Ethics

Ethics Essay-

1. I want to begin by examining the relationship between ethics and profits or more specifically the relationship between virtue and economic success. The emergence of capitalism in 16th century Europe was closely associated with the Protestant reformation. In an important sense. Protestantism made business ethics possible. For to the extent that money-making was viewed as morally suspect—as it was in medieval BUSINESS ETHICS' ETHICAL ROOTS 103 Catholic theology—it was difficult to establish any moral standards for its pursuit.
2. Catholic theologians did distinguish among types of economic activity. For example, they regarded producing a good for sale as less ethically suspect than either trading in goods or extending loans. But for the most part, business activity was regarded as beyond the moral pale: the only ethical advice. For if an activity is regarded as inherently immoral, it is impossible to perform it in an ethical manner; the only responsible course of action is to disengage from it entirely. The contemporary moral case against such business activities as investing in South Africa, manufacturing and marketing cigarettes or producing strategic weapons thus represents an echo of the more sweeping medieval case against the pursuit of profit in general and finance in particular. Those who oppose these business activities on moral grounds believe that it is impossible for them to be performed in an ethical manner. Thus, during the intervening centuries the speciHc sources of profit that have been classified as inherently unethical has changed. But the moral standard by which we evaluate the ethics of many businesses and business activities has remained remarkably stable.
3. Contemporary discussions of business ethics focus less on questions of individual character than was true a century ago. Indeed, we appear to have almost completely lost sight of the fact that the word ethics is derived from the Greek term ethikos, which means, "character." (Hence Aristotle's admonition that techniques of moral reasoning should only be taught to those who were already of good moral character.) Because much economic activity now takes place through organizations, we have become interested less in the character of individual businessmen than in the decision-making processes of business firms. Consequently, we tend to use the terms corporate social responsibility and business ethics almost interchangeably.’
4. In sum, what is significant is not whether or not ethics and profits are in fact correlated but the fact that our interest in their relationship has a long and distinguished history. The debate over the nature of the relationship between ethics and profits remains central to our appraisal of the moral legitimacy of business. The real significance of the Protestant ethic was its role in legitimating capitalism. Likewise, the contemporary efforts of the business community to equate ethics and profits can in part be understood as a component of their attempt to firm up the moral legitimacy of our contemporary business system. Alternatively, those who argue that a good person cannot succeed in business or that a socially responsible company is handicapped in the marketplace are challenging the ethical foundations of our market economy; they in effect are arguing, as did many medieval Catholic theologians, that an ethical businessmen is an oxymoron. The significance of the emergence of ethical or socially responsible investment funds and programs can also be understood in this context. For like Calvin's sermons and Alger's novels, these funds appeal to the desire of the public to be to both virtuous and prosperous. They are based on the assumption that not only is there no trade-off between the two, but that in many cases they are mutually re-enforcing. For all the progressive political rhetoric that surrounds these funds, their core assumptions are actually quite similar to those of the Business Roundtable. And like the Roundtable, their depiction of the relationship between ethics and profits is also meant to be self-fulfilling: presumably if many investors act on the belief that a responsible firm is also likely to be more profitable, then the price of its shares will rise accordingly. The popularity of these funds suggests that moral issues that troubled Aquinas and Calvin remain: evidently many people are still searching for a way to accumulate capital without sin.

(The Ethical of Business Ethics – David Vogel- Ref. To manual notes for other ref. Notes)

 Overview

Ethics are the principles of right and wrong that are accepted by an individual, a social group, or society as a whole. When it comes to professional ethics, we take into consideration our personal values, family background, culture, education, and religion or philosophy before making important decisions. These factors provide the framework from which we base our decisions and justify our actions. Unfortunately not everything in life is so cut and dry, there often exist many gray areas that can lead to ethical dilemmas, since what one person thinks is the right course of action might not always appeal to everyone else’s ethical sensibilities. For many the words “business” and “ethics” form an oxymoron. We are frequently inundated with reports of ethical misconduct in the business world—misappropriated finances, inflated earnings, labor misconduct, and environmental recklessness are just a few of the many egregious acts to which we have become familiar.