Premium Essay

The Role of Ethics in Business Evolution

In: Business and Management

Submitted By bromobutane
Words 1680
Pages 7
The Role of Ethics in Business Evolution
Reconciling works of Managerial Literature, Business Ethics Writer and Catholic Social Teaching, Domènec Melé argued that a firm should be considered as a wholesome person and suggested the ethical implications of his view (Melé, 2012). The concept that a firm should be regarded as a legal person, and not just a profit seeking entity, was brought forth by the House of Lords in the (Salomon v. A. Salomon & Co. Ltd., 1897) case, paving the way for modern firms. Melé’s argument was revolutionary in that he considered the firm a wholesome person, bearing moral responsibilities for communities that it may potentially affect. This response paper aims to analyse Melé’s paper, further discuss his ideas, and finally incorporate the role of ethics in human evolution to project the possible direction of business evolution. The article started by suggesting that there are two views of the firm. The former views the firms as a nexus of contracts, implying that the firm functions as an aggregate of agreements. The latter views the firm as an aggregate of interests, adding a human element of desire to the soul-less assembly of agreements. Extending the addition of human element into the firm, Melé argued that the main constituent of a firm is social bonds, and thus, a firm should be regarded as a community. Personally, I think that the progression of arguments is well organised. Contracts stem from self-interests, and self-interests are derived from interactions with other people in the community. Within a firm, individuals have their self-interests in mind but in a community of other firms, the interest of the firm takes precedence. The concept of contract stemming from self-interests is pretty intuitive, and as social beings, humans not facing survival threats generally derive and pursue their wants and needs based on social…...

Similar Documents

Premium Essay

Evolution. of Business Ethics

...Running head: THE EVOLUTION OF BUSINESS ETHICS The Evolution of Business Ethics Ebony Thomas Ashford University OMM 640 April 6, 2015 1 THE EVOLUTION OF BUSINESS ETHICS 2 The Evolution of Business Ethics Ethics includes a mixture of one's beliefs and standards in civilization. Every person has their own perspective of ethics because every situation, person, and culture is different. According to Ferrell et al (2013), "business ethics comprises the principles, values, and standards that guide behavior in the world of business" (Ferrell, Fraedrich, & Ferrell, 2013, p. 7). In simpler terms, business ethics are a collaboration of both society's ethics of right and wrong and the people who work for and have any involvement in an organization ethics. Therefore, regardless of an individual definition of ethics, it is equally important in a business environment and practicing good ethical behavior can eliminate the potential of a hostile environment. Ethics has changed tremendously over the years in society as well as the business world. This research will take a deeper look into the evolution of business ethics. A further analysis of the development of business ethics over the past decades and examines how the rise of social issues played an extensive role. Further, a discussion on how these changes impact current business philosophies and reporting practices will be also be reviewed. Development of Business Ethics Business ethics derived from innumerable changes that occurred...

Words: 1588 - Pages: 7

Premium Essay

Ethics Reflection

...Reflection on Ethics Luis Heredia STR/581 May 20, 2015 Robert Cantu Role of Ethics In the business organizations ethics represent the base core management beliefs and credo. When implementing a code of ethics, organizations need to ensure that they are working towards the objective of protecting interest of shareholders and employees. At the present time, ethics has become a priority for the organization. It is important for organizations to ensure that it makes this particular thing as priority for its activities. After various kinds of scandals occurring within the organizations in Wall-Street, role of ethics is definitely important for the organizations over a period of time in the future. Ethics in organization is crucial regarding certain kinds of areas. First area for role of ethics within the organization is the area regarding benefit of shareholders of the organization. Second are for role of ethics in organization is regarding organizational employees. Regarding the shareholders, organization should make sure that it is working for the purpose of ensuring that it provides transparent information to the shareholders. Financial reporting of the organization should be accurate. In this area, ethics is important as it will help organization to a larger level for ensuring that, shareholders are motivated to invest more in the organization. Ethics will avoid any instance of fraudulent activity within the organization. Such activities will result in the area......

