CHAPTERs 4 & 5

WHAT BUSINESS
ETHICS IS NOT
BSBA 3HR-1
TAN, JOVERSON
CAGOYONG, KRISTINE
ALDABA, MARIA KRISTIENE M.

CHAPTER 4

BUSINESS ETHICS
IS NOT
UTILITARIANISM

WHAT IS UTILITARIANISM?
The doctrine that an action is right insofar as it

promotes happiness, and that the greatest

happiness of the greatest number should be the
guiding principle of conduct.
It is an actions is right if they are useful or for the

benefit of a majority.

Is the Utilitarianism theory relevant today??

Utilitarianism is one of the best known and most

influential moral theories. Like other forms of

consequentialism its core idea is that whether actions are
morally right or wrong depends on their effects.
More specifically, the only effects of actions that are

relevant are the good and bad results that they produce.
Utilitarian's believe that the purpose of morality is to make

life better by increasing the amount of good things such as

(pleasure and happiness) in the world and decreasing the
amount of bad things such as (pain and unhappiness).

Do whatever produces the

greatest good for the greatest

number. Ryan Boatright,1997

Jeremy Bentham
(17481832)
Was an English philosopher and political radical. He is

primarily known today for his moral philosophy, especially his

principle of utilitarianism, which evaluates actions based upon
their consequences.
The relevant consequences, in particular, are the overall happiness
created for everyone affected by the action.
The Principles of Morals and Legislation in Oxford were
Bentham proposed an acceptable norm were all people were
involved could compare the beneficial and harmful consequences of
each policy to determine and enact the best social legislation.

CHAPTER 5

BUSINESS ETHICS
IS NOT
RELATIVISM

Business ethics is not relativism

What is Guanxi?
As on of the major dynamics of Chinese society,
guanxi has been pervasive part of Chinese business
world, binding millions of Chinese enterprises, social
groups, and individuals into a complex
socioeconomic web.

Business ethics is not relativism

What is Guanxi?
The guanxi network is rooted in the Confucian
canons of righteousness (yi), face (myan dz), mutual
rights and duties (quanli yu yiwu), benevolence
(ren), and correct decorum (li mao), which tell us
why certain actions such as gift-giving among
Chinese business people are actually meaningful or
logical.

Business ethics is not relativism

Is guanxi a cultural value?
Yes, guanxi is a cultural value.
Foreign enterprises and corporations are almost always
challenge with a choice. On the other hand, China is hottest
place on earth for transnational companies (TNCs) looking
cheaper labor. On the other hand, heaps of information
regarding corruptions in many aspects of doing business in
China are unfolding, that corruption is endemic are reaches
the highest level of ruling elite, and that the Chinese rule of
game .

Business ethics is not relativism

Is giving gift part of the larger guanxi network?
As part of the larger guanxi network, gift-giving is
an acceptable behavior, a behavior that show respect
to another person therefore strengthens
interpersonal relationships. The lines between giftgiving and bribery are often thin and blurred, and
Chinese sources themselves are aware of this
difficulty. Management gurus find guanxi itself
cultural acceptable.

Business ethics is not relativism

Is the understanding of culture and cultural
values vital for business?
It is more likely that ethico-moral values and expectations
across cultures affect all business transaction. Thus, Pitta
et al., suggest that, in order to reduce the potential for
ethical conflict when US enterprises enter the Chinese
market and succeed in cross cultural business, American
marketers and business practitioners should better
understand the cultural bases for ethical behavior and
moral values when in China.

Business ethics is not relativism

Is it hard to differentiate the cultural values
from the moral values?
Guanxi, as a cultural value, is good. Therefore ,
firms doing business in china should practice what
the Chinese do, but not what is unethical. By
definition, cultural values are territorial and peopleoriented, and businesses with operations across the
globe are encourage to respect those cultural values.
But cultural values are not always moral values.

Business ethics is not relativism

What are the four notions that comprise
relativism ?
Ethical relativism
2. Situation ethics
3. Cognitive relativism
4. Cultural relativism
1.

