Ethical Code of Shell Company - Dissertation Example

Business ethics can also be defined as corporate ethics which is a form of applied ethics. It demonstrates the philosophies of businesses that assist individuals to determine the fundamental purposes of any organization. Business ethics can be described as the structured and critical examination to determine the proper and acceptable practices and behaviors of individuals or a group in a business environment. It enables organizations to design appropriate policies and practices which can assist them in efficiently handling different controversial issues such as insider trading, bribery, discrimination, fiduciary responsibilities, corporate governance, and corporate social responsibilities (Potocan and Mulej, 2009).

Consequentialist ethical theory can be considered as the earliest ethical theory which is based on evaluating the moral worth of any action by judging its contribution to the welfare of any state. This theoretical approach to ethics was introduced during the 5th century BCE. Consequentialism or the teleology approach of ethics emphasizes the moral theories which describe the consequences of any action based on the valid moral judgment of that particular action (Carroll, 2013).

This approach to traditional ethical theories can be segregated into several types of ethical philosophies. Utilitarianism and egoism are two major types of teleology philosophies out of many others. The theory of utilitarianism illustrates that any form of action can be judged as moral action as per their contribution in terms of maximizing utility. As per Mill (2015), ethical or moral actions should maximize positive outcomes for a large number of populations who are directly or indirectly affected by those actions. On the other hand, Broad, (2014) has described egoism about self-interest. This theory describes that moral agents should focus on those actions which fulfill their interests.

The strategic implication of teleological theories of ethics assists businesses to consider the interest of all their stakeholders in any organizational decisions. Teleological ethics allow organizations to include the interests of management, employees, customers, and shareholders along with country, environment, and humanity. This moral approach not only assists organizations to fulfill their goals ethically but also enables the organizations to develop society by assisting the population to increase their utility (Carroll and Buchholtz, 2014).

The theory of deontology was introduced during the time of 1788. This theory contradicts the approach of consequentialism. The theory of deontology focuses on judging the action of morality in terms of their adherence to rules or duty. This theory describes that the choice of action by individuals should fulfill their recognized duties. Different philosophers have evaluated this theory from different perspectives (Crane and Matten, 2007).