Words: 1051 - Pages: 5

Premium Essay

Mr Larry

... Ethics Reflection Name of Student Institution Affiliation Ethics Reflection Ethics refer to the moral principles governing a person’s behavior or a group’s behavior, especially at the workplace (Johnson, 2007). In an organization, the workers should relate to each other in a moral manner with aim of working in harmony to accomplish organizational goals. Employees should also relate morally with the customers and other stakeholders. Therefore, an organization finds ethics and social responsibility extremely necessary for organizational growth. Ethics and social responsibility are applicable in the development of an organizational strategic plan considering the requirement of stakeholders (Pearce & Robinson, 2013). This discussion will consider the role of ethics and social responsibility in strategic planning, overall impact of ethics and responsibility on stakeholders, as well as evolution of ethical perspective. Role of Ethics in Strategic Planning Professionals have the responsibility to reflect actively and critically on ethical issues that they experience during their practice (Pearce & Robinson, 2013). A thorough observation of ethics will ensure that an organization attains its objectives, mission, goals, and visions in a way that will give the business a framework and direction. Organizations depend upon ethics when creating guidelines that ensure that the organizational employees work in harmony to accomplish...

Words: 644 - Pages: 3

Premium Essay

Business

...Introduction The history of business ethics is as old as the religious books like the Bible and the holy Quran. These religious books have talked about truthfulness, transparency and honesty among people. The prohibition of theft, self-interest at the cost of others, and malice in these religious sources have a direct application the world of business. The history of business ethics has evolved during the long course of time and is still in this phase of development. The application of business ethics varies in different context. There have been radical changes in the world of business which has evolved the business ethics to its current form. And with continuously changing business world we can presume that in the future business ethics will undergo more changes. It will evolve continuously. The business ethics has an immense scope touching every human living in the society. The affects the daily decision making in the society, irrespective of whether it is a big decision affecting large masses or small decision affecting just one person. Business ethics can be looked at by different perspectives. One perspective is that of organization point of view which concerns about the things that an organization should do. While the other perspective is the things that must really be done irrespective of an organization. The latter one gauges the different aspects of an organization. The literary evidence for the history and development of modern era business ethics can be traced......

Words: 2074 - Pages: 9

Premium Essay

Paper

...Nonverbal communication Bullying Bullying Bullying; Cyberbullying Business ethics Business ethics; Corporations - Corrupt practices Business ethics; Business enterprises, Corrupt practices Capital punishment (Death Penalty) Capital punishment; Death row Capital punishment Cancer Cancer--Prevention SEE ALSO types of cancer, such asBreast--Cancer Neoplasms--Prevention and Control;Cancer Treatment Censorship SEE ALSO Freedom of the Press Censorship; Prohibited books Censorship; USA Patriot Act 2001-US AND Civil liberties; Filtering software;Banned books Child abuse SEE ALSO Domestic violence Abused children; Child abuse Child abuse Child custody/support Custody of children Child custody Children of alcoholics Children of alcoholics; Alcoholics--Family relationships Children of alcoholics Cloning SEE ALSO Genetic Engineering Cloning Cloning Computer crime SEE ALSO Credit Card fraud; Identity theft; Internet - security Computer crimes; Computer hackers;Computer viruses; Cybercrime; Computer crime; Credit card fraud Conservation SEE ALSO Energy Conservation; Recycling;Wildlife Conservation Conservation of natural resources; Environmental protection Conservation of natural resources;Environmentalism Corporal punishment Corporal punishment Corporal punishment Creationism vs. Evolution Creationism; Evolution; Human evolution Creationism Credit card debt Credit cards; Consumer......

