Additionally, no single business owner can know what kind of ethical actions will bring the most utility to the society. They are his employers, and he reports to them at the end of the day.
It is for the market to decide that. It can be argued that self-interest can contribute to an ethical market. The purest form of free markets, however, is one where there are no rules, and everyone acts in his or her self-interest, within the bounds of the law. In this case, self-interest can lead to altruism when the business, as well as the greater community benefits from the actions of the business.
Additionally, some leaders might prefer to place their loyalty at the feet of their principles, rather than any particular group of people. And yet, on the other hand, it can also be argued that the loyalty of the business leader should lie with the shareholders.
Where Is our Sense of Duty Directed? However, that is not to mean that the business should not practice compassion in its daily activities. Should Business Act in Self-Interest?
In the regular markets within which businesses operate, we are subject to many regulations. But what, exactly, are the theories that affect our everyday business practices? This is the principle of egoism, which has been promoted by many prominent philosophers, including F.
An action that brings quick and massive profits in the short-term can bring consequences that are even more destructive than the benefits are constructive. Whenever they act, they will be acting according to some ethical theory, whether they know it or not.
Their interests should, therefore, come first. Capitalism, at its root, advocates for a free market. After all, they are the reason why the business flourishes at all.
They may have personal ethical principles they would rather uphold at all times, sometimes to the chagrin of their various stakeholders. There are many other stakeholders who can lay claim to the loyalty of the business leader:Jun 26, · Ethical theories in business are important for everyone, business owners and customers and everyone else in between.
Some ethical theories include sense of duty, business self-interest, and. Immanuel Kant’s Non- consequentialist Ethical Theory - 1. Introduction According to Immanuel Kant the driving force behind our actions should be dictated by what is inherently good as sole consideration and not be based upon the effects of what such actions may produce such as the case in the consequentialist theory of cause.Download