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Ethical theory and its application to the case study: The Auto Companies in ChinaIs it right that car companies establish factories in China and develop its automobile industry? Its hard to say, the development of automobile industry at the same time bring the energy more loss. Every coin has its two sides, which is right? Let us analysis it from the ethical perspective: they are: Utilitarianism, Kantian deontology, justice, right and Ethical Relativism.UtilitarianismFirstly, what is Utilitarianism? An action is right if it leads to the greatest possible balance of good consequences for everyone affected by the action. Whether any one (A) has done what is right depends on how good or bad the consequences of As actions are for everyone affected. Thus, how A is affected is relevant; but so is how others are affected. Ones good is as worthwhile as every person, this it not egoistic or altruistic but universalistic. Utilitarianism aims at maximizing the greatest good for the greatest number. But how to do it? Maybe we can assess all the consequences on all those affected by the action/decision in the long & short term, valuing each person equally. But we should remember the motto that ends justifies the means. After we finish that we could get the result that it guides peoples actions to producing a better world.In the utilitarian view, car companies help China to expand automobile industry is wrong. Although, automobile companies measures were to develop Chinas auto market and the car factory, also it caused car sales promotion, and the technology is more skilled, it caused innovation, it pulled the countrys economic development. At the same time it promoted the employment. But, this is relative in China, relative to the auto industry a small branch. Although the car companys motive and means are correct, but in the utilitarian view, the development of Chinas automotive industry will lead to the fuel shortage and be in short supply, and prices rise, breaking supply balance. This led to a global problem, so that the greatest happiness value reduced. And the decrease of the biggest happiness is the evil. Obviously, from this perspective, the car companies were wrong.Kantian deontologyKant emphasized the way in which moral life is centered on duty. Ethics is all about what duties they are, how we can find out what they are and why we must obey them. Actually, when reasons guide the will, one can act from “duty”. Reason is the same for all individuals; therefore morality has an objective basis. it because our function is to be rational agents. Happiness is not the highest good.From Kantian deontology, we can see, this is a theory that is completely opposite utilitarian value. From this perspective, the car companies established factories in China , to help the development of automobile industry, is a kind of moral , not doping any interest value, not considering the influence of China and the world, but in doing ones duty. It is a kind of good that will promote, this kind of good will not depend on joy or sadness to judge the good or bad. With car companies helping China, China has the advanced automobile manufacturing technology, this is good. So from this point of view, the car companies are actually right. They all came to their obligation, they passed their technology and experiences to others, without considering other external factors, this is good, and this is for their own good. But if the car company just took, did not perform the corresponding responsibility, and did not pay attention to the other, and that is wrong, it cannot stand the test of Kantian deontology.JusticeThe justice view considers ethical behavior as that which is impartial and fair in treating people according to guiding rules and standards. Justice has five types: Compensatory Justice, Retributive Justice, Procedural Justice, Commutative Justice and Distributive Justice. Compensatory Justice means compensation should be proportional to harm for the past. And Retributive Justice is to imposition of punishments and penalties on wrong doers, both corporations and individuals. Procedural Justice need fair decision procedures, practices or agreements. Commutative Justice can function in transactions. Last Distributive Justice means fair distribution of societys benefits and burdens.From the point of view of justice, the car companies help for China is unreasonable. Because it doesnt depend on the theory of justice equality principle of distribution. The growth of Chinas automotive industry certainly will drive the fuel price promotion and energy shortage; it affects the normal operation of other areas. Residents daily life will be short of fuel, the shortage of other countries industrial energy, it seriously affects the fair distribution, and it was also far from the justice. Although the theory of justice also mention that if not justice, unless the average distribution of one kind of value or all one kind of value inequality distribution to each ones interests. So it is to say, other countries develop the car industry earlier, then the inequality was distributed to the interests of everyone, now is different, fuel tense situation is what we have to face, the average distribution is even more important. On the other hand, developed countries had developed their automobile industry, and developing countries also have the right to develop their car industry. Developed countries caused pollution of the environment and resource depletion, but they couldnt limit the development of China depending on this. So China has the right to the development of the car industry. But what we need to pay attention to is that the right is not infinite, it needs to be considered various factors, and it should be used reasonably. Therefore, from the point of view of justice, the car company to do so is wrong.RightA right is something I am entitled to, if I want it. My right to something puts others under a duty (or obligation) to treat me in such a way that my right can be fulfilled. That means a claim that one is entitled to be treated in a certain way or something that a person chooses to exercise if he wants to. It includes two sides: Negative Rights and Positive Rights. Negative Right is the entitlement to be