The paper explores the question, of how businesses should weigh their obligations to the public and to shareholders?’ with reference to ethically questionable conduct of Telstra’s deceptive advertising. The paper argues that both public and shareholder interests are important to business. Business has a social responsibility to conduct its affairs as a good citizen and should be treated accordingly. Management’s role is to maintain the health of an organisation and balance the conflicting claims of multiple stakeholders (public & shareholders). This implies more than just adhering to the law, which does not produce instant justice or ethical behaviour but acting in accord with the common good. Therefore, the combined benefit or common good as defined in the Virtue Theory should be the criterion in which the measure business obligation to these two stakeholders.
It was reported in the Courier Mail that Telstra was forced to withdraw a Television advertisement, which deceptively passed off old footage of a Texas flood victim, portraying her as a victim of the Katherine flood disaster. The advertisement also used footage of real Katherine flood victims without their consent, which added to the surviving victims’ grief. Errol Simpler of the Australian purported that this case could be viewed as a barometer of the ethical and moral climate in the advertising and telecommunication industries.
Assessing the ethical and moral worth of this type of action in terms of Kantianism and Utilitarianism moral philosophies, leads to the conclusion that current standards are deficient. In business, Kantianism emphasises the importance of adhering to organisational ethics policies and/or adhering to both societal regulations and laws. Climates characterised by a high level of Kantianism are less likely to be associated with behaviour that is ethically questionable. Telstra’s actions have circumvented the three pillars of Kantianism; duty, universalisability and respect. Actions were not for public good but self-serving, and people were not respected or considered.
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