Question

Business ethics

Discuss how the three categories of institutions (political, economic, and social) are important in establishing a foundation for normative values.

Answer 1

Institutions are very important in establishment of a foundation of normative values. These normative values could be of three types-

1. Political -political institutions influence the organisation values to a very large extent.organisation must comply with this rules in order to succeed in the long run.political influences can take place within the organisation and an organisation must have to abide by these rules else will have to face the consequences.

Normative business ethics takes into consideration political realities outside the legal framework in the form of industrial standards. These include issues like price fixing, antitrust issues and consumer protection along with just and equitable market price which protect the interest of the consumer.because of their substantial impact they must be considered while making ethical decisions organisation.

2. Economic institutions that organisation should conduct their economic activities through are efficiency and effectiveness that should not hurt the overall prospect of society and business.it does not support any kind of Misstatement and it believes that profit should be made ethically and there should be complete transparency in its operations.

3. normative social influence are kind of influence on organisation that leads to conformity.social norms refers to societal rules that are not written in nature but which governs the overall society behaviour and since business report of the society and organisation must consider all those rules and incorporate into its ethical decision making.