Normative Theories Application
Normative ethical theories can generally be divided into three types: teleological, deontological, and virtue ethics. The first two types are considered as action-based theories because they focus entirely upon the actions which a person performs. The last one focuses on training decision maker’s character.
Teleological theories are characterized focus primarily on the consequences. In order to make the correct ethical decisions, decision-maker has to evaluate the results for different choice. Ethical utilitarianism is one of major types of teleological theories. It means that an action is ethical correct if the consequences of the action are more favorable than unfavorable to most people (Foot, 1985). In this case, the hostile take-over on Foster's has a widespread effect on entire Foster organization, both external and internal stakeholders: * Shareholders: The shareholders of Foster will acquire higher margin than selling their share on stock market. If the SABMiller want to buy their shares, the company has to offer higher bid than the market value. As a result, the share will benefit from the takeover. * The Management: If SABMiller successfully takes over Foster, it may prefer bring its own staff members to manage the newly acquired business. As a result, the original Foster management may be dismissed or downgrade. Even they still control, original management may find themselves have to adjust to the practices in order to adapt to SABMiller corporate culture. * Employees: Employees may be impacted a lot. Generally, when company controls change, lot of jobs will be cut in the old company. Sometimes, every old staff will have to go. Other times, the new company will keep some employees in order to train their own people. No matter what the decision on the employee, the takeover will have serious impact on the Foster employee morale. * Suppliers: SABMiller may change the suppliers, however, the impact extent...
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