Business and Society - 1650 Words

Business and Society (Case Study Sample) Content: APPLICATION OF ETHICAL THEORY TO A CASE STUDY: CASE 4IntroductionEthical theory is that branch of philosophy dealing with formulation and evaluation of the theory or theories of moral rightness and goodness. It attempts to identify features of virtue which are morally right and morally good. Ethical theory has two components: Theory of the Good, concerned with moral evaluation of people and Theory of Obligation, concerned with the moral evaluation.For the situation in Case 4 of Sam Moyuka and the global car manufacturer, the analysis below will attempt to analyze the stakeholders, apply the Care of Ethics and Virtues theories then give a personal reflection before concluding.Stakeholders AnalysisStakeholder theory seeks to answer the question regarding the kind of management has to stakeholders. This propels managers to chart out how to conduct businesses with all stakeholders in mind. Management must create relationships, get shareholders inspired and create such an atmosphere where everybody desires to give their best. A stakeholder is any person with an interest in the operations of the organization and how it operates and performs. Many stakeholders hold some degree of power, influence and control which they can exert or use over the organization.Firms, organizations and even individuals should strive to come to decisions that satisfy all stakeholders, decisions that lead to situations where all involved parties in the joint relationship gain. Under the stakeholder theory and analysis, firms or organizations have to examine effect of their decisions on all stakeholders. If the concerned entity is an organization, stockholders should be able to indirectly benefit from actions and not be harmed by decisions made under the stakeholder principle.The stakeholders in this case include:Employees: In our case these category of stakeholders would be represented by Sam Moyuka, Head of Quality.The customers: In our case, these are the current and pote ntial customers who will eventually purchase or buy the manufactured cars produced offered.Shareholders: They are part of those who have an interest because any outcome, positive or negative would affect profits eventually coming to them.Management: Kathy, Sam Moyukaà ¢Ã¢â€š ¬s line manager, who listens carefully, takes many notes and promises to escalate Samà ¢Ã¢â€š ¬s concerns to senior levels of management. The ethics of care approach would probably categorize her as a feminist.Other stakeholders would include:Suppliers: As they provide the resources that will be needed during the cars production, they stand to lose if production is affectedProducers: They stand to lose market and revenues if the information is disclosed to the public who may not eventually buy the suspect cars.Trade unions: They do have a stake on the matter since whatever may befall the employee Sam for disclosing or following up on the information may have effects on trade union action.Global market: This ca tegory may be the disenfranchised stakeholders as they are denied the full information to enable them make informed choices.Government agencies: Being the ones charged with safety regulation, they too would be interested in the information gathered by Sam.Industry experts: Comments made on the car manufacturing firm can have far reaching implications more so if the information in the custody of Sam were to be trueThe TheoriesEthics of Care TheoryNoted proponents of this theory includeÂCarolÂGilligan,ÂMichael Slote and VirginiaÂamong others. The underlying principle is action that is caring towards the vulnerable and those who need support. An action is good or bad if cares for others and builds relationshipsIt hinges on the significance of each having a voice, listened to carefully and being heard respectfully. Ethics of care directs our focus to the need for being responsive in relationships and to implications of losing touch with the self and with others.Ethics of care brings out the point that morality is based on a psychological logic. It reflects the way in which we experience or perceive ourselves in our relationships with others. Origins of morality are based on human relationships. They give rise to concerns and cares about carelessness and injusticeThe origins and growth of ethics of care can be traced to the moral psychology studies of Carol Gilligan. Gilligan eventually concludes that morality is interpersonal and goodness can be equated with assisting and pleasing others.The question then becomes how we came not to care but how did we come to lose our capacity for being empathetic and mutually understanding.Virtue of Ethics TheorySome of the advocates of this theory included Aristotle and Confucius just to mention two.According to them, what makes something bad or good, wrong or right, is the fact that it promotes or embodies acknowledged cultural traits as bad or good. These traits will in turn lead to lesser or greater realizatio n of the potential for fully flourishing human lives.Boatright has pointed out that ethics and morality are interchangeable, though they do have some differences. Aristotle defined virtue as a character trait that brings itself in actions that are habitual. It is conforming to standards of right. They are inherited and are practiced on daily. For one to be ethical one has to have moral.Business virtues are having a sense of pride and self-respect in what you do; to make sure you can get along with others. Business Ethics can be defined as the unwritten and written codes of values and codes that determine actions and decisions within the given company.Virtue ethics lays a strong emphasis on developing moral character and human values. Virtue ethics will provide tools for leaders and managers to discern their attitudes towards others and the implications of their decision-making.It is an agent-based approach that focuses on the fundamental motivations and character and of the specific moral agent. It is not limited to a rule or guideline, but instead has the individual rationally seeking excellence as a goal in itself and lies between the extremities of cowardice and rashness. It seeks finding a balance in decision-making while applying wisdom, courage, temperance, integrity, consistency and fairness.Aristotle is an early developer of virtue ethics. Aristotle wrote that the virtue of man will be that state of character which makes that man good, which also makes him do his or her own work better. The aim is to perform the right action, with the right person, to the right extent, at the right time, and in the right way. Although this is the objective, Aristotle considers achieving this goodness as rare, laudable, and nobleAristotle believed that people are naturally geared to pursue the right thing or good, but these inclinations do not develop automatically. He strongly believed one is what one does; the virtuous individual does what is correct or right because he or she wants to become virtuous. You cannot be accidentally or coincidentally virtuous.Being virtuous is not simply just doing right or good occasionally; rather it is consistently choosing right acts with right motives. Virtue is a continual act and one becomes what he or she does. If you constantly lie, you become a liar and the continual act of lying develops that specific kind character trait in the self. If you cut corners or take shortcuts in business and practice some unethical tactics like withholding or suppressing information like in our global car manufacturer case, you are unethical.Personal ReflectionBy a delving into general character traits of a virtuous individual we shall be able to have an insight if the actions of all the stakeholders in the Manufacturing firm in Case 4 acted with virtue. Would the virtuous person in the above case have disclosed the information, withheld information or suppressed the information.Probably remembering the thirteen principles and values for living classified and discussed by Benjamin Franklin would shed some useful light in evaluating for our case.Personal traits: Temperance, Order, Resolution, Frugality, Moderation, Industry, Cleanliness and Tranquility.Social traits: Silence, Sincerity, Justice, Chastity and Humility.It would be erroneous to assume that all people in leadership and top positions in society or organizations are virtuous and possess the above discussed virtues. Mechanisms have been suggested to enhance moral behavior and character amongst those involved, thereby avoid lapses in ethics as in the case under review involving the car manufacturing firm. Some include more stringent government regulations, enhanced processes and systems in our financial institutions, better corporate governance, and increasing customerà ¢Ã¢â€š ¬s education.Good ethical behavior in every aspect of life is and should be part of the job for everyone.ConclusionVirtue ethics gives managers, business leaders and emplo yees with the opportunity and chance to ask themselves the kind of people they will bec...