Identify Five Specific Ethical Issues In The 21st Century

Identify five specific ethical issues that 21st century ethical managers must confront

Business ethics courses in colleges and universities are often misunderstood as primarily concerned with making students more ethical individuals. In reality, faculty members in this field see their primary role as equipping students with the understanding of complex ethical issues faced by managers, best practices for ethical management, and policies that shape the relationship between business and society. As the 21st century ushered in new technological, economic, and social challenges, ethical managers are increasingly confronted with a range of pressing issues. This essay will identify five such ethical issues and evaluate which ethical perspective best addresses them, considering the complex dynamics of modern business environments.

Five Ethical Issues Facing 21st Century Managers

1. Data Privacy and Security

One of the most significant ethical challenges in contemporary business is the protection of consumer data. With the proliferation of digital technologies, companies amass tremendous amounts of personal information. Ethical managers must ensure that customer data is collected, stored, and used responsibly, respecting privacy rights and avoiding misuse or unauthorized sharing. Data breaches not only harm consumers but also damage a company’s reputation and trustworthiness. Managing data ethically involves transparency, obtaining informed consent, and implementing rigorous security protocols (Culnan & Bies, 2003).

2. Corporate Social Responsibility and Sustainability

Environmental sustainability and social responsibility have become central ethical concerns. Managers face pressures to reduce carbon footprints, adopt sustainable supply chains, and ensure fair labor practices. Balancing profitability with environmental and social responsibilities requires ethical decision-making that prioritizes long-term societal benefits over short-term gains. Ethical management in this realm involves integrating sustainability into core business strategies and fostering corporate accountability (Banerjee, 2008).

3. Ethical Use of Artificial Intelligence (AI) and Automation

The rise of AI and automation presents complex ethical dilemmas. Managers must oversee the development and deployment of algorithms that can sometimes perpetuate biases or make unethical decisions. Ensuring that AI applications are fair, transparent, and respect human rights is a pressing concern. Ethical frameworks guide managers in implementing AI responsibly, emphasizing principles such as beneficence, non-maleficence, and justice (Floridi et al., 2018).

4. Executive Compensation and Wealth Inequality

Disparities in executive pay and the broader issue of wealth inequality pose significant ethical questions. Stakeholders often perceive such disparities as unjust, especially when employee wages stagnate or when corporate profits benefit a small elite. Ethical managers must navigate these concerns by fostering equitable compensation practices, enhancing corporate transparency, and promoting social justice within organizational policies (Healy & Palepu, 2001).

5. Ethical Supply Chain Management

Globalized supply chains introduce ethical issues related to labor conditions, sourcing of raw materials, and fair trade practices. Managers must ensure that suppliers adhere to ethical standards concerning wages, working conditions, and environmental impact. Ethical supply chain management requires due diligence, regular audits, and a commitment to uphold human rights and environmental sustainability across all levels of production (Seuring & Müller, 2008).

Which Ethical Perspective Best Addresses These Issues?

Among various ethical perspectives, stakeholder theory appears most suited to resolving the complex issues faced by managers today. Stakeholder theory emphasizes that organizations have responsibilities extending beyond shareholders to include employees, customers, suppliers, communities, and the environment (Freeman, 1984). This perspective encourages managers to consider the interests and well-being of all stakeholders in decision-making processes, fostering a more inclusive and ethical organizational culture.

For example, in addressing data privacy, stakeholder theory encourages transparency and respect for consumer rights, recognizing customers’ interests as primary stakeholders. When managing environmental sustainability, this perspective promotes a commitment to the community and future generations. In AI ethics, it guides the responsible development of technology that benefits society broadly. Likewise, equitable compensation and ethical supply chain management align with stakeholder theory by ensuring fair treatment for employees and suppliers. Overall, stakeholder theory advocates a balanced approach that integrates social, environmental, and economic concerns, making it an effective framework for contemporary ethical management.

While other perspectives such as utilitarianism or deontology offer valuable insights, stakeholder theory’s inclusive scope makes it more adaptable to the multifaceted nature of modern ethical issues. Utilitarianism’s focus on maximizing overall happiness can sometimes overlook marginalized groups, whereas deontology’s emphasis on duty may lack flexibility in complex scenarios. Stakeholder theory’s recognition of moral responsibilities toward diverse groups fosters more comprehensive and ethically sound decisions in the dynamic business landscape of the 21st century.

Conclusion

In summary, 21st-century managers face an array of pressing ethical issues, including data privacy, sustainability, AI ethics, income inequality, and supply chain integrity. Addressing these challenges requires a robust ethical framework, and stakeholder theory emerges as the most fitting perspective. It promotes a holistic approach that considers the interests of all stakeholders, encouraging responsible and ethical managerial practices. As business continues to evolve, adopting stakeholder-oriented ethics can help organizations navigate complex dilemmas while fostering trust, accountability, and societal well-being.

References

• Banerjee, S. B. (2008). A global perspective on corporate social responsibility. Routledge.
• Culnan, M. J., & Bies, R. J. (2003). Consumer privacy: Balancing technological innovation and privacy concerns. Journal of Business Ethics, 44(4), 343-356.
• Floridi, L., et al. (2018). AI4People—An Ethical Framework for a Good AI Society: Opportunities, Risks, Principles, and Recommendations. Minds and Machines, 28(4), 689–707.
• Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
• Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440.
• Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710.
• Floridi, L., et al. (2018). AI4People—An Ethical Framework for a Good AI Society: Opportunities, Risks, Principles, and Recommendations. Minds and Machines, 28(4), 689–707.
• Banerjee, S. B. (2008). A global perspective on corporate social responsibility. Routledge.