Business and Integrity:
Overview
Arguments that business
ethics is an oxymoron.
Role of Ethics in successful
organizations.
Is “Business Ethics an
Oxymoron?”
• Yes, because the business
environment is cutthroat and
self defense requires doing
whatever it takes.
– Response: Social Contract theory
• Yes, because the responsibility
is to create profit for
shareholders.
– Response: There are other
stakeholders.
Why Business Needs
Ethics
• Without ethics, business
operates in a state of nature.
• In a state of nature, people
experience a “war of all against
all [where]…life is solitary,
nasty, brutish and short.”
(Hobbes)
• Prudent for business to adopt a
social contract.
Business Needs Ethics
• Public relations aspect
– Importance of reputation for
integrity.
• Success depends on integrity of
members.
– If unethical behavior is
encouraged, organization, as well
as customers and others, is at risk.
• Capitalism requires ethics.
– Trust, promise keeping is the
foundation of a market economy.