Two ethical issues in mergers and acquisitions springerlink. These three theories are aristotles virtue theory, kants deontological theory, and john stuart mills utilitarian theory. Categorical imperative of immanuel kant kantianism is an ethic of duty. Shaw has another business ethics book that was recently updated as well moral issues in business eleventh edition, 2009. It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. Business ethics, corporate social responsibility and. Applying utilitarianism in business academic writers bureau. The theory of utilitarianism can be applied in business in many ways. Utilitarianism ethics unwrapped beyond business ethics. Ethics of mergers and acquisitions bibliography philpapers. Mergers and acquisitions with a reference to ethical. Business ethics, connotes the form of applied ethics, which studies ethical principles, morals and problems that take place in the business environment.
The theme is of interest to learners and teachers of english around the world. Ethics in business refers to the application of dayto day moral or ethical norms to business. As per webster, ethics is the discipline that deals with that which is good or bad or with moral duty and obligation. Other leading journals also date from this period, with business ethics quarterly appearing in 1991, and business ethics. Prominent business ethics expert normal bowie cites the real date of birth of business ethics as november 1974, when the first conference of business ethics was held in. Several theories have been developed to cover issues related to business ethics. Ethics is considered one the most important philosophies to run a business efficiently. Business law and ethics, january 2016, page 3 of 5 core standard 5 students evaluate the concepts and principles fundamental to sales agreements to be better consumers.
The role of business ethics in merger and acquisition. The companies were from different markets, each with a history of doing things a certain way. Management business code of professional ethics and standards of practice june 3, 2016 7 1 california civil code, division 4, part 5 common interest developments, commencing at section 4000. Pdf the role of business ethics in merger and acquisition. Merger, acquisition, ethical issues, social issues, human resource issues. Overlooked ethical questions in acquisitions and mergers. Business ethics utilitarianism introduction jeremy bentham theory of utility types of utilitarianism some criticisms moral dilemma introduction over the course of the next two lectures we will be looking at two of the most politically and philosophically. Business practice as a merger of ethical obligation and legal duty vernon p.
Iosr journal of business and management iosrjbm eissn. Theories of ethics thomas lombardo within human history and continuing into present times, we. Most ethical discussions of acquisitions and mergers focus on the ethical conduct of the predator. Ejbo electronic journal of business ethics and organization studies. Business ethics implies general ethical ideas to business behaviour. Ten years into the business the owners decided to purchase a second company four miles away. This as to do with ethical issues relating to health care provider who are in charge of health care of individual or group of people.
Business development executive, manager of business development, and vp, business development are all impressive job titles often heard in business organizations. The role of business ethics in merger and acquisition success. A company might decide to acquire a company that is not for sale. Management business code of professional ethics and. The focus of these lessons is on the development of language skills needed to think, discuss, and write about business ethics. Approaches to the study of morality and ethical theory 7 relativism and objectivity of belief 8 moral disagreements 11 the problem of egoism normative ethical theory 18 utilitarian theories 18 kantian ethics 23 contemporary challenges to the dominant theories 30 rights theories 30 virtue ethics 33 commonmorality theories 35. Categorical imperative in the ethics of kant is the absolute command of the moral law. The management team of the target company might view the acquisition offer with hostility because they will lose control of the company. In 2010 it published seven volumes volumes 91 to 97 and 39 separate issues, each containing several articles. Theoretical issues such as cultural relativity of ethical values receive more. Although employees are drastically affected by a merger or an. Prominent business ethics expert normal bowie cites the real date of birth of business ethics as november 1974, when the first conference of business ethics was held in the university of kansas. Business ethics ethical theory linkedin slideshare. It is nothing but the integration of day to day morals and ethical norms to business and applies to all types of business.
Thus, ethics is a system of values, relating to human conduct and motives. Integrity is an intrinsic value, a value that the individual does. Unitii ethical corporate behaviour, its development, ethical leadership. Principles of business ethics is the theme of this chapter in the business ethics volume. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. Ethics are the principle of conduct governing an individual or a group. Theories of ethics center for future consciousness. Business ethics utilitarianism introduction jeremy bentham theory of utility types of utilitarianism some criticisms moral dilemma introduction over the course of the next two lectures we will be looking at two of the most politically and philosophically significant theories of modern times 1500.
Business ethics can be termed as a study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery. A citationbased ranking of the business ethics scholarly journals pdf. Koontz describes six schools of management theory as follows. Such theories arise in religion, spiritual traditions, philosophy, socialpoliticalhistorical systems, literature and the humanities, social and cultural movements, and pop psychologies. Generally, three main philosophies of ethics have dominated discussions on ethics rossouw, 2010d. Ethical dilemmas during mergers, acquisitions, and takeovers. Business ethics and the theory of the firm article pdf available in american business law journal 342.
