Business And Society Application Of Ethical Theories Commerce Essay Example

impacted either positively or negatively by those decisions. According to ethical theories, it can be concluded that while there may be short-term adverse effects on consumers, these decisions will ultimately bring long-term benefits for the company. This aligns with the actions expected from stakeholders within the house. Each stakeholder in this case faces distinct ethical concerns and possesses different objectives and responsibilities. The objectivity and responsibilities become unethical if they favor a minority group of individuals; however, they are morally ethical if they prioritize the majority of stakeholders based on utilitarianism ethics theory. The key stakeholders in this scenario include Sam, executives, the house itself, Michael, Baby Mobile Shareholders,
Project Team members,
Parents/Users/Babies/Suppliers.

Sam is a key stakeholder who confronts a significant ethical problem. He is obligated to support the organization, yet he is aware that the decisions made by the organization are morally incorrect. Michael, another stakeholder, also faces an ethical dilemma. His responsibility is to ensure that the organization achieves profitability while minimizing costs.

In addition, there is a ethical dilemma that the organization's mission of achieving its goals may come at the expense of innocent consumers. This creates an ethical situation for baby mobile stockholders who must consider ethics when making decisions about product marketing. Employees, who are parents or potential parents, have the responsibility of promoting the sale of high-quality products to protect consumers. They also have an obligation to safeguard the company's interests as they rely on their salary. Company executives also face ethical issues as they must promote the company's interests and generate profits.

However, the providers face a dilemma as they need to maintain a good relationship with the house and provide high-quality

products on time. Their aim is also to make profits. The house itself has ethical concerns such as upholding its image with consumers, ensuring long-term market sustainability, satisfying customers, and generating profit. Sam is responsible for making a decision that could benefit the company but harm consumers, or vice versa. The timing of this decision is the issue at hand.

This is because the company has limited time to impact the stockholders at the expense of the consumer. The executives have the responsibility of customer safety and, therefore, should not ignore their duty as they try to manage their goal. Crane and Matten (2007, p. 104) argue that there is a symbiotic relation linking ethics and business, whereby ethics naturally emerge from a profit-oriented business.

However, Crane and Matten (2007, p. 105) highlight that there are two approaches to the statement, a weak and strong statement. The weak statement suggests that good concern often originates from good moralss. This implies that moral and sound concern practices ensure good concern or profit due to reduced product liability cases. Sam should consider "the long-term benefits of a concern are obtained by seeking a trusting association with the consumers" (Soares, 2008, p. 554).

According to Soares (2008, 545), profit motivation in a competitive and free market like capitalism is strongly advocated. It is believed that the pursuit of profit creates an ethically acceptable business environment. Initially, the company allocated funds to the research and design team with the objective of meeting customer demands and ensuring safety. Meeting customer demands successfully is pivotal for the company's prosperity, as failure to do so will ultimately lead to its demise. Sam needs to carefully

consider his future choices; choosing not to speak up will inevitably lead to failure for his employer.

Despite the potential consequences to his career, Sam's decision to express his concerns about consumer safety holds significance. The impact of his choice to blow the whistle will affect various individuals involved. Regardless of the path he chooses, he will be regarded as a hero. Choosing silence would lead the company to view him as a hero, whereas speaking out would earn him hero status among consumers.

The impact of supporters and stakeholders is significant. If they take action, Sam will not meet the deadline, but the company will maintain its reputation. If they do not take action, Sam might lose his job and receive special recognition from executives.They can also advance their career in the future. Keeping quiet for Sam is unethical and punishable by law and professional bodies.Supporters will feel guilty.

If Michael does not achieve organizational goals and profits, he may paintain a good reputation but face job loss for failing to meet deadlines or control Sam.He could also get publicity as the head of the design team if shareholders are involved, potentially receiving awards, salary increases, and more publicity.

The project team may face demotion and removal from the design team if Michael fails.The management would blame the research department.However, if successful, they may receive recognition and more resources to improve innovation.The management would be willing to support a team that they can trust.

Compensation,
The company,
Lose customer base,
Possible lawsuit for counterfeit products,
Incur losses,
Maintain reputation,
Make profits.
Safe merchandise for consumers,
retaining a good client base,
and ensuring safety for their kids
are all important factors to consider.If the concerns mentioned above are not prioritized,

executives may face lawsuits and potential damage to their reputation. Additionally, by managing hazards and taking advantage of currency value, parents can save money. Conversely, if they receive less value for their money and expose their children to hazards, they may lose money due to health issues and counterfeit products. It is important for babies and users to be ensured safety instead of being exposed to potential safety hazards.

According to the Consequentialism/Utilitarianism Theory, an action or decision is morally correct if it benefits the greatest number of people. This theory focuses on maximizing overall happiness by considering both positive and negative consequences. It supports actions that yield the most good while discouraging those with minimal positive outcomes. The theory is based on the economic principle of utility which aims to maximize pleasure and minimize pain. The appropriateness of an action is determined by the amount of pleasure it generates.

The central idea of utilitarianism is discussed in item (Mendola, 2006, p. 2). The presented scenario revolves around Sam's dilemma in making a decision that considers its effects on the company. Sam has an ethical obligation to prioritize the well-being and safety of his niece and other children, while also safeguarding his employer's interests. The evaluation of Sam's choice will be based on its overall benefit for individuals.

If there are more recipients than non-recipients, Sam should keep denouncing the company's decision to minimize negative effects. However, if the opposite is true, Sam can stay quiet and allow the company to sell the merchandise. Likewise, Michael also has choices that will impact multiple individuals either positively or negatively. He can try to discourage the executives from proceeding with

the selling program or decide not to intervene and let them proceed. Nonetheless, both options will lead to advantages for some participants and disadvantages for others. This is where utilitarianism becomes important.

