Ethical Prespective
Ethical perspectives: Friedman vs. Drucker, Murphy
Bridget K. Johnson
Northcentral University
Ethics in Business
(MGT7019-8)
Professor George Ackerman
November 10, 2012
Abstract
Business ethics is a controversial topic. The concept of business ethics will be discussed compared to general ethical theories and consequences drawn and an expression of different writer’s interpretation of business ethics and social responsibility.
Ethical perspectives: Friedman vs. Drucker, Murphy This report discusses to opinions of Patrick E. Murphy, Milton Friedman, and Peter F. Drucker. These men are authorities in the field of business ethics, and social responsibility. The writings discussed will be “The Relevance of Responsibility to Ethical Business Decisions”, by Patrick E. Murphy, “The Social Responsibility of Business is to Increase its Profits”, by Milton Friedman, and “What is “business ethics”, by Peter Drucker. These writings express different visions of business ethics, but show that business ethics is important for business corporations.
The Relevance of Responsibility to Ethical Business Decisions (Patrick E. Murphy) Patrick Murphy discussed that responsibility is the principle of business ethics. Murphy states that “responsibility pertains to an entity’s ability to respond to a person, situation, or issue in a certain way”. (Murphy, 2009) He thinks that the entity must be able to possess a conscious understanding of the magnitude of the responsibilities and the ability to react and act on them. (Murphy, 2009) Murphy discussed several different types of responsibility from legal, corporate, managerial, social, consumer and societal. (Murphy, 2009) Legal responsibility requires the entity to follow the law. These responsibilities Murphy states should be the baseline for all business ethics. (Murphy, 2009) This would also extend beyond to include standards and issues the law does not state. (Murphy, 2009) Next, “Corporate Social
Bridget K. Johnson
Northcentral University
Ethics in Business
(MGT7019-8)
Professor George Ackerman
November 10, 2012
Abstract
Business ethics is a controversial topic. The concept of business ethics will be discussed compared to general ethical theories and consequences drawn and an expression of different writer’s interpretation of business ethics and social responsibility.
Ethical perspectives: Friedman vs. Drucker, Murphy This report discusses to opinions of Patrick E. Murphy, Milton Friedman, and Peter F. Drucker. These men are authorities in the field of business ethics, and social responsibility. The writings discussed will be “The Relevance of Responsibility to Ethical Business Decisions”, by Patrick E. Murphy, “The Social Responsibility of Business is to Increase its Profits”, by Milton Friedman, and “What is “business ethics”, by Peter Drucker. These writings express different visions of business ethics, but show that business ethics is important for business corporations.
The Relevance of Responsibility to Ethical Business Decisions (Patrick E. Murphy) Patrick Murphy discussed that responsibility is the principle of business ethics. Murphy states that “responsibility pertains to an entity’s ability to respond to a person, situation, or issue in a certain way”. (Murphy, 2009) He thinks that the entity must be able to possess a conscious understanding of the magnitude of the responsibilities and the ability to react and act on them. (Murphy, 2009) Murphy discussed several different types of responsibility from legal, corporate, managerial, social, consumer and societal. (Murphy, 2009) Legal responsibility requires the entity to follow the law. These responsibilities Murphy states should be the baseline for all business ethics. (Murphy, 2009) This would also extend beyond to include standards and issues the law does not state. (Murphy, 2009) Next, “Corporate Social
References: Drucker, P., What is business ethics?, The Public Interest, Spring (63): 18–36., 1981 Friedman, M., The social responsibility of Business is to Increase its Profits, The New York Times Magazine, September 13, 1970 Murphy, P., 2010, The Relevance of Responsibility to Ethical Business Decision, Journal of Business Ethics 2009,90:245-252 doi 10.007/s10551-010-0378-4.