Code of Ethics Issue Theory 2022

Code of ethics
issue
Running Head: BUSINESS AND CORPORATION LAW
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Student’s Name

Code of ethics issue 1
Ethics is the core of every business and life of an individual, which guides behavior and outlines
a standard course of action. Different ethical theories are there which contain different beliefs
and provide the solution to an ethical issue. The objective of this report is to check and determine
one appropriate course of action after reviewing the actions suggested by different theories.
Before moving the discussion to the ethical theories first, it is necessary to identify the relevant
stakeholder of the situation. These stakeholders include customers, environment, organization,
society, government, investors, and shareholders.
The theory of consequentialists believes that the consequences of an action are the ultimate basis
of judgment regarding the wrongness or correctness of an action. The theory considers those
conducts as ethical which confirms happiness and affirmative results to a maximum number of
people ("Ethics Explainer: What Is Consequentialism? - The Ethics Centre" 2020). To apply this theory to the
given case, again the action of installing the defeat device does not seem ethical. If the device
would be installed then firstly it will harm the environment by not giving true results about
emission level. Secondly, the customer who would purchase the vehicles will be affected by the
pollution as well as the whole society will be at risk of lung infection and other diseases. This
action will breach the emission control law made by the government and would create issues for
the authorities. The company is likely to be suffered from penalties when the issue would come
out and it will negatively affect investors and shareholders. As the consequentialist approach
focus on cost and benefit, here it is clear that potential losses are surely more than the potential
advantages and hence as per this approach defeat device does not seems to be an ethical option.
From the perspective of future generations and the environment too, the action is not good as it
will increase the pollution and emission level and influence the health conditions of future