Discuss the following topic: ethics has no part to play in managerial activities - Essay Example

Again in the context of ethics law provides us with some rules and not guidelines. This is the main reason that business ethics are often termed as the grey area of business activity where the observance of legal minimum is generally overstepped. This usually is considered as corporate social responsibility that is beyond the legal framework. Modern businesses can no longer afford to ignore an increasingly informed public that is becoming more vocal in punishing organisations that fail to perform in an ethical manner.

Indeed the justification of observing business ethics is well supported by theories. Ethical theories are all about morals. Among the many theories two ethical systems stand out. They are the Utilitarian theory and the Deontological theory. Utilitarianism was first propagated by Jeremy Bentham (1789) and John Stuart Mill (1806-1873) who believed in ethics of consequences meaning that an action is good if it produces the greatest good for the greatest number. This has also been called as the consequential theory. (Boxill). In his book Utilitarianism, Mills states that that happiness is not only desirable, but the only thing desirable, as an end in itself.

For all other desirable things, happiness is a means to that end. This is also referred to as the "Greatest Happiness Principle." There are three main events under this theory. First all actions must be judged from the consequence of the actions. Secondly, the judgment is about the quantum of happiness these actions have generated. Lastly, each person’s welfare is equally important and actions must be directed to this objective. There are two sub theories of Utilitarianism. Van Wyck (1990) explains that under Act Utilitarianism theory the view taken is that a right action is one that is also chosen by another individual, and the common intention is to produce at least the same good result.

Under this theory an action is