Introduction

Business ethics in a deontological perspective is critical to top business managers and executives. Despite the sole obligation of profit maximization, executives have a moral duty as they exercise their rights. This should be in accordance to Friedman’s assertion that profit-driven business has to meet its social responsibility by accepting imposed legal and ethical constraints. Principles of deontology must guide profit maximization and prosperity of the entrepreneurs. It is imperative for business executives to act on self-regulation measures besides to the legal provisions to have the overall success of the company entity. Sense of personal morality should be cultivated among the business executives to realize the desired ethical standards. Ethical responsibility in the business world must be developed and exploited to the fullest.

Ethical challenge

Business ethics is defined as how the business agents ought to act. Decision-making in the business world is constrained by custom and laws that govern human interrelations. It is worth noting that business operations are operated on premises of targeted goals and objectives. Being a result, driven business agents may be tempted to use inappropriate means to justifiable ends.   From an SEC review, it is evident that there has been an increase in accounting frauds to meet target and goals. Enron case is a significant example where overstatement of earnings and understatement of expenses occurred to meet growth objectives.  Outcome-based performance may to a great extent fail to consider the ethical issues of the means to achieving the outcome.

This kind of performance is only concerned with individual or group happiness without considering the plight of others. The issue of moral duty is blatantly ignored. Material selfishness is common among individuals not only in the business world but all walks of life. Inclusive happiness to all stakeholders can only be achieved through profit maximization and efficient business conduct. Utilitarian ethics opines that outcome determines the ethical appropriateness of any activity. This ethical explanation is problematic since it ignores the rights of others.

An increase of accounting scandals can be related to the utilitarian ethics.  This is because there is no loss of life or health experienced only material property is lost. Increased fraudulent cases have resulted in the enactment of Sarbanes-Oxley Legislation in United States to ensure transparency in financial reporting. Capitalism has suffered an ethical defeat since most of the corporate leaders are selfish and devoid of moral duty. It Imperative that they understand that self-interest has to end where the rights of other stakeholders begin.

Ethical decision-making

Nature of consequentialism in the business world has been crucial to decision making.  The desire to achieve targets implies that business agents will use all means available to get the desired outcome. This suggests that the rights of others may lack sufficient recognition if any at all. Triad of incentive-means-result defines decision making. From deontological and teleological perspective, it is evident that end results trigger any action. Nevertheless, the two theories vary regarding the means of getting the results.

Teleological ethics argues that the right thing is the thing that produces the best consequences. This means that desired outcome must be realized either by crook or by the hook. Though the deontological approach is also considered with the consequences, the issue of moral duty is greatly emphasized. The business world has devised means of motivating executives to focus on desired results. For instance, compensation through stock option has increased popularity in recent years. This has however led to increased cases of unethical behaviors as interested people inflate stock values for their personal gains. Schick Technologies Inc. is a good example where unjust means were used to meet the organization’s earnings target.

Deontological ethics application

From the above analysis, it is clear that the pursuit of one’s happiness without interfering with the happiness of others is a tall order. For us to achieve this, it is essential to understand issues of equality and freedom of others. With guaranteed freedom, issues of deontological ethics are within reachable distance. Ethical right is expressed the whole conditions under which voluntary actions of any person can be harmonized in reality with the voluntary actions of every person as stipulated by the universal law of freedom. Ethics is represented by the point of intersection where the freedom of different individuals meet and justice is observed.

The concept of moral duty is the foundation of deontological ethics. It requires that business agents should act in a way that the happiness, freedom and justice to others are not compromised as spelled out in the Kant’s CI.  Deontological ethics means working devoid of conceptual and consequential contradiction. Critical Path Inc. is a good example where the unethical behavior of business agents meant injustice to many. The company used illegitimate means to get the ambitious revenues and the intended rapid growth. As a result, several stakeholders including the employees and stockholders suffered immensely.

Conclusion

Even as we pursue organizational growth and profit maximization, it is essential that the transcendental right of every human being t strive for happiness and wellbeing is guaranteed. Deontological Code of conduct advocates that we do the right thing that guarantees happiness and justice to all.  It is essential for business agents to understand that temporary underperformance may not put at risk the wealth of the executives in the long run. They should, however, embrace deontological decision-making to adopt the pro-active business strategy to improve future performance. Taking fraudulent means will only offer short term solutions and has adverse effects when noticed. To sum it up, moral consciousness and ethical sense of responsibility among the executives must be cultivated at all costs.

Reference

Micewski, E., & Troy, C. (2007). Business Ethics – Deontologically Revisited. Journal Of Business Ethics, 72(1), 17-25. doi:10.1007/s10551-006-9152-z

 
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