Business ethics are basic moral principles that guide both people and companies behaviour in business world. Ethics in business are important because it has important implication for company’s function as an organization, ability to manage risk, and company reputation in marketplace. Ethcis become important in make company reputation because market participants are often make ethcial judgement about the company and some will even be rewarded or punished.
If a company run the business with good corporate governance, lawfully, and protecting human right so that company will have at least good reputation among market participants. There are a framework of business ethics that contain four concepts with ethical theory and its associated to the fundamental question that an business actor shoud consider when evaluating a possible course of action :
•Duties. All of business actor is required to be capable of fulfilling their basic duties and the basic moral duty is a requirement to act or not to act in certain ways. They have to understand what their duties are, because the action they do may give rise to critism or blame so that the problem is, “is the action that they do consistent with their basic duties? ” •Rights. A right is an entitlement to certain behaviour from other people so that the actor have to respect others right.
The action must consider the question : “Does it respect the rights and other legitimate claims of the affected parties? ” •Best Practice. Most ethical systems posit certain standards of excellence which is represent conduct that is desirable. The business actor should consider wether the action reflect best practice or not.
•Commitments. Every people or company have to hold on their moral commitment. So the question is: “Is the action compatible with the actor’s own deeply held commitments? ” In applying the framework to evaluate the action, there are challenges at each step in the process. For example : •Understanding proposed course of action, including understand the qoncequences of the action •Identifying relevant standards to apply because ethical standards are orten impicit rather than explicit •Maintaining objectivity to evaluating our judgements.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 7 November 2016
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