Hence, normative ethics is sometimes said to be prescriptive, rather than descriptive. Principles of business ethics to ensure that we act with integrity and respect the trust placed in us by each other, our customers, shareholder, regulatory agencies, supply chain partners and communities where we live and work. Ethical theories can be said either descriptive or normative. New trends and issues arise on a daily basis which may create an important burden to organizations and end consumers. It holds that any action that violates anyones rights is unethical whether it is a positive sum. It is branch of philosophy considered as normative science. Mergers and acquisitions with a reference to ethical, social.
Business ethics is a form of applied ethics or professional ethics, that examines ethical. However, on certain versions of the metaethical view called moral realism, moral facts are both descriptive and prescriptive at the same time. The ethics and compliance professional should establish a schedule to meet periodically with key leaders and their established point of contact. They might lose their executive positions as well when the other companys team takes over. The text emphasizes connections between topics such as ethical theories, legal. The definition of business ethics by lynn fountain, cpa, cgma, fountain grc llc e thics has its place in nearly all professional disciplines.
Ethics has been viewed as the conception of what is right and fair conduct or behavior carroll, 1991. Ethical dilemmas during mergers, acquisitions and takeovers. The organisational world is still shaking from the impact of individual and organisational actions that are contrary to the openended community standards of ethics. Theories of business ethics virtue ethics capitalism. Adapting leadership theory and practice for the networked, millennial generation. An empirical study article pdf available in journal of business ethics 691 january 1992 with 2,031 reads how we measure reads. Index terms business ethics, ethical problems, and international business ethics i. They include the stockholder theory, the stakeholder theory and the socialcontract theory. Business ethics, corporate social responsibility and corporate governance. Broadly speaking, normative ethics can be divided into the subdisciplines of moral theory and applied ethics. Principilism focuses on moral principles namely autonomy, beneficence, nonmaleficence and justice. To begin with, business persons who wish to use this theory must first understand its four components.
The original meaning of ethics being custom or character,but the ethics in. Ethical behaviour not only improves profitability but also fosters business relations and employees productivity. Topic gateway series business ethics 3 definition business ethics is defined by the ibe as the application of ethical values to business behaviour. The 70s saw the further development of business ethics. Therefore, an action is considered good if it brings joy to the most significant number of people in society and vice versa. This decade was when it came into its own as an academic field. Ethics is a subject of social science that is related with moral principles and social values. Mergers and acquisitions with a reference to ethical, social and human resource. Business ethics are not different from ethics in normal sense. Unitiii ethical decisionmaking, ethical dilemmas in organization, social responsibility. It views ethics of a merger activity from the perspective of gains and losses or as actions that will increase or reduce efficiency rights approach.
This ebook was created on 6222011 and the contents originally appeared on my website, ethical realism. After several decades of examining ethical issues mainly in licensing and certification in the professional areas of. Some overlooked ethical issues in acquisitions and mergers by. Utilitarianism is an ethical theory that determines right from wrong by focusing on outcomes. Ethics relates to what is good or bad, and having to do with moral duty and obligation. Nowadays, the need for proper ethical behaviour within. Introduction mportance of ethics in the business world is superlative and global. Business ethics is concerned with the behaviour of businessman in doing a business. It is the only moral framework that can be used to justify military force or. A brief intro to business ethics this brief introduction aims to clarify the terms used most often throughout this course ethics and morals and to show how they relate to economic issues. One has to do with the rights of employees affected in mergers and acquisitions and the second concerns the responsibilities of shareholders during these activities.
With the recent rash of mergers and friendly and unfriendly takeovers, two important issues have not received sufficient attention as questionable ethical practices. Management business code of professional ethics and standards. Business ethics is striving for a leading role in general business practice. Kidder 2009 gives a source of a good definition of ethics, and believe. It starts off with some general definitions of the terms we need to talk business ethics part 1. When the mgm grand inc and mirage resorts inc merged in the mid2000s, executives on both sides had some significant ethics and compliance challenges on their hands. In an effort to establish some ethical guidelines for business, three normative ethical theories have evolved in western capitalist societies. Business ethics is a concise, but in many ways misleading, label for an interdis ciplinary. The essential point here is, that the ethics of business are game ethics, different from the ethics of religion. Unitiii ethical decisionmaking, ethical dilemmas in organization, social responsibility of business and corporate governance. Executive summary of business ethics and teleology business.
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