Normative Ethical Theories as Frameworks for Better Corporate Governance : A Practitioner's Perspective

Corporation is a unique, complex and amongst the most influential social institutions that has ever existed in human history. Actions taken by corporations impact the societal ecosystem that they operate in. Beginning 1950, with Howard Bowen's call for corporate social responsibility, ethicists have channeled their focus on corporate behavior. Today, there is a huge body of scholarly literature on business ethics prescribing what constitutes ethical corporate behavior. However, corporate greed seems to surpass all boundaries with each passing year and scams have gained mainstream status. This paper makes an attempt at drawing the attention of ‘ethics' researchers as well as business practitioners to various ethical theories that complement business actions. As a practitioner, the author feels that among all the normative ethical models, ‘value theory' offers a potent framework to base one's business actions in. An action is right or wrong based on how the value seeker perceives value and how an individual is affected by it. Corporations should appreciate the value cognitions and value judgments made by their stakeholders to deliver the right value which is construed ethical, irrespective of whether it is right or wrong in act