Business ethics is not relativism

What are the four notions that comprise
relativism ?
Relativism professes that all beliefs are equally
valid, and that the truth is relative-depending on the
situation, level of modernization, environment, and
individual preference.

Business ethics is not relativism

What is ethical relativism?
Ethical relativism advocates that an act, behavior,
or decision is morally right for a group of people of
a particular culture/situation if those people believe
that it is right, and wrong if they think it is wrong.

Business ethics is not relativism

Is the theory of ethical relativism popular
among practitioners today?
The pluralism of ethico-moral standards
2. The application of democratic processes to ethics
3. The individual decisions dependence on varying
historico-cultural situations
1.

Business ethics is not relativism

Is the theory of ethical relativism popular
among practitioners today?
Ethical relativism today enjoys high publicity
and extensive popularity by reason of its
convenience. It is presented as a position positively
defined by tolerance, dialogue, and freedom of
expression- a position that is suddenly limited if
the existence of one valid moral truth for all were
affirmed and upheld.

Business ethics is not relativism

Are there executives who do not buy the idea
that ethics is relative?
David Enfield, vice president of global business
practices for Colgate-Palmolive Co., said his company
encourages local adaption of ethical codes, but he also
recommended that companies focus on the companys
culture, not the national culture. For instance, Enfield
advised: You may state as a company principle that
all employees will be given equal opportunity and will
be treated fairly at work, despite what the countrys
preexisting traditions are.

Business ethics is not relativism

Is international business ethics the same as
ethical relativism?
International business is not relativism because
the former accepts moral values that are objective,
permanent , and universal. Business ethics is
neither situation ethics.

What happens when we accept

relative significance of value?
If the moral standards or norms
formulated by some respectable
traditions of ethics over the
centuries are ignored, those who
ignore them are more likely to fall
prey into many errors.
BUSINESS ETHICS IS

N O T R E L AT I V I S M

Are moral values global ?

Business ethics is born
with global values, and
when firms decide to do
international business it
follows that they
cannot do away with
international moral
values.
BUSINESS ETHICS IS

N O T R E L AT I V I S M

Why is objectivity the first

characteristic of global moral values ?
A moral value is objective, whether
the perceiving subject agrees or not,
because it actually depends on
supramental and cross-cultural
reality referred to as human nature.

BUSINESS ETHICS IS

N O T R E L AT I V I S M

What do you mean by being

subjective ?
Goodness or wrongness of the act
depends on the perceiving subject
or agent

BUSINESS ETHICS IS

N O T R E L AT I V I S M

What do you mean by being objective ?

INTERNATIONAL MORAL VALUES
should have three interrelated
characteristics:
objectivity, universality, and
permanence.

BUSINESS ETHICS IS

N O T R E L AT I V I S M

Why is universal validity the second

characteristic?

A moral value is always universally

valid.
Ethical standard is applicable to all
people and in all places hence
universally valid.
BUSINESS ETHICS IS

N O T R E L AT I V I S M

Is respect for the environment and

human rights a globally recognized
ethical principle?
Wu (2001), in a randomly sampled
study of 1496 Taiwanese enterprises
in mainland China, Vietnam, and
Indonesia, discovers that business
practitioners in these countries are
inclined to respect the environment
and human rights, which he calls
globally
recognized ethical
BU S I NE S S E T H I C S I S N O T R E L AT I V I S M

Why is permanence the third

characteristic ?
A moral value is
permanent.
Subjective perceptions will
not remain for long; for
they are temporary.

BUSINESS ETHICS IS

N O T R E L AT I V I S M

Why should business accept a

universal standard?
If we, as members of a
global and globalizing
community, are to survive
and maintain interpersonal,
inter-communitarian, and
cross-cultural relationships,
we should accept a
universal ethico-moral
standard(Georges,1999).
BUSINESS ETHICS IS

N O T R E L AT I V I S M

Are bad practices the same as

cultural values?
Bad practices should not be
confused with culture.

It is equally crucial to respect

culture and appreciate local
traditions without sacrificing
values.
BUSINESS ETHICS IS

N O T R E L AT I V I S M