Ethics of Loyalty

Contemporary Ethics

Written Assignment 4

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December 21st, 2014

PHI 286

Written Assignment 4

December 21st, 2014

1. The statement proposes that, so long as it is legal, corporate executives simply need to be responsible for the profitability of the company for which they serve. This perspective is only partially accurate, but mostly flawed. Corporate executives certainly have more responsibilities than that.

It is easy to understand that corporate executives serve companies that, in turn, are usually owned by shareholders. Most shareholders demand profits from companies that they have invested in. Consequently, corporate executives indirectly serve these shareholders and must therefore work towards fulfilling the shareholders' primary demand – profitability. A failure to do so often results in monetary disincentives that are unbearable to many. Hence, making as much money as possible for the company becomes an imperative for these corporate executives.

However, it is becoming extremely obvious that the shareholders of today are becoming increasingly sophisticated. No longer is short-term profitability the only concern; other concerns are becoming important as well. Shareholders today understand the virtues of sustainability and environmentalism. "Corporate social responsibility" is becoming a catch-phrase that certainly demands corporate executives' attention. Aspiring solely for profitability is, hence, an anachronistic management philosophy.

It is also disquieting to see the use of the words "only responsibility" in the statement. It is as if to suggest that these corporate executives live lives that solely revolved around work; nothing else. If one gives a cursory thought about the statement, one quickly realizes that clearly there must exist some degree of personal responsibilities in these individuals' personal lives. Hence, the existence of other personal responsibilities automatically nullifies the accuracy of this statement....