Ethics

It can be defined as application of morality which means the distinction between right and
wrong and it creates the dilemma which means state of indecision; that creates the problems
for decision maker to choose among the alternatives. To solve these problem, we follow some
ethical theories and principals from which we can obtain the guidance along the pathway to
a decision.

Ethical Theories provide a framework for judging right or wrong decisions, here I will discuss
five Ethical theories with Principals and provide the critical assessment and applicability of
these theories.

Divine Command Theory

Shariah is a direct command from Allah which defines a Muslim way of life and how a Muslim
have to spent his life. It consists of Quran and Hadith. Quran is the word of Allah and Hadith
is the action of Muhammad (PBUH). It has some principals that we have a complete belief in
Allah and Muhammad (PBUH). Islam has five pillars or principals.

First Pillar: Iman

There is none worthy of worship except Allah and Muhammad (PBUH) is the last messenger
of Allah. The significance of this declaration is the belief that the only purpose of life is to
serve and obey Allah, and this is achieved through the teachings and practices of the Last
Prophet, Muhammad. This principal helps us to stick with the truth and reality.

Second Pillar: Salah

Salah is the name for the obligatory prayers that are performed five time a day, and are direct
link between the worshipper and Allah. Prayers are said at dawn, mid-day, late-afternoon,
sunset and nightfall, and thus determine the rhythm of the entire day. These five prescribed
prayers contain verses from the Qur'an, and are said in Arabic, the language of the Revelation.
Personal supplications can be offered in one's own language and at any time. This Principal in
Business Ethics help us to do work on its perfect time.

Third Pillar: Zakat

An important principle of Islam is that everything belongs to God, and that wealth is therefore
held by human beings in trust. Our possessions are purified by setting aside a proportion for
those in need and for the society in general. This Principal help us to keep in mind the giving
back to society.

Forth Pillar: Rooza

Every year in the month of Ramadan, all Muslims fast from dawn until sundown. They abstain
from food, drink, and sexual relations with their spouses. This Principal in Business Ethics help
us to follow the rules and regulation even if they are necessity.
Fifth Pillar: Hajj

The pilgrimage to Mecca (the hajj) is an obligation only for those who are physically and
financially able. Pilgrims wear special clothes: simple garments that strip away distinctions of
class and culture, so that all stand equal before God.

Ethical Egoism Theory

It holds that we all act in our own self interest and we limit our judgment to our ethical Egos
and not interfere with others. Egoist thinks that every act is right if it doesnt effect his self
interest.

There is some type of Ethical Egoism.

Personal ethical egoism is the belief that a person should act from the motive of self-
interest.

Individual ethical egoism is the prescriptive doctrine that all persons should serve my
self-interest.

Universal ethical egoism is the universal doctrine that all persons should pursue their
own interests exclusively.

In this case, ethical egoism advises for one's own self-interest. It also says that we are morally
indebted to avoid being anxious for others if by doing so it does not further out own interests.
Ethical egoism explains true telling which suggest why we not lie is because if we do lie, that
has a high Probability of negative impacting on my personnel happiness.

Applicability of this theory in Business Ethics defines that a policy of looking out of others is
self defeating.

Ayn Rand also state that your willing to sacrifice for the good of others are not truly valuing
the human Individual.

UTILITARIANISM Theory

Utilitarianism is one of the most important and influential moral theories of modern times. It
requires a balancing effort in which we minimize the harms that result from a decision even
as we maximize the benefits.

Theses are some tenants of Utilitarianism

Happiness and pleasure has only ultimate value which means it is simply good in itself.
To promote happiness actions must be right because wrong actions produce
unhappiness only.
This theory came into existence to giving the greatest good to the greatest number of People.
Applicability of this theory in Business Ethics can be described as providing Quality health care
even as cost escalate.

Rights Theory

It states that all people had the right to choose their own religion, and established racial
equality. Individuals may also bestow rights upon others if they have the ability and resources
to do so. For example, a person may say that her friend may borrow her laptop for the
afternoon. The friend who was given the ability to borrow the laptop now has a right to the
laptop in the afternoon.

Positive rights impose obligations on people to provide other people with goods or services.
A primary problem with this theory is that there is no hierarchy for rights claims:

How does someone determine which right takes precedence or has more value over other
rights?

In business ethics it is applicable as we have to give the complete and equal right to every
person even if has different approach or Practices.

Natural Law Theory

Natural Law is about what life should be like, given a rational and purposeful creation, but
that may not be what life is actually.

These include the law of survival, natural action for livings and to reduce etc. and those who
go against natural laws are morally wrong.

Drunkness is wrong because it injuries the health and worse, destroys one's ability to reason,
which is fundamental to man as a rational animal.

Theft is also wrong act and it destroys social relations.

In business ethics it can applicable as one must accept the thoughts and capacity of any
person who is giving its best to do the work.

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References

study.com/academy/lesson/natural-law-theory

www.iep.utm.edu/ethics/
Abdullah, H., & Valentine, B. (2009). Fundamental and ethics theories of corporate
governance. Middle Eastern Finance and Economics, 4(4), 88-96.

Cases in Business Ethics(Book)