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BUSINESS ETHICS: COMPARE AND CONTRAST PAPER
By: Karla Powell
North Central University
What is business ethics? The word business can mean different things, but in this context it means a commercial or industrial endeavor to make/sell products or services. The word ethics is defined as a set of principles of right conduct or a system of moral values. So what does business ethics mean? Used together it means for a commercial/industrial endeavor to form a set of principles or rules to follow while they are making or selling products or services. The word business ethics is frequently heard as it relates to social responsibility. According to the dictionary social responsibility is “an ethical ideology or theory that an entity, be it an organization or individual has an obligation to act to benefit society at large” (the freedictionary.com). Three notable management authorities: Patrick Murphy, Milton Friedman, and Peter Drucker, have different opinions on what business ethics and social responsibility are and what is should mean to the business world.
According to Patrick Murphy (2009) responsibility is a key principle of business ethics which implies a moral obligation to act. The word act is used as a verb and means to “do something.” Murphy points out that one is to not only act but to act in a certain way based on the persons extent of the freedom they have, meaning the bigger the space of freedom the bigger the obligation or responsibility one has. So, the higher up in an organization one is, the bigger the responsibility they have (Murphy, 2009). Several types of responsibility are addressed by Murphy: legal, corporate, managerial, social, consumer, and societal. More has been discussed in the past several years about social responsibility. The term “corporate social responsibility” also known as CSR, was defined by the Commission of European Communities as: a concept whereby companies integrate social and environmental concerns in their business
By: Karla Powell
North Central University
What is business ethics? The word business can mean different things, but in this context it means a commercial or industrial endeavor to make/sell products or services. The word ethics is defined as a set of principles of right conduct or a system of moral values. So what does business ethics mean? Used together it means for a commercial/industrial endeavor to form a set of principles or rules to follow while they are making or selling products or services. The word business ethics is frequently heard as it relates to social responsibility. According to the dictionary social responsibility is “an ethical ideology or theory that an entity, be it an organization or individual has an obligation to act to benefit society at large” (the freedictionary.com). Three notable management authorities: Patrick Murphy, Milton Friedman, and Peter Drucker, have different opinions on what business ethics and social responsibility are and what is should mean to the business world.
According to Patrick Murphy (2009) responsibility is a key principle of business ethics which implies a moral obligation to act. The word act is used as a verb and means to “do something.” Murphy points out that one is to not only act but to act in a certain way based on the persons extent of the freedom they have, meaning the bigger the space of freedom the bigger the obligation or responsibility one has. So, the higher up in an organization one is, the bigger the responsibility they have (Murphy, 2009). Several types of responsibility are addressed by Murphy: legal, corporate, managerial, social, consumer, and societal. More has been discussed in the past several years about social responsibility. The term “corporate social responsibility” also known as CSR, was defined by the Commission of European Communities as: a concept whereby companies integrate social and environmental concerns in their business
References: Drucker, P. (1981). What is business ethics? Public Interest, 63, 18-36. http://www.nationalaffairs.com/doclib/20080708_1981632whatisbusinessethicspeterfdrucker.pdf FREEDictionary.com. Friedman, M. (1970, September 13). The social responsibility of business to increase its profits. New York Times, New York , N.Y. 32-33, 122-124, 126. http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html Murphy, P. (2009). The relevance of responsibility to ethical business decisions. Journal of Business Ethics: Supplement, 90 245-252. http://search.proquest.com.proxy1.ncu.edu/docview/365453640?accountid=28180 Another way ethics has evolved is when it comes to adapting to cultural differences. It use to be good business to follow the business practices of the county in which you are doing business (when in Rome do as the Romans do). In the traditional sense of ethics it was considered a moral obligation to do business the way the host country did business. Now it is considered unethical and even illegal.