Questions: A.

If you are a senior manager of an adult website, explain how you would promote ethics in your value proposition. Also, justify your business operations within ethical guidelines.

B. Explain the components of ethical mind. If you are a head of marketing department of a tobacco manufacturing firm, how would you apply the concepts learned from the article in formulating the marketing strategies? C. Explain with examples how Carrs game theory and Milton Friedmans arguments is related to Adam Smiths theory of ethics. Do you agree that these three theories help firms maximize profits and maintain market equilibrium?

ANSWER TO QUEST ION N O A

Adult websites mainly refer to sexually explicit content websites along with some other sort of websites which does not provide the actual pornography rather offer jokes and stories having relation with sex. Pornography had been available over the Internet since the 1980s; it was the availability of widespread public access to the World Wide Web in 1991 that led to an expansion of Internet pornography. Websites enable people to access pornography more or less anonymously and to view it in the comfort and privacy of their homes. On the other hand ethics, in a simplest manner is a system of moral principles which is concerned with what is good for individuals and society and is also described as moral philosophy. In Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. Even if main purpose of doing maximum business is to generate profits to a large extent, it has to have some sort of ethics in it reflecting through its value proposition- a clear statement of the tangible results a customer gets from using products or services. If I were a senior manager of an adult website, my value proposition would be- When you will come back from your work place stressed out, you will be assured maximum relaxation of your tension if you just pay a single visit over here. Dont you want to release your tenses and charge yourself for the next task? I am sure you want and this is why we are here. We require you no personal information except to be adult. We will verify whether you are above 18 or not by your personal credit card number. No fear. Not a single penny will be deducted from your account. Do not tensed to release your tension, we are here now. In my value proposition I mentioned that relaxation from tension is assured for adults, and I will make sure that not a single immature less than 18 years of old person is accessing my website. This is our ethics not allow anyone under 18 in our website. We want to promote it through our value proposition. Justification of operations within ethical guideline: In a brief my operations would be to generate profit through allowing people watch sexually explicit contents and make them a chance to have the pleasure of sex without having it in reality. In pursuing this main business model, I have to be surrounded by some ethical fences. They are-

Not allowing a single person who is not over 18 years of age. Showing advertisements of contraceptive pills or condoms in the website to promote using them while having sex for birth control. A portion of the money collected from the website would be distributed for the betterment of sex workers health issues and their lifestyle. Not allowing any sort of videos related to scandals.

ANSWER TO QUEST ION N O B Ethical mind is composed of those things, value we require to become social rather than being more of thyself. A person having ethical mind always ask themselves What kind of a person, worker, and citizen, I want to be? If all workers of my professiondid what I do, what would the world be like? Since ethical is mind is more focused on social values, it composed of A disciplined way of thinking is what we gain through applying ourselves in a disciplined way in family, or educational institutions. Over time, and with sufficient training, we gain expertise in one or more fields: We become experts in project management, accounting, music, dentistry, and so forth.

The synthesizing observance, which can survey a wide range of sources, decide what is important and worth paying attention to, and weave this information together in a coherent fashion for oneself and others.

Respect for others, meaning who needs to be respected and why. This is not about only respecting but also looking some logic behind this.

Ultimately, Ethical mind is stuffed with those components of a whistle blower, since a whistle blower, unlike others do not sit back and do his or her duty, rather he or she develops an ethical mind to judge activities and proceed further sacrificing social respect.

If I would become head of marketing department of a tobacco manufacturing firm, how theories of ethical mind, can be applied in developing marketing campaigns: Tobacco industry is a bit different industry than others, since in this particular industry; marketing campaigns have to be done in a critical way. Smoking tobacco is banned or restricted in most of the counties of the world because of its health hazards. If I would become a head of a marketing department of tobacco manufacturing firm, I would make a nexus in between ethical elements and profit maximization. Running CSR activities: I would run massive CSR activities as a head of marketing department, since CSR has the ability to minimize the bad impact of the company done towards the society.

Special packaging: In making the packet of my tobacco I would maintain some sort of steps to make people conscious about the hazardous impact of taking tobacco. Smoking causes Cancer would be inscribe on it.

Denying risk: Risk can never be avoided. In the world of business we live and survive in risk. So, risk should be considered before taking any decision of my any marketing campaigns and ethically that decision has to be justified.

