Business
ethical norms reflect the norms of each historical period. As time passes norms
evolve, causing accepted behaviors to become objectionable. Business ethics and
the resulting behavior evolved as well. Business was involved in slavery colonialism and the cold war.
The
term 'business ethics' came into common use in the United States in the early
1970s. By the mid-1980s at least 500 courses in business ethics reached 40,000
students, using some twenty textbooks and at least ten casebooks along
supported by professional societies, centers and journals of business ethics.
The Society for Business Ethics was started in 1980. European business schools
adopted business ethics after 1987 commencing with the European Business Ethics
Network (EBEN). In 1982 the first single-authored books in the field appeared.
Firms
started highlighting their ethical stature in the late 1980s and early 1990s,
possibly trying to distance themselves from the business scandals of the day,
such as the savings and loan crisis. The idea of business ethics caught the
attention of academics, media and business firms by the end of the Cold War.. However, legitimate criticism of business practices was attacked for infringing
the "freedom" of entrepreneurs and critics were accused of supporting
communists. This scuttled the discourse of business ethics both in media and
academia
Business ethics reflects the philosophy of
business, one of whose aims is to determine the fundamental purposes of a
company. If a company's purpose is to maximize shareholder returns, then
sacrificing profits to other concerns is a violation of its fiduciary
responsibility. Corporate entities are legally considered as persons in USA and
in most nations. The 'corporate persons' are legally entitled to the rights and
liabilities due to citizens as persons.
Economist
Milton Friedman writes that corporate executives' "responsibility
generally will be to make as much money as possible while conforming to their
basic rules of the society, both those embodied in law and those embodied in
ethical custom". Friedman also said, "the only entities who can have
responsibilities are individuals ... A business cannot have responsibilities.
So the question is, do corporate executives, provided they stay within the law,
have responsibilities in their business activities other than to make as much
money for their stockholders as possible? And my answer to that is, no, they do
not." A mufti-country 2011 survey found support for this view among the
"informed public" ranging from 30 to 80%. Duska views Friedman's
argument as conventionalist rather than pragmatic, implying that unrestrained
corporate freedom would benefit the most in long term. Similarly author
business consultant Peter Drucker observed, "There is neither a separate
ethics of business nor is one needed", implying that standards of personal
ethics cover all business situations. However, Peter Drucker in another instance
observed that the ultimate responsibility of company directors is not to harm.
Another view of business is that it must exhibit corporate social
responsibility (CSR): an umbrella term indicating that an ethical business must
act as a responsible citizen of the communities in which it operates even at
the cost of profits or other goals. In the US and most other nations corporate
entities are legally treated as persons in some respects. For example, they can
hold title to property, sue and be sued and are subject to taxation, although
their free speech rights are limited. This can be interpreted to imply that
they have independent ethical responsibilities. Duska argues that stakeholders
have the right to expect a business to be ethical; if business has no ethical
obligations, other institutions could make the same claim which would be
counterproductive to the corporation.
ethical issues include the rights and duties between a company and its employees,suppliers, customers and neighbors, its fiduciary responsibility to its shareholders. issues concerning relations between different companies include hostile take over and industrial espionage. related issues include corporate goverment, corporate social entrepreneurship, legal issues such as the ethical debate over introducing a crime of corporate manslaughter and the marketing of corporation of ethical policies.
history....
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