Ethics in the world of business and affected a company - Assignment Example

suring that the environment and the community in which a business corporation operates benefits, in some way, from the profits that the corporation makes. For this reason, therefore, business corporate social responsibility is studied as a part of business Ethics. Business ethics deals mostly with the analysis of actions or behaviour of a business entity or business corporation in light of the ethical theories. The main four ethical theories are the Friedman’s Individualism, Utilitarian theory of ethics, Kantian ethical theory, and the Aristotelian ethical theory.

Each of the four ethical theories provides framework for judging the morality of an action in business world. Corporate Social Responsibility refers to the actions of a business organization targeted towards the achievement of a social benefit beyond maximizing profits for its shareholders and meeting all its legal obligations (Ethics and Corporate Social Responsibility, Chapter 4). Alternatively, Business Ethics can be defined as the responsibility that a Corporation has, beyond economic and legal obligations, to act ethically and to contribute in a positive way to the good of the society (Trevino, 20, 11).

The question of whether or not business corporations have any moral obligation to make a positive contribution to the community in which they operate has given rise to different approaches in the management of business organizations. The following are the main approaches in the management of business organizations. The Instrumental Approach: According to this approach, business corporations do not have any moral obligation to contribute positively to the lives of the people of the community in which the business organizations operate.

The instrumental approach views the only obligation that corporations have as maximizing profits for the shareholders of the business corporations, through provision of goods and services that meet the interests of the customers. The Social Contract Approach: