SandraL. Dwyer’s book, “Thinking Ethically in Business” published in2008 argues that corporations should create organizational culturebased on standards of practice. Proficient management effort shouldfocus on maximizing profits to realize the stakeholder objectivewhile running business operations ethically to remain relevant in theever-changing global market. Professional actions requireestablishment of internal accountability measures to benchmark alloperational processes.
Stockholdertheory of management holds that every business activity takes placewith a selfish interest to make a profit as the greatest value.Publicly traded companies must maintain ethical business operationsto continue attracting investors compared to private corporationsthat are interested in maximizing profits only. Stockholder theorymandates employers to use only qualified and experienced managers torun corporate functions. However, managers are prohibited from makingdecisions that may hinder stakeholders from maximizing profits.
Corporatesocial responsibility is a modern school of thought that requiresorganizations to include critical communities that sustain businessfunctions in the sharing of returns. Many companies have started CSRpolicies that include giving back to the society and helping theneedy. As such, CSR guarantees the reputation of a brand associatedwith a corporate. Friedman (1970) argues that CSR justifies properwages and allows workers to join trade unions. An executive of acorporation should treat workers and customers well to gain areputation for the brand he/she represents. Organizational withactive CSR activities such as social promotions is guaranteed ofsales and higher profits (Friedman, 1970). However, the extent towhich companies can share resources with communities remains limitedby the needs of stakeholders. Kant ethics reject actions that exploitpeople as means to attaining one’s gain. However, the pureevaluation of acts limits Kant’s Duty Ethics and Utilitarianism inthe business world. On the other hand, the practice of Aristotle’sVirtue theory focuses on the capacity of an individual to do avirtuous act that brings happiness to everyone. Thus, Aristotle wouldencourage employers and employees to attain a virtuous character withknowledge of what is best for the stakeholder, business partners, andcommunities.
Dwyer,S. L. (2008). ThinkingEthically in Business.Penrith, CA: Tirril Hall.
Friedman,M. (1970, Sep. 13). The social responsibility of business is toincrease its profit. TheNew York Times Magazine.