Ethics and Morality of Business

This document discusses the difference between morality and ethics, the trolley dilemma, the use of deontological ethics in business management, Andrew Stark's recommendations for improving business ethics, and the impact of corporate social responsibility on society and organizations.

Ethics and Morality
of
Business

1
Contents
Difference between morality and ethics.....................................................................................1
Trolley Dilemma........................................................................................................................1
Deontological ethics use in the business management and modern day business.....................1
Andrew Stark’s recommendation for improving business ethics..............................................2
For consequentialist no type of act is inherently wrong............................................................3
Corporate social responsibility...................................................................................................4
REFERENCES...........................................................................................................................7

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Difference between morality and ethics
Often both these terms are considered as same thing. Morality is understood as something
that is normative and personal. On the other hand, ethics is considered as something that is
standard of bad and good and hence distinguished by any social setting or community
(Diffen, 2018). Morality is understood as something that is attached with individual i.e. their
own principles related to right and wrong. It is habits and principles with regards to wrong
and right conduct. Alongside ethics is referred to as the rules that are given by external
source such as codes of conduct in the workplaces or principles followed in different
religions (Weinstein, 2018). Ethics are the rules related to conduct that is recognised with
respect to a specific class of human actions or a specific culture or group. Ethics is something
that is practiced since society suggests that it is right while morality is practiced since an
individual believes in something being wrong or right.
Trolley Dilemma
In a trolley dilemma since there are no actual options available i.e. on both sides there will be
casualties hence choosing any option would lead to situations related to ethics. In such
situation different theories have different view point on this trolley dilemma. Consequentialist
or Unitarianism would have different set of recommendations so as to deal with this situation.
Since Consequentialist focuses on the consequences hence it suggests that lever must be
pulled so that only one person dies rather than five people (D’Olimpio, 2018). This is because
only one person will die if the lever is pulled and hence the casualties will be less. If the lever
is not pulled than 5 people may die which leads to more numbers of families to suffer while
on the other side the numbers of people that will suffer is relatively less. The overall
consequence of pulling the lever is less hence this theory suggests doing it. It is ethically
correct saving to lives of more people than to save one.
Deontological ethics use in the business management and modern day business
Deontological ethics suggests being rigid with the duties that is assigned to an individual at
any cost. This ethical approach focuses on wrongness and rightness of actions itself
irrespective of the rightness and wrongness of the results or consequences of these actions or
to the habits or character of the actor. The modern day businesses have become very much
competitive hence managers are forced to take actions that are against the rules and
regulations of the company at the lower levels (Kant, 2018). For example if the company

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aims to make cost reduction then there will be chances that company makes unnecessary job
cuts which was wrong but at the same time it was necessary too. Reducing the numbers of
people and increasing the load on few people to maintain the productivity may not be
deontological. Despite of the situations arising in the modern day business, it is possible to
conduct deontological ethics. The first and the most basic thing that has to be done as a
business manager is that to stick to the rules and ethics that is made within the firm. This will
help them to remain practical in terms of the way different operations within the organisation
can be maintained. In the management of role of organisational culture is very much
important hence a company that is able to adopt an organisational culture which is
deontological can be successful in practicing it.
Apart from this there are people from the different segments of the society working under the
same roof hence their cultural norms are very much different and may differ from the rules
and practices made by the company hence they might not work according to the duties
assigned by the company and hence it will violate the theory of deontology. Modern day
business managers have to adopt strategies according to the changing business scenario. This
might deviate from the actual line of duties that has been assigned to the people. At the
surface levels deontology is practiced but at the ground levels it is not practically
implemented. Since every organisation has a defined set of rules and regulations hence
implementing deontology may differ especially when it comes to practicing it (D’Olimpio,
2018). Modern day business managers will have to re-think about the ways in which they
want to achieve their goals so as to remain deontological. In the time to come situations in the
business are going to be more complex and hence being deontological can be more
challenging.
Andrew Stark’s recommendation for improving business ethics
Andrew Stark was very much concerned with the changing business practices that might lead
to ethical issues within a firm. It is essential that a company adopts a social responsibility
approach and hence they could take an expansive view of the market rather than only
focusing at the expansive view of the law. Under this approach he recommends to bring
experts in the moral philosophy in the business schools (Stark, 1993). Trainings related to
moral philosophy give the people an analytical frameworks and conceptual tools essential for
building fine-grained ethical distinctions and discerning the appropriate course in ethical

