THE TENDENCIES OF ETHICAL SCHOOLS (DEONTOLOGY AND TELEOLOGY) IN THE INDONESIAN ECONOMY

Abstract

In the study of business ethics, there are two main schools of thought that complement each other, namely deontology and teleology. Deontology emphasizes the importance of moral obligations that must be adhered to by companies, such as compliance with laws and regulations, fulfillment of contracts, honesty, as well as principles of accountability and responsibility, without considering the possible consequences of these actions. This approach asserts that business actions are considered ethical if they are carried out in accordance with prevailing norms and moral duties. In contrast, teleology views ethics from the perspective of outcomes or consequences of an action. In the business context, this approach assesses decisions as ethical if they are able to generate the greatest benefit. For profit-oriented companies, such benefits are manifested in the form of profit maximization, while for public service institutions, benefits are measured through improvements in social welfare and the interests of the broader community. Thus, teleology emphasizes the effectiveness of outcomes as the basis for ethical considerations. The balanced application of business ethics between deontology and teleology is believed to have a positive impact on the sustainability of the Indonesian economy. Companies that uphold moral obligations while also considering the social impact of every business decision tend to have a good reputation and high public trust. Therefore, this study aims to analyze the balance in the application of deontological and teleological ethics in company operations