Ethical Theories and Concepts to effect change at Kobe Steel

People can apply various theories and concepts of business ethics to explain the Kobe Steel scandal. The top management team may have considered utilitarianism as their guiding principle when making decisions that supported falsifying data on their products (Norman, 2013). The concept states that people determine right from wrong, using the outcomes of an action. The primary objective of a business is to make profit, and considering that Kobe Steel made profit before people unveiled the scandal, it is safe to assume that the leadership justified the end result as right (Norman, 2013). However, using the concept of deontology, Kobe Steel’s actions were wrong because they affected many people, and the leadership failed to follow the rules of the industry (Norman, 2013). Falsifying data concerning product quality and testing procedure is a duty the company failed to accomplish, which makes their practice unethical. Therefore, people can use deontology and utilitarianism to explain the scandal at Kobe Steel.

Ethical Theories and Concepts to effect change at Kobe Steel

The company must work to effect change and restore itself to its previous glory. Kobe Steel must work to maintain ethical standards in its operations, which include virtue ethics theories. These concepts emphasize the need for character and moral philosophy because it surpasses and informs performing one’s duty (Norman, 2013). Using this concept will allow Kobe Steel to employ people with excellent moral standards that will translate to performing their duties to perfection, which will effect change in the company (Norman, 2013). The corporation’s restoration and success relies on the kind of management and employees it will employ to take over daily operations. Therefore, Kobe Steel should use virtual ethics to transform its image and retain its market potential.

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