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situations that are difficult to manage. Such moral philosophies would apply their
sophisticated frameworks to moral issues arising on daily basis and faced by managers.
It is a wrong reason to build a business into ethical business just because it is profitable.
Business ethics has to be implemented even for the non-business reasons. Pulling down the
ethical approach because it is not profitable is a wrong practice (Brenkert and Beauchamp,
2012). For remaining ethical, firms need to ensure that workers tasks are compatible with
their own individual projects and hence making external motivation irrelevant.
Stark’s recommends that it is necessary for the managers to advance their proposals with
increased sensitivity to the practitioners when it comes to influencing the practice of
management. This must always be done checking the relation between the stakeholders and
management even when it saves the uniqueness of the agent-principle relationship between
the both. A company must readdress the approach to business ethics so as to find the ways in
which it is morally right and socially responsible without actually doing huge loss to
company and the career (Heath, 2014). A company must add more numbers of people in
developing new incentive systems, decision making process or corporate structures. It is not
essential to construct arguments that appeal to moral idealist but generating actionable
strategies for the pragmatists is crucial. Andrew Stark recommends that minimalism,
pragmatism and moderation must be the three approaches in the modern day business ethics
(Boatright, 2013). In all these approaches, the things that are important is not so much
according to the practical analysis offered (whole lot of things needs to be done) but the
commitment to converse with real managers in a language that is relevant in the world they
inhabit as well as the issues they face. It is a consideration of the business ethics worthy of
attention of managers.
For consequentialist no type of act is inherently wrong
Consequentialist is an approach that has nothing to do with the actions that is done in due
course of project or task. Since every task is associated with certain kind of consequences
hence understanding it to be totally wrong from the beginning is not good. Inherently no act
or type of act can be wrong from the start. Consequentialist believes that they will do their
actions and not wait for the consequences it might pose. Consequentialist also do not find
problem till the time they actually face any consequence (Piazza and Landy, 2013). For
example people following this approach do not think about the deeds of theirs that are

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changing. Long term following of this approach actually disturbs their balance in the business
ethics set by any organisation. It is also seen that people who are following this approach
finds an excuse to parties to violate their duties based on providing that it will have positive
consequences. It is impossible to determine the future consequences in many situations as
outcomes differ based on future situations hence it boosts the followers of this approach. It
might affect the practical balance between the approach that has to be taken by the people and
what is taken by them (Piazza and Sousa, 2014). There are no counter-check measures in the
start. It gives a boost to the new kinds of emerging ideas. This is good for achieving short-
term profits but it not good for the long-term gains.
There are long term implications of this. This is because it does not stop people to do
something from the start as they understand that no task or activity can have negative effect
from the start. Every task or its consequences becomes wrong after sometime or when it is
not is not properly implemented. The positive implication is in a manner that it does not
restrict people from doing anything and hence new ways of doing business or task can be
found out. With the numbers of ethical issues increasing, it has become crucial for the
management to work on the tasks also rather than only focusing on the consequences (Berker,
2013). Other implication of it is the fact that larger numbers of people might start following
unethical practices. The consequences of these unethical practices do not get reflected at the
surface level and the overall results might also show the positive deviation. But, at the ground
level it might affect the feelings of the stakeholders attached with the company. If any
individual keeps on believing that no act is wrong then nothing bad will be prevented or said
to be as wrong. The consequence of many types of task may not be reflected in the area
where actually the individual wanted that it should not reflect. But, it will certainly affect
some other outcomes or the process of achieving the actual outcomes may become difficult.
For example, a manager who follows Consequentialist approach might not feel that safety of
the employees is as much important as productivity till the point when any casualties may
happen.
Corporate social responsibility
Introduction
Corporate social responsibility is an activity which helps the company to be socially
accountable. It is a type of international private business self-regulations. It is also known

