Instructions: This Paper Should Be 600 To 800 Words, 12-Poin

Instructionsthis Paper Should Be 600 To 800 Words 12 Point Times New

InstructionsThis paper should be 600 to 800 words, 12 point Times New Roman font, and double spaced. All papers in this course will be comprised of two main sections. First, a summary of part of the reading, then your own opinion. Please make sure to turn in your paper as a Microsoft word document and not as a .pages document. I cannot open .pages.

In this paper, students are to answer: Describe and explain The Contract View of Business Firm's Duties to Consumers. Does duties does this theory entail? What is a problem with the theory? Make sure to fully explain the problem. Is this problem insurmountable, or is it still a good theory? The reading material is on: I will give you username and psw.

Paper For Above instruction

The Contract View of a Business Firm’s Duties to Consumers is an ethical perspective that emphasizes the importance of voluntary agreements and contractual obligations between businesses and consumers. According to this view, a business’s primary duties are grounded in the explicit terms of contracts it enters into with consumers, and the ethical responsibilities that arise from these agreements. This perspective posits that if a business upholds its contractual commitments, it is fulfilling its moral duties toward consumers, as the contract itself serves as a formal representation of mutual consent and understanding.

Under the Contract View, duties that a business entails to consumers include delivering products or services as specified in the contract, ensuring product quality, maintaining transparency regarding the terms of the agreement, and honoring warranties or guarantees provided at the point of sale. This perspective primarily focuses on the legal and formal obligations that arise from contractual agreements, suggesting that ethical duties are largely confined to what is explicitly agreed upon by the parties involved. Consequently, the emphasis is on fulfilling contractual obligations, rather than broader social responsibilities or moral considerations outside the scope of the contract.

This theory, therefore, entails duties such as honesty in advertising, fair pricing within the scope of the contract, and compliance with the agreed-upon terms. It also underscores the importance of voluntary consent, meaning that both parties must agree to the terms freely and without coercion. Any violation of these contractual obligations, such as deceptive practices or breach of warranty, constitutes a breach of the business’s duties under this perspective.

Despite its clarity and emphasis on mutual agreement, the Contract View faces significant criticisms. One major problem is that it can be overly narrow, neglecting the broader societal and ethical responsibilities that businesses have beyond their contractual obligations. For example, a business might strictly adhere to the contractual terms but still engage in practices that are harmful to consumers or society—for instance, exploiting loopholes, engaging in misinformation, or neglecting environmental impact. This highlights a key problem: the theory’s focus on the contract can lead to a form of moral minimalism, where companies are only expected to do what is explicitly required, potentially ignoring moral duties that are not captured within the contract itself.

The problem of moral minimalism can be quite insurmountable, especially in cases where contractual obligations are inadequate to address complex ethical concerns. For instance, a business might fulfill its contractual duties while still engaging in practices that, from a moral standpoint, are indefensible—such as selling harmful products or exploiting vulnerable populations. Such scenarios demonstrate that adhering strictly to contracts does not necessarily lead to socially or ethically responsible behavior, and therefore, this could be seen as a significant limitation of the theory.

However, despite its limitations, the Contract View remains a valuable part of ethical business theory. It provides a clear framework rooted in mutual consent and contractual obligation, which can promote fairness and clarity in business transactions. Moreover, it emphasizes the importance of voluntary agreement, respecting autonomy—an essential principle in modern business ethics. While the theory may be insufficient on its own to address all ethical concerns, it can be effectively complemented by other ethical approaches that consider broader social duties and moral responsibilities.

In conclusion, the Contract View of a Business Firm’s Duties to Consumers underscores the importance of contractual obligations and mutual consent in defining ethical duties. While it clarifies the scope of a business’s responsibilities and promotes fairness, it also faces significant challenges—particularly its potential neglect of broader moral responsibilities outside the contractual framework. Whether this problem is insurmountable depends on one’s perspective; many suggest that it highlights the need for a more integrated approach that combines contractual obligations with moral and social considerations. Nonetheless, the Contract View remains a foundational theory that continues to inform ethical business practices, especially when paired with other ethical principles to promote holistic corporate responsibility.

References

• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman Publishing Inc.
• Maclagan, P. (2000). Corporate Responsibility and the Law. Routledge.
• Donaldson, T., & Werhane, P. H. (2006). Ethical Issues in Business: A Philosophical Approach. Pearson Education.
• Hart, H. L. A., & Honoré, A. M. (1985). Causation in the Law. Oxford University Press.
• Bowie, N. E. (1991). Business Ethics: A Kantian Perspective. Blackwell Publishing.
• Valentinov, V. (2010). The ethics of the contractual approach in business. Journal of Business Ethics, 94(4), 597-610.
• Friedman, M. (1970). The Social Responsibility of Business is to Increase Its Profits. The New York Times Magazine.
• Shaw, W. H. (2016). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.
• Jones, T. M. (1991). Ethical Decision Making by Individuals in Organizations: An Issue-Contingent Model. Academy of Management Review, 16(2), 366-395.
• Crane, A., & Matten, D. (2016). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press.