The Scientific Treatment Of The Moral Order Commerce Essay Example

provides instructions on how to behave morally but also imposes a clear responsibility to do good and avoid evil. Albert Schweitzer, a Nobel Peace Prize winner, stressed the importance of ethics, defining it as the beneficial preservation and promotion of life.

It is bad to damage and destruct life. And this ethic, profound and universal, has the significance of a faith. It is religion.. ''

ETHICS Doctrine:

Ethical motives doctrines are the steering rules that facilitate concluding from a specific act to a judgement as to its morality. The critical doctrines are as under: Deontological moralss or deontology, derived from the Grecian word 'deon ' significance duty or responsibility, is an attack to moralss that focuses on the rightness or inappropriateness of actions themselves, as opposed to the rightness or inappropriateness of the effects of those actions.

The text discusses ethical theories that consider the inherent rightness or wrongness of an action and the effects it has on the overall outcome. Teleology, meaning design and purpose, explores the concept that there is an underlying intention or cause directed towards achieving a final result. Enlightened egoism takes into account the benefits, harms, and rights involved. This perspective holds that an action is morally right if it maximizes benefits for oneself without intentionally harming others, and if the benefits are believed to justify any unintended harms that may occur.

Utilitarianism is the belief that an action is determined solely by its contribution to the overall public utility, which is evaluated as the combined happiness or pleasure of all individuals. It emphasizes achieving 'the greatest good for the greatest number'. Relativism, on the other hand, refers to the concept of dependence, where all

aspects or elements of experience or culture are relative to other elements or aspects.

It also applies to the philosophy of truth relativism, which proposes that there are no absolute truths, only relative truths. Virtue Ethics theory highlights character rather than rules or outcomes as the central element of ethical thinking. Justice is the notion of moral correctness in action or attitude and is connected to fairness.

Business Ethics:

Business ethics is a practical form of ethics.

The text below discusses the application of moral or ethical norms to concerns. It states that concern ethics encompasses all functions or departments within an organization, including HR, legal, conformity, finance, accounting, insider trading, compensation, discrimination issues, employee problems, occupational safety, sales, marketing, production intellectual property rights environmental issues operations price fixing and product testing among others. The observance of ethics in business is greatly influenced by the organization's values as well as the decisions made by individuals in their respective roles. An organization's culture comprises attitudes experiences beliefs and values and is referred to as 'the specific collection of values and norms that are shared by people and groups within an organization and that control the way they interact with each other and with stakeholders outside the organization'.

Corporate culture encompasses various aspects, one of which is the ethical climate within an organization. The ethical climate refers to the collective understanding of what constitutes right conduct and how ethical dilemmas will be handled. This climate significantly influences decision-making across all levels and situations, serving as a reflection of a company's moral consciousness. Andrew P. Witty, CEO of GlaxoSmithKline, stresses the significance of upholding an ethical culture by stating that ethical behavior should

not be limited to specific occasions or moments but rather practiced consistently throughout each day.

In summary, GlaxoSmithKline sets the highest standards in our DNA. We aspire for our ethical behavior to set us apart from other companies. This can be achieved through either a compliance orientation or a values orientation. A compliance orientation enforces specific behaviors for employees to adhere to, while a values orientation aims to foster shared values.

Although punishments are attached, the main focus is more on an abstract core of ideals such as respect and obligation. Therefore, each company, depending on its ethical climate, chooses to follow an orientation plan to ensure that the ethics culture is developed and pursued in both letter and spirit. Most companies begin the process of establishing organizational ethics plan by developing a standard of behavior. Standard of behavior are formal statements that describe what an organization expects of its employees. Such statements may take three different forms: a code of ethics, code of behavior, and statement of values. A code of ethics is the most comprehensive and consists of general statements that serve as principles, the basis for rules of behavior.

A codification of behavior is a written document that outlines acceptable or unacceptable types of behavior, possibly including inspirational statements. One type of ethical statement is a statement of values, which is aimed at the general public and specific groups. Values statements are created with input from all stakeholders and are fully developed by leadership. Donald L.

Evans, the 34th U.S. Secretary of Commerce (2001-2005) under George W. Bush, emphasized the importance of fundamental human values such as honesty, trust, and fairness in a prosperous market economy.

He highlighted that these values are crucial for shaping the culture and conduct of businesses to create markets that are both free and efficient. To achieve this goal, companies develop or adjust their ethics program to align with their mission statement, uphold core values, and meet stakeholder expectations.

