Business Ethics

Introduction

Business ethics are termed as the learning of absolute businesses policies along with practices regarding the potential controversial subjects. Few of those subjects are related to these controversial topics and theories. In this regard, it has been found that law guides often the ethics of business but few times business ethics offer a primary guideline, which can be selected by a business to achieve the public approval. The ongoing report has been developed based on the profession and business ethics. In this regard, it has been seen that the report will explain two parts in it. Moreover, on the basis of critical analysis of an increased awareness of business ethics in global environment, the report will highlight two normative ethical theories. This will assess and apply two normative ethical theories to the procedure of decision making by the higher management plus governments. The report will also reveal regarding what extent the companies need to listen in order to develop their business ethics. The report has been developed with the help of taking a guidance of Palm oil industry case study.

Quest 1 - Ethical analysis

Business ethics can be defined as the corporate ethics and this is the form of applied ethics or the professional ethics. This can be said that it examines the ethical principles and moral along with the ethical problems, which can take place in business environment.Based on the opinion of Dierksmeier and Seele (2018), this can be applied to every aspects of business and it can be authentic to the conduct of individuals and organization. The main aspects, which are the reason behind the origination of these ethics, are individuals, legal system and organizational statements. Based on the case of Palm oil industry, this can be said that few principles are there, which should be prioritized by the corporate leaders of a company in order to operate a business. Based on the opinion of Abend(2016), those prime factors, which guide a business, are norms, values and ethical along with unethical practices.These factors are very crucial in order to maintain a better relationship with the stakeholders.Presently, this has been found that business ethics refers to the contemporary organizational standards sets of values, norms and principles. All of these are useful to direct the activities plus behavior of every employee in an organization. As mentioned in the above, business ethics is one of the studies of proper businesses policies along with practices of the potential controversial subjects. There are few potential controversial subjects such as insider trading, corporate governance, bribery, corporate social responsibility, discrimination and fiduciary responsibilities.

In the current time, this has been found that ethics concerns the moral of individual judgments regarding right and wrong. Based on the opinion of Rhodes(2016), decisions can be taken both an individuals and a group but this can be seen that whoever makes the decisions are influenced by the organizational culture. In this context, this can be revealed that corporate social responsibility and ethical behavior can bring important benefits toward a business. In the global environment, awareness of business ethics is increasing every day and this enforces the corporate leaders of the companies to prioritize on the professional and business ethics of their organization. Business ethic is useful for the betterment of companies’ products and services, which attract more consumers toward the company. Based on the opinion of McMurrian and Matulich(2016), this is positively related with the organizational sales and profit. Better quality of product and services is very advantageous for the company as this boosts the sales of the company and many consumers are attracted with it. Based on the opinion of Halinen, A. and Jokela (2016), high sale increases the rate of profit and revenue in the organization. Therefore, this can be said that with the help of business ethics, consumer attraction and increment of sales with profit become very easy. In addition, this can be said that business ethics is useful for the development employee performance. This can be said that it is highly important for reducing the issue of employee turnover because many employees leave their organization for ethical issues. Based on the opinion of Aßländer, M.S. and Gössling, (2017), corporate leaders of the organization have to prioritize on the business ethics to retain their old employee and attract more new employees toward the company. This is positively related with the organization productivity also. This has been found that business ethics improve the employee performance, which offers them job satisfaction. Therefore, they sat in the company and company gets the benefits like high productivity. Based on the opinion of Burrell(2017), business ethics is useful for the betterment of company as this helped the employees to increase their skills. Moreover, this is useful or reducing the recruitment costs. Unethical business activities can be very harmful for a company to damage its reputation. In this context this has been found that investors are attracted mainly by seeing the business ethics of a company. This is useful also for maintaining a good relationship with the stakeholders.

This part of the report will provide a brief description of different types of normative ethical theories to the procedure of decision making by the senior management and governments.Based on the opinion of Gerde, V.W. and Michaelson(2019), this can be said there are mainly two type of ethical theories and those are consequentialists and non- consequentialists. In this regard, it can be said that consequentialists can be divided into three sort of theories and those are such as Utilitarianism, Egoism and Hedonism. On the other hand, non- consequentialitytheories can be divided into two sort of ethical theories and those are Deontology and Agent’s Virtue. In this regard, it has been told that all of those theories are very much useful and needed to be assessed and applied by every organization. Based on the case of Palm Oil industry, this can be revealed that these theories can be very advantageous for the companies in today’s increasing awareness of business ethics. 

