Business Ethics

Business Ethics

The paper explores the question, of how businesses should weigh their obligations to the public and to shareholders?’ with reference to ethically questionable conduct of Telstra’s deceptive advertising. The paper argues that both public and shareholder interests are important to business. Business has a social responsibility to conduct its affairs as a good citizen and should be treated accordingly. Management’s role is to maintain the health of an organisation and balance the conflicting claims of multiple stakeholders (public & shareholders). This implies more than just adhering to the law, which does not produce instant justice or ethical behaviour but acting in accord with the common good. Therefore, the combined benefit or common good as defined in the Virtue Theory should be the criterion in which the measure business obligation to these two stakeholders.

It was reported in the Courier Mail (1999) that Telstra was forced to withdraw a Television advert...