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with the name of private firm policy. The laws and rules are made on the basis of corporate
social responsibility activities of the company. This concept helps the companies to be
socially accountable with the stakeholders, and society (Schwartz, 2017). As per the laws, it
is necessary for the companies to follow the practices of corporate socially responsibility. The
practices of corporate social responsibility are called corporate citizenship. A CSR activity
means that the company has to work in way in which the society and the environment
enhance. Corporate Social Responsibility is a broad concept which is based on the companies
and industry activities. The CSR activities have many advantages which help the society by
creating the better world as well as the high profit. It is a correct statement that the Corporate
Social Responsibilities create the better world and the better profits (Stellner, Klein, and
Zwergel, 2015).
Impact of CSR on society and the organisation
It has been seen that the companies and industries contributing in the society from their
profits. As per the act, the company has to spend at least 2% of their average net profits in the
preceding years. It is founded that the 2% of each and every company convert into a big huge
amount which helps to develop the society by resolving the issues (Lim, and Greenwood,
2017). Labour protection, banking reform and the public utility controls are terms which can
be resolve with the contribution of the companies. The contribution of the companies also
helps the government in developing the good budget for the society development. The
government can uses this budget to develop the society by providing the many facilities to the
public. The company also has the responsibility to operate the business by keeping in the
mind the care of environment and the society. It is compulsory for the companies to follow
the rules and regulation which is developed by the government to secure the environment.
It has been seen that the companies is restricted to do not throw the garbage into the water,
less pollution creation, less use of electricity and the many others. The name of the company
is known with the social activities of the companies. The social activities perform by the
companies helps in developing the positive environment. It is demonstrated that the
companies also provide the charities in order to help the people and change their life style. In
the context of environment, the protection of natural environment is beneficial for the
company as well as the society because it decreases the damage. The green action developed
by the government refers the activity which saves the planet and the living beings. The
reducing CO2 emission and waste, non-renewable resources are the only ways which the
company can use to lower their negative environmental impact in order to improve the

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relation with the society. Less Air pollution leaves the local community in the better health
(Schrempf-Stirling, Palazzo, and Phillips, 2016). It is observed that the number of enterprises
is increases which state the high contribution amount that means high development. As per
the development perspective, it is beneficial that the number of companies is increases
because the companies use the high technologies to produce the product or develop the new
technologies, innovation, infrastructure that can be used by every member of the society.
Advance technology improves the living standard of the people because each and every
member of the society used this technology for their self-interest. The companies that share
their technologies contribute to the advancement of the whole society. It is founded that the
engaging in the CSR activities helps to develop the strong bond between the companies and
the government. The better relation of the government with the companies states the better
way to serve the society so that the lifestyle of the people change and the environment will
develop as the better world.
There are many advantages of CSR which states that the company earn the high revenue. The
company put their efforts in creating the better world. The activities of the company build the
good image in the society due to which the trust of the consumers is also develop. The
companies who perform the activities by ignoring the environmental regulation or by
improving the lifestyle of employees come in the limelight through social media. The large
number of consumers attract towards the goods and services of the company due to which the
incomes of the company getting high (Grayson, and Hodges, 2017). The companies appoint
the large number of employees in order to reduce the issue of unemployment from the
society. By appointed the large number of employees the productivity of the company is also
increases which reflects the high profit. The high profit shown in the financial statement
helps the investors in taking the decision regarding the investment into the company. Thus,
the high investment states the development of the company. The good image and position of
the company helps the company in taking the quality of raw material in credits which reflect
the high productivity. CSR activities of the company help to develop the relation with the
stakeholders which are the main source of earning the high revenue (Ni, and Van Wart,
2015).
Conclusion
From the above analysis, it has been concluded that the Corporate Social Responsibility is
beneficial for the company as well as the society. Corporate Social Responsibility secures the
environment by ignoring the harmful activities. The contribution of the company towards the

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society creates the better world which changes the life style of the people by resolving the
issues. It is a fact that the activities perform by the company towards the society build the
good image which helps to earn the high revenue. The above discussion states that the CSR
activities help to earn the high profit and also create the better world (Spark, 2016).

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