StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Instituting a Normative Ethical Principle in Guiding - Essay Example

Cite this document
Summary
The paper "Instituting a Normative Ethical Principle in Guiding" states that the necessity of instituting a normative ethical principle in guiding the acts of a business enterprise is imperative because its acts will not be prescribed by any ethical principle…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Instituting a Normative Ethical Principle in Guiding
Read Text Preview

Extract of sample "Instituting a Normative Ethical Principle in Guiding"

?Normative Ethics: Ethical Dilemma 11 (Always good to have friends in politics The necessity of instituting a normative ethical principle in guiding the acts of a business enterprise is imperative because if its acts will not be prescribed by any ethical principle, business will tend to become unscrupulous in its dealings in pursuit of realizing its economic objective. Our news had been filled with corporate scandals lately that ranged from the stock manipulation of ImClone Systems stock (Sclafani, Jennifer 2009), to exotic accounting practices of Enron to Andersen’s destruction of documents it was supposed to keep. The application of ethics in business will not only provide guidelines on how should a business enterprise as an entity acts but also will clarify ambiguous ethical issues which every business entity confronts as it pursue its objective of enhancing its bottom line (Crane and Matten 2006). The case in Chapter 11 entitled Ethical Dilemma: Always good to have friends in politics? of the book of Crane and Matten (2006) presents to us a classic instance of how an unscrupulous business person deals with an equally corrupt government official. Although the case only highlights Costa’s predicament on how to deal with the mayor’s (Dionisis who also happens to be his childhood friend) insinuation of building a swimming pool in his backyard, the contractor himself is guilty of one of business unethical practice of paying bribes. Reading between the lines of the case however, the contractor’s dilemma was not really about the corrupt tendency of the mayor but his anxiety on the prospect of losing the project because the recent project presented to him has now a competitor who is agressive enough to offer Dionisis, Costa’s childhood friend and the mayor, a pool that will be built in his backyard if he gets the project. He is now disturbed not because he is about to get into an irregular business arrangement but rather felt the brunt of the cost of building the pool in Dionisis backyard. He is bothered not about ethical propriety of the mayor’s insinuation but on how he could conceal the cost of the construction of the pool in the accounting record considering that the amount is significant hence, will be obvious. Indeed Crane and Matten was right when they mentioned in their book “Business Ethics: Business ethics: managing corporate citizenship and sustainability in the age of globalization” that business ethics can be an oxymoron because the words are contradiction in terms because business, when left on its own, can be permissive to unacceptable practice such as deception and lying in its pursuit for profit (2006). The increasing awareness of the various stakeholders in society about responsible corporate citizenship however compels business to integrate ethics into its practice to earn public trust that is necessary to increase and maintain its revenue (Palazzo and Andreas 2008). The slew of corporate scandals that slid this country into recession has made the public more sensitive against business malpractice that the slightest news of corporate impropriety will have a tremendous negative impact on the company’s bottomline which will register in the value of its stocks and sales (Timonen and Luoma-aho 2010). Thus, the necessity of practicing business ethics is not only about being nice to the customers but also in consideration of the negative impact that the absence of ethics can do to a business. The application of normative ethics in evaluating a certain business dilemma is ideal because the guidelines present in normative ethical principles can serve as a beacon or a guide among business people in managing and operating their business. The application of such normative ethics in justifying and judging a certain ethical dilemma shall be illustrated in the case, the Ethical Dilemma 11: Always good to have friends in politics? whereby the ethical justification of normative decision of a certain ethical dilemma shall be applied. The normative ethics are virtue ethics, consequentialism, utilitarianism, deontological ethics and Kant’s Categorical imperative. Virtue ethics is the ideal form of ethical practice because this makes an individual or a business person to do good for the sake of doing good. Virtue ethics“emphasizes the virtues, or moral character, in contrast to the approach which emphasizes duties or rules (deontology) or that which emphasizes the consequences of actions (consequentialism)(Stanford Encyclopedia of Philosophy a 2011). While this type of normative ethic can be suggested to Costa in dealing with the mayor, the concept may be too alien for the contractor thus may be rendered futile considering how his mindset is. In the case, he was bothered about the mayor’s insinuation of building a pool in his backyard not because it is unethical but rather he find it difficult to conceal it in his accounting record not to mention the rising cost of bribing the official. Suggesting to him to become virtuous as what the normative virtue ethical principle posits is plainly not workable. Costa ise susceptible to utilitarianism in evaluating a certain ethical dilemma because it