Words: 1762 - Pages: 8

Premium Essay

Bibliography Annotated

...Shack May 11, 2015 Bibliography Annotated Abend, G. (2013). The Origins of Business Ethics in American Universities, 1902-1936. Business Ethics Quarterly, 23(2), 171-205. doi:10.5840/beq201323214 The history of the field of business ethics in the U.S. remains understudied and misunderstood. In this article I begin to remedy this oversight about the past, and I suggest how it can be beneficial in the present. Using both published and unpublished primary sources, I argue that the business ethics field emerged in the early twentieth century, against the backdrop of the establishment of business schools in major universities. I bring to light four important developments: business ethics lectures at the University of California and Yale University, Leon Marshall's curriculum at the College of Commerce of the University of Chicago, and the William A. Vawter Foundation on Business Ethics at Northwestern University. Conflict resolution [electronic resource] Team Publications. (n.d). Amherst, Mass. HRD Press c2002. This article contains team building exercises. The exercises build strength and team cohesive functions. It teaches about working together and compromising in a team setting. It details conflict resolution tactics while defining conflict resolution in a modern world. Bibliography Annotated BADEN, D. (2014). Look on the Bright Side: A Comparison of Positive and Negative Role Models in Business Ethics Education. Academy Of Management Learning & Education, 13(2),......

Words: 836 - Pages: 4

Free Essay

Ethics, Csr, and Milton Friedman

...Ethics, CSR, and Milton Friedman Marketing in the Era of Managerial Distrust During the first few years of the twenty first century, and in the wake of the terrorist attacks of 9/11, the business world was rocked with news of financial and accounting scandals at major Fortune 500 companies. Enron, a Texas based energy company, lied about profits and was accused of concealing debts so they did not show up in the company’s accounts (BBC News, 8/22/2002). Arthur Andersen, an accounting giant, member of the “Big Six”, and Enron’s corporate auditor, collapsed completely after being found guilty of deliberately destroying evidence of its relationship with Enron (BBC News, 8/22/2002). Tyco executives L. Dennis Kowlowski and Mark H. Swartz were indicted and charged with misappropriating more than 170 million dollars from the company as well as outright stealing 430 million additional dollars through sale of fraudulent shares of Tyco stock (Daniels Funds Ethics Initiative). MCI Worldcom was found guilty of accounting fraud in relation to an overstatement of earnings in 2001 and 2002 (CSR Report for Congress, 8/29/2002), during which time its own auditor was also Arthur Andersen. Executives at each firm (Kenneth Lay, Bernard Ebbers, Dennis Kozlowski, and Mark H. Swartz amongst others) served jail time for their role in these scandals, which severely eroded the public’s trust in the corporate sector. Tyco’s stock plunged from $60.00 to $18.00 in the wake of the......

Words: 1891 - Pages: 8

Premium Essay

Analysis Paper Draft

...PAPER DRAFT 1 Annotated Outline Part 1 – Analysis of Work Environment A. Identify a potential or current work environment My professional role is the director of a faith base substance abuse residential recovery organization in Kansas City, Missouri for homeless women, committed to overcoming their addiction and becoming responsible, productive drug and alcohol free members of the community. Author’s Tsai, Rosenheck, Kasprow & Mcquire (2012) study differentiated between programs that were once religious but are now secular from programs that have always been secular and programs that currently have a religious orientation. As a director for a non-profit organization and private business owner, this organization is to be considered a “service provider” facility, working directly to house, heal, feed, clothe, and educate females experiencing homelessness. Supervise a staff of 10, including an assistant director. B. Describe the population The organization would provide services to 30 single females in a Bible-based residential recovery program. Funded by Federal, State, City and private funders. The funding will be used for staff salary, food, utilities, up keep of the building, etc. Females would range from 25-45 years of age. C. Identify the appropriate code of professional ethics Ethical Standards of Human Service Professionals (2015), Retrieved from......

