Principles of Responsible Commerce - Case Study Example

Reflective Essay of Your Journey on COMM101: Principles of Responsible Commerce Table of Contents Introduction 3 Kants Non-Consequentialist Approaches to Ethics 3 Case Study of Spirit Airlines 4 Application of Kant’s Non-Consequentialist Approach in Spirit Airlines Case 4 Critical Reflection on My Learning Journey 5 Conclusion 7 References 8 Introduction A responsible business needs to have a positive influence upon the society via wealth creation and employment generation. Along with it, a responsible business needs to ensure that it generates goods and services that are capable of adding value to the customers. In order to survive in a competitive business environment, it is imperative for the owners to ensure that the business is following moral principles and is behaving responsibly. The Caux Round Table (CRT) related Principles for Responsible Business establishes moral rules that are required for satisfactory business actions. It is trust as well as self-assurance that assist in nourishing free markets. Furthermore, ethical business practices offer the foundation for such trust as well as confidence. However, in case of lapses in business uprightness among the various people associated with the business, trust is generally compromised. There are various principles of CRT that can be utilized by the business houses in order to develop the trust and confidence among the members of the organization. One of the main principles of responsible behavior is to respect the stakeholders beyond shareholders. A business entity that is responsible tends to realize its duty to add value to its society via wealth as well as employment creation. A responsible behavior also identifies that businesses might not prosper in societies lacking in economic development. Furthermore, a responsible business entity deters itself from involving in corrupted business practices. It makes an attempt at shielding the environment and avoids wasteful usage of the resources (Caux Round Table, 2009). The objective of this study is to reflect upon the application of Kants non-consequentialist approach to ethics and to discuss and analyze an issue that has attracted negative media publicity. Spirit Airlines have been taken into consideration for this study. In light of this, the essay intends to investigate the principles of a responsible business and entails the different ways through which the companies can act ethically in order to enhance the efficiency by a greater extent. Kants Non-Consequentialist Approaches to Ethics Immanuel Kant’s non-consequentialist philosophy is considered to be one of the most significant ethical approaches placing greater emphasis upon the goodwill. Kant’s non-consequentialist approach states the fact that human beings must not be utilized by others for attaining ‘selfish’ benefits. Such approach tends to be appropriate for all aspects of the business. Non-consequentialist approach which is also referred as deontology or Kantianism theory essentially stresses upon absolute principles, duty or certain views of the right. Immanuel Kant created the most significant version of the argument stating the fact that moral duty can be identified without referring to the results of the particular actions. He is of the view that moral law is to be based upon human reasoning. To be moral signifies to act in a rational manner. In other words, ethics tend to express rationally based moral laws that the rational individuals are supposed to follow. For instance, the principle namely ‘respect for persons’ is non-consequentialist by its nature. It assumes a superseding compulsion to treat others as ends because of the fact that people have a basic decorum (Zwier, 1985). It can be stated that Kant’s ethics is non-consequentialist owing to the fact that it suggests actions which are not based solely upon the anticipated end results. This principle offers the foundation for treating human beings as if they possessed their own intrinsic stateliness, which is different from the valuations that might be ascribed to them. Kant is of the view that it is not the outcomes of the actions that make an individual right or wrong but it is the objective of the person who conducts the activities (Oxford University Press, 2012). Kant’s argument is related to the fact that in order to act properly in a morally accurate way, a person is required to act only from the perspective of duty. Kant generally initiates with the discussion that the uppermost good needs to be good in itself and good without qualification. He is further of the belief that those things that are usually perceived to be good such as perseverance, pleasure and intelligence are not capable of being intrinsically good or good without qualification. He also argues the fact that the outcome related to an act of willing might fail to determine that a person has a goodwill. Instead, good consequences can take place by means of accident from an action that was stimulated by the inner desire to cause damage to an innocent person. On the