 

Figure 1: Different Ethical Theories

(Source: Ferrell et al., 2019)

Consequentialists

Consequentialism can be considered as the collection of normative ethical theories. This is containing the consequences of the conduct of individual, which can be considered as the ultimate basis for any judgment regarding the appropriateness and unfairness of that conduct. In addition, from the stand point of consequentialists, it can be revealed that one morally right act can be considered as one, which will produce a positive result or consequence. Based on the opinion of Ferrell et al. (2019), this ethics is divided into three divisions and those are Utilitarianism, Egoism and Hedonism. 

• Utilitarianism

Utilitarianism can be considered as one of the most popular along with most influencing moral theories. Like other forms of consequntialism, this can be considered also a core idea and this shows that any actions or activities can be decided right or wrong by considered the effects of that actions or activities. In other word, it can be revealed that with the help of observing the outcome of an action, utilitarianism decides whether it is good or bad. This can be revealed that this theory believes that the aim of morality can be considered as to make the life better with the help; of enhancing the rate of good things. Based on the opinion of Singer(2018), this theory reveals also that a person can improve their life by prioritizing on few aspects such as happiness plus pleasure. This is useful also as utilitarianism highlights that life can be possible to make better by avoiding the bad things such as unhappiness and pain.Based on the opinion of Windsor(2017), moral codes or the systems are rejected by the utilitarians, which include taboos or commands. These are based on traditions, customs or the order that are given by the leaders.

• Egoism

Egoism can be considered as one of the ethical theories, which threats the self-interest as the foundation of morality. In addition, this has been said that ethical egoism is the portion of normative ethics, which moral agents ought of the act in their own self interest. Ethical egoism and psychological egoism can be considered as completely different because psychological egoism claims that a person can act only in their self-interest. Based on the opinion of Ali and Abdelfettah (2016), there is one other sort of egoism, rational egoism and it has been found that this not same like ethical egoism. This egoism holds that this is rational to act in one’s self interest.

• Hedonism

Hedonism can be revealed as the school of thought, which argues that the detection pleasure along with intrinsic goods can be considered as the primary or most significant goals for the human life.Based on the opinion of Hein et al. (2017), a hedonist endeavors in order to increase net pleasure. Ethical hedonism can be said as the idea which shows that all people have the right to do everything in their power for accomplishing the highest amount of pleasure possible to them.

Non- Consequentialists

Non- Consequentialism can be revealed as one of the sorts of ethical theories. This is a general normative theory of the morality, which cannot be considered as Consequentialists. This is the theory on the basis of which the appropriateness and unfairness of an act, system of the rules etc varies. This theory judges the wrongness and rightness of activities. Based on the opinion of Ali and Abdelfettah (2016), this theory is divided into two sorts such as Deontology plus Agent’s Virtue.

• Deontology

Based on the moral philosophy, it can be said that deontological ethics or deontology is the normative ethical theory and the morality of an action is based on the appropriateness and unfairness under a series of rules. This theory is mainly contrasted to virtue ethics, consequentialism along with pragmatic ethics.

• Agent’s Virtue

Based on the opinion of Gerde, V.W. and Michaelson (2019), agent based virtue ethics can be considered as a unitary normative theory based on which the morale statues of action is dependent entirely upon the morale status of actions. In this regard, it can be said that one of the main issues, which is facing by any such approach to capture the common sense distinction between the agents.

Based on the case of Palm Oil industry, this can be said thatUtilitarianism and Egoism can be considered as two of the mostapplicable of those.

Application of Utilitarianism 

In order to apply the utilitarianism, it can be said that both act utilitarianism agree that the overall aim in evaluating actions needs to be create the best out outcomes possible. However, they differ regarding the process of doing that. In this regard, it can be said that a company needs to be believed in utilitarianismas this shows that whenever a person are deciding what to be done. The company needs to be performed the action, which will create the greatest net utility.In this case, it can be told that the principle of utility reveals that over all productivity of the company is changed on the basis of cases. Based on the opinion of Burrell (2017), the proper action in any condition can be considered as one, which yields more utility than the other obtainable.