Words: 3555 - Pages: 15

Premium Essay

Res 351 Final Exam

...changed some of the roles and duties within these organizational departments. Financial Department expectations The financial department in any organization is responsible for sustaining the financial success of a business. According to QFinance (2012), “the financial manager’s role, particularly in business, is changing in response to technological advances that have significantly reduced the time it takes to produce financial reports. Financial managers now perform more data analysis to offer senior management ideas on how to maximize profits.” (p.1) Human Resource functions Human resources, or in business terminology “HR,” is responsible for implementing an organization internal and external interests, ethics, policies, and procedures. The Human resources managers within a business are responsible for maintaining vital records such as tax information, performance reviews, and benefit information of every internal member of the organization. Human Resource managers, use internal computer software applications to store employee and company records. For many human resources managers, technical devices such as computer are beneficial because they can efficiently organize information quickly, and records are easily retrievable when inquired by executives or employees. Management Information Systems In today’s business culture, management roles have changed drastically since the evolution of technology,......

Words: 551 - Pages: 3

Premium Essay

Ethics

...Drucker In Drucker (1981), he takes us through a journey of evolution of Business Ethics and represents several controversial positions. While explaining the ethics in Western Culture he states that there was agreement on the following statement: “There are only one ethics, one set of rules of morality, one code, that of individual behavior in which the same rules apply to everyone alike” (Drucker, 1981, Page 19). He discusses the examples of "a poor mother", "nepotism in China" and "paid extortion" to articulated the impact of social, economical and cultural norms on implementing this on everyone. He considers practices of questionable morality under different circumstances as ethical. Casuistry (Drucker, 1981, Page 22) was the first attempt to think about social responsibility and embed it in a set of distinctive ethics for people in power. According to Drucker, ethics for people in social responsibility is a cross-benefit calculation involving demand of individual conscience and position. For then, demand of ethics can be excepted if actions result in benefit for other people. Drucker then moves on to introduce The Ethics of Prudence (Drucker, 1981, Page 27) as other major tradition in the West. He proposes that Ethics of Prudence appropriate to a society of organizations. Prudence, the consciousness not to do the wrong thing will enable the leader to exhibit a role model behavior. According to Drucker, Ethics of Prudence do not spell out the “right” behavior, but......

Words: 2217 - Pages: 9

Premium Essay

Ethics in Business

...pertaining to ethics in business and the various roles and responsibilities key individuals involved must initiate to ensure that the assignment, task or project is accomplished not only within the determined timeframe and budgetary constraints but more important, the actions and interactions of all parties are not compromised nor violate any prescribed regulations. Furthermore, discussion is rendered pertaining to social responsibility within the business sector and its significance in determining growth and awareness of one’s business or company. Social Responsibility and Business Ethics Introduction In today’s society, people are constantly in a mad race to either develop and implement the next product or service that becomes the flagship item that everybody seeks possess or become that individual who possesses the latest technological advancements or branded items assisting in their daily ebb and flow operations. Such responsibilities - objectives and tasks - must be accomplished in a respectable manner whereupon the integrity of the action is not subjected to intense scrutiny, criticism or penalties inflicted by the consumer and/or judicial system. Businesses should continue to establish guidelines and parameters within their respected areas to ensure that their mission, aim, vision or goals are not compromised or deceived in practice. In order to gain clarity and understanding one must first gather a sense of clarity regarding ethics and its role and......

Words: 1912 - Pages: 8

Premium Essay

The Changing Role of Managerial Accounting in a Dynamic Business Environment

...CHAPTER 1 THE CHANGING ROLE OF MANAGERIAL ACCOUNTING IN A DYNAMIC BUSINESS ENVIRONMENT Learning Objectives 1. Define managerial accounting and describe its role in the management process. 2. Explain four fundamental management processes that help organizations attain their goals. 3. List and describe five objectives of managerial accounting activity. 4. Explain the major differences between managerial and financial accounting. 5. Explain where managerial accountants are located in an organization, in terms of formal organization, deployment in cross-functional teams, and physical location. 6. Describe the roles of an organization's chief financial officer (CFO) or controller, treasurer, and internal auditor. 7. Briefly describe some of the major contemporary themes in managerial accounting. 8. Understand and explain the concepts of strategic cost management and the value chain. 9. Understand the ethical responsibilities of a managerial accountant. 10. Discuss the professional organizations, certification process, and ethical standards in the field of managerial accounting. Chapter Overview I. The Management Process in Organizations A. What is managerial accounting? B. Management activities 1. Decision making 2. Planning 3. Directing operational activities 4. Controlling II. How Managerial Accounting Adds Value to the Organization A. Provides......

