Business Ethics: What should we do in commerce?
We discuss the application of the ideas about ethics from "the marketplace of ideas" to the "marketplace" of economic transactions.
Concepts of ethics are essential in commerce. Whether we can depend on a handshake, or require attorney-proof written contracts and standards of procedures, we need to know what the risks are, and what the underlying principles are.
Some people in the world of business believe selfishness is necessary and foremost. We discuss this common belief in the section on "Egoism."
Some say that a quality product is what leads to a company that lasts a lifetime or for generations. Then, the business ethics theory is to continue success in developing a good, lasting product line.
Others say that quality service is the key to success. On-going good service and attention to the customer leads to a lasting company. More and more importance is being given to Consumer Service in the contemporary world where digital devices often separate us from direct human contact. Yet, that feeling "special" is what makes customers return. Therefore, the accounting value of "Good Will" is basic to longevity of the business. This financial statement entry looks to the value of the "brand" and the ratio of returning customers. This is a dollar amount that can be evaluated.
Some see the role of stakeholders as paramount. Stockholders (who own shares, an undivided percentage, of the company), the Board of Directors (chosen by the stockholders), the officers of the corporation (chosen by the Board of Directors), managers (hired by the President of the corporation), employees (chosen by the managers), suppliers (chosen by the managers), the community in which the business is located, and the governments of the nation, the state, and the local communities -- all have a stake in the on-going success of the company. Each of them should have an input into the actions of the company that impact their lives and functions. This is a summary of the ethical system that centers on stakeholders.
There are many ideas about business ethics. Our thoughts about ethics in business impact political theories and many other parts of our lives. Our underlying concepts of what is "good business" gauge how we feel government should respond to or regulate business; as well as what we consider success, or what the ancient philosophers called "the Good Life."
Before we can select conclusions about specific ideas about business ethics, we need to have a discussion about the role of selfishness, or egoism in business transactions.
To begin, let's look at "Egoism" itself.
An explanation follows in the next Chapter.
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