PHI FPX 2000 Assessment 2 Business Ethics and Corporate Responsibility Applying a Traditional Theory of Normative Ethics: Virtue Ethics

Virtue ethics, a traditional normative ethical theory, can be applied to justify RP’s social responsibility in this scenario. Virtue ethics focuses on cultivating virtuous character traits and ethical behavior (Hursthouse & Pettigrove, 2022). RP can exhibit these virtues by maintaining integrity, respecting privacy, and valuing stakeholders’ interests. By upholding the virtue of integrity and not sharing customer data with the government, RP demonstrates a commitment to honesty and trustworthiness. Virtue ethics emphasizes loyalty and respect, as evidenced by prioritizing customer privacy over potential national security benefits. This approach reflects RP’s recognition of the importance of protecting personal information and maintaining a trustworthy relationship with its customers. The company’s consideration of the impact on customers, shareholders, and its public image shows a commitment to stakeholders’ well-being.

Gaps or Deficiencies of Utilitarianism

Utilitarianism, a consequentialist theory, evaluates actions based on their overall consequences and the maximization of happiness or well-being. Despite its merits, utilitarianism has relevant gaps and deficiencies in this scenario. Schefczyk (n.d.) notes that utilitarianism focuses on the consequences of actions without considering rights or ethical sentiments, potentially overlooking individual rights, including privacy. In this case, the potential benefits to national security might justify violating customer privacy rights. Utilitarianism also emphasizes maximizing well-being without addressing how happiness is distributed among individuals. While sharing consumer data could aid national security and benefit many, it comes at the expense of those whose privacy and trust are compromised. Utilitarianism may prioritize immediate gains without fully considering the long-term effects on RP’s public image and market share, which could be detrimental to the company.

Conclusion

Analyzing the ethical components and stakeholders’ interests is crucial for understanding the company’s social responsibility. While RP’s primary goal is to generate profit for shareholders, it must also consider the interests of other stakeholders, including customers, the government, and society. By prioritizing customer privacy and refraining from sharing data without legal obligation, RP demonstrates a commitment to honesty, trustworthiness, and protecting individual rights. Upholding virtues such as integrity, respect, and care for stakeholders, RP fulfills its social responsibilities. Utilitarianism’s focus on overall happiness, without adequately addressing individual privacy rights and long-term consequences, presents ethical challenges. Applying virtue ethics helps justify RP’s social responsibility by emphasizing customer privacy, integrity, and stakeholder interests.

References

Hursthouse, R., & Pettigrove, G. (2022, October 11). Virtue ethics. Stanford Encyclopedia of Philosophy. https://plato.stanford.edu/entries/ethics-virtue/

Moriarty, J. (2021). Business, ethics, and Business Ethics. Business Ethics, 1–19. https://doi.org/10.4324/9781351016872-1

Schefczyk, M. (n.d.). John Stuart Mill: Ethics. Internet Encyclopedia of Philosophy. https://iep.utm.edu/mill-eth/