Virtue theory is less concerned with right and wrong and more concerned with promoting what is good. It worries less with drawing lines in regard to behavior and works toward building character. Virtues might include honesty, generosity, kindness, and bravery. Greek philosopher Aristotle was the first to promote this theory. Some religions want us to not only follow the rules of right and wrong but go beyond what is required. Pros: Not just concerned with just getting by avoiding what is wrong but is concerned with building character. Cons: Virtue theory may be less helpful in not show what is required and what is forbidden. Business Ethics: Shareholder Theory This says that businesses should, within the limits of the law, maximize profits for shareholders. Textbook calls this profit maximization theory. Pros: This theory would appear to maximize economic efficiency. Cons: This theory might seem to ignore basic duties and right imposed by a moral system. It may ignore the welfare of others. Stakeholder Theory This says that businesses should be concerned not only with shareholders but also with other groups such as employees, customers, and the community. Pros: This theory is concerned (like morality) with the whole community. Cons: This theory may ignore to some extent the interests of the owners of the company. It may lead to a less efficient economy. How does one prioritize the interests of the different stakeholders?
Virtue theory is less concerned with right and wrong and more concerned with promoting what is good. It worries less with drawing lines in regard to behavior and works toward building character. Virtues might include honesty, generosity, kindness, and bravery. Greek philosopher Aristotle was the first to promote this theory. Some religions want us to not only follow the rules of right and wrong but go beyond what is required. Pros: Not just concerned with just getting by avoiding what is wrong but is concerned with building character. Cons: Virtue theory may be less helpful in not show what is required and what is forbidden. Business Ethics: Shareholder Theory This says that businesses should, within the limits of the law, maximize profits for shareholders. Textbook calls this profit maximization theory. Pros: This theory would appear to maximize economic efficiency. Cons: This theory might seem to ignore basic duties and right imposed by a moral system. It may ignore the welfare of others. Stakeholder Theory This says that businesses should be concerned not only with shareholders but also with other groups such as employees, customers, and the community. Pros: This theory is concerned (like morality) with the whole community. Cons: This theory may ignore to some extent the interests of the owners of the company. It may lead to a less efficient economy. How does one prioritize the interests of the different stakeholders?