Business as an Ethical Standard

Half of business ethics is determined by the definition of business. In stockholder theory the purpose of business is to maximize profit, while stakeholder theory maintains that the purpose of business is to serve all stakeholders. Both define business as an amoral activity requiring a separate moral theory to guide and constrain practitioners. This paper challenges the assumption that business is an amoral activity. Certain moral rules are a constitutive part of business and yield a definition of business that is also an ethical standard: Producing a good or service for trade.