What is a true rational economic man? What is ethics for the reputation of a company? According to Jacqoes Thiroux, an American ethicist, saying business ethics is established to maintain the significant relationship between employer and employee, enterprise and consumers. Consequentialism seems to be a kind of moral perception which is largely determined by its consequences (Books, 1999). One must do right things, a company must be upright and reliable. But there are still some companies which tend to take illegal risk to get around ethical constraint. Capitalism not only creates value but also undertakes its performance in the constraints of socially responsible. Here, the Sanlu Toxic Milk Powder scandal in 2008 is a typical case to suggest all of the companies should build a trusty and legitimacy business world. This essay will first introduce what the utilitarianism is and what effect can it bring to the companies. Following this, it will analyze in what respects the utilitarianism show in the performance of the companies. Then, it will give an brief reflection on the importance of the ethical perception and social responsibility in the service of the company. Last, some recommendations will be given to companies on how to run their business well and how to get a good reputation.
First improving the legal system and commercial codes thus to lead the economic activities of enterprise under the control of policies and ethics. The measures such as enforceable penalty to the companies and command-and-control policy is a urgent need to regulate the immoral and illegal behaviors like Sanlu, authoritative procedure is also a must to impose economic sanction on unlawful commercial activity. Corporations should use leverage resources to get profit at the same time to maintain a sustained rapid and sound development by taking the social and moral responsibilities.
Otherwise people who engaged in economic activities should also take relevant responsibilities. Great scope of the company management should also connect with a sense of ethical aspiration, transparent system. Executives and leaders should impose restriction to themselves on the ethic and responsibility. Whole business system is quite intricate and the state of capitalism is upwards, but still, people need to regulate their behaviors towards the profits and weak reputation.
Third, in order to run business ethically and lawfully, it’s up to every company individual to define the values of happiness and principles rightly and accurately. The Sanlu contaminated milk scandal, Ponzi scheme and BP oil spill event revealed that something wrong with the performance on the utilitarian premises, and a lake of communication and regulation can sometimes put the companies into risk. Therefore institution arrangement and social institution can help to develop social morality and responsibility.