IndexThe concept of theoretical approaches to business ethicsTeleology (consequentialist theories)UtilitarianismEgoismDeontological theoryVirtue ethicsEthical issues that can affect the operational activities of today's businessesEnvironmental issuesEmployment issuesAdvertising and marketingConsumerismConclusions and recommendationsThe government and other stakeholders of the company are underlining the relevance of ethical practices by business organizations. In recent years we have witnessed a lot of unethical behavior in the operations of some companies around the world. This makes the company dangerous for emerging businesses, for healthy competition and for consumers. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Ethical business practice is an issue that is increasingly being given due attention in today's business world. Companies are recognizing that more and more customers are becoming ethically aware day by day. Recent studies have now shown that many investors use a company's ethical behavior in society as a parameter to choose a company to invest in. To remain sustainable and competitive in the global market, many companies have recognized the need to adopt good ethical practice. The Concept of Theoretical Approaches to Business Ethics Different philosophers and theorists have proposed various theories about what can be considered morally acceptable and unacceptable. Among these theories are: Teleology (consequentialist theories) The consequentialist approach to ethical reasoning involves justifying an action based on the outcomes or results obtained from that action. From this fact, it is evident that consequentialism is based on two principles: what is morally right or wrong depends only on the outcomes or results of an act. The more good consequences an act can produce, the better that act is. According to consequentialists, the results obtained from an action or decision determine whether to classify it as ethical or unethical. In evaluating what the best consequences are, consequentialism is not very informative unless combined with other theories. Utilitarianism and egoism are the most influential forms of consequentialism. Utilitarianism In the utilitarian approach to ethical consideration, emphasis is placed on the amount of good and harm that could result from an action or decision, that is, judging a particular action or decision by the total amount of happiness or unhappiness it creates. For example, when a company decides to move its manufacturing plant from one location to another, what would be the amount of good, i.e., happiness, caused and harm, i.e., unhappiness, that the move would create. The utilitarian approach to business ethics is also evident when analyzing a particular action or decision based on its cost-benefit ratio. For example, when all the costs incurred by an action are added up and compared to the resulting benefits. If the benefit is greater than the cost, the action can be considered ethical. According to a utilitarian, if the amount of good appears to exceed the amount of harm in the course of the movement, the decision is considered ethical. But if the opposite were true, it would be an unethical decision. A good reference in this regard is the quote from John Stuart Mill in his Greatest Happiness Principles. He quotes that “Actions are right insofar as they tend to promote happiness, wrong insofar as they tend to produce the opposite of happiness.” Simply put, utilitarianism says that an ethically right action in a given situation is one that produces the greatest happiness and least unhappiness for the greatest number of people. Putting inrelation the concept of utilitarianism to today's business, an organization that weighs the number of influences its decisions and actions have on the number of stakeholders and uses it as a basis of moral standards is said to take a utilitarian approach. SelfishnessSelfish theories define right and wrong in terms of consequences for oneself. In any ethical decision-making situation, an egoist would evaluate and choose among the alternatives those that would contribute most to his self-interest. Before doing so, critical consideration would be made in assessing the effects of such action or decision on his physical, mental or emotional well-being. A self-interested theory is evident in business today where a particular organization bases its ethical values ​​on actions and decisions from which it can, to a large extent, derive its primary purpose or objectives. Deontological Theory This theory is also called the "duty-based theory" of business ethics. This is because the word deontological comes from the Greek word deon which means duty. Rather than focusing on and connecting what is morally right or wrong to the consequences that an action or decision entails, deontologists have based their decisions about moral right and wrong on broad, universally acceptable ethical values ​​such as honesty, fairness, , duty, respect for human beings. etc. According to the deontological approach, some actions or decisions would be considered wrong even if they created good consequences while others would be considered good even when bad results were achieved. For example, an auditor who espouses an ethical approach would likely insist on telling the truth about a company's financial