Ethical Awareness Essay

808 words - 3 pages

Ethical awareness has and continues to be a debated concept in the business community. The notion of what motivates ethnical awareness is at the core of the debate. In other words, are decisions made about business practices motivated by an obligation to the community, sense of corporate responsibility, a leader’s view of right and wrong or political influences. Although the perspectives on what motivates ethical awareness differ among business leaders, ethnical awareness is fundamental in the decision making process. This essay outlines the ethnical awareness principles of Drucker, Alahmad, Friedman, and Murphy and how business decisions are influenced by such principles.
Superficially, aspects of noted authority’s ethical awareness principles are parallel. That is, business leader’s decisions are limited to their behavior. In this regard, ethnical awareness is how business leaders take action or behave. However, the distinction of these ethical awareness principles is about what motivates the behavior or a business decision.
Alahmad declares that ethnical awareness is motivated by a person’s concept of right and wrong (Alahmad, 2010). That is, “ tell the truth no matter what, respect, punctuality, not judgmental, just, humble, and dignity can be international code of ethics every leader should follow” (Alahmad, 2010). In other words, decision making is driven by a leader’s concept of right and wrong and their objective is not to harm or hurt anyone. Nevertheless, each individual has their own concept of right and wrong which can be motivated by culture or have no motivator (Alahmad, 2010). Regardless, Alahamad contends that an individual’s decisions are reinforced by their concept of right and wrong.
Contrast to Alahmad, Friedman doctrine of ethical awareness stems from social responsibility. Friedman argues that, “ an 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 (Friedman, 1970). According to Firedman “the use of the cloak of social responsibility, and the nonsense spoken in its name by influential and presti¬gious businessmen, does clearly harm the foun¬dations of a free society” (Friedman, 1970). Fundamentally, Friedman supports decisions that are motivated by what is best for the shareholders and employees. Anything short of this premise is an attack on free market.
On the other hand, Drucker asserts that ethnical awareness is in close parallel to casuistry (Drucker, n.d.). That is, business ethnics is provisional and is judged based on the situation or circumstance. Drucker maintains that business ethnics and...

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