Business Ethics Summary Essay Example

loss refers to the decrease in value and usefulness of an asset. It means writing down the asset due to loss of utility (National Consumer Law Center & United States 1994). One way to minimize utility losses is by ensuring sufficient liquidity as part of due process policy. This allows businesspeople to reach a consensus price that reflects their knowledge about securities' value, corresponding to the estimated probability of loss in the market. Another approach is having enough traders; otherwise, the market will eventually collapse.

Prediction markets have a particularly urgent situation since their primary objective is not to satisfy traders' demands. Market makers have individual utility functions for money and aim to maintain a consistent level of expected utility, rather than maximizing it, in order to prevent any decline. They also engage in trading orders that align with their risk-neutral probability.

Question 3: Summarize the main points made by John Boatright in his work "What's Wrong and What's Right with Stakeholder Management." Additionally, provide two objections to his thesis. Finally, state whether you agree or disagree with Boatright's position.

According to the moral perspective, business ethics emphasizes the importance of the stakeholder concept. It proposes that managers should take into account the interests of all stakeholders when making decisions. In 1994, John Boatright contended that stakeholder management is advantageous for all stakeholder groups; however, it overlooks the fact that a business can also benefit stakeholders by acting in the best interest of shareholders. This oversight arises from a mistake made by proponents of stakeholder management.

Boatright asserts that stakeholder management can be problematic in two ways. Firstly, when the current

shareholder-focused corporate governance system is not recognized for its benefits to all stakeholders. Secondly, when it assumes that only management can address stakeholder interests without considering other approaches. However, some objections argue that this thesis lacks incorporation of a corporate governance system.

The text highlights the importance of considering both shareholders and non-shareholders in managerial decision-making, and finding a balance between their interests. However, I hold an opposing perspective where I believe that stakeholder interests should be given equal importance to shareholder interests within a corporation, similar to traditional firms.

According to Epstein, employers and employees are fundamentally equal when it comes to EAW.

Epstein (1992) contends that the persuasiveness of this argument hinges on whether or not one finds it compelling. According to Epstein, employment at will places employers and employees on an equal footing as either party can terminate the employment in the absence of a contract. It should be noted, though, that there are exceptions to this rule. For instance, it would be considered unacceptable to dismiss an employee for refusing to engage in illegal activities grounded in public policy.

The text suggests that employment-at-will is justified by employers' proprietary rights to hire or fire employees as they deem suitable. It also mentions the European Arrest Warrant (EAW) as a safeguard for both employers and employees. However, the argument lacks persuasiveness as it primarily focuses on fairness in terminating the employment relationship and suggests that reputational effects are not advantageous for employers.

Question 5: Duska's discussion centers around his belief about loyalty. Would you say his viewpoint on loyalty is persuasive?

What elements of it might you disagree

with? What implications might an altered conception of loyalty have on his contention that whistle-blowing does not require moral justification? Answer: According to Duska (2003), there are three philosophical positions concerning loyalty. The first is idealists, who are dedicated to connecting abstractions to an entity. The second are social atomists, who believe that loyalty can be reduced to other relationships and only people can be objects of loyalty. The last position is a moderate one, stating that loyalty is a true relation among both individuals and groups.

According to Duska, the idea of loyalty is not persuasive because his theory fails to acknowledge the success of whistleblowers beyond simply meeting the minimum moral requirements. Moreover, in many cases, harm has already taken place, rendering prevention an impractical goal. One implication of a revised understanding of loyalty is that Duska's assertion that whistleblowing does not necessitate moral justification may lead individuals to disregard the legal aspect of loyalty. Duska's perspective is rooted in morality, which differs somewhat from the legal standpoint. Loyalty encompasses specific obligations and cannot be easily predetermined.