left alone free of interference from others. For example, right to free speech, right to smoke, right to do business, etc. And Positive Right is entitlement to be provided with something or have something done for one. For example right to health care, education and work. From the ethical perspective, rights and obligations are not absolutely equivalence relation, car companies established factories in China, to help the development of the car industry in China, it is their right, benefit is their rights, although they should safeguard world energy balance of responsibility, but the rights and responsibility are not equal, they make full use of their rights, and thats what they want to do, others have no right to interfere with, isnt it? So, automobile enterprises in China to help the development of the car industry are understandable.Ethical RelativismEthical Relativism is an ethical theory that claims right and wrong is subjectively determined by each culture (or individual or group, society or religion). Of course Relativism also has two types: Descriptive Ethical Relativism which claims as a matter of fact that different cultures have different moral values. The other one is Normative Ethical Relativism which claims that each culture is right unto it and denies that we can make rational or objective ethical judgments. What is good is socially accepted and what is bad is socially unacceptable in a given culture. There is no such thing as universal truth in ethics; there are only the various cultural codes and nothing more. Different cultures have different moral codes; therefore, there is no objective “truth” in morality. If the car company can follow the rules, and give full consideration to the interests of the host country, its not wrong. Right and wrong are only matters of opinion, and opinions vary from culture to culture. So, car companies to help Chinas development of automobile industry, there is no right and wrong of the points. Often in China this is regarded as a kind of right, but in other places have might be seen as wrong, this closely is the cultural difference, lead to the different code of ethics, which lead to different understanding and view, ethics are already relativity, so different social order and standard lead to different ethical theory and different behavior. Things coin has its two sides; this is the ethical high meaning.To sum up, , in different levels and different ethical theory whether the car enterprise help China development of automobile industry is right or wrong is hard to say. So, instead of blindly arguing for who is right and who is wrong, it is really to do some practice, pay attention to the business ethics, pay attention to the enterprise development which should bear the social responsibility, do not blindly pursue benefit maximization, it should be considered the long-term development, considering for ordinary people, for the influence of the environment and other aspects, to comprehensive all aspects of advantages and disadvantages, then we can let enterprise obtains the good development opportunities, form a benign cycle. In a word, to develop the enterprise, we must attach importance to the construction of the enterprise ethics.The continuous development of economic globalization make the traditional enterprise value and responsibility idea change, pay more attention to the natural resources, ecological environment, workers rights and business ethics, to take more to stakeholders and social responsibility, has become a global enterprise development trend.In the pearl river delta in Qingyuan, people unilateral emphasize the importance of introducing the foreign capital, but neglect the people in the social responsibility of the enterprise management, since the 1980s to 2005, the area of natural and business environment is great damage, air and water pollution is serious, some enterprises dont care about the labor production safety, personal safety, healthy body, human rights, labor industrial injury and packet occupational disease and labor abuse are more common.In the face of such teaching, it is time for emphasizing the social responsibility of the enterprise. There is quite a number of outstanding enterprises, they walk out of the mill, family-run business model, and walk on the economy of scale, standardization management of the track, on the stage to participate in international competition, their understanding to the enterprise social responsibility also improve from the first is the most simple perceptual knowledge to the enterprise strategic height. For example, Shanghai has repelled the outskirts of high pollution enterprise; the Pearl River delta region since 2005 made a series of strict control environmental pollution enterprise measures to force of almost fifty thousand Hong Kong-invested enterprises in pollution control.Any enterprise that is living in the natural ecological environment has considerable dependence on the nature, ecology, humanity, resources and environment; therefore, the enterprise should be responsible for the protection of the relevant rules of the responsibility and obligation. If the enterprise in these areas cant take their social responsibility, they will certainly receive the universal condemnation, and eventually will eat bad.Improving the social responsibility of the enterprise, enhancing the business ethics, I think, we can take the following measures:First is to deal with long-term development and the contradiction between short-term interests. This is the most common problem, effective measures is to strengthen the systematic planning to prevent one-sided, blind development.Second is to deal with actively promotion and distribution of the implementation of the relationship. We should firm strengthen corporate social responsibility policy orientation, strengthen the propaganda, improve knowledge as well as strengthen the scientific reasoning, pay attention to the link and do steadily.Third, properly deal with the government guidance, intermediary services and business relationship. The government main play macroscopic guidance and the role of law enforcement surveillance; Intermediary institutions should play a coordinating role; the government should encourage intermedia

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