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Business ethics

1. Is the goal of a business simply to maximize profits for its owners? Why or why not?

2. Do some independent research. Find an article or editorial which identifies the stakeholder model and advances its thesis. Do you think the author makes a compelling case for this model?

3. In a local or national newspaper, find an article about a topic related to business ethics. Read the article. Then, discuss one of the following questions:

? Explain what the article is about. Identify what you believe to be the goals and objectives of the business managers or owners described in the article. Do you find their objectives consistent with the stakeholder model described in your text? Do you think most managers consider stakeholders outside of their company? Why or why not?

OR

? Explain what the article is about. Pretend that you are a customer of the company described in the article. Does the ethical stance of the managers impact your purchasing decisions as a consumer? Why or why not? Does your decision change based on the quality of the product the company produces?

Solution Preview

Respond to the following questions in your own words. Your responses should include specific examples. Writing requirement (3-4 pages in length)
1. Is the goal of a business simply to maximize profits for its owners? Why or why not?
The goal of a business is not simply to maximize its profits for its owners. The reason is that apart from the shareholders there are other stakeholders in a business whose interest have to be considered. For instance, the employees must be paid reasonable compensation. Further, the business has responsibility to the community in which it does business. Next, the business has to protect the interests of its suppliers and creditors. Maximizing profits is not enough, the business must see to the interests of its other investors also. Most important, the business must pay taxes honestly, and give value for money to its customers. Maximizing profits addresses the needs of only the shareholders.
Apart from that a business should not seek to maximize its profits by doing business that is illegal. The business should follow the law of the land. For example, if a business makes profits by selling banned drugs or illicit arms to terrorists, such business is not acceptable. Usually, illegal businesses have very high profit margins but that is not acceptable.
Similarly, a business should not indulge in unethical business. Consider this, if a business cheats its customers by selling shoddy or dangerous products to maximize its profits is not acceptable. In some cases a firm may simply delay or avoid recall of products to maximize its profits. This is punishable. For instance, Toyota delayed the recall of its vehicles even ...

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This answer provides you an excellent discussion on Business ethics

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