Question

Business Ethics: Shaw & Barry 2013

Please choose two of these theories such as Libertarianism, Utilitarianism, Kant's Theory, Rawl's Theory, and Nonconsequentialist Theories , Ethical Egoism, for each question to support your answer:

1.Is it ethical to do business with suppliers who do not have health and safety regulations?

2. Is it ethical for employers to require employees to participate in organizations apart from the business (ie. community non-profit organizations) and does the type or nature of the organization make a difference?

3. Some believe that employee pay should be tied in part to compensation of the owner or executive officer of the business, with the lowest paid employee being paid no less than a certain percentage of the highest paid employee. Is this an ethical way of determining compensation?

Answer 1

1. Is it ethical to do business with suppliers who do not have health and safety regulations?

Kant's Theory - This theory is not based on the results of the actions to justify them being right or wrong but rather it is based on our moral duty and fulfilling them to do what's right.

In this case, a company that doesn't perform its basic duty towards its stakeholders like employees and consumers by implementing safety and health procedures is not fulfilling its moral duty. Therefore, any business with such a supplier should not be undertaken.

Utilitarianism - This theory focuses on the outcomes to determine the rights and wrongs of the action. According to this theory, action should have good outcomes for the most number of people for it to be justified as right.

In this case, the suppliers are not doing anything good by not upholding safety and health regulations. But instead, they are putting their employees' health at risk. Therefore, the action is wrong according to the theory.

Therofre, no business should be done with the supplier.