characterizes his value system. Utilitarianism is the view that “the morally right action is the action that produces the most good” (Stanford Encyclopedia of Philosophy b 2011) and this defined Costa’s relationship with Dionisis. It is important to note that while Dionisis is Costa’s childhood friend, their discussion did not revolve about their youth but rather on the municipality’s projects so he can fit his bid to them. He also cultivated dependency on the mayor when he sends somebody to fix anything that is broken in the mayors’ house. Costa also bribes his friend in a form of a gift by covering the catering of Dionisis 50th birthday. So when Dionisis insinuated for a pool to be built in his backyard, Costa is part to be blamed because he created the slippery slope of corrupton where irregularity starts from seemingly harmless gift to big time bribes (Lode 1999) Realistically, consequentalism may be the normative ethics that would work for Costa in the case. Consequentialism holds that the “rightness of acts. . . depends only on the consequences of that act or of something related to that act” (Stanford Encyclopedia of Philosophy c 2011). Costa was bothered by Dionisis insinuation not because of its impropriety of the act but because of the anxiety of losing the project. If he will not build the pool for Dionisis, the competing contractor who brought up the idea will build it for Dionisis thus taking the project away from him. If he gives in, Costa knew that it would benefit his business and the only problem that he has to deal with is how to hide its cost and what will his employee say or think about the transaction. Giving in to Dionisis may be profitable to Costas in the short-term but Costas has to think about its pros and cons in the long-haul. Costas may profit today but if the government regulators will catch him which is very likely to happen because the pool is just very obvious to hide. One of his employees may also report him to the authorities and that would be more costly to him because of the fines that may be imposed and worst, his business may be closed. Andersen Consulting suffered the same fate of closing shop after it got involved in the Enron scandal. The profit that Costas may derive from the transaction that involves the building of the pool can easily be defrayed by the ill consequences of this corrupt transaction. He should not build the pool and should tell Dionisis directly and state his reason why. It is now high time for Costas to stop involving in corrupt practices before the law catches on him. In addition, the cost of doing business with Dionisis is already getting atrocious that it would be no longer profitable to deal with him. Dionisis is getting greedy and it is eating up his margin with business getting less profitable while the risk is getting high. Dionisis may award the next project to the competing contractor and cut his friendship, but this will do Costas more good in the long-run. Yes he may lose the project but he saved his company from being entangled in a transaction that has the potential cost of losing his reputation and even business in the future. The profit and friendship forgone can be regained when customer’s trust Costas more as more people will contract his services because they know he can be trusted. Having a good customer base who patronizes Costa’s business because of his service and integrity is more reliable source of revenue than relying on the awarding of projects of Dionisis which is not only precarious, but also costly not to mention risky. In the final analysis, it is really the market that will determine the profitability and sustainability of a business. Having friends in politics may be good for a business in the short run but it can do more harm in the long-term. Instead of kowtowing to Dionsis, Costa should spend his energy to make his business efficient and cost-effective beating all his competitors because of his quality and price. This will guarantee him that his business will still be around even if Dionsis term as a mayor has already lapsed. Bibliography Crane, Andrew; Matten, Dirk (2006). Business Ethics, 2nd edition, Oxford: Oxford University Press. Lode, Eric (1999). “Slippery Slope Arguments and Legal Reasoning”. California Law Review 87(6):1469-1543. Palazzo, Guido; Scherer, Andreas Georg (2008). Corporate Social Responsibility, Democracy, and the Politicization of the Corporation.. Academy of Management Review, 33(3): 773-775 Sclafani, Jennifer (2009) Martha Stewart behaving Badly: Parody and the symbolic meaning of style. Journal of Sociolinguistics, 13(5):613-633. Stanford Encyclopedia of Philosophy a (2011). Virtue ethics. Online. Retrieve at http://plato.stanford.edu/entries/ethics-virtue/ [accessed February 25, 2012). Stanford Encyclopedia of Philosophy b (2011). The History of Utilitarianism. Online. Retrieved at http://plato.stanford.edu/entries/utilitarianism-history/ [accessed February 25, 2012). Stanford Encyclopedia of Philosophy c (2011). Consequentialism. Online. Retrieved at http://plato.stanford.edu/entries/consequentialism/ [accessed February 25, 2012). Timonen, Laura; Luoma-aho, Vilma (2010). Sector-based corporate citizenship. Business Ethics: A European Review, 19(1): 1-13. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Normative Ethics: Ethical Dilemma 11(Always good to have friend in Essay”, n.d.)
Retrieved from https://studentshare.org/management/1443659-love-business-ethics
(Normative Ethics: Ethical Dilemma 11(Always Good to Have Friend in Essay)
https://studentshare.org/management/1443659-love-business-ethics.
“Normative Ethics: Ethical Dilemma 11(Always Good to Have Friend in Essay”, n.d. https://studentshare.org/management/1443659-love-business-ethics.
  • Cited: 3 times

