Business ethics and ethical thoughts – a brief overview

Business ethics and ethical thoughts – a brief overview

In the philosophy of business ethics that came into existence from the 1960s, the term itself refers to the execution of appropriate policies and systems which liquefies the controversial subjects in the firm of business management. Some of the essential points that are considered are corporate governance, discrimination based on prejudicial matters, trespassing, and bribery et cetera. The main objective of business ethics is to establish a trustworthy relationship between the customers and the individuals involved with the business firm. The awareness amongst the consumers regarding the corporate policies and their responsibilities, various social causes, and environmental effects along with the evolution of the consumer-based society complimented the formulation and upliftment of business ethics. (Twin, 2020)

The five main principles of ethics are considered to be-

1. Truthfulness and confidentiality
2. Autonomy and consent
3. Beneficence
4. Non-maleficence
5. Justice and truth

The schools of ethical thought

There are three primary schools of ethical thought outlined. They are-

1. The utilitarian or the consequentialist school
2. The deontological school and
3. The virtual theory

The Utilitarian School

The consequentiality dictates the basic principle of truth-telling. It opposes the idea of lying because of the negative consequences created by it, though the school is flexible under certain conditions, which makes one anticipate the outcome- lying can be accepted at that stage (Mill, 2016). The Utilitarianism of John Stuart Mill and Jeremy Bentham is the most widely accepted approach to consequentialism. The ethical theory of Utilitarianism is based on the principle of utility. A well-known phrase for the followers of Utilitarianism is – the right action is the one that produces the highest good for the most significant number. Being a kind of relativist and teleological theory, it focusses on the principle that any action is supposed to be considered suitable only on the basis of its consequence and not the motive; thus, also referred to as Consequentialist school (Schlenker & Forsyth, 1977).

The Deontological School

The term Deontology derived from the Greek word ‘deon,’ which refers to something that creates a bond. Deontological school is also widely known as rule-based morality. It can be considered as an antagonistic approach to the utilitarian or consequentialist theory; it dictates that any action is considered to be right if it conforms to specific rules or moral rules. It asserts that the rightness of actions is determined partly or entirely by their intrinsic set of conduct or values contrary to the utilitarian school, which solely depended on the consequences of its actions (Isenberg, 1964).

The virtue theory

Virtue ethics is involved with the moral conduct of business handlers. It provides the opportunity to analyze oneself regarding the kind of person they evolved into through their actions and the impact of their activities on others’ lives (Slote, 2010). It helps in developing better business goals, mitigating prior conflicts, and presenting a newer and better work environment and culture that, in turn, enhances the functionality and productivity of the business firm. They assert the importance of virtue, moral and ethical decision making, and respect in business firms and not only on the technical facet of working.