ANSWER TO QUEST ION N O C Initially I will discuss about the three theories (Carrs game theory, Friedmans argument and Adam Smiths) in a brief and then make a nexus among them. Albert Carr argues that business bluffing can be ethical provided it is legal and will help businesses earn profits. Carr states that one cannot apply a single standard of ethics universally as different situations entail that one should follow different mores. Carr illustrates this point by alluding to a poker game: people who are playing poker do not adhere to the same moral rules that they would adhere to in other circumstances. Carr demonstrates that in poker, lying and dishonesty are virtues; whereas in normal circumstances those traits are vices. Friedmans core argument is the only responsibility of corporations is to increase their profits while acting within the bounds of the law and ethical customs. Only CEOs, not corporations, have 4

responsibilities. Their responsibility is to stockholders, who have typically hired them to increase the price of the stock. When a corporation supports social ends at its own cost; this is tantamount to taxing its employees, shareholders, and customers without representation. Moreover, CEOs do not have the knowledge necessary to pursue social ends. They should leave this to elected officials and experts. Adam Smiths position on ethics might be called the autonomy of business from ethics. According to his view, commerce is an independent sector of human activity governed by its own rules and standards. Left to themselves and allowed to operate freely, businessmen and businesswomen will produce maximum benefit for the society.

Relationship between Carrs game theory and Adam Smiths theory: Carrs game theory is related to making profit by any means considering it is legal. Ethics is shaped by profit according to his theory. On the other hand, Adam Smith theory is based on autonomy of business. Every business has some autonomy directed by invisible hand to pursue its goal of maximizing profit. For example: Cheat and bluffing is approved in poker business which is ethical based on Carrs theory since this brings profit maximization for this particular type of business. On the other hand it is also approved by Adam Smith, since it gives some sort of autonomy to the business and driven by selfinterest. Relationship between Friedmans argument and Adam Smiths theory: Friedmans theory has some relation with Adam Smiths theory on egoism. Egoism, practiced by Milton Friedman and Adam smith, defines right and wrong in kind of an opposite way. In egoism, the way to define right vs. wrong is by the consequences to self. This theory would have us choose solely on the basis of self-interest. One major criticism is that it would lead to illegal and/or unethical behavior. Another criticism is that one person pursuing self-interest might directly come in conflict with another person. For example, if I have a rich relative, it might be in my best interest to kill him/her, but it would certainly not be in his/her best interest to die. Do the three theories help firms maximize profits and maintain market equilibrium: I do not agree that all of the three theories maximize profits and maintain market equilibrium. According to my point of view only Carrs game theory and Adam Smiths ethical theory can bring firm maximum profits and ultimately maintain the market equilibrium.

Market equilibrium refers to a situation in which the supply of an item is exactly equal to its demand. Since there is neither surplus nor shortage in the market, price tends to remain stable in this situation. Carrs theory tells that any bluffing in running business is ethical if it brings more profit for the business. According to his theory every ethics is not applied universally. It change its shape based on different perspective, different business environment. Since, this theory allows business to alter ethics based on profit, it is supposed to maximize the profit and preserve the market equilibrium. Adam Smiths core theory is about maximizing profit. It then ramified into many other theories like his theory of moral sentiment. In the book, The Wealth of Nations, Smith outlines the public benefits resulting from self-interested behavior which finally lead to autonomy of business and then profit maximization. No doubt, Adam Smiths ethical theory is related to profit maximization and market equilibrium. Friedmans theory is against the corporate responsibility of corporations. According to this theory corporate responsibility done by corporations is some sort of burden for its employees and shareholders. They are intended to maximize profit; they are not intended to do social activities as a part of company. Here I do not agree with Friedman, since in order to maximize profit Corporate Social Responsibilities (CSR) is must now a days. As a strategy of company it should be ethical for employees to do what company wants him or her to do for the betterment of the company. Doing some socially responsible activities helps a company tax benefit that ultimately helps to maximize profit. But Friedman is against it.

REFERENCES

http://www.helium.com/items/1227445-business-ethics-albert-carr-business-bluffing

http://www.enotes.com/business-ethics-reference/business-ethics

http://highered.mcgraw-hill.com/sites/dl/free/0073524697/910345/Appendices.pdf

http://www.investopedia.com/terms/i/invisiblehand.asp

http://www.wired.co.uk/news/archive/2012-10/08/come4

http://hbr.org/2007/03/the-ethical-mind/ar/1

http://en.wikipedia.org/wiki/Adult_website