other hand, the bad consequences are most likely to take place from an action which was well stimulated. Hence, according to Kant one of the aspects that the business entity is supposed to adhere to and which is truly good in itself is goodwill. Furthermore, goodwill is only good in case the willing person opts to perform something because of the fact he is obliged to do so (Holsinger Lab, 2012). It can be mentioned that Kantian idea primarily focuses upon the significance of making decisions that align with the universal moral code. Case Study of Spirit Airlines The observed case study is related to Spirit Airlines which is a low-cost carrier situated in the United States. The company tends to promote itself as a low-cost carrier. It is known for its comprehensive menu of extra fees which generally exceed the base fare. Furthermore, it has been noted that the company declined to refund the money of an ailing veteran who noticed after purchasing the ticket that he was not medically sound to take the flight. Such disbelieving act of the company made the passengers perceive if the company was insane. The moral issue in this case is that the company charges extra fare in terms of disclosed fees from the customers promoting themselves as low cost carrier with the intention to earn greater profit. Furthermore, the company’s refusal to refund tickets in case of such emergencies tends to create ethical dilemma. Conversely, an ethical act in this scenario could have been that the company might have charged extra fees from customers however it required making it more transparent in front of the customers which could have assisted the customers in making adequate decisions while flying with the airline. This demonstrates the aspect that Spirit Airlines was not a responsible company. A responsible company ensures the needs of the customers and the stakeholders in the business environment are met. In addition, a responsible business needs to ensure that it operates the business in an ethical manner without hampering the interests of all the related parties (CBSNews, 2012). Application of Kant’s Non-Consequentialist Approach in Spirit Airlines Case In the context of Spirit Airlines, it can be analyzed that the company failed to practice diligence and care to shield the rights of the customers. The company’s main objective is to attract greater number of customers by promoting themselves as ultra low-cost carrier, however consequently it is deceiving the customers by charging extra money for all the services rendered on an ‘a la carte’ basis. It also believes that the refund rules of the company must be strictly and unbendingly applied to the travelers. One of the issues with the Spirit’s fee related problem is that the extra-charge items make it nearly unfeasible for most of the fliers to travel on the fare that has been published. Hence, it can be depicted that Spirit Airlines treated people as a means with the objective to make selfish advantages at the expense of the customers. The moral principle that can determine the deeds of Spirit Airlines is self-centeredness. It is because of the fact that the company restates that an action is correct if it is capable of stimulating self-interest. However, the company’s actions essentially served self-interest owing to the fact that if Spirit Airlines had the interest of others, they would not have charged extra fare and would have refunded the ticket of an ailing patient during unavoidable circumstances (Preston & et. al., 2002). It can be revealed that in relation to Kant’s Non-Consequentialist approach, the company failed to behave in a morally correct way when the two categorical imperatives are taken into consideration. Firstly, the company could have had a medical examination of the dying veteran prior to making the tickets available to him. It generally opposes with the first imperative stating that an action is right in case the actor is willing to be treated the same in case the positions were exchanged. Secondly, Spirit Airlines treated people as means to an end and not as ends owing to the fact that they only cared about driving the attention of greater traffic and also tried to earn huge revenues (UN Global Compact, 2012). Critical Reflection on My Learning Journey The Kant’s Non-Consequentialist approach as well as Spirit Airlines case entailed the ways in which the business entities can become responsible. I realized that responsible business actions are build on numerous principles that assist the business entities to operate ethically and thus prove that they are accountable towards the society. The principles also demonstrate that the market forces as well as laws are quite significant. Furthermore, the principles also represent that law and market forces are not sufficient in terms of offering guidelines on what constitutes a responsible business conduct (LaFave, 2012). It came to my understanding that the principles are generally dependent upon the ethical foundations related to justice and accountability. They also comprise responsible stewardship, mutual benefits