Business Management Tutor (APA, NO PLAGARISM, GREAT WORK, ON TIME)

Reply To Discussion rr (No more than 150 words)

Good afternoon class!

I chose to answer the second prompt in this week’s discussion on why ethical reasoning is required in business. The reading lays out three main reasons why we need ethical reasoning, which I'll summarize first. Then, I’ll add a fourth reason based on my own experience.

The three reasons the reading provides for why ethical reasoning is required are:

1. Laws Have Limits: The first point is that laws can't cover everything. There are always gray areas where a specific law doesn't exist yet. The reading uses the example of the tobacco industry, which operated legally for decades while causing massive public health problems. Ethical reasoning gives us a moral compass to navigate these gaps where the law is too slow to catch up.

2. Markets Aren't Moral Guides: The second reason is that market forces alone don't tell a company how to act ethically, especially during a crisis. A business can be innovative and successful in a free market but still be completely unethical. The reading uses the example of Enron's former CEO, whose business model was creative but ultimately illegal and led to the company failing and him being convicted of a crime and imprisoned for it.

3. Complex Problems Need a Human Touch: Finally, many business problems are just too complex and human for a simple policy to solve. Decisions can affect people, communities, and the environment in many ways. Ethical reasoning is necessary because it forces us to consider fairness, justice, and the impact on others.

For my own fourth reason, and what I would consider the overarching reason, ethical reasoning is required is to build and maintain the trust of all stakeholders, which is essential for a long term success.  Businesses don't exist in a bubble. They rely on a whole network of stakeholders such as employees, customers, investors, and the community. Without their trust, a business is built on a shaky foundation.

Reply To Discussion th (No more than 150 words)

Good day, everyone!

Ethical reasoning is essential in business because decisions affect people, organizations, and communities, not just profits.  Weiss (2021) identifies three practical reasons why leaders must apply ethical judgment.  First, the law creates a foundation for conduct but cannot anticipate every circumstance.  In many cases, regulations are ambiguous, outdated, or fail to address emerging technologies and business innovations.  Leaders often face “gray areas” where compliance alone does not ensure integrity.  In such instances, managers must determine what is right, not merely what is legal.

Second, market forces cannot always signal the correct course of action, particularly when harm is difficult to measure, delayed, or distributed across diverse stakeholders.  Issues involving data security, workplace health, or environmental sustainability often involve hidden costs and incentives that favor short-term profits over long-term welfare.  Ethical reasoning enables managers to identify these blind spots and incorporate wider social consequences into their decisions (Weiss, 2021).

Third, complex dilemmas require informed moral discernment about fairness, rights, and accountability.  Managers must consider how to treat stakeholders consistently, balance competing duties, and provide transparent reasoning when values collide.  Ethical judgment, therefore, extends beyond compliance or efficiency, as it defines the quality of leadership (Weiss, 2021).

Building on these ideas and my own leadership experience, my fourth ethical reasoning would be that it sustains a culture of openness that prevents minor problems from becoming gigantic failures.  Many ethical breakdowns begin with minor rationalizations that can soften an audit report, overlook a missing control, or stay silent to meet deadlines.  Leaders who model ethical reasoning normalize honesty, invite opposing views, and demonstrate that speaking out is valued and protected.  Effective compliance programs must be well-designed, honestly implemented, and proven to work in practice, including by protecting employees who report concerns.  Ethical reasoning remains essential, as both legal frameworks and market forces provide only partial direction.  Challenging decisions require sound moral judgment, and well-established cultures can recognize and address potential risks before they become critical issues.

References:

Weiss, J. W. (2021).  Business ethics: A stakeholder and issues management approach (7th ed.). Berrett-Koehler Publishers.