How Does Virtue Ethics apply to Business Ethics?

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Edward Cohen

How Does Virtue Ethics apply to Business Ethics?

As with all forms of ethics, whilst written about in a general sense the ethical thought appear a feasible process and an appropriate way to act and behave, it however needs to stand up against certain moral issues to ‘test’ its fallibility. Business ethics would be one such example.

Aristotle, the farther of virtue ethics felt community care is the reason for the market system. A business would be selfless economic structure and ethos. Aristotle’s word, ‘oikonomikos’ is used to show this household trading and community-based economy

Virtue ethics as described by Aristotle has a central thesis of improving oneself to be a better person. If everyone strives to do this then the world would become a more productive and moral environment to live in. He argues that the rational side of he soul which revolves around intellectual values is the side which should be cared for by the individual. He argues that virtue ethics is ‘at variance with the central feature of the modern economic order.’ He feels ‘internal goods’ are the most important to produce, these are unique to a particular activity which use ‘analytic skill, strategic imagination and competitive intensity.’ Fame, money and power would therefore not come into this so would be described as unvirtuous goals.

He gives an example of two fishing communities; the first produces external goods and is a portrayal of current businesses. The fisherman catch as much fish as possible to meet the demand and to make profit which is the overriding goal. As soon as the demand for fish starts to wane the crew will quit as there will be an insufficient profit for them to make. In the second example, he gives a more virtuous account; although a fisherman may originally join the crew for capital gain the crew show devotion for the excellence of fishing, the achievements of acquiring goods which will extend to the family of the crew members and of the society as a whole.

Macintyre would agree that the latter would fail is the tow crews were in competition, he would however maintain that the sense of pride of work is more important than the pursuit of profits.      

Macintyre would argue that current ethics of Western corporations is unethical, Milton Freedman’s article explaining a firms only aim is to maximise profits and has no social responsibility would be absolutely contested by Macintyre, who would argue that money is not the end rather a means to a further end of social responsibility.  

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Kindness would be an important virtue to own, and with this character trait you would expect the individual to shown compassion and lovingness in a situation. For example is it acceptable to sack able workers purely because they are excess to needs of the company and by saving money on there wages you can earn more for yourself. The virtuous answer would be no it is far better to treat your staff with the up most respect than to run a business for the maximisation of profits.

Proponents of virtue ethics could argue that by treating your staff more virtuously ...

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