence them positively. The psychological egoist entails that managers will hide some decision because they have interest on it. PSYCOLOGICAL EGOISM: these entail the psychoanalysis that are involved in human actions and how managers take a positive decision in business transaction (Derry, 1987). The psychological egoist might reply that some such of the decision that managers will take are for the best interest of the company. After all, the manager did what he most wanted to do, and so must have been pursuing his perceived business decision that will make him to maximize profit. In one sense, this is true. If self-interest is considered with the satisfaction of all of ones preferences, then all deliberate action is self-interested at least if intentional actions are always explained by citing the reason why such decision is taking in business transaction. Psychological egoism turns out to be the way managers behave and relate their decision in business delivery. They intend an empirical theory that, like other such theories, it is at least possible to refute by observation in business decision (Freeman 1993). The psychological egoist entails why the decision of managers always influence the outcome of the company output in business transaction because they have interest. Perhaps as infants we have only self-regarding desires; we come to desire other things, such as doing our duty, by learning that these other things satisfy our self-regarding desires in business transaction . We pursue the other things for their own reason or effect because the reason why the are considered are vital in decision making. Even if this picture of development is true, however, it does not defend psychological egoism, since it admits that we sometimes ultimately aim at things other than our welfare because of business reputation. Business decision that are volatile should not be taking for granted because it will tarnish the image of the company or their reputation. The managers decision should be at a level that will be fair in business transaction, even if he would not have to negotiate but let the outcome o f the decision be positive (Freeman 1993). RATIONALIZING UNETHICAL BEHAVIOURS Ethics is about being and doing the right thing, not just presenting the right idea. When a corporation made some decision it might be ethical or unethical depending on the situation. Managers may try the short cut in other to raise their share prices, ultimately trying to satisfy or please the shareholders and increase their own bonuses.(Murray 2004). The institute of business ethics has a three cardinal point that deals with ethical test that are involve in business decision making. According to the statement that business reputation has being on the down ward trend means that the level of business transparency has been reduced drastically. Transparency: these involves sharing idea to others in the process of decision making .it also means making ones actions known to others when discussion are going on in a critical manner. It also entails that the more open a person in discussing his or her action to others, the more comfortable the person who are involve will feel that the decision is right in business transaction.(Bentham 2008).Effect: these are the impact the decision has on individual or parties that are involved. Decision makers will always be involve or aware of who will be directly or indirectly influenced by their actions. The decision taken may be ethical or unethical business standard depending on the application.(Ban tam 2008). Fairness: these involve making a decision that are fair to all in an ethical ways and even considering unethical ways. All the ethical theories above shows that business reputation needs a total overhaul as the case may be in business delivery.(Bentham 2008). EXAMINING REPUTATION IN BUSINESS ETHICS Business reputation has been on the downward because of ethical violation which the decision makers thought to be small. The decision makers have to consider the corporate code of ethics, professional will feel the small ethical violation is all right and will begin to justify all ethical lapses, no matter the size (Kant 2004). Moreover, business reputation in the market place should be a positive reputation. A lot of companies are trying all they can to protect the image of their company. Business reputation is a precious commodity, a lot of companies work hard to protect or maintain the image they have created. Many companies have realized that ones these image has been tarnished that is always difficult to restore. As an applied discipline, business ethics can be viewed as a way doing business in a responsible manner. Business operates on the underlying value of trust. it takes only one choice to change or tarnish the image of a company business reputation (Boatright 2007). CASE STUDIES Mr Cameron is trying to breathe a new life into an initiative which he believes is often misunderstood and unfairly mocked. He said is vision is to restore the broken society with the big society. David Cameron chief policy adviser Steve Hilton has been trying to stop him from doing deep think stuff at the moment and also tried to reduce or induce the prime minister vision or idea on big society.(Easton,2011).According to Easton has announce his extra cash for charities, more places in the National citizen service and new details of creating a big society bank with  £200 million. Cameron quotes that their are three key strands to the big society: 1. Encouraging social and voluntary action. 2. Decentralising power. 3. Reforming public services. Analysing Camerons quote in the big society with Deontological frameworks. These are the application of deontological approach in dealing with a volatile economy. Deontological focuses on whether the decision is favourable or not, it focuses on the duty or obligation in determining whether the action is right or wrong. (Stawick 2010).He focuses more on cuts and the other hand encouraging social and voluntary action. Under the above analysis of the prime minister on big society, he is using deontological approach on the society at large. According to Nigel carshew who ask a very vital question why is the big society bank not a social enterprise? The statement shows that the level of transparency in business reputation of big society is questionable. One of the effect is that the money which is been invested is a public money and at the same time use it to enrich the shareholders pocket.(Cohen ,2011).There is increasing evidence that council are choosing to slash grants rather than hit frontline services. Everyone assume its the cuts that are damaging us. But, letting local authorities do what they want with money is hurting us just as much (Collins 2011). ROYAL BANK OF SCOTLAND According to Philip (2011) he stressed that a lot of bankers are paid above their average pay while the Bank of England deputy governor said that bank should be allowed to fail without the tax payers money (Philip 2011).Royal bank of Scotland has been allocating bonuses and paying their staff above normal average pay which made the bank to go bankrupt in business delivery. This is an ethical issue in business reputation because they are using tax payers money for their personal use. Bankers were busy sharing money in the boom years and the tax payers are now paying for the cost of their failure. (Tucker 2011).The bank has shared above  £280 million pounds on bonuses to their bankers which has led to a collapse in the banking sector. CONCLUSION: The ethical business standard that is involved in business delivery above shows that business reputation is a precious commodity. According to David Rosser quote that Business reputation has been on a downward trend for too long and is a concern to growing number of business leaders. Dr Barry morgan,the arch bishop of Wales quote that MBA graduate should be taking a hypocritical oath upon completion of their degree. According to Dr Barry Morgan, he is pointing his view based on religious aspect not in business transaction that MBA graduate should play it according to the rules upon the oath taken like the medical doctors. Business reputation has two sides one is ethical and the other is unethical depending on the application in business transaction. Business reputation has been on the downward trend for too long because managers of business has being taking ethical issues for granted in their business to business transaction. Under the above assumptions on big society, business reputation has been reduced in the area of transparency and accountability. Royal Bank of Scotland decision to give their staff bonuses with depositors funds have jeopardized their business reputation and at the same time make the managers decision questionable.