{"id":1051,"date":"2022-04-21T12:01:00","date_gmt":"2022-04-21T10:01:00","guid":{"rendered":"https:\/\/support.centreforelites.com\/theories-of-business-ethics\/"},"modified":"2024-03-14T08:13:57","modified_gmt":"2024-03-14T06:13:57","slug":"theories-of-business-ethics","status":"publish","type":"post","link":"https:\/\/support.centreforelites.com\/en\/theories-of-business-ethics\/","title":{"rendered":"3 Theories of Business Ethics"},"content":{"rendered":"\n<p class=\"\">This article examines three theories of business ethics. There are a good number of theories in Business ethics, but here we shall focus our attention on the major three of them.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;69eb609ca53ff&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"69eb609ca53ff\" class=\"wp-block-image size-full wp-lightbox-container\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"720\" height=\"540\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/Theories-of-Business-Ethics1.png?resize=720%2C540&#038;ssl=1\" alt=\"Theories of Business Ethics\" class=\"wp-image-2168\" srcset=\"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/Theories-of-Business-Ethics1.png?w=720&amp;ssl=1 720w, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/Theories-of-Business-Ethics1.png?resize=300%2C225&amp;ssl=1 300w, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/Theories-of-Business-Ethics1.png?resize=16%2C12&amp;ssl=1 16w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Theories of Business Ethics<\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eb609ca7a14\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eb609ca7a14\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/support.centreforelites.com\/en\/theories-of-business-ethics\/#Stakeholder_Theory\" >Stakeholder Theory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/support.centreforelites.com\/en\/theories-of-business-ethics\/#Social_Contract_Theory\" >Social Contract Theory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/support.centreforelites.com\/en\/theories-of-business-ethics\/#_Legitimacy_Theory\" >\u00a0Legitimacy Theory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/support.centreforelites.com\/en\/theories-of-business-ethics\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stakeholder_Theory\"><\/span><span style=\"mso-bookmark: bookmark916;\"><span style=\"mso-bookmark: bookmark914;\"><span style=\"mso-bookmark: bookmark913;\">Stakeholder Theory<\/span><\/span><\/span><a name=\"bookmark916\"><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"\">The stakeholder theory of the firm is used as a basis to analyze those groups to whom the firm should be responsible. In this sense, the firm can be described as a series of connection of stakeholders that the managers of the firm attempt to manage. A stakeholder is any group or individual who can affect or is affected by the achievement of the organization\u2019s objectives.&nbsp;<\/p>\n\n\n\n<p class=\"\">Stakeholders are typically analyzed into primary and secondary stakeholders. Primary stakeholder group is one without whose continuing participation in the corporation the business will survived as going concern. A primary group includes investors, employees, customers and suppliers, together with the public. The secondary groups are defined as those who influence or affect the operations of the corporation but not engaged in any transaction with the corporation and thus not essential for its survival.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Social_Contract_Theory\"><\/span><span style=\"mso-bookmark: bookmark920;\"><span style=\"mso-bookmark: bookmark918;\"><span style=\"mso-bookmark: bookmark917;\">Social Contract Theory<\/span><\/span><\/span><a name=\"bookmark920\"><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"\"><span style=\"font-size: 13pt; line-height: 150%;\">The social contract theory has a long tradition in ethical and political theory. In <\/span>general, this theory considers the society as a series of social contracts between members of society and society itself. The social contract theory in business ethics argues that corporate rights and responsibilities can be inferred from the terms and conditions of an imaginary contract between business and society<\/p>\n\n\n\n<p class=\"\">An integrated social contracts theory, as a way for managers to take decisions in an ethical context, has been developed. Here, distinction is made between macro social contracts and micro social contracts. Thus, a macro social contract in the context of communities, for example would be an expectation that business provides some support to its local community and the specific form of involvement <span style=\"font-size: 13pt; line-height: 150%;\">would be the micro social contract. Hence companies who adopt a view of social <\/span>contracts would describe their involvement as part of social expectation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Legitimacy_Theory\"><\/span><span style=\"mso-bookmark: bookmark924;\"><span style=\"mso-bookmark: bookmark922;\"><span style=\"mso-bookmark: bookmark921;\"><span style=\"color: black;\"><span style=\"mso-list: Ignore;\"><span style=\"font: 7pt 'Times New Roman';\">\u00a0<\/span><\/span><\/span>Legitimacy Theory<\/span><\/span><\/span><a name=\"bookmark924\"><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"\"><span style=\"font-size: 13pt; line-height: 155%;\">Legitimacy is defined as a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed <\/span>system of norms, values, beliefs and definitions. There are three types of organizational legitimacy: Pragmatic, Moral and Cognitive.<\/p>\n\n\n\n<p class=\"\">It should be pointed out that legitimacy <a href=\"https:\/\/motivemeaning.blogspot.com\/2022\/04\/introduction-to-administration-and.html\">management<\/a> rests heavily on communication. Therefore, any attempt to involve legitimacy theory, there is a need to examine some forms of corporate communications.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<a name=\"bookmark927\"><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"\">\u00a0Laws, acts, policies and by-laws are inevitable as long people co-exist. It therefore implies that there is no society that exists without some governing rules and regulations. Likewise, businesses do not operate in isolation. Businesses do operate, therefore, under certain prescribed laws, Acts, norms, culture, etc. This is referred to as business ethics.