Business Ethics Essay example

1092 Words Oct 28th, 2013 5 Pages
Running head: Code of ethics

Code of ethics within businesses
Saif Mustafa Ali
Monash University

Ethics relate to an individual's moral judgements about right and wrong. Decisions taken within a corporation may be made by individuals or groups, but whoever makes them will be influenced by the culture of the company. The decision to act ethically is a moral one; employees must choose what they think is the right course of action. This may require declining the route that would lead to the largest short-term profit. Ethical behavior and corporate social responsibility can bring considerable advantages to a business. Ethics and ethical behavior are very high priorities for companies today (Davis 2004; Weber 2006). Although codes of
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As is common in the information economics literature, the model assumes a probable utility maximizing decision maker. The model of Lere and Gaumnitz is to recognize and classify ways to improve codes of ethics. As of its analytic form, it more readily recommends ways to increase those cases in which the decision maker selects the alternative recognized in the code as ethical over the unethical option. Features of the model vital for this paper are a formal description of changing perceptions concerning the ethical nature of an action and the assumption that the actions chosen are consistent with those selected by an expected utility maximizing decision maker. In the model, changing perceptions is formally explained as altering the decision maker’s beliefs as to whether an action is ethical. This classification provides an unambiguous criterion to use in assessing codes of ethics. The assumption of an expected utility maximizing decision maker implies a formal way in which the beliefs of the decision maker come together with the values that the decision maker places on various combinations of financial and nonfinancial rewards. The features of the expected utility maximizing model significant for this paper are that the decision maker places a value on different combinations of financial and non-financial rewards, that, other things being equal, the values that decision maker places on the financial and

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