When making a decision, it is crucial for the decision-maker to carefully consider the consequences for both those who will benefit and those who will suffer. This is especially important in the context of whistleblowing, where weighing the pros and cons becomes essential. The individuals involved have different choices available to them that can positively or negatively impact others.

For example, Sam has the option to inform the company about the marketing of their product or choose not to take any action. If he decides to act, there are several benefits that can arise from this course of action. Firstly, his actions would be seen as ethical and truthful by the public, resulting in him being perceived as a hero.

In addition, Sam will actively take steps to protect his niece and other children from any harm that may be caused by faulty products. This proactive approach will prevent any damage to the company's reputation resulting from the sale of defective items. It is crucial to note that Sam will also be free from the guilt associated with selling such products. Implementing these measures will contribute to the company's long-term profitability as it maintains its customer base and upholds a positive public image. Moreover, this dedication to high-quality products will foster unity among employees in delivering superior offerings to consumers.

By taking action, Sam and all stakeholders can benefit from ensuring the safety of their children and avoiding the purchase of faulty products. However, there are also

negative consequences to consider. These include a high risk of Sam losing his job at the company and potential failure in achieving organizational goals, which may result in Michael losing his job.

The company and stockholders may face short-term losses due to the lack of marketing for the products. Failure to meet the deadline by employees could result in no dividends for stockholders, leading to job losses for other employees. Additionally, if the project team fails to meet the deadline, it will cause a temporary loss for the company. Suppliers will also suffer as they lose their market share. However, if Sam chooses not to intervene, he will benefit by retaining his job and assisting Michael and the team in meeting the deadline.

Michael is anticipated to be acknowledged as a capable team leader by the corporate executives, potentially resulting in publicity for him. Moreover, this will lead to short-term profits and satisfy shareholders with dividends. The diligent efforts of the team will result in compensation while contributing to product sales and benefiting the company. If Sam opts not to take any action, there will be several ramifications. Primarily, he will feel guilt and remorse both personally and professionally. Additionally, concerns about consumer safety may arise, possibly leading to legal proceedings against the company.

The house's reputation and importance among the public will decrease, leading to stockholders withdrawing and consumers switching to other companies. This will result in long-term losses for the company, leading to job cuts for Michael and employees. Furthermore, parents will have to bear expenses for treating their children and purchasing defective mobile devices.

Finally, the house and the providers will have to face legal

action from parents for providing faulty merchandise.

Weighing

• Take action: benefit: 22 injury: 11
• Does not take action: benefits: 12 injury: 26

These results indicate that there will be more harm if he does not take action and less benefit. Taking an action will result in more benefits. This means that Sam will be justified in taking legal action against his company.

Elements of Virtue Ethics

Griseri and Seppala (2010, p.

54 ), the theory of virtuousness believes that a good life is fundamental to comprehending moral actions, instead of relying on judging right or wrong. Evaluating one's life as good relies on their character, encompassing personality traits. This theory recognizes that having a good personality results in considering one's life as good. The concept of virtuousness suggests that individuals possess a moral character that drives them to behave in certain ways, such as demonstrating kindness and niceness, among other virtues.

This theory suggests that virtues increase the likelihood of people behaving in a specific way rather than forcing them to do so. Virtues are applicable in everyday life and business practices, serving as crucial boundaries that distinguish success from failure in administration and decision-making. In this specific scenario, Sam's decision to blow the whistle may be driven by a desire for justice, truthfulness, honesty, and generosity to ensure doing the right thing. From an ethical standpoint, this decision is deemed correct since it exposes company secrets for the benefit of the majority of stakeholders.

The elements in the consumer side would benefit fully from the determination. This is a non-consequentialist theory in action. Personal

moral qualities that would be applicable in this case consist of truthfulness, unity, fairness, and bravery. Sam must possess integrity and bravery in order to truthfully communicate the negative impact the company has on the consumer's well-being and prosperity. Consequently, the company would be dishonest with its customers by selling low-quality products, thus lacking fairness and causing a loss of trust from its clientele.

Tom should also have the courage to stop the sale of defective Mobiles, even if the company considers him a liability.

Personal Reflection

In most cases, working in unethical companies can be challenging for someone who has strong moral values. This is because being moral means prioritizing the well-being of the public over the interests of the company in many situations. Whistleblowing is defined as "the disclosure of illegal, immoral, or illegitimate practices controlled by employers, made by organizational members (former or current) to individuals or entities who may be able to take action" (Koehn, 1999, p. 71-73).

In the case of Sam, he would have chosen the appropriate approach that aligns with fair and equitable practices. This approach is not based on ethical theories, but rather on personal principles and the moral responsibility of employees towards the company and its clients. Employees have a moral obligation to protect the future of the company and ensure that customers receive their money's worth. Business operations are conducted with the objective of providing value for customers.

It cannot be argued by the executives that the defect on the baby carrier for Sam is a

choice issue. This is because the baby carriers are designed to be flexible in use, safe, and convenient. If the quality issue had been something minor like fading colors, Sam would not have spoken up. However, the quality issue at hand is very serious and would directly harm the customer. Therefore, it is both morally and strategically wise to protect the customer from this harm.

Decision

Understanding ethical theories is essential in business decision-making processes.

The utilitarianism theory aims to explain the actions taken by individuals in difficult situations, where positive outcomes are not guaranteed from all perspectives (Mendola, 2006, p. 2). It asserts that an action is morally right if it leads to the most positive effects on the greatest number of people. Conversely, the virtue theory challenges this idea by stating that the judgement of what is moral or immoral should be based on the individual's quality of life.

According to this theory, individuals lead a good life due to their possessed virtues, such as honesty and truthfulness.