Utilitarianism is also known as one of the most well-liked along with most influencing moral theories. Like other forms of consequntialism, it can be said also that this is a core idea and this shows that any sort of actions or activities can be decided correct or incorrect with the help of considering the effects of that activities or actions. Based on the opinion of Gerde, V.W. and Michaelson (2019), it can be said that a company has to be admitted this theory as, it can be revealed that with the help of observing the outcome of an action, utilitarianism decides whether it is good or bad. With the help of proper application of this theory, it can be revealed that this theory believes that the aim of morality can be considered as to make the life better with the assistance of enhancing the rate of good things. This theory reveals also that a person can improve their life by prioritizing on few aspects such as happiness plus pleasure. This is useful also as utilitarianism highlights that life can be possible to make better by avoiding the bad things such as unhappiness and pain. Moral codes or the systems are rejected by the utilitarians, which include taboos or commands. These are based on traditions, customs or the order that are given by the leaders.

In this regard, this can be told thatrule utilitarism needs to be considered by the company as this can be divided into two parts and this stress the significant of moral rules. In thiscase, it can be considered that according to rule utilitariansa particular action can be considered morally justified if this conforms to a justified moral rule. Apart from that, it can be said that a moral rule can be justified if this adds into the morale code of the company. This would create more utility rather than the other possible rules. Based on this perspective, a company needs to be judged the morality of the individual actions with the help of reference toward the general morale rules. Based on the opinion of Burrell (2017), the company should judge the particular morale rules with the help of observing whether their acceptance into the moral code can create more well-being than the other possible rules. During the application of utilitarianism, it needs to be noticed by the company that the main variation between rule and act Utilitarianism is act Utilitarianism is applied the Utilitarianism principle. On the other hand, this can be said that rule Utilitarianism apply the Utilitarianism principle directly.

Application of Egoism

A company needs to be prioritized on the ethical theories Egoism also. Egoism can be considered as one of the most applicable ethical theories, which threats the self-interest as the foundation of morality. In addition, it has been said that ethical egoism is the segment of normative ethics, which moral agents ought of the act in their own self-interest. In addition, this can be said that ethical egoism and psychological egoism can be considered as completely different because psychological egoism supports that a person can act only in their self-interest. With the assistance of Egoism theory a company can get several benefits. Based on the opinion of Ali and Abdelfettah (2016), there is one other sort of egoism, rational egoism and it has been found that this not same like ethical egoism. These need to be considered by the company also. This egoism holds that this is rational to act in one’s self interest, which is very advantageous for a company.

Quest 2 – Stakeholder considerations

The enormous oil firms that protected to act morally are litigant of land snatching, disregarding rights and misusing deal with their African and Asian manors. In a censured review the organizations are blamed for affecting the orang-utan populaces, of having decimated the tropical woods and of having consumed and depleted enormous hints of timberland of peat swamps.

Countries like Indonesia so as Liberia and thePhilippines, Malaysia and the Cameroon all were seen, were visited with global human rights gatheringsby the process of screens working, including the United Kingdom. Program situated in the woods towns and from Indonesia. Nearby people group have claimed the organizations for not concerning about their rights related to the lands, of disregarding the laws and sentences of the courts and of having acted such that supports the contention.

Pursue the developing alert on how networks in these two continents are put to clear for huge ranches and loss of tiger’s life. The World Bank and the United Nations for Food and Agriculture and its Organization, have communicated intensive worry about the impovisation of nearby networks and the developing clashes over concessions.

The worry which this report contains centerson the Indonesian legitimate framework, which is displayed as unjustifiable in presenec of the fact that it permits the confiscation of the neighborhood populace without considering the globally perceived rights. Based on the opinion of Singer (2018), earth laws support huge scale manors and lead to boundless human rights mishandles. The report found that the development of palm oil in the Malaysian province of Sarawak was efficiently holding onto the terrains without their assent.

In supportability reports that recorded organizations must expound increasingly more available and its financial specialists, the proof of moral strategic approaches is as significant as the development in benefits, particularly for palm oil organizations, the most dubious harvest on the planet.

