VALUE ETHICS

VALUE ETHICS

Introduction

Friedman’s theory and round table theory are two significant theories of business ethics. Friedman’s theory emphasizes the responsibility of the stakeholders, and circular table theory depicts the equal right of each participant of an organization. Both theories will be compared in the study, along with explanations, meeting, and purposes. Friedman’s theory is focused on maximizing the profit value of shareholders, along with social responsibility. The round table theory prefers to maintain equity in decision-making. An analysis and comparison of both aspects can be useful to know the multidimensional approaches of business ethics.

Analysis

Friedman’s theory depicts the importance of morality and ethical perspectives in business which can value the shareholders (Roche et al. 400 ). On the other hand, round table theory focuses on the principles of shareholders that the shareholders should have the right to express their opinions in every business meeting (Bisel and Ryan. 630). Thus, there are lots of differences between Friedman’s theory and round table theory.

Friedman’s theory focuses on the ethical aspects of business by valuing the shareholders and their rights in an organization. Valuing shareholders include allowing them in the decision-making, informing shareholders about the ethical processes of the organization, and maintaining positivity in the internal environment of the organization (Quarshie et al. 83). On the contrary, the round table theory focuses on improving the external environment of the organization. It depicts that corporate managers need to improve their relationship with customers, suppliers, and external communities, which leads them to maintain value ethics. Moreover, round table theory emphasizes on expanding more support to the customer to generate a long term value for them. However, Friedman’s theory emphasizes both profitability and ethical perspective (Roche et al. 401 ). Thus the method still leaves room for unethical behavior to attain profitability. The business round table theory focuses more on maintaining ethics less on making profitability.

The round table theory is a complete approach to develop the sustainability objectives of an organization. The sustainable goals of round table theory are- maintaining an integrated culture in the internal environment of an organization, maintaining a steady supplier relationship, and valuing both employees and communities with an ethical approach (Bisel and Ryan. 635). Thus, the business round table perspective prefers to sustain ethics in all the operations of the business. The round table theory highly prioritizes stakeholders’ relationship, shareholders’ association, ethical behavior with consumers, and value propositions in industry. The theory adequately justifies the American dream concept that delivers value to consumers, investigates employees to monitor their performance ethics, and deals fairly and ethically with all its suppliers irrespective of background, which opposes Friedman’s theory (Quarshie et al. 89). Ethical parts of adopting the round table theory in the business activities are – providing support to the communities to ensure their attachment with the business and generating moral values for all the stakeholders. All the stakeholders are equally relevant in business decision-making and strategy making (Roche et al. 402 ). They must be satisfied with proper value, reward, and recognition. Apart from making a profit, a business must be concerned about all its ethical parts, concepts, and perspectives by attaching value with all the organizational entities.

Both Friedman’s theory and round table theory have shown two different perspectives on business objectives. Freidman’s method the maintenance of ethics without hampering the value of making a profit (Roche et al. 401 ). On the contrary, round table theory emphasizes more on ethical value and sustaining proposition for all the stakeholders of an organization. I think the purpose of a business should make a profit without compromising the moral value of the company (Quarshie et al. 89). The violation of business ethics opposes the legal standard of a business, which should be rejected with immediate priority. The business entities must be careful about valuing business stakeholders. The focus on profitability must not violate the borderline of value ethics and integrity. The current competitive market seeks to make a profit in business.

However, the value of brand loyalty restricts the organizations from not committing any unethical tasks like devaluing stakeholders of business (Bisel and Ryan. 637). Essential objectives of a company should be- valuing stakeholders, valuing the preferences of customers and communities, and making a profit without demeaning any of the ethical values. The objectives of the business should be maintained, and business organizations must act according to ethics. A recent report has disclosed that most of the USA organizations have consistently maintained their target consumer base for not declining its ethical value. Thus, Walmart, Apple Inc and Facebook Inc have successfully maintained their market share 22.33%, 21.36%, and 25.33% respectively (Quarshie et al. 87). A proper blend of both Freidman’s theory and round table theory is required to run a business successfully. It maintains both ethical value and profitability.

Conclusion

The study has described the importance of business ethics and value. Freidman’s theory and round table theory have been utilized to describe the ethical value, stakeholders’ rights, shareholders’ rights, and importance of profitability in a business. The joint venture of both Friedman’s theory and round table theory can be a practical approach to uphold profitability and value propositions. Valuing stakeholders’ opinions and sharing profit with all the shareholders must be focused by business entities.