Business Ethics

What Is Ethics?

Ethics is not the same as feelings.

Ethics is not religion.
Ethics is not following the law.
Ethics is not following culturally
accepted norms.
Ethics is not science.

Ethics/Morality/Values/Ethos
Ethics and morality
Morality - Mores norms of the culture
Ethics is an systematic inquiry

Ethics and law

Legal codes are more precise
Law is enforceable by the court of law
Ethical codes may be vague at times
Enforcement of ethics is complex social process

Values (tangible[economic], intangible[ethical])

Ethos the moral character of a culture
Caste division/hierarchy
Notion(s) about marriage

Can You Teach Ethics?

Socrates: Ethics consists of knowing
what we ought to do, and such
knowledge can be taught.

Stages of Moral Thought

(Kohlberg)
Child defines right and wrong in
terms of what authorities say
Adolescent defines right and wrong
in terms of group loyalty (friends,
family, gang, nation)
Adult views right and wrong from
universal standards of justice, human
rights, and human welfare
Education is what stimulates growth through
levels.

Ethical Perspectives
Egoism self love / self interest
Altruism self sacrifice
Classical
Virtue Ethics golden mean for general well being and
well being of self
Modern
Utilitarianism human flourishing and amelioration of
suffering relativism?
Deontology universal rules of justice objectivism?
Contractual system social survival and resolving
conflict of interest pluralism?
Post Modern
Feminist Ethics amelioration of power and domination
Ethics of Care
Can we deal with all purposes satisfactorily? No
The alternative is Tradeoffs

Kant?

Aristotle
Tocquevilles
Self-interest rightly understood

High
Altruism
Self-interest
and regard
for others
converge

Self-sacrificing
altruism

Low
Egoism

High
Egoism
Not beneficial
either to self
or others

Drug addiction
Alcoholism, etc.

Self-interest
at the expense
of others

Low
Altruism

Hobbess
State of Nature,
Nietzsche?

Lawrence M. Hinman

The Utilitarian Approach

Focuses on the consequences that
actions or policies have on the wellbeing of all persons directly or
indirectly affected by the action or
policy.
The principle states: "Of any two
actions, the most ethical one will
produce the greatest balance of
benefits over harms."

The Rights Approach

Ethical action is the one that best
protects and respects the moral
rights of those affected.
Each person has a fundamental right
to be respected and treated as a free
and equal rational person capable of
making his or her own decisions.

The Virtue Approach

Focuses on attitudes, dispositions, or
character traits that enable us to be
and to act in ways that develop our
human potential.
Examples: honesty, courage,
faithfulness, trustworthiness,
integrity, etc.
The principle states: "What is ethical
is what develops moral virtues in
ourselves and our communities."

How To Make an Ethical

Decision
Recognize that decisions have ethical
implications
Develop a method for exploring the
ethical aspects of a decision

Recognize an Ethical Issue

Is there something wrong personally,

interpersonally, or socially? Could the
conflict, the situation, or the decision be
damaging to people or to the
community?
Does the issue go beyond legal or
institutional
concerns? What does it do to people,
who have dignity, rights, and hopes for a
better life together?

Objectivity: social/ethical
conflict

Objectivity is located in the notion of adequately

responding to all aspects of a conflict
And rational agreement is brought in
subsequently as part of what an adequate
response involves
Engineers way of solving design problems
Unlikely to arrive at a unique resolution able to address
every relevant aspect of the conflict
Take a number of shortcuts in order to arrive at some
reasonable resolution of the problem
It would be irrational not to given the need to resolve
the conflict

Tradeoffs
In design
Tradeoff between: precision, speed, capacity, weight,
volume, power, aesthetics, so on.
In ethics
Self and others
Consequence/utility and Intrinsic (human) values:
Rights, justice, equality (at least impartiality) so on
Reason/rationality and Emotions,
Duty and Care/love,
Intention/motive and outcome
Practical wisdom/Character and context

What if moral standards be purely relative?

To culture/group/individual
A

culture can justify

Polygamy
Slavery
Untouchability
Sati
Infanticide

Apartheid in South Africa (1948 1990)

Institutionalizing caste division in India (Work assigned by
Descent)
Many still believe it to be right but what is the objective basis?

Violation of human rights of political prisoners in China

An individual can justify
Rape (the case of Ted Bundy)
Cannibalism
Homicide

What if moral standards be purely

relative?

If ethical analysis dependent upon the social

economic context in which it occurs then it can
justify

Priority of paying bribes in foreign markets - Indonesia

Setting lower standards in less developed countries

Wage
Environment
Plant safety

Discriminating on the basis of gender in Muslim countries

Slavery in Africa
Favoritism in China
Loyalty in Japan
Acceptance of toxic wastes by Nigeria (Polychlorinated
biphenyls)

The mere fact that a country permits bribery,

unsafe working conditions, exploitative wages,
and violations of human rights, does it mean that
these practices are morally acceptable? Even in
that country? (what is relative what is objective

Episode 1
The use of driftnets for deep-sea tuna fishing
has led to many mammals, principally
dolphins, being caught and killed. In the U. S.
as the population has become health
conscious, they are eating more and more
fish, especially canned tuna. Prices have
been kept affordable because of large-scale
fishing. As more tuna are caught so are
dolphins, birds and other animals which die.
Should American food companies use
driftnets to catch tuna?

Episode 2
American department store chains sell goods which
are imported from China. The products are of excellent
quality and prices are very attractive. It has now
transpired that most of these products were made by
prisoners in Chinese penitentiaries. These prisoners
were paid a pittance, if at all for their work. In the U. S.
the use of such labor to manufacture products for
commercial sale is generally banned. Many U. S. firms
have outsourced their supplies to foreign countries to
take advantage of lower labor costs and to remain
competitive. Should American companies stop buying
products made by prisoners in China?