Application of ethical principles to the oil and gas sectors:

I have evaluated the business ethics of the Oil and Gas industry to showcase the entire process and related ethical dilemmas. This industry comprises global corporations that are divided into three operational divisions: Upstream, Midstream, and Downstream. The Upstream sector engages in activities such as exploring, drilling, and extracting oil and gas. Midstream operations involve constructing pipelines for transporting crude oil and its refined derivatives. Lastly, Downstream focuses on refining crude oil and processing various outputs like gasoline, natural gas, and petrochemical products.

The main companies in the industry are Exxon Mobil, Chevron, Shell, BP Amoco, Saudi Aramco, and Schlumberger. Only a few companies specialize exclusively in the exploration, refining or marketing of petrochemical products. These multinational corporations have a crucial impact on major economies and significantly shape global energy supply. Oil, natural gas, coal and other petrochemical resources are essential for human existence.

These products serve various purposes, such as fueling vehicles and other transportation methods, manufacturing and cooking food, providing ingredients for medicines, fertilizers, textiles, plastics, and other goods that enhance human life. Despite their importance in our daily lives, the emissions produced during their production and usage contribute to the greenhouse effect in the atmosphere. This phenomenon leads to climate change which can have significant impacts on human health, food availability, security measures, economic activity, water resources,

and physical infrastructure. Additionally, the natural resources used in producing these products are finite and irreplaceable. The ethical dilemma faced by multinational corporations in the oil and gas industry involves striking a balance between engaging in socially harmful practices like emitting greenhouse gases while pursuing their own interests of generating profits.

"The end does not justify the means" accurately expresses the ethical dilemma faced by oil and gas trans-national companies. Their crucial ethical responsibility/issue is sustainable development and corporate social responsibility.

Sustainable development:

The term 'Sustainable development' is defined in the Report of the U.N. Brundtland Commission, Our Common Future, in 1987 as: Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains two key concepts: I) the concept of needs, particularly the essential needs of the world's poor, which should be given overriding priority; and II) the idea of limitations imposed by technology and social organization on the environment's ability to meet present and future needs.

If the current generation exhausts all available resources in order to satisfy its increasing needs, future generations will be unable to access these resources. This will result in a long-term effect on the Earth's climate. The idea of sustainable development addresses environmental, social, and economic aspects. It considers the holistic viewpoint of a company. John Browne, CEO of BP Amoco, has emphasized that genuine sustainability involves achieving profitability while also acknowledging global realities and concerns.

We are not separate from the universe; it is also our universe. An environmentally sustainable organization aims to engage with its community and strive for a harmonious balance between the economy, society, and

environment in its operations. By seeking this balance, an organization can effectively manage and preserve natural and economic resources while considering the needs of future generations.

Oil companies face a significant ethical dilemma regarding evaluating the potential environmental consequences of their operations and implementing appropriate strategies to address, control, and oversee these effects. Their main focus centers on extracting and utilizing petroleum oil, which negatively affects the ecological balance. This involves extracting crude oil from the Earth's surface and refining it into different petroleum products, thereby causing harmful impacts on the environment. These impacts include greenhouse gas emissions, oil spills, and the gradual depletion of non-renewable energy resources like crude oil. Greenhouse gas emissions comprise CO2, methane, nitrogen oxide, and nitrous oxide.

Various forms of pollution, such as oil spills that release oil into the ocean or coastal waters, contribute to planetary heating in the lower atmosphere. The cleanup process for these spills can take several years. Additionally, air pollution caused by the combustion of products like gasoline by fuel consumers is another significant contributor to environmental problems. It has a direct or indirect impact on the environment. Furthermore, improper disposal of waste in sea water negatively affects marine biology.

To tackle these issues, oil companies are implementing various strategies for mitigation and management, including transitioning towards environmentally friendly products.

Many companies in today's world, motivated by the cutthroat competition and desire for maximum profit, have neglected their core environmental concerns. Utilitarianism is applicable in this situation, as oil and gas trans-national companies should prioritize "the greatest good for the greatest number." Typically, oil companies focus on the consequences of their operations rather than the issues that arise during

the extraction or production process. To address environmental concerns, companies have implemented significant measures to minimize their harmful impact. Numerous oil companies have installed MSQ Up facilities (Motor Spirit Quality Upgradation) to increase the octane number of gasoline and reduce its lead carbonate content.

