ETHICS 1

Business Law Ethics

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1. What are ethics?

Ethics in its simplest form can be mentioned as a system of moral principles that make

people take decisions and guide their actions. Ethics word is derived from Greek work ethos that

means “custom” or “character” (Singer, 2011). At the core of ethics is the caring attitude towards

others or someone instead of ourselves or our self-interest and intentions. Ethics involves

concerning other people and society and think and take actions that are ultimately beneficial to

all. Therefore if an individual is thinking ethically he or she is giving some thoughts that are

beyond oneself.

2. How do ethics apply to you in your personal life?

Ethics teaches me what actions should I take and what I should not take. It makes me treat

others with respect and compassion. Ethics make me work with integrity and I think about other

interests as well before taking any action. Ethics helps me to take everyday decisions on various

factors like following traffic rules, paying taxes, doing assignments, taking responsibility and

working honestly.

3. How do ethics play role in business? What are the pros and what are the cons?

In business ethics sets standards of conduct that is morally right or wrong. In business, ethics

promote honesty and integrity in doing business and among its employees. This helps in the

development of trust with stakeholders like customers, investors and society as a whole (Ferrel,

2004). When business clearly defines their ethical stand and ethical culture employees get

motivated to perform their duties with integrity. Business ethics also drives customer loyalty that
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leads to profitability. On the flip side business ethics limit the ability of the business to maximize

profits (Smith, 2003). For example use of child labour in developing countries by the business

can reduce costs and in some countries, it is legal to use child labour however a company

following ethical business will not indulge in the use of child labour. Ethical practices

implementation consumes a lot of resources and time. Further ethical practices of business

require continuous updation based on the laws.

4. What is the difference between Adam Smith and Emnauel Kant when we talk about

ethics?

According to Kant the foundation of ethical law is the concept of duty (Blackburn, 2008).

Kant stressed on goodwill as the only virtue that is unique, good and maintains moral value. It is

the only moral principle that allows one to choose other virtues that that is morally right. Kant

has presented two types of duties first is a perfect duty which one should always do and the

second is an imperfect duty that one should not ignore. Self-improvement and the duty to help

others are two imperfect duties (White, 2010).

Adam Smith’s ethics depended on the judgment of one’s behaviour and others behaviour and

on receiving feedback. According to Smith individuals naturally expect people to behave in a

way other people believe is acceptable behaviour (Bragues, 2009). Smith’s concept of the

invisible hand lays stress on self-interest that promotes the greater good of society.
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References

Bragues, G. (2009). Adam Smith’s vision of the ethical manager. Journal of Business

Ethics, 90(4), 447-460.

Ferrell, O. C. (2004). Business ethics and customer stakeholders. Academy of Management

Perspectives, 18(2), 126-129.

Singer, P. (2011). The expanding circle: Ethics, evolution, and moral progress. Princeton

University Press.

Smith, H. J. (2003). The shareholders vs. stakeholders debate. MIT Sloan Management

Review, 44(4), 85-90.

White, M. D. (2010, April). Adam Smith and Immanuel Kant: On markets, duties, and moral

sentiments. In Forum for Social Economics (Vol. 39, No. 1, pp. 53-60). Springer

Netherlands.