Contract theory, due care theory and social cost theory are the modern business ethics theories. The customer is on a susceptible ground because of his lesser knowledge of the product.
The audit partners of Anderson manipulated the system in order to accumulate wealth for themselves. Economic theories suggest that profit maximization can be achieved through the development of free markets.
Hewlett- Packard has given the people the freedom to work towards the overall objectives of the company. Due care must enter into the product's design, choice of materials and construction methods, quality control, and warnings attached to it.
But it was done at the cost of other stakeholders. It is not correct. Example: providing hospitality to your guests. They have a duty to exercise due care to prevent others from being injured by the product, even if they explicitly disclaim such responsibility.
Moral standards cannot be established by the decisions of certain authorities. The term 'higher performance' can be discussed with reference to three basic ethical requirements.
When the labourers are given low wages, the labourers are bound to be agitated. A good business system should promote trust, high quality of work, healthy competition and impartial procedures.
Disclaimers can, in effect, nullify all of the seller's contractual duties.