The toxic chemical in gasoline, called lead carbonate, contributes significantly to air pollution when burned in vehicles. Many companies have taken action to prioritize the well-being of individuals by implementing cleaner fuel practices and investing in Residue Upgradation plants to reduce waste and address waste disposal issues. Altruism is the ethical duty to assist, serve, or benefit others, even if it requires sacrificing self-interest.

Many of the Public Sector Undertaking refineries and downstream selling companies have embraced the principle of selflessness by working for the betterment of society and contributing their own interests. In India, as a developing economy, Indian Oil Corporation, a company worth 62 billion US dollars, provides subsidies on its crude oil products and takes on the burden of losses itself. This approach aligns with the traditional ethics or deontology followed by numerous oil and gas multinational companies due to growing environmental concerns, which have become social responsibilities for major players in the industry. Directors prioritize maximizing profits and competing for market share.

There is a trade off between the procedural and eventful ethics concern in the oil sector, but nowadays companies are shifting more towards eventful ethics as part of their everyday operations.

Corporate Social Responsibility:

Social responsibility refers to the responsibility of the business to serve the society as well as the financial interest of shareholders. The majority of oil and gas companies now consider corporate social responsibility (CSR)

issues important for their reputation and access to future business opportunities. To benefit external stakeholders, it is necessary for oil companies to make voluntary contributions, typically through the transfer of skills or resources. Many of these companies should contribute to the well-being of the surrounding communities by implementing Social Investment programs.

Companies should not view it as a burden, but rather as a responsibility. They should identify social risks, core competencies, government plans, and community contributions. It is also crucial for these companies to evaluate the implementation of these programs, whether it should be driven by budget or needs. Investing in these initiatives enhances reputation and empowers individuals to enhance their own lives. Social impact is just one aspect of corporate activities that influences the public perception of businesses. Currently, numerous oil companies have varying perspectives on their societal obligations.

These corporate societal duties encompass a variety of activities, such as philanthropy, community projects unrelated to core corporate activities (e.g. micro-credit and medical plans), initiatives related to core corporate activities (e.g. local hiring or training), social impact management, enhancement of maternal health, promotion of women empowerment, and protection of human rights. It is noteworthy that many upstream and downstream companies actively participate in these programs.

Oil and gas companies operating in various parts of the world must consider a variety of social customs and cultures. Thus, understanding their approach to social investing programs becomes crucial. Major companies no longer view social investing as an add-on to core operations, but rather as an integral part of doing business. There are three levels of social investing based on geographical location:

- Local footprint area: Focuses on mitigating social risks, supporting

capabilities, and improving welfare.

- Regional and national level: Aims to establish a positive legacy in order to obtain new government licenses or support government efforts.

- International level: Provides support for campaigns and initiatives connected to business needs.

The oil companies are focusing on how their day-to-day activities are perceived by communities and authorities in order to mitigate societal risks. Their societal responsibilities rely on how they are perceived by society, and the most suitable ethical approach is the ethics of responsibility. It is the company's duty to serve society. Exxon Mobil Corporation and other major oil companies have taken significant initiatives in education and women's empowerment as part of their corporate responsibility. They have implemented numerous scholarship programs in the Middle East and North Africa regions.

``Exxon Mobil is proud to partner with the Institute of International Education and we are honored to receive this award." Other oil companies have also taken significant steps towards implementing programs such as battling HIV/AIDS and cancer. These initiatives not only enhance the reputation of oil companies nationally, but also on the international level. Many oil companies have a strong focus on upholding Human Rights standards, which they incorporate into their Corporate Social Responsibility policies. This approach aligns with the theory of Ethics of Rights, which aims to preserve and respect the fundamental human rights of individuals. Some of these essential human rights include the right to life, equality before the law, freedom of expression, economic and social rights such as the right to work, social security, education, as well as collective rights such as the rights to development and self-governance.

Decision:

Companies worldwide are designing and implementing business

ethics programs to fulfill their legal, ethical, social responsibilities, and address environmental concerns.

By consistently addressing these issues, companies can significantly improve their own business performance, create opportunities for growth, and contribute to the development of social capital in their markets. They can realize specific business benefits, such as:

• Enhanced reputations and goodwill
• Reduced risks and costs
• Protection from their own employees and agents
• Stronger competitive positions
• Expanded access to capital, credit, and foreign investment
• Increased profits
• Sustained long-term growth
• International respect for enterprises and emerging markets

Enterprises that excel in these areas create a climate of excellence for their employees, shareholders, and communities, and contribute to the economic well-being of their countries.