Can Profitability and Morality Co-Exist - 10045 Words

Can Profitability and Morality Co-exist? Business Ethics and Corporate Governance INTRODUCTION TO BUSINESS ETHICS What is Business Business is a legally recognized organizational entity existing within an economically free country designed to sell goods and/or services to consumers or other businesses, usually in an effort to generate profit. It is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities. What is Ethics? Ethics are standards of conduct that indicate how one should behave based on moral duties and virtues. Ethics means †¢ character or manner †¢ Science of morals †¢ Recognized rules of conduct †¢ Moral principles Objectives of Ethics †¢ Studies human behaviour †¢Ã¢â‚¬ ¦show more content†¦What is Profit? Profit is the reward of factors of production in accordance with the source of service. It is the excess of income over cost of production. For economists, Profit is the excess over the opportunity cost. For accountants, Profit is the difference between income and expenditure computed according to certain rules and regulations. Profit can be classified as Tangible and Intangible Profit. The objectives of a business determine the interpretation of profit. Profit acts as an incentive that attracts businessmen and potential investors to produce and to introduce new products and cost reduction measures. Profitability is of two types: Tangible and Intangible (a) Tangible Return on Investment Cash flows Dividends (b) Intangible Trust of the consumers of the organization Evaluation of the Organizations profits Status of the people behind the organization Theories of Profit 1. Reward for taking risk- The theory attributes profit to the act of risk undertaken by the owners. It assumes that other factors remaining the same, higher the risk, higher the rate of return. 2. Compensation for Frictional Factors- Some economists associate profit with imperfections in the adjustment of the economy to dynamic changes in the modern world. Benefits due to some change in the dynamic forces will enable entrepreneurs to enjoy a higher return on investment for a while till the economy reaches new equilibrium. 3.Show MoreRelatedA Moral Dilemma2001 Words   |  9 Pagesmoral reasons for choosing each action. A whistleblower can be anyone who has and can report insider knowledge of illegal activities that are happening in an organization. Therefore we can also say that whistleblowers can be supplier, client, contractor or an employee who somehow becomes aware of illegal activities that are happening in a business either through being told about it or witnessing the behavior. The alleged information of wrongdoing can be grouped in many ways, law, regulation, violationRead MoreMilton Friedman s Philosophy, Consumption Analysis, And The Theory Of Stabilization Policy Essay1601 Words   |  7 Pagescorporate responsibility. These elements, based off their motivation, can be ordered into two or three distinct gatherings, which are revenue driven associations, not-for-profits, and governments. Initially, for-profits are the ones looking for increases for the proprietors, not-for-profits are ther e to do good for the general public, and governments are risen to characterize and represent the principles of the general public. As you can see, however, different kinds are made up inside one feature, theRead MoreEssay social responsibility2146 Words   |  9 PagesCompanies Offering Health Care to Part-Time Workers. 2011), while Starbucks remain committed to its employees and continue to provide benefits to all its workers. 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The advantages of downward communication are delegating authority and responsibilityRead MoreLegal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property3428 Words   |  14 PagesColberian intellectual property would be ethical in accordance with: Utilitarianism, Deontology, Virtue ethics, Ethics of care, and my own moral / ethical compass. Analyze the way PharmaCARE uses U.S. law to protect its own intellectual property while co-opting intellectual property in Colberia. Suggest at least three ways the company could compensate the people and nation of Colberia for the use of its intellectual property and the damage to its environment. Compare PharmaCARE’s actions with thoseRead MoreProfessional Ethics10396 Words   |  42 Pagessociety have, in the fields of economics and politics, a good understanding of what makes this possible: individualism. In economics there exists a well worked out understanding of how, starting with autonomous individuals engaging in voluntary transactions, goods, services, and information flow efficiently to where they are needed. In politics there exists a good understanding of how protecting individual rights and limiting government power prevent the arbitrariness and stultification thatRead MoreBrief Analysis Of Corporate Culture Establishment Based On Csr2658 Words   |  11 Pageson the business case, Enron Scandal. Try to one-side and specifically analysis how the corporate culture, as a pattern of manifestation of CSR, influence the corporate. However, due to the limitations of the starting point and the business case, it can not be fully disclosed and explained all of the corporate social responsibility, so that the conclusions and recommendations are limited, which need to be supplemented later. 2. Definitions 2.1. 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