Fernando's Business Ethics and Corporate Governance, 3rd Edition

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Part 1

 Business Ethics

‘within the bounds of general canons of justice’. Though what these canons of justice mean is not

yet a settled issue, there is a general understanding that these canons require that business rms

‘avoid fraud and deception . . . show respect for their workers as human beings, and . . . avoid

any practice that systematically worsens the situation of a given group in society’.

It can be summarized from the above arguments that the social contract theory upholds

the view that managers are ethically obliged to abide by both the ‘social welfare’ and ‘justice’

provisions of the social contract. If fully understood,