Statement I : "Working in harmony with the community and environment around us and not cheating our customers and workers we might not gain anything in the short run but in the long term it means greater profits and shareholders value". Statement II : According to Mahatma Gandhi, capitalist class owns wealth or capital as trustees of the society. Codes :
Evaluating Business Ethics and Trusteeship Statements
This solution analyzes two statements concerning business practices and economic philosophy.
Statement I Analysis: Long-Term Business Value
Statement I posits that ethical conduct towards the community, environment, customers, and workers, while potentially lacking short-term gains, leads to greater long-term profits and shareholder value. This aligns with modern concepts of Corporate Social Responsibility (CSR) and stakeholder theory. Businesses focusing on sustainability and ethical practices often build stronger reputations, customer loyalty, and employee morale, contributing to sustained success.
Statement II Analysis: Gandhi's Trusteeship
Statement II addresses Mahatma Gandhi's philosophy of 'trusteeship'. Gandhi proposed that individuals possessing wealth (capitalists) should view themselves not as absolute owners but as 'trustees' of that wealth on behalf of society. The primary goal is societal welfare rather than personal accumulation. This concept emphasizes moral responsibility and equitable distribution.
Conclusion on Statements
- Statement I accurately reflects the long-term benefits of ethical business operations and CSR.
- Statement II correctly describes Mahatma Gandhi's principle of economic trusteeship.
Therefore, both statements are considered correct.
Important Questions from Business Ethics
- Match List-I with List-II relating to corporate ethics and indicate the code of their correct matching.Codes :
List – I List – II a. Utilitarian theory i. Behaviour guiding statements. b. Code ii. Making public known about unethical company practices. c. Whistle blowing iii. Society with varied interest groups. d. Pluralistic society iv. Evaluation of plans with its consequences - Which of the following statements are correct ? Indicate the correct code.
Statement (I) : Virtue ethics is a form of ethical approach associated with Aristotle which stresses the importance of developing virtuous principles, ‘right’ character and the pursuit of a virtuous life.
Statement (II) : Utilitarianism is an ethical approach where an action is right if, and only if, it conforms to the principle of utility, whereby utility is minimised and pain and unhappiness minimised more than any alternative.
Statement (III) : ‘Deontological Ethics’ is an ethical approach where rightness or wrongness of an action or decision is not judged to be based exclusively on the consequences of that action or decision.
Code : - Which of the following is related to the practical means of determining a moral course of action ?
Which of the following statements is true?
Given below are two statements:
Statement I: To exist and be successful in a competitive world a business has to be ethical.
Statement II: An ethical organisation can be recognized on the basis of its corporate excellence and not on its relations with the stakeholders.
In light of the above statements, choose the most appropriate answer from the options given below
