Introduction
Business ethics theories are the moral principles that a company implements to ensure that all the individuals working in it act with acceptable behaviors. A few business theories that exist are the utilitarian, rights, common good, justice, and virtue approached. In not-for profit organizations it can include: honesty, integrity, confidentiality, transparency and equity
.The utilitarian approach is the oldest one and it focuses on using ethical actions that promotes the most good or value among the society while minimizing the amount of harm as possible. Businesses use this approach to ensure the outcome of various situations helps a larger number of stakeholders(Saracel, 2014).
A right ethical theory is based on the belief that all individuals have right in life and should be treated with respect and dignity. Individuals must personally use ethics in order to achieve their end goals without mistreating people. This approach is used by organizations by not imposing their missions or systems on consumers.
The common good approach attempts to promote the common values and moral principles found in a society. This approach is used by different companies to ensure their overall mission is in harmony with the society as a whole since it changes from place to place and country to country.
The principle of justice is where all humans are treated equally through society regardless of race, rank, class or creed. Virtue approach focuses on ethical principles that should be evident in the society.
Profit making organizations should pursue their goal of maximizing profit in an ethical way, not via slashing employees’ expenses, lowering product quality or impacting the environment negatively. Companies who want to grow profits may use unethical environmental activities by increasing pollution, destroying forests and contaminating water. They might find it less costly to carry out their operations without complying with the required procedures, especially for young and growing businesses. Failure by these organizations to apply these ethical approaches therefore, my lead to customers turning away, and shareholders refusing to buy shares and therefore may find hard times to raising capital, or may be fined by legal authorities. Unethical business issues can lead to smeared public relation, loss of respect and trust on the part of consumer. (Saracel, 2014).
In not-for profit organizations, the purpose of adopting these principles is to provide employees, volunteers, and board of members with guidelines for making ethical decisions and most importantly, earning public trust. The council for non-profit organizations encourages them to apply these principles, for instance to use those that have already been established by certain professional groups.
A good example is the Cord of Ethics of the National Association of Social Workers that employs licensed social clinical workers. Having these ethical codes applied in non-profit making institutions attracts talented employees, retains donors and recruits board of members, and ensures that all these processes are done with a lot of transparency and accountability. Many organizations often post their ethical codes of values on their websites for it to be fully transparent, and to demonstrate that their organization is really committed to accountability. If these organizations fail to abide, they may lose donations and other benefits. Most organizations often engage clients and consumers in ways that touch confidential matters and maintain trust of those it serves. They in turn, find these policies as appropriate for clients’ confidentiality.
References
SARACEL, N., ERÜLGEN, A., & BERBEROĞLU, A. (2014).Evaluation of Six Psychological and Ethical Egoism Cases.İçindekiler.