\u00a0<\/p>\n\n\n\n<p class=\"\">Business ethics are the accepted principles of right or wrong governing the conduct of business people. Understanding these ethical laws as they affect business activities is inevitable in modern business activities. As business managers, you are at the liberty to go into any forms of business of your choice; however, you should understand the policies of the government in relation to such business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article examines three theories of business ethics. There are a good number of theories in Business ethics, but here [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2166,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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OF THE MORAL DEVELOPMENT THEORIES FOR EDUCATION","author":"centreforelites","date":"November 2, 2022","format":false,"excerpt":"This article discusses the major implications of the moral Development Theories in the Classroom environment.","rel":"","context":"In &quot;Educational Psychology&quot;","block_context":{"text":"Educational Psychology","link":"https:\/\/support.centreforelites.com\/en\/category\/educational-psychology\/"},"img":{"alt_text":"IMPLICATIONS OF THE MORAL DEVELOPMENT THEORIES IN CLASSROOM","src":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/11\/IMPLICATIONS-OF-THE-MORAL-DEVELOPMENT-THEORIES-IN-CLASSROOM.png?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/11\/IMPLICATIONS-OF-THE-MORAL-DEVELOPMENT-THEORIES-IN-CLASSROOM.png?fit=1200%2C675&ssl=1&resize=350%2C200 1x, 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Therefore it is imperative to know the ethical issues that governed their businesses. This is because domestic business is not the same as international business. Thus, the ethics that governed domestic businesses are quite\u2026","rel":"","context":"In &quot;Fundamentals of Marketing&quot;","block_context":{"text":"Fundamentals of Marketing","link":"https:\/\/support.centreforelites.com\/en\/category\/fundamentals-of-marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":311,"url":"https:\/\/support.centreforelites.com\/en\/the-growth-pole-theory\/","url_meta":{"origin":1051,"position":2},"title":"The Growth Pole Theory","author":"centreforelites","date":"April 13, 2022","format":false,"excerpt":"Growth pole is the concentration of technically advanced industries that stimulate economic development in associated businesses and industries. These concentrations of industries often affect the economies of geographical areas outside their immediate regions. The Growth Pole Theory A third, but less known\u00a0model of growth\u00a0was worked out in the 1950s by\u2026","rel":"","context":"In &quot;Blog&quot;","block_context":{"text":"Blog","link":"https:\/\/support.centreforelites.com\/en\/category\/blog\/"},"img":{"alt_text":"The Growth Pole Theory","src":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/The-Growth-Pole-Theory.webp?fit=768%2C432&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/The-Growth-Pole-Theory.webp?fit=768%2C432&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/The-Growth-Pole-Theory.webp?fit=768%2C432&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/The-Growth-Pole-Theory.webp?fit=768%2C432&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":513,"url":"https:\/\/support.centreforelites.com\/en\/neo-marxism-theories-of-underdevelopment-and-dependency\/","url_meta":{"origin":1051,"position":3},"title":"Neo-Marxism Theories of Underdevelopment and Dependency","author":"centreforelites","date":"April 15, 2022","format":false,"excerpt":"Neo-Marxism theories of underdevelopment and development appeared during the 1950s, partly as a reaction against the growth and modernization theories, partly as the outcome of a long-standing debate concerning the impact of imperialism. The early Neo-Marxist theories were primary known as dependency theories., They were to a large extent influenced\u2026","rel":"","context":"In &quot;Blog&quot;","block_context":{"text":"Blog","link":"https:\/\/support.centreforelites.com\/en\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1005,"url":"https:\/\/support.centreforelites.com\/en\/types-and-theories-of-career\/","url_meta":{"origin":1051,"position":4},"title":"TYPES AND THEORIES OF CAREER","author":"centreforelites","date":"March 18, 2023","format":false,"excerpt":"Theories of career are many and assist in the excavation of crucial underlining traits, factors and needs that are fulfilled by career both for the individual","rel":"","context":"In &quot;Blog&quot;","block_context":{"text":"Blog","link":"https:\/\/support.centreforelites.com\/en\/category\/blog\/"},"img":{"alt_text":"Types and Theories of career","src":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2023\/03\/THEORIES-OF-CAREER.jpg?fit=720%2C540&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2023\/03\/THEORIES-OF-CAREER.jpg?fit=720%2C540&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2023\/03\/THEORIES-OF-CAREER.jpg?fit=720%2C540&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2023\/03\/THEORIES-OF-CAREER.jpg?fit=720%2C540&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":492,"url":"https:\/\/support.centreforelites.com\/en\/unequal-exchange-theories\/","url_meta":{"origin":1051,"position":5},"title":"Unequal Exchange Theories","author":"centreforelites","date":"April 14, 2022","format":false,"excerpt":"Arghiri Emmanuel's theory of unequal exchange, dating from the late 1960s, was in certain respects in extension of Prebisch's and Singer's analyses of the deteriorating terms of trade for the less developed countries, although Emmanuel himself claimed that his mode of reasoning was different. Emmanuel tried to explain the deteriorating\u2026","rel":"","context":"In &quot;Blog&quot;","block_context":{"text":"Blog","link":"https:\/\/support.centreforelites.com\/en\/category\/blog\/"},"img":{"alt_text":"Theories of Unequal Exchange by Emmanuel and Kay","src":"https:\/\/i0.wp.com\/support.centreforelites.com\/wp-content\/uploads\/2022\/04\/Theories-of-Unequal-Exchange-by-Emmanuel-and-Kay.jpg?fit=400%2C253&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/posts\/1051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/comments?post=1051"}],"version-history":[{"count":2,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/posts\/1051\/revisions"}],"predecessor-version":[{"id":2171,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/posts\/1051\/revisions\/2171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/media\/2166"}],"wp:attachment":[{"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/media?parent=1051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/categories?post=1051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/support.centreforelites.com\/en\/wp-json\/wp\/v2\/tags?post=1051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}