Psychological Egoism

CEO like James Kilts act based on psychological egoism where they place their interests first over others. In some sense, they have the right to do so. The theory holds truth because the daily actions that people take are a means to survival in the world (Minkes, Small& Chatterjee, 1999). Procter& Gamble also acted based on the interests of the company. Without a doubt, the interests of the company were to achieve large profits from the purchase of Gillette as such they required the best workforce for their company. However, it does not explain the reason Kilts did not consider other alternatives when he sold Gillette to Procter& Gamble. Even though, the theory of psychological egoism justifies that a person can act based on self-interest his actions were beyond the limits since they affected the society adversely.

The actions of CEO’s like Kilts are simply selfish and inhuman and lack an ounce of compassion. It is unseemly that Procter& Gamble would pay such a humongous amount to one person at the expense of six thousand employees. The act of both James Kilts and Procter& Gamble was morally unethical. The management practices of the two did not consider the employees in their strategies. The act simply shows that they considered the employees as just pawns that could easily get replaced. The employees in the organization are a source of creative energy the business would not succeed without their effort. It was indecent for Kilts to disregard them in the sale. The sale of the company would lure anybody; however, it would not kill to consider whether it affects others in the process. While such kind of acts seems correct to some, business ethics ensure that those carrying out businesses consider all parties in every transaction they undertake. I believe that having emotional intelligence is a vital key to maintaining business ethics. Those running businesses should display professionalism and at the same time depict empathy in every operation (Minkes, Small& Chatterjee, 1999).

Reference

Minkes, L., Small, W., & Chatterjee, R. (1999). Leadership and business ethics: Does it matter? Implications for management. Journal of Business Ethics, 20(4), 327-335.

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