The rights of shareholders can be bolstered by changes in state and federal law, and there have been some attempts to do that since the late 1990s. Finally, we should note that the well-known Golden Rule, “Do unto others as you would have them do unto you,” emphasizes the easier of the two universalizing requirements: practicing reversibility (“How would I like it if someone did this to me?”). Virtue theory emphasizes the value of virtuous qualities rather than formal rules or useful results. The reputation of an organization is built on the goodwill that suppliers, customers, the community, and employees feel toward it. Trustworthiness: Be honest—tell the truth, the whole truth, and nothing but the truth; be sincere, forthright; don’t deceive, mislead, or be tricky with the truth; don’t cheat or steal, and don’t betray a trust. The corporation may do a cost-benefit analysis that puts the greatest good of the firm above all other considerations. Where organizations no longer function, inevitably some employees are unhappy. In polluting against laws that aren’t enforced, is it still acting “within the rules of the game”? Legal compliance is not the same as acting ethically. How can you tell? Sears Auto Centers were the largest providers of auto repair services in the state. By changing two letters in shareholder, stakeholder theorists widened the range of people and institutions that a corporation should pay moral consideration to. People in an organization need some quality or excellence to strive for. Why or why not? Suspiciously, Andersen’s Houston office also did some shredding around the clock, appearing to cover up what it was doing for Enron.
Friedman emphasized the primacy of this duty in his writings about corporations and social responsibility. long-run success. Citizenship: Play by the rules, obey laws; do your share, respect authority, stay informed, vote, protect your neighbors, pay your taxes; be charitable, help your community; protect the environment, conserve resources. Insofar as his actions…reduce returns to stockholders, he is spending their money. Differentiate between corporate social responsibility and corporate citizenship.
We have established elaborate constitutional, parliamentary, and judicial provisions to control these functions, to assure that taxes are imposed so far as possible in accordance with the preferences and desires of the public.….
Others would recommend considering ethical problems from a variety of different perspectives. Here, we take a brief look at (1) utilitarianism, (2) deontology, (3) social justice and social contract theory, and (4) virtue theory. They may also value honesty, caring, fairness, courage, perseverance, diligence, trustworthiness, or integrity. Simply put, what is legal is not necessarily ethical. If we say that Microsoft is a “good company,” we may be making a statement about the investment potential of Microsoft stock, or their preeminence in the market, or their ability to win lawsuits or appeals or to influence administrative agencies. Then, assuming you have all the needed information, the decision process is as follows: It is often helpful to identify who (or what group) is the most important stakeholder, and why. Why is this refocusing needed? philanthropic impact of their way of conducting business and the activities they But this redistribution would require a governing power to decide who gets what and when. Even the most dedicated free-market capitalist will often admit the need for some government and some forms of welfare—Social Security, Medicare, assistance to flood-stricken areas, help for AIDs patients—along with some public goods (such as defense, education, highways, parks, and support of key industries affecting national security). Sears Roebuck & Company has been a fixture in American retailing throughout the twentieth century.
In Singapore during the 1990s, even indirect criticisms—mere hints—of the political leadership were enough to land you in jail or at least silence you with a libel suit. Capitalist thought takes a different approach, rejecting any giving that is not voluntary.