Ethical Consequences: Treatment of Stakeholders in Capitalistic Approach and Cooperative Approach to Business

Abstract

The study illustrates an interpretive glimpse on ethical concern in business corporations. The challenge towards Capitalistic approach to business has given birth to model called Cooperative approach to business. It has been deeply studied and analysed that both entities incur ethical dilemmas due to their nature of business operations. This paper intends to compare capitalistic approach to business (Microsoft Corporation) with Cooperative approach to business (Mondragon Corporation) to identify the ethical consequences that arise from how each entity treats various stakeholders. In recent chaotic business environment, surprisingly, a massive portion of students and many other target audiences in relation with business studies have been lacking the comparative awareness related to ethical consequences in a business that concerning individual profit maximization and a business that concerning social responsibilities across the borderline. This paper flashed characteristics of both approaches so that it can be addressed easily.

Keywords: Business Ethics, Capitalistic Corporation, Cooperative Corporation, Ethical Dilemma, MCC.