Ethics.doc

Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.1 There are three different viewpoints of Ethics, they are Stoicism, Epicureanism, Hedonism respectively The Stoic philosopher Epictetus posited that the greatest good was contentment and serenity. Peace of mind, or Apatheia, was of the highest value; self-mastery over ones desires and emotions leads to spiritual peace. The unconquerable will is central to this philosophy. The individuals will should be independent and inviolate. Allowing a person to disturb the mental equilibrium is in essence offering yourself in slavery. If a person is free to anger you at will, you have no control over your internal world, and therefore no freedom. Freedom from material attachments is also necessary. If a thing breaks, the person should not be upset, but realize it was a thing that could break. Similarly, if someone should die, those close to them should hold to their serenity because the loved one was made of flesh and blood destined to death. Stoic philosophy says to accept things that cannot be changed, resigning oneself to existence and enduring in a rational fashion. Death is not feared. People do not lose their life, but instead return, for they are returning to God (who initially gave what the person is as a person). Epictetus said difficult problems in life should not be avoided, but rather embraced. They are spiritual exercises needed for the health of the spirit, just as physical exercise is required for the health of the body. He also stated that sex and sexual desire are to be avoided as the greatest threat to the integrity and equilibrium of a mans mind. Abstinence is highly desirable. Epictetus said remaining abstinent in the face of temptation was a victory for which a man could be proud.7 Epicurean ethics is a hedonist form of virtue ethics. Epicurus presented a sustained argument that pleasure, correctly understood, will coincide with virtue.8 He rejected the extremism of the Cyrenaics, believing some pleasures and indulgences to be detrimental to human beings. Epicureans observed that indiscriminate indulgence sometimes resulted in negative consequences. Some experiences were therefore rejected out of hand, and some unpleasant experiences endured in the present to ensure a better life in the future. To Epicurus the summum bonum, or greatest good, was prudence, exercised through moderation and caution. Excessive indulgence can be destructive to pleasure and can even lead to pain. For example, eating one food too often will cause a person to lose taste for it. Eating too much food at once will lead to discomfort and ill-health. Pain and fear were to be avoided. Living was essentially good, barring pain and illness. Death was not to be feared. Fear was considered the source of most unhappiness. Conquering the fear of death would naturally lead to a happier life. Epicurus reasoned if there was an afterlife and immortality, the fear of death was irrational. If there was no life after death, then the person would not be alive to suffer, fear or worry; he would be non-existent in death. It is irrational to fret over circumstances that do not exist, such as ones state in death in the absence of an afterlife.9Hedonism posits that the principal ethic is maximizing pleasure and minimizing pain. There are several schools of Hedonist thought ranging from those advocating the indulgence of even momentary desires to those teaching a pursuit of spiritual bliss. In their consideration of consequences, they range from those advocating self-gratification regardless of the pain and expense to others, to those stating that the most ethical pursuit maximizes pleasure and happiness for the most people.10 Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.historyBusiness ethical norms reflect the norms of each historical period. As time passes norms evolve, causing accepted behaviors to become objectionable. Business ethics and the resulting behavior evolved as well. Business was involved in slavery,456 colonialism,78 and the cold war.910The term business ethics came into common use in the United States in the early 1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using some twenty textbooks and at least ten casebooks along supported by professional societies, centers and journals of business ethics. The Society for Business Ethics was started in 1980. European business schools adopted business ethics after 1987 commencing with the European Business Ethics Network (EBEN).11121314 In 1982 the first single-authored books in the field appeared.1516Firms started highlighting their ethical stature in the late 1980s and early 1990s, possibly trying to distance themselves from the business scandals of the day, such as the savings and loan crisis. The idea of business ethics caught the attention of academics, media and business firms by the end of the Cold War.121718 However, legitimate criticism of business practices was attacked for infringing the freedom of entrepreneurs and critics were accused of supporting communists.1920 This scuttled the discourse of business ethics both in media and academia.21OverviewBusiness ethics reflects the philosophy of business, one of whose aims is to determine the fundamental purposes of a company. If a companys purpose is to maximize shareholder returns, then sacrificing profits to other concerns is a violation of its fiduciary responsibility. Corporate entities are legally considered as persons in USA and in most nations. The corporate persons are legally entitled to the rights and liabilities due to citizens as persons.Economist Milton Friedman writes that corporate executives responsibility. generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom.22 Friedman also said, the only entities who can have responsibilities are individuals . A business cannot have responsibilities. So the question is, do corporate executives, provided they stay within the law, have responsibilities in their business activities other than to make as much money for their stockholders as possible? And my answer to that is, no, they do not.222324 A