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Ethical Theories

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Ethical Theories In today’s society, especially in business the question of what is ethical is a dilemma that a great deal of individuals is faced with every day. Ethics vary from person to person and culture to culture. What is unethical in the United States of America may be completely ethical in China. Dictionary.com defines ethics as the moral principles that govern a person’s or a group’s behavior. There are many different theories of ethics, and which one a person chooses to live by, depends on which theorist the individual believes to be more in line with their own personal moral beliefs. When business ethics is discussed it is hard to speak about it without mentioning the name of Milton Friedman. Milton Friedman was an economist that theorized business ethics as monetarism. He is essentially responsible for promoting the economic growth of a company and the benefits to their shareholders. The primary goal and motivating force in business is to make a profit, and try to maintain efficiency while making a profit. Friedman’s theory is in correlation with the philosophy of corporate law. In corporate law the shareholders own the company, and they vote on the Board of Directors. The greatest duty is owed to the shareholders as owners of the business. Typically the Board of Directors makes the important decisions because they ensure the company is running efficiency while making a profit at the same time. Making a profit is the primary reason any company is in business. There was a case about Toys “R” Us and their competitive business practices. In the case Child World toy store had slashed their prices almost as low as cost. In addition to making their prices cheap, they also offered a $25 dollar gift certificate for buying merchandise worth $100. Toys “R” Us had a number of associates to go to a Child World toy store and buy their merchandise, which they

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