Words: 2206 - Pages: 9

Premium Essay

Gen/200 Week 5 Team Paper

...Professional Values and Ethics Name Gen 200 Instructor Name Date Team B Professional Values and Ethics Values and ethics are irreplaceable in the business world. Businesses live or die by their ethical reputations. It is very important to understand the importance of professional ethics and how they influence career success. Definition The simplest and most effective place to begin a discussion of ethics and values is with clear, concise, and generally accepted definition of the term values. Ethics are "a set of principles of conduct... that guide decision making and behavior" (uslegal.com, 2009). Values are "a set of principles or ideals that drive and/or guide your behavior" (essentiallifeskills.net, 2009). The philosophies and definitions of ethics and values appear closely related. Individuals and organizations’ Ethics and values appear internally driven and developed. Ethics can be thought of as a code of conduct derived from the value system. Environmental factors influence and determine ethics and values. These factors Include culture, physical environment, and peers. Ethics and values may not always...

Words: 893 - Pages: 4

Free Essay

Gen 480

... I look forward to sharing learning and discussion opportunities with you. Course Description This is the capstone course for business, health and human services, and information technology undergraduate students. The course provides students with the opportunity to integrate and apply learning from their professional programs of study in a comprehensive manner. Students will also assess the impact of their educational experiences on their ethical perspectives and critical thinking skills. Students will reflect on and evaluate their personal and professional growth, the benefits of lifelong learning, and the impact of these elements on their future. Topics and Objectives Reflection • Explain the value of the general education component of the professional degree program. • Analyze the value of a degree program to professional and personal development. • Demonstrate the ability to apply University of Phoenix program content within a professional context. • Evaluate the impact of completing the University of Phoenix Bachelor's Degree program on current and future professional goals. Critical Thinking and Ethics • Examine your personal and professional perspective in ethics. • Apply critical thinking to professional decision-making process. • Analyze the relationship among ethics theory, critical thinking, and professional behavior. • Critically assess your own and others' skills and abilities. • ...

Words: 4616 - Pages: 19

Premium Essay

Management

...Organisational Behaviour 1. Definition of OB 2. Historical Perspectives of OB 3. OB in the Managerial Context 4. Importance of Ethics 5. Five sources of OB MGMT641_S1_2015_JLarkin MGMT641_S1_2015_JLarkin What is OB? • An interdisciplinary field dedicated to better understanding and managing people at work • Why study OB? – To interact more effectively with others in organizations – People skills complement technical skills MGMT641_S1_2015_JLarkin • • • • Human Relations Movement The Quality Movement E-Business Revolution Human and Social Capital History of Organizational Behaviour MGMT641_S1_2015_JLarkin Management • Process of working with and through others to achieve organizational objectives efficiently and ethically • What skills are exhibited by an effective manager? • 21st Century managers have to play chess, not checkers MGMT641_S1_2015_JLarkin Evolution of 21st-Century Managers Primary Role Cultural Orientation Source of influence View of people Decision-making style Ethical considerations Past Managers Monocultural, monolingual Formal authority Potential problem Limited input for individual decisions Afterthought Future Managers Multicultural, multilingual Technical knowledge and interpersonal skill Primary resource; human capital Broad-based input for joint decisions Forethought MGMT641_S1_2015_JLarkin 1 The Ethics Challenge “In the Post Enron, post-bubble world, there’s a yearning for corporate values that reach higher......

Words: 416 - Pages: 2