Ethical reasoning is a people’s thinking about right or wrong on human behavior or act. The author gave an example to understand human different approaches on situation under the concepts of duties, rights, and commitment. Morality is determined by the consequences of action. A consequences theory focusses on consequences of human action. Egoism cannot resolve conflicts of interest. The utilitarianism is the greatest amount of happiness for the greatest number.
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The author gave an example of firm that produced pollution as byproduct to its manufacturing process with both side of argument with government against business people to understand concept of ethics has nothing to do with business, nor business with ethics. The author gave Kantian (a business person) view of breaking a contract is not a moral act. All stakeholders be treated as persons, with respect for their individual dignity. A trust is the correct starting point for the derivation of ethical behavior enables the construction of practical ethics in business and other contexts.
The H.B.Fuller is a company that manufacture sniffing glue. In Honduras, the children drugging themselves by sniffing glue. It was easy to get glue through H.B.Fuller company. Honduras faced some economic problems in effort to industrialize. The company has some option to reduce this problem. One was add mustard oil into glue or close the product. The government of Honduras must concentrate on children education to overcome this issue. The H.B.Fuller company was very reputable company and now they have to rebuild their image, moral and philosophy of company.
The Milton Friedman gave his view on social responsibility of business is to increase its profit. In a free-enterprise, private-property system, a corporate management is an employee of the owners of the business. He argue that, executive a different “social responsibility,” rather than serving as an agent of the stockholders or the customers or the employees, only if he spends the money in a different way than they would have spent it. He described political principle under two different mechanism, which are market and political. The Friedman said that executive is exercising a distinct “social responsibility,” rather than serving as an agent of the stockholders or the customers or the employees, only if he spends the money in a different way than they would have spent it.
The Freeman described basic idea of stakeholder that business and executive who manage them, actually do and create value for customers, employees and financiers. The Freeman said about stake is an interest or a share in an undertaking and can be categorized as interest, right and ownership. There are two types of business stakeholders. Primary stakeholders and secondary stakeholders. Primary stakeholders are those that have a direct stake in the organization and its success. Secondary stakeholders re those that have a public or special interest stake in the organization. The Freeman explained responsibility of the executive in managing for stakeholders with a different example. He also described some argument to manage stakeholders. One of the strongest arguments for managing for stakeholders is that it asks executives and entrepreneurs to consider the question of what kind of company they want to create and build.
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Italian federal corporate tax system has a legal tax structure and tax rates as U.S. system does. The Italian tax authorities believe that no any firms submit tax return. All firms lies about their income and fraud to Italian tax authorities. The Italian corporation is represented by its commercialista, a function which exists in Italian society for the primary purpose of negotiating corporate (and individual) tax payments with the Italian tax authorities. The Italian service did lying and fraud. The negotiation of corporate tax by Italian tax authority managed with commercialista and bustarella, it is wrong action to earned money.
The author Bowie described three formulation of fundamental of ethics. “Act only on that maxim by which you can at the same time will that it should become a universal law.” The Bowie said that if everyone made lying promises, the consequences would be bad although they would. Rather, Kant is saying that the very concept of lying promises, when assumed as a principle by everyone, is confused. The Bowie gave two example to illustrate Kant’s view. If a maxim for an action when universalized is self-defeating, then the contemplated action is not ethical. That is Kant’s conceptual point.
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