CHECK THESE SAMPLES OF Instituting a Normative Ethical Principle in Guiding

Healthcare Management: Values and Ethics

Running Head: Management Healthcare Management: Values and Ethics An Essay Name Name of Professor Introduction Almost all organizations would like to build a strong reputation of ethical behavior.... As a result, codes of ethics and social responsibility agendas are created to restore confidence in employees that organizational management is dedicated to ethical behavior.... Every organization must create an ethical policy.... As stated by Pera and Van Tonder (2005), ethical organizations work toward meeting the demands of their stockholders, are devoted, and enthusiastic to learn....
10 Pages (2500 words) Term Paper

Personal Ethics Development Issues

I applied the word of God in my daily life incorporated by normative ethical system; therefore, improving my conduct around people and making a wise decision when need arises.... Personal Ethics Development Paper Name Professor Institution Course Date Personal values and ethical conduct are significant in the development of a person.... The level of professionalism can be seen through a person's ethical standards and norms.... In the real world people, judge an individual by the ethical conduct displayed by the person....
5 Pages (1250 words) Research Paper

International Management Ethics and Values

But to the extent that the means involve human action and assent, normative ethical evaluation comes into play.... The importance (play important role in the ethical decision making) and the difference!... So, practical issues such as this have given Utilitarianism the tag of being an idealistic or utopian ethical system.... In practice, what can be said for and against deontology, or ethical theories of the right?... What is the difference between descriptive ethics and normative ethics?...
4 Pages (1000 words) Assignment

Ethical Issues in Education

In schools, ethical and moral decision-making of a principle is crucial because he/she demonstrates how to be an ethical person by living in the community and learning the normal ways the community conducted its affairs and relationships.... Allowing for the context in which the original approach to the school principle is made educational outcomes depend more on the ethical decisions than on any other factors, including the decisions that may, in relevant circumstances, eventually emerge regarding the more familiar life and education issues....
11 Pages (2750 words) Essay

Sports Ethics and Sport Policy

Also, respect and education are major factors that determine whether the support of the sport and sporting dedication will be thriving in an ethical framework.... The paper "Sports Ethics and Sport Policy" states that The formulation of a sports policy has positive development through the enhancement of partnerships within government institutions, which in turn solidifies the sports sector's capability to improve the growth of athletes and deliver sport....
10 Pages (2500 words) Research Paper

An Ethical Analysis of the Use of Performance Enhancing Drugs in Sport

The five main ethical perspective used in this essay are utilitarianism, Kantian deontology, Rawl's theory of justice, rights, and normative ethical relativism.... Act utilitarianism is the conviction that it is fine to violate a rule so long as it creates a higher good, whereas rule utilitarianism argues that even if a principle cannot generate a higher good, violating it will not either.... This essay analyses the ethical issue inherent in the practice of using performance-enhancing drugs in sport....
9 Pages (2250 words) Assignment

Ethical Leadership Quality Issues

The assignment "ethical Leadership Quality Issues" focuses on the critical analysis of the major issues concerning ethical leadership quality.... The value of ethical leadership is very vital in today's organizations, public institutions, private sectors, and NGOs.... ethical leadership is the most important issue in organizational performance globally.... Leaders in charge of vital positions in organizations have ethical qualities, which enable them to avoid the perils associated with unethical issues within the organization....
5 Pages (1250 words) Assignment

The Normative Ethical System

The paper "The normative ethical System" is a decent example of a Finance & Accounting essay.... The normative ethical system refers to a study of ethical frameworks.... The paper "The normative ethical System" is a decent example of a Finance & Accounting essay.... The normative ethical system refers to a study of ethical frameworks.... The paper "The normative ethical System" is a decent example of a Finance & Accounting essay....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us