Are corporations moral agents? Do they have moral responsibilities?

What do you think companies

should do to make themselves more moral organizations? How can they promote a healthy moral
climate inside the company?

After answering the above questions, research and locate a corporation that you believe operates
ethically and explain why.  Similarly, research and locate a corporation that you believe operates
unethically and explain why.

A moral agent is anyone that is capable of making a moral or ethical decision and put that decision into
action. Webster’s dictionary defines a corporation as “a group of merchants or traders united in a trade
guild”; “a body formed and authorized by law to act as a single person although constituted by one or
more persons and legally endowed with various rights and duties including the capacity of succession”;
“a large business or organization that under the law has the rights and duties of an individual and
follows a specific purpose” (Merriam-Webster.com). The Supreme Court determined that a corporation
is a person in the eyes of the law, so I would say that a corporation would be a moral agent and they
have moral responsibility. A corporation has a responsibility to act morally for and to their employees,
customers, business partners and communities in which they operate. They should put the same effort
into improving their environment for their employees and work environments as much as they prioritize
making profits.

Organizations can promote a healthy moral climate inside of their company by implementing a clean, to-
the-point moral code of conduct and promoting the importance of acting and reacting morally from the
top down. Having a moral code doesn’t mean much if the top of the company or the organization as a
whole isn’t acting morally and ethically. Employees should see the management team acting morally,
the actions will trickle down throughout the organization. In addition to a policy for the company,
managers and employees acting in an ethical and moral manner, the company should ensure that any
products they produce, manufacture or sell are also in line with the moral climate of the organization.
The policy needs to be posted throughout locations and the importance reinforced to employees. If the
organization accepts responsibility for their actions and shows the importance of a positive moral
climate, the employees will follow suit and it will continually improve the moral climate.

One of the most ethical companies that I read about was IBM. The organization has been names one of
the World’s Most Ethical Companies for the last two years and is continually working to improve their
company and their ethical standards. According to the article “IBM Named one of the World’s Most
Ethical Companies”, “the list distinguishes companies that influence the business community and
societies around the world in order to drive positive change, and highlights companies working with
partners and clients to do the right thing, by operating with integrity every day” (Miranda, IBM.com).
IBM reports that they have adapted policies from their inception to treat their employees, customers
and communities with dignity and respect and to promote inclusion of all people. They have a
commitment to ensuring that they operate with high ethical standards, maintain high standards of
corporate responsibility and consider ethical and moral implications in their decision-making processes.
“IBM has a strong culture of ethics and integrity, guided by a rigorous system of corporate governance
that promotes transparency on a global basis and compliance with all applicable laws and regulations
where we do business” (IBM.com).

As for a company that operates unethically, I started out researching pharmaceutical companies,
thinking that issues with drug safety, animal testing, product costs and research practices. What I found
instead was that Amazon continually popped up for multiple unethical business practices. Arms &
military supply, human rights, animal testing, animal rights, supply chain management, political
activities, worker’s rights, irresponsible marketing, factory farming, tax avoidance, environmental
reporting and habitats & resources were all areas that commonly came up where Amazon has had or
continues to have unethical or questionable business practices (Ethicalconsumer.org). The article on
EthicalConsumer.org discusses that Amazon does not pay a living wage to their employees, does not
provide healthy or safe working environment to the vast majority of their workers and has unrealistic
expectations for workers including overtime in excess of legal limits. They do not have a policy on textile
chemicals, electronic products or chemicals to be phased out or eliminated. The company does not
prohibit the sale of any animal products even though their products and manufacturing involve the
exploitation and killing of animals. Amazon has a code of conduct and ethics for their employees but
does not have an overall code of ethics for the organization as a whole. Their code of conduct and ethics
reads “In performing their job duties, Amazon.com employees should always act lawfully, ethically and
in the best interest of Amazon.com” (Amazon.com). Amazon is not acting ethically to their employees or
the environment.

Works Cited

https://ir.aboutamazon.com/corporate-governance/documents-and-charters/code-of-business-
conduct-and-ethics/default.aspx

How ethical is Amazon.com Inc? | Ethical Consumer. (2020). Retrieved 22 September 2020, from
https://www.ethicalconsumer.org/company-profile/amazoncom-inc

Miranda, G. (2020). IBM named one of the World’s Most Ethical Companies - Good Tech IBM. Retrieved
22 September 2020, from https://www.ibm.com/blogs/corporate-social-
responsibility/2020/02/ethisphere-2020/

https://www.merriam-webster.com/dictionary/corporation