Business Ethics

Business ethics

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Business ethics is a form of applied ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons who are engaged in commerce.Ð'Ѓh Generally speaking, business ethics is a normative discipline, whereby particular ethical standards are assumed and then applied. It makes specific judgements about what is right or wrong, which is to say, it makes claims about what ought to be done or what ought not to be done. While there are some exceptions, business ethicists are usually less concerned with the foundations of ethics (metaethics), or with justifying the most basic ethical principles, and are more concerned with practical problems and applications, and any specific duties that might apply to business relationships.

Contents

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1 Related disciplines

2 Typical issues

3 Conflicting interests

4 Ethical issues and approaches

5 Corporate ethics policies

6 Ethics officers

7 Religious views on business ethics

7.1 Jewish business ethics

7.2 Christian business ethics

7.3 Muslim business ethics

8 See also

9 References

9.1 General references

9.2 Jewish references

9.3 Christian references

9.4 Muslim references

10 External links

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Related disciplines

Business ethics aren't identical to the philosophy of business, the branch of philosophy that deals with the philosophical, political, and ethical underpinnings of business and economics. Business ethics operates on the premise, for example, that the ethical operation of a private business is possible -- those who dispute that premise, such as libertarian socialists, (who contend that "business ethics" is an oxymoron) do so by definition outside of the domain of business ethics proper.

The philosophy of business also deals with questions such as what, if any, are the social responsibilities of a business; business management theory; theories of individualism vs. collectivism; free will among participants in the marketplace; the role of self interest; invisible hand theories; the requirements of social justice; and natural rights, especially property rights, in relation to the business enterprise.

Business ethics is also related to political economy, which is economic analysis from political and historical perspectives. Political economy deals with the distributive consequences of economic actions. It asks who gains and who loses from economic activity, and is the resultant distribution fair or just, which are central ethical issues.

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Typical issues

While hardly exhaustive, some typical issues addressed in business ethics include:

accounting and financial standards, and "creative accounting"

advertising deception

black market sales

bribery and kickbacks

business intelligence and industrial espionage

political contributions

competition versus cooperation

corporate governance, including hostile take-overs, fiduciary responsibility, and shareholder rights issues

corporate crime, including insider trading, price fixing, and price discrimination

competitive disinformation

discrimination, affirmative action, and sexual harassment;

employee issues, such as rights, duties, illicit drug testing, key employee raiding, and professional conduct

environmental issues, animal rights (e.g., in agriculture), and related social concerns

Labor issues such as union strikes and union busting

Marketing, sales, and negotiation techniques

Product issues such as patent and copyright infringement, planned obsolescence, product liability and product defects

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Conflicting interests

Business ethics can be examined from various perspectives, including the perspective of the employee, the commercial enterprise, and society as a whole. Very often, situations arise in which there is conflict between one or more of the parties, such that serving the interest of one party is a detriment to the other(s). For example, a particular outcome might be good for the employee, whereas, it would be bad for the company, society, or vice versa. Some ethicists (e.g., Henry Sidgwick) see the principal role of ethics as the harmonization and reconciliation of conflicting interests.

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Ethical issues and approaches

Philosophers and others disagree about the purpose of a business in society. For example, some suggest that the principal purpose of a business is to maximize returns to its owners, or in the case of a publicly-traded concern, its shareholders. Thus, under this view, only those activities that increase profitability and shareholder value should be encouraged. Some believe that the only companies that are likely to survive in a competitive marketplace are those that place profit maximization above everything else. However, some point out that self interest would still require a business to obey the law and adhere to basic moral rules, because the consequences of failing to do so could be very costly in fines,