PhD, D.Sc., Finance, Associate Professor, SWU “Neofit Rilski”, Blagoevgrad, Bulgaria
This paper aims to show the need to study both classical and modern theories in business ethics. It is necessary because social relations in production change, as do production conditions, the relationship between owners and workers, employees. The aim of the article is also to demonstrate the possible deviations from the natural, basic principles of ethical behavior in business and to look for opportunities to regulate them and limit the opportunities for their manifestation. This study has an epistemological character, dedicated to studying the evolution of fundamental ethical theories explaining the interaction between subjects in the ethical ecosystem. In developing the article, descriptive analysis was used to identify, analyze, and summarize the main features of poodle theories in business ethics. This paper has its theoretical basis of a rich category of tools and classical theories in aesthetics; new business ethics theories are being developed as an inalienable part of the ethical ecosystem. The evolution of the productive forces has had its irreversible impact on the ethical relations in the social system and on each business unit as a whole. The interrelations between the main religions professed by mankind − Christianity, Judaism and Islamic religion with the main category assessing the return on investment, namely the interest rate, are analyzed. The conclusions have been drawn about this type of income in the older religions and newer religions. Basic new business ethics theories are analyzed, such as the Theory of moral hazard, Agency Theory, Diamond’s Theory of delegated monitoring, Rent-Seeking. Research on the evolution of basic business economics theories is usually done based on theoretical analysis and much less based on specific business cases. Here is presented the manifestation of modern theories in business ethics, particular cases of changes in the state of business ecosystems and possibility that basis can also serve as a legal and regulatory initiative to precisely regulate these deviations and their sanction. The chosen form of research is sharing the opinions of the author of the study. In this article, the author seeks the connection, the integration of ethics in the functioning of the business system due to the severance of the direct relationship between owners and employees and the emergence of intermediaries as agents to whom decision-making rights are delegated. The severance of this relationship is at the heart of the evolutionary development of the ethical business side in the context of existing constraints.
Keywords: Business Ethics, Moral Hazard, Rent-Seeking, Diamond Theory, Agency Theory.
JEL Classification: P26, P48.
Cite as: Stavrova, E. (2020). Old and New in Business Ethics Theory. Business Ethics and Leadership, 4(4), 132-139. https://doi.org/10.21272/bel.4(4).132-139.2020
This work is licensed under a Creative Commons Attribution 4.0 International License
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