The purpose of this paper is to argue for and against an organization adopting an ethical approach. This essay will look into the two sides of the argument in depth using relevant theories, examples and case studies. The first part of this essay will look into why an organization adopting an ethical approach to management could ultimately benefit the firm. On the other hand, the essay will look at the case against a firm adopting an ethical approach to management. The essay will then conclude by suggesting that it would be important for organizations to act ethically to a certain extent.
One definition suggests that ‘ethics are the moral principles that should underpin decision-making. A decision made on ethics might reject the most profitable solution in favor of one of greater benefit to society as well as the firm’ (Marcouse, 2003). The key words used in definition are ‘moral principles’, so this definition suggests that acting ethically means acting in a moral way. In essence, an ethical approach to management is generally acting right to benefit the community and the environment not solely concentrating on maximizing profits. It is also important to define what exactly acting morally is, one good definition suggested that morality is the notion of what is good and bad (Macintyre, 1998).
Argument For
In arguing for an organization adopting an ethical approach, the benefits that an organization would gain from this behavior is that it could be used as a USP (unique selling point). This is evident in a variety of organizations today, for instance, the Body Shop. Body shop sells products that are kind to the environment, and also boast the fact that they are 100% against animal testing. A key point is that, not only does the company strive to improve the communities in less developed countries, but it publicizes these actions in order to get support from possible consumers.
This strategy appeals to customers a great deal, which
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