Ethics Perspectives in Business

Introduction
To perfectly understand what are ethical perspectives in business it is very important to clarify
what is ethical behavior. Ethical behavior is the behavior that thought to be morally correct, but
not necessarily the most profitable. I think it clear that the modern concept of business dates back
on different dates in every country, for example in the US it could be dated as 1970, ethics in
business raised there with the anti-big companies protested groups. The sense of business ethics
didn’t change since then, its ethics still applies to business just as it applies to all areas of life.
However , now it is as never important to business to follow ethics , because all of stakeholders are
interested in business’s annual report as much as in corporate social responsibility of company ,
which is self regulating business model that helps company be socially and environmental
accountable - to itself , stakeholders and the public.
According to Digital Marketing Institute 92% of consumers have a more positive image of
companies that support social issues and environmental efforts.
An excellent example of CSR is global giant Johnson & Johnson. They have focused on reducing
their impact on the planet for three decades. Their initiatives range from leveraging the power of
the wind to providing safe water to communities around the world. The company continues to seek
out renewable energy options with the goal to procure 35% of their energy needs from renewable
sources.

History and Development

The history of theoretical approaches goes back as far as both ethics and business. The earliest
bartering was based on the principle of equal exchange, it mattered what outcome everyone would
face after bartering. Ethics theories centers on duties , justices , rights, equality and truth , which
would make bartering, as an example most profitable for both sides. Ethics theories are not guides
on what to do but understanding of the will lead business to better understanding of ethical
behavior , which is important part of successful internal and external communication of the
business , relations with stakeholders and enterprises profits. Ethics theories can assist in decision-
making.
There are two ethical business perspectives normative and descriptive ethical theory.
Normative ethical theory stands for what one ought to do , relate to thought and conduct and what
ought or should happen. Teleological theory is type of normative ethical theory. Teleological ethics
are known to be based on the goal of ethical action. consequentialism comes from the teleological
ethical theory, and the moral judgment of this theory is based on outcomes of decision or action, so
if the outcomes of decisions are considered to have a positive impact this will be suggested as
morally correct. this theory can also take into account such topics as egoism and utilitarianism.
Ethical egoism occurs when a moral agent or manager are face with ethical dilemma and put him
or her as a primary receipts of any beneficial outcome that my occur after decision. Another
branch of teleological theory is utilitarianism. Utilitarianism isn an action that is considered to be
morally correct and consequences of the decision-making brings maximum benefits and minimum
amount of harm. Teleology was also fundamental to the philosophy of G. W. F. Hegel, which can be
summed up by the dictum that "the rational alone is real", which means that all reality is capable of
being expressed in rational categories, now is part of rational business’s decision-making.
By contrast, Deontological ethical theory ’s normative is that morality of all actions and decisions
should be based on whether it actions itself is right or wrong due to the series of rules, and not the
outcome of actions, as theological ethics do. 
Another ethical theory is descriptive that describes actual practice and theories from this practice.
Descriptive ethics incorporates research from the fields of anthropology, psychology, sociology,
and history as part of the process of understanding what people do or have believed about moral
norms. This type of ethical theory includes stakeholders theory , social contact theory , ethical
relativism.
With time ethical theories helped business to develop frameworks of resolving ethical problems. 7
septs were developed to assist business.
1. gathering relevant fact and identifying the problem
2. identifying affected parties
3. consider the ethical issue involved
4. identifying which fundamental princeps are affected
5. refer to employing organization’s internal producers
6. consider and evaluate alternative courses of action
7. implement the course of action and monitor its progress
Business ethics has grown a lot and continue grow now. Harvard business review  «With the recent
boom in business ethics comes a curious irony: the more entrenched the discipline becomes in
business schools, the more bewildering—and even off-putting—it appears to actual managers over
500 business-ethics courses are currently taught on American campuses; fully 90% of the nation’s
business schools now provide some kind of training in the area. There are more than 25 textbooks
in the field and 3 academic journals dedicated to the topic.» Now there are business that promote
and monitor ethical behavior in the companies. Founded in 1987 as a non-profit association,
 EBEN is a cross – national network dedicated to the promotion of business ethics, in academia,
business, public sector and civil society. The networks aim is to increase awareness about ethical
challenges in the global marketplace and to enable dialogue on the role of business in society.

Absolute and relative ethics

“Ethics” comes from the ancient Greek word “ethikos,”derived from "ethos," which means custom
or habit. The Roman politician, lawyer and bon vivant Cicero coined the term “moralis” as a Latin
equivalent of “ethikos.” Historically, then, the roots of the words “ethics” and “morality” meant
the same thing. One was a translation of the other. Public morality refers to moral and ethical
standards enforced in a society, by law or police work or social pressure, and applied to public life,
to the content of the media, and to conduct in public places. In contrast, ethical codes are adopted
by organizations to assist members in understanding the difference between right and wrong and in
applying that understanding to their decisions. An ethical code generally implies documents at
three levels: codes of business ethics, codes of conduct for employees, and codes of professional
practice.
Morality relativism indicates that moral standards differ between different groups ,within the single
culture between the culture an across time. Relativism states that there is no consistency in moral
belief , because the moral beliefs are individual for every one. what is right or wrong depend on the
context. Relativists claims that there are no ultimate universal ethical principles and all values
judgments different and depend on the culture.
Unlike morality relativism, morality absolutism is the belief that all ethical standards and actions
could be classified in common universal moral standards. This common, universal , moral
standards are needed too long term survival of the human beings. Ethical absolutism as well as
relative ethics that what people think is right vary depending on culture and time, but what i
actually right is everywhere and alway the same.
Different from absolute as well as relative ethics , contextual ethics’s key consideration whether or
not an action is appropriate or befitting to the situation , there is no right or wrong decisions.

Role of the Government

Businesses have implemented ethics in all stages of business operations but there is still an area to
grow and become even more corporately social responsible. To cover this area and make
businesses as more efficient as possible government works to widen knowledge about ethics in the
business.The importance of business ethics reaches far beyond employee loyalty and morale or the
 strength of a management team bond. As with all business initiatives, the ethical operation of a
company is directly related to profitability in both the short and long term. However , government
have developed such codes as Charity Governments Code and Good governance code for business
to be aware that business ethics is not way to gain profit , but also government mechanism to
ensure that corporate behavior and operations of the business are lawful and effective as well as
beneficial to environment and society.
Good governance in charities is fundamental to their success. It enables and supports a charity’s
compliance with the law and relevant regulations. It also promotes a culture where everything
works towards fulfilling the charity’s vision. The Charity Governance Code is a practical tool to
help charities and their trustees develop high standards of governance. The Code has its own
website:  www.charitygovernancecode.org , the code is not legal or regulatory requirement but it
sets the principles and recommended practice for good governance.
Government’s involvement in the questions of ethics in the business are going to lead to high
ethical standards that in the long term will mean that business will lead to higher and stronger
completion , therefore only best products and services will be on the market, shareholders are
going to do further investment on innovation and development due to high competition. Ethical
consideration is changing our perception of legacy, which is not the pile of money at the cost of
others’ sufferings, but decisions and business practices which are beneficial to mankind. Hence
organizations believe the test of real legacy is ethical decision making.