Name:

JAGAN A/L ANANDANRAJAH

Student ID:

1231184010

Programme & Semester:

Diploma In Business Administration/ Semester 6

Intake：

Octotober 2018

Subject Code:

BUS 2033

Subject Name:

BUSINESS ETHICS
There are two theories discussed in business ethics.

1. Agency theory

agency theory is a way to

adress problems in the agency theory is a pricipal
relationship between business that is used to clarified
director and thier agents and.

Agecy theory

The relationship is between Incompatible preferences can

the shareholders ， as lead to inefficiencies and
principals ， and the financial losses on the part of
executives of the company ， each stakeholder
as agents

2. Stakeholder and social institution theory

A stakeholder theory helps recognise

internal stakeholders such as workers,
board members, managers and external
stakeholders such as consumers, special
interest organisations, regulators, and
others who approve, cooperate, and
confront ethical issues.
Stakeholder
theory
This system helps an organisation to
define, track and respond to various
stakeholder groups' interests, beliefs
and expectations
Many ethical challenges arise because
of contradictions within and within
stakeholder classes in beliefs and
attitude structures regarding right and
wrong.
stakeholders is a theory of management
and business ethics that explores
principles and values in the management
company.
 Institutional theory

It considers the
It is motivated by the
mechanisms by
Institutional theory issue of why multiple
which systems are
addresses the more organisations
defined as definitive
important and working in very
standards for social
effective aspects of different contexts
behaviour, including
social organisation are sometimes very
programmes, laws,
similar in structure.
norms and routines.