Answer to Question #243115 in Management for Avu

Question

Discuss the three ethical models that may be faced by the business.

Answer 1

In business, there exist ethical models. Utilitarianism, rights and obligations, and virtue ethics are the three main ethical models in business that have been identified by ethics researchers. A firm should make decisions only after considering all possible repercussions, according to the utilitarianism ethical model. Utilitarianism is a kind of consequentialism, which maintains that the morality of an action is determined by its consequences. There are no absolute right or incorrect choices when utilitarianism is applied to a business decision. Rather, the best decision is the one that benefits the most people while causing the least harm.

Individuals and groups have rights, and the firm has a responsibility to protect those rights, according to the rights and duties ethical paradigm. When creating a parental leave policy, for example, a corporation can decide that all new parents have the right to spend adequate time with their newborn. Recognizing its responsibility to respect and defend this right, the corporation decides on an acceptable length of paid leave time to provide new parents.

Business action is guided by the question, "What would a virtuous company/person do?" in this ethical approach. Often, the virtuous company or person in question is an ideal that the firm aspires to mimic, rather than a real person or company. When someone asks if a virtuous organization would make a given decision, what they're really asking is if the action can be adequately defined using virtuous adjectives like kind, helpful, and responsible.