and respect for human dignity. I learnt that responsible stewardship implies that the business entities need to offer fair leadership practices to their employees so that the issues concerning the society can be resolved efficiently. Mutual benefit on the other hand implies that the partners of a business earn profit, but the business also gains in a win-win situation. Furthermore, respect for human dignity implies that the organizations are not supposed to sell those goods and services to the customers that tend to be harmful (LaFave, 2012). For appreciating the principles related to responsible business, the qualities that often make a business responsible needs to be discussed taking into account the key stakeholders of the business (LaFave, 2012). I came to understand that stakeholders are those individuals who possess an impact upon the success as well as failure of the business. The various stakeholders are customers, competitors, employees, suppliers and community. Customers are the main reasons behind the existence of the firms and hence it becomes imperative to take care of the needs of the customers. A responsible business tends to meet the changing needs of the customers and tries to understand a customer’s mentality. A responsible business is further required to treat its suppliers in a fair manner. It also requires the companies to remunerate the employees fairly and hence take into consideration employee’s rights. The shareholders interests also needs to be taken into account by not only publishing the results and disclosing pertinent information to the shareholders but also by taking onto consideration their views and complaints. It has further been observed that the responsible businesses ensure that it participates for the common good of the public in the society via adequate waste disposal, deterrence of pollution along with creation of employment opportunities among others (LaFave, 2012). Conclusion This study is based upon the numerous bases that can assist the business houses to become accountable. It has been recognized that a responsible business is developed on the pillars of trust as well as confidence. On betraying the customers through business misconduct, it becomes quite difficult for a company to re-create the trust as well as confidence that it had with its customers. The essay made use of the Kant’s Non-Consequentialist approach related to ethics which requires the human being to have goodwill and hence treat the individuals as ends and not means. It is also the responsibility of the business houses to treat the customers fairly so that the rate of customer retention is higher. Contextually, Spirit Airlines was found to promote itself as a low-cost carrier but it charged extra costs in terms of individual surcharges. It also was to found conduct a possible ethical misconduct by refusing to refund the money of a passenger who noted that he is physically unfit to fly after purchasing the ticket. Hence, such deeds of Spirit Airlines are most likely to significantly affect the image of the company. It is imperative for Spirit Airlines to become responsible by inculcating the principles of responsible commerce. This shall assist the company to prevent themselves from attracting negative publicity. References Caux Round Table, 2009. Principles of Responsible Behaviour. Introduction. [Online] Available at: http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CCkQFjAB&url=http%3A%2F%2Fwww.cauxroundtable.org%2Fview_file.cfm%3Ffileid%3D143&ei=OMiIUNqkDOqjiAeP4IHYCw&usg=AFQjCNH52YFMC_236RFxjg4VnRhMpuzsjw [Accessed October 25, 2012]. CBSNews, 2012. Spirit Airlines Disastrous Customer Service Week. Moneywatch. [Online] Available at: http://www.cbsnews.com/8301-505143_162-57428596/spirit-airlines-disastrous-customer-service-week/ [Accessed October 25, 2012]. Holsinger Lab, 2012. Consequentialist Vs. Non-Consequentialist Theories of Ethics. Ethics. [Online] Available at: http://darwin.eeb.uconn.edu/eeb310/lecture-notes/value-ethics/node3.html [Accessed October 25, 2012]. LaFave, S., 2012. Kants Ethics. The Good Will. [Online] Available at: http://instruct.westvalley.edu/lafave/Kant_eth.htm [Accessed October 25, 2012]. Oxford University Press, 2012. Suggested Answers To The Think Theory Exercises Associated With The Ethics In Action Boxes. Business Ethics. [Online] Available at: http://www.oup.com/uk/orc/bin/9780199564330/01student/thinktheory/thinktheory_ch03.pdf [Accessed October 25, 2012]. Preston, N. & et. al., 2002. Encouraging Ethics And Challenging Corruption. Federation Press. UN Global Compact, 2012. Guidance On Responsible Business In Conflict-Affected And High-Risk Areas: A Resource For Companies And Investors. Introduction. [Online] Available at: http://www.unglobalcompact.org/docs/issues_doc/Peace_and_Business/Guidance_RB.pdf [Accessed October 25, 2012]. Zwier, P. J., 1985. “The Consequentialist / Non-Consequentialist Ethical Distinction: A Tool for the Formal Appraisal of Traditional Negligence and Economic Tort Analysis”, Boston College Law Review. Vol. 26, Iss. 4, pp. 1-30. Read More