multi-country 2011 survey found support for this view among the informed public ranging from 30-80%.25 Duska views Friedmans argument as consequentialist rather than pragmatic, implying that unrestrained corporate freedom would benefit the most in long term.2627 Similarly author business consultant Peter Drucker observed, There is neither a separate ethics of business nor is one needed, implying that standards of personal ethics cover all business situations.28 However, Peter Drucker in another instance observed that the ultimate responsibility of company directors is not to harmprimum non nocere.29 Another view of business is that it must exhibit corporate social responsibility (CSR): an umbrella term indicating that an ethical business must act as a responsible citizen of the communities in which it operates even at the cost of profits or other goals.3031323334 In the US and most other nations corporate entities are legally treated as persons in some respects. For example, they can hold title to property, sue and be sued and are subject to taxation, although their free speech rights are limited. This can be interpreted to imply that they have independent ethical responsibilities.citation needed Duska argues that stakeholders have the right to expect a business to be ethical; if business has no ethical obligations, other institutions could make the same claim which would be counterproductive to the corporation.26Ethical issues include the rights and duties between a company and its employees, suppliers, customers and neighbors, its fiduciary responsibility to its shareholders. Issues concerning relations between different companies include hostile take-overs and industrial espionage. Related issues include corporate governance;corporate social entrepreneurship; political contributions; legal issues such as the ethical debate over introducing a crime of corporate manslaughter; and the marketing of corporations ethics policies.citation neededThe benefits of developing the Business EthicsProfit MaximizationThe importance of ethics in business can be understood by the fact that ethical businesses tend to make much more profits than the others. The reason for this is that customers of businesses which follow ethics are loyal and satisfied with the services and product offerings of such businesses. Let us take an example. Suppose, there is an organization named XYZ which manufactures cosmetics. XYZ greatly believes in the importance of ethics in business. When XYZ advertises its cosmetics in the market, being an ethical organization, it will be very truthful and honest in its communication with the probable customers. It will tell correctly about the kind of ingredients it has used while manufacturing the cosmetics. It will not lie or exaggerate about the benefits or uses of its products either. So the customers who buy its cosmetics, know precisely what they are buying and how useful that product is going to be for them. This way, the product will meet their expectations and thus, satisfy the customers. When customers are satisfied, they will become loyal to the company and come back again for re-purchasing. This will surely increase the profits of the organization. Thus, the importance of business ethics is that it creates loyalty in customers and maximizes the profits.Efficient Utilization of Business ResourcesIn an organization, people working at the junior levels often emulate the ones working at the top. The same applies with ethics too. If the management or seniors of an organization follow ethical business practices, i.e, they do not bribe to get their way or they do not cheat the customers, investors, suppliers, etc., the employees will follow suit. The employees too will refrain from using the office property or resources for personal benefits. This will result in better and efficient utilization of the business resources.Creates Goodwill in the MarketAn organization, which is well-known for its ethical practices, creates a goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the businesses which they can trust. Shareholders too, remain satisfied with the practices of an ethical businesses. Thus, ethics creates goodwill and builds long-term relationships, and that cannot be denied. Also, an ethical business puts greater value on its employees and thus, employees remain loyal to such an organization too.The chief goal of any organization is to maximize its profits. The importance of business ethics can be understood from the fact that it helps the businesses in achieving its goal of profit-making by creating goodwill for the business in the market, increasing its loyalty among the customers, by aiding in employee retention and by maximum utilization of its resources.By Aastha DograPublished: 2/4/2010This manual explores how a business ethics program helps owners, man-agers, and their professional advisers build an enterprise to meet these stan-dards. It builds on three essential concepts to help busy owners and managersdesign and implement business ethics programs for their unique enterprises.1. Responsible business conduct: te choices and actions of employeeshand agents that foster and meet the reasonable expectations of enterprisestakeholders.2. Responsible business enterprise: an enterprise characterized by goodgovernance policies and management practices as well as by a culture ofresponsible business conduct. It is adept at dealing with the challengesand complexities of its business environment, but holds closely to itspurpose, core values, and vision.3. Business ethics program: a tool that owners and managers use to in-spire, encourage, and support responsible business conduct, by engagingenterprise stakeholders in order to foster and meet their reasonable ex-pectations, and designing structures and systems to guide and supportemployees and agents.There is, of course, no one right way to design and implement a businessethics program, let alone to achieve a culture of responsible business conduct.Whatever the size or purpose of the enterprise, however, owners and managerswill find value in building an en