Business Ethics and Management | Assignment

BUSINESS ETHICS AND
MANAGEMENT
(THIS ASSIGNMENT IS MY OWN WORK)
[DATE]
STUDENT NAME: _____
STUDENT NUMBER: _______

Answer 1
In spite of the comprehensive financial reporting and the corporate governance requirements
for the businesses, a numerous corporate scandals have occurred in the past few years (Crane
et. al, 2019). The reasons because of which it can be stated that the legal compliance is not
enough are firstly that the financial reporting framework is governed with the inherent
limitations, such as choice of method of accounting, choice of method of valuation of the
assets and others (Bentley, Omer and Sharp, 2013). The same are exploited by the top
management of the companies at times, because it is on the discretion of the management to
choose the above policies. Secondly to state that the legal compliance does not measure the
integrity of the management members and the employees of the company. The contracts are
entered into by the management on behalf of the organisation, which may be legally sound,
but may have conflicts of the interests. Thus, the above two reason state that a transaction or
business decision may be legally sound, but not ethically, leading to the conclusion that legal
compliance is not enough for a business.
Answer 2
The Universalist perspective states that there is universal or common application of the
ethical and moral principles on different people and groups, and thus represents situation of
ideal world. In contrast to this, the Relativist perspective leads to a more realistic perspective
explanation involving the role of different cultures, concluding that different cultures view
same thing differently (Broad, 2014).
Answer 3A
Milton Friedman held the view that the management and organisations have a responsibility
to act for the increment of the social welfare and best interest of the shareholders, irrespective
of the existence of law on the issue concerned. He also held the views that the business must
engage in activities that lead to social welfare (Schwartz and Saiia, 2012). Thus, Milton
would disagree with the Facebook statements.
Answer 3B
R. Edward Freeman had proposed the stakeholder theory according to which there are range
of stakeholders in a business apart from the shareholders. In the case of Facebook not
agreeing to remove the fake news, the two major stakeholders that have been affected and
identified are the users or the consumers and the regulators. This is because, the users have