As an ever increasing number of organizations attempt to demonstrate that the palm oil they use has no contentions, a few organizations guarantee to utilize manageable oil with no authentic premise to do as such.

There have been a few situations where organizations have acquired guaranteed practical palm oil, however they have not been confirmed as maintainable without anyone else's input. Based on the opinion of Ali and Abdelfettah (2016), in order To make exact green explanations, an organization's whole production network must be checked by reviewers licensed by the Sustainable Palm Oil Roundtable , the biggest body that sets norms in the oil business of palm.

Groups additionally professed to have discovered a plan wherein deforestation backs off when associations like the Roundtable on manageable palm oil are framed, however a couple of years after the fact, the loss of backwoods quickens. This may likewise be because of the later foundation of new feasible estates and the need to separate new backwoods to bolster the developing worldwide market as indicated by the analysts.

The report expresses that the zones where the loss of woods was recognized and those of conventional and ensured ranches cover precisely, so any land guaranteed today was valuable biodiversity woodland in the ongoing past.

Recommendations

Few ways are there, which need to be followed by a company and those are given below.

Recommendations 1: Development of a code and creating the ethical performance a strategic priority can be considered as the most useful way of a company to develop their business ethics.

Recommendations 2: High management of the company should reveal leadership and needed to be seen for living the ethical values of the organization.

Recommendations 3: Communication, training and engagement must be maintained by the company for their employees as this is useful for developing the business ethics.

Recommendations 4: Support routes need to be provided for the employees as this increase the business ethics of the company.

Conclusion

Based on the discussion, it can be revealed that utilitarianism is also known as one of the most well-liked along with most influencing moral theories. This can be concluded that in the same way of other forms of consequntialism, this can be revealed also that it is a core idea and this shows that any sort of actions or activities can be decided exact or wrong with the assistance of considering the effects of that activities or actions. In close proximity people group have dependably answerable organizations for not regarding their typical land rights, of ignoring the laws and sentences of the courts and of having acted such that carries the disputation. This can be concluded that following the developing alert on how networks in Asia and Africa are set to clear for huge ranches and the loss of life has been included the tiger. It can be said that a company has to be admitted this theory because it can be revealed that with the help of observing the result of an action, utilitarianism decides whether it is good or bad. This can be concluded that with the help of appropriate application of this theory, it can be revealed that this theory believes that the aim of morality can be considered as to make the life better with the assistance of enhancing the rate of good things.

 

Reference List

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Ali, A. and Abdelfettah, B., 2016. An overview on stakeholder theory perspective: towards managing stakeholder expectation. International Academic Journal of Accounting and Financial Management, 3(3), pp.40-53.

Aßländer, M.S. and Gössling, T., 2017. Thematic Symposium: Business Ethics, Peace and Environmental Issues (T0004).

Burrell, G., 2017. Virtual special issue on ‘sociology and business ethics’.

Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business Ethics, 152(1), pp.1-14.

Ferrell, O.C., Harrison, D.E., Ferrell, L. and Hair, J.F., 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, pp.491-501.

Gerde, V.W. and Michaelson, C., 2019. Global Perspectives on Business Ethics from the 40th Anniversary Conference of the Hoffman Center for Business Ethics at Bentley University, 2016.

Halinen, A. and Jokela, P., 2016. Exploring ethics in business networks: Propositions for future research. In Extending the Business Network Approach (pp. 333-356). Palgrave Macmillan, London.

Hein, A.M., Jankovic, M., Feng, W., Farel, R., Yune, J.H. and Yannou, B., 2017. Stakeholder power in industrial symbioses: A stakeholder value network approach. Journal of cleaner production, 148, pp.923-933.

McMurrian, R.C. and Matulich, E., 2016. Building customer value and profitability with business ethics. Journal of Business & Economics Research (JBER), 14(3), pp.83-90.

Rhodes, C., 2016. Democratic business ethics: Volkswagen’s emissions scandal and the disruption of corporate sovereignty. Organization Studies, 37(10), pp.1501-1518.

Singer, A., 2018. Justice failure: Efficiency and equality in business ethics. Journal of Business Ethics, 149(1), pp.97-115.

Windsor, D., 2017. Stakeholder responsibilities: lessons for managers. In Unfolding Stakeholder Thinking (pp. 137-153). Routledge.