difficulties, even if doing so might put the company out of business and jeopardize his job. In summary, the deontologist denies that what ultimately matters is not the consequences of an action but the action itself. Deontology is mainly related to Immanuel Kant, a German philosopher. Deontological theory is evident in many businesses today where [3] the organization critically considers its business activities so as to be fair, accountable and transparent in its dealings with stakeholders. Virtue Ethics Virtue ethics are normative ethical theories that emphasize the virtues of mind and character. Virtue ethics is a broad term for theories that emphasize the role of character and virtue in moral philosophy rather than doing one's duty or acting to achieve good consequences. A virtue ethicist is likely to give you this kind of moral advice: “Act as a virtuous person would act in your situation.” Most theories of virtue ethics are inspired by Aristotle who stated that a virtuous person is someone who has ideal character traits. These traits arise from natural internal tendencies, but need to be cultivated; however, once established, they will become stable. For example, a virtuous person is someone who is kind in many situations in his life because that is his character and not because he wants to maximize utility or gain favors or simply do his duty. Ethical issues that can affect the operational activities of today's businesses. Ethical issue can be described as a problem, situation or opportunity that requires individuals, groups or organizations to choose among several actions which are to be evaluated as right or wrong, ethical or unethical. Therefore, an ethical issue from a business perspective is a topic that raises questions about the standards of conduct or behaviors to which the company adheres regardless of financial motivations. In some situations, certain ethical issues may require the company to undertakebehavior that is unprofitable if it adheres to one set of standards or profitable if it adheres to another set of standards. For example, in the UK, while employing women at lower wages than men may have been considered acceptable according to the business ethics of the 1960s, it was no longer so in the 1970s and in fact the Equal Pay Act was passed in 1970. The ethical issues faced by businesses today are: Environmental IssuesEnvironmental issue is becoming an area of ​​growing concern for every business nowadays. With growing concerns about global warming, many companies are now working hard to reduce carbon dioxide emissions and encourage the production of more energy-efficient equipment and appliances. The goal is to stabilize the concentration of greenhouse gases in the atmosphere at a level considered less likely to trigger dangerous climate change. Other environmental issues that can affect the operational activities of today's companies include aspects of water use and pollution, responsible sourcing and waste management. i.e. recycling. For example, the Coca-Cola Company has an environmental problem in India when some communities have reported that its business has led to water shortages, water pollution and illegal toxic dumping. This really affects the functioning of the company. Another recent issue that has raised ethical questions is that of the BP oil spills in the Gulf. Employment related issues These are issues related to working or taking on a role in an organisation. Examples of problems arising from fulfilling your duties in the workplace are: Discrimination: This occurs when individuals are not treated accordingly in the workplace. Examples of areas where discrimination can occur are pay, promotion and performance evaluation. Furthermore, racial and sexual discrimination in an organization creates ethical issues that can, in turn, affect that organization's operations. In the UK, employers must not discriminate based on the above factors and, if found guilty in any respect by an employer, that employer will be liable. Equal opportunities and diversity: On the basis of operating ethically, many organizations pay due attention to equal opportunities during the process of recruitment, selection, staff training, etc. They also promote diversity in every aspect of their business activity by employing and dealing with diverse people of different nationalities, backgrounds, cultures, people with disabilities, etc. All of this goes a long way in influencing business operations. For example, failure to provide equal opportunities can lead to a high rate of staff turnover, reduce employee morale and reduce the rate of absenteeism in an organization. Advertising and MarketingThe process of creating awareness for products and services, the means of distribution, how the product/service is priced, and the promotional strategies adopted constitute an area of ​​business that generates potential ethical issues. For example, false or misleading marketing communications, or the use of deceptive sales tactics, can undermine customer trust in a company. Additionally, charging unnecessary and unjustifiable high prices or engaging in price fixing for a product or service may be considered unethical by buyers or users. These can affect business operations. Many companies try to adopt ethical standards for advertising and marketing and this influences greatly.