Kantian Business

Ethics
Deontologist believe that the moral decision
should be made based on one duties and
rights of others.
According to Kant , morality is based on
pure reason , as people has ability to think
rationally , they therefore must act morally
irrespective of personal desires
 The Ethics of Duty

More than any

other philosopher,
Kant emphasized the
way in which the moral
life was centered on
duty.

1724 -- 1804
It is sometimes described as "duty" or
"obligation" based ethics, because
deontologists believe that ethical rules
"bind you to your duty.
When faced with an ethical dilemma, Kant
believes we should ask ourselves: “To
whom do I owe a duty and what duty do I
owe them?”
Kant believes only actions performed for
the sake of duty have moral worth.
A central theme among deontological
theorists is that we have a duty to do
those things that are inherently good
("truth-telling" for example) .

While the ends or consequences of our

actions are important, our obligation or
duty is to take the right action, even if the
consequences of a given act may be
bad.
 Hypothetical & Categorical
Imperatives
How do we know , which rules we should
follow ?
Kant attempted to answer this question by
seizing on a difference between the moral
and non moral senses of the word ought.
Consider the following examples :
(1) If you want to improve your serve , then
you ought to take lessons from a tennis pro .
(2) If you want to lower your cholesterol level
, then you ought to eat less read meat.
Kant called them hypothetical imperatives,
because they tell us to do something only
on the condition that we have the relevant
desire .
In neither case does the use of the word
ought express a moral obligation.
Kant characterized moral rules as
imperatives that express what we ought to
do categorically rather hypothetically
That is, they are use of the word ought that
tell us what to do regardless of our desires .
Imperatives that command categorically are
of the form “ Do (period)” Thus we
cannot evade the force of the moral rule
Thus , we cannot evade the force of the
moral rule “Tell the truth” merely by saying
, for example , “ But I don’t care about
being trusted”
 Types of Imperatives
Hypothetical Imperative:
– “If you want to drive to Jaipur from New Delhi
, take the NH 18 Highway.”
– Structure: if…then…
Categorical Imperative
– “Always tell the truth”
– Unconditional, applicable at all times
 The Categorical Imperative
Act only according to the maxim whereby you
can at the same time will that it should become
a universal law.”
or
“Act as if the maxim of your action were to
become through your will a universal law of
nature.”
Act only on the rules that you would be willing
to see everyone follows
 Example
If a man were to obtain the loan under false
pretenses , the rule on which he would be
acting would be something like this :
Whenever you need a loan, make a
promise to repay the money , even if you
know that you cannot do so.
Although such rule could easily be acted on
by one person, the effect of it being made a
rule for every one – that is , of becoming a
universal law – would be, self defeating.
“The obligation to do our duty is unconditional. That
is, we must do it for the sake of duty, because it is
the right thing to do, not because it will profit us
psychologically, or economically, not because if we
don’t do it and get caught we’ll be punished. The
categorical imperative was Kant’s name for this
inbred, self-imposed restraint, for the command of `
within that tells us that the only true moral act is
done from a pure sense of duty.”

-- Admiral James Stockdale

Three formulations of the categorical
imperative

The first formulation

"requires that the maxims be chosen as

though they should hold as universal laws
of nature“

The principle of Universalizability

 The second formulation holds that

“ Act so that you treat humanity ,whether in

your own person or in that of another ,
always as end and never as a means only

Respect for person

The third formulation

The third formulation

it refers to the capacity of a rational
individual to make an informed, un-
coerced decision. To respect other people
is to respect their capacity for acting
freely , that is , their autonomy.

Autonomy (self governing)

 Kant's three significant formulations of the
categorical imperative are:
Act only according to that maxim by which
you can also will that it would become a
universal law.
Act in such a way that you always treat
humanity, whether in your own person or in
the person of any other, never simply as a
means, but always at the same time as an
end.
Act as though you were, through your
maxims, a law-making member of a
kingdom of ends
 Categorical Imperatives:
Universality
“Always act in such a way that the maxim
of your action can be willed as a universal
law of humanity.”
--Immanuel Kant
 Categorical Imperatives:
Respect
“Always treat humanity, whether in
yourself or in other people, as an end in
itself and never as a mere means.”
--Immanuel Kant
 KANTIAN VS. UTILITARIAN
UTILITARIANISM
Greatest Happiness Principle
The rightness or wrongness of an act depends
upon the consequences. (the END Justifies the
MEANS)

KANTIAN ETHICS
Supreme Principle of Morality
The rightness or wrongness of an act depends
upon universal laws of action (the END never
Justifies the MEANS)
It is all about DUTY
Deontological ethics is commonly contrasted
with teleological ethical theories, according to
which the rightness of an action is
determined by its consequences.
Deontologists believe that some actions are
wrong no matter what consequences follow
from them
Immanuel Kant, for example, famously
argued that it is always wrong to lie – even if
a murderer is asking for the location of a
potential victim
 Exceptions
Are exceptions possible for Kant?
– Yes, as long as they can be consistently
universalized
Examples
– The speeding car
We can universalize an exception for something like
ambulance drivers
– The Gestapo example
Can we universalize a maxim to deceive in order to save
innocent lives?
 Strength’s of Kantian Ethics

-Duty: Commitment to stay the course

regardless of consequences
-Respect for Humanity: Treatment of people
as ends
-Formula for perfect human life?
One of the greatest strengths of Kant's
theory, is that it does not play favourites
nor make exceptions.
The same fundamental rules of morality
apply to everyone regardless of class,
colours, caste, race, creed, blood type,
gender, and so forth.
 Strength’s of Kantian Ethics

• Emphasizes the equal rights and

importance of every person.
• Protects the rights of the minority from the
majority.
• Focuses on following moral principles
rather than producing specific results.
 Weakness of Kantian Ethics
- Too rigid?

- What is our duty?

- Conflicting Duty?

- Intentions and Results

 Weakness of Kantian Ethics
- Provides no guideline for determining priority
when different duties conflict.

- For example, what if you don’t believe in lying

or copying someone else’s work? Would you
lie and tell a friend that you don’t have the
paper he wants to look at and possibly copy?
Or do you let him have the paper? Duty-
based ethics provides no framework for you
to resolve the conflict.
- • Duty-based ethics could simply
become “rule following,” with possible
temptations to bend the rules or to cut
corners.

- • Doing one’s duty can have negative

results. If it does, can the action taken still
be considered moral?
Virtue Ethics
Aristotle (384 BC – 322 BC)
He was a Greek philosopher, a student of
Plato and teacher of Alexander the Great.
His writings cover many subjects,
including physics, metaphysics, poetry,
theatre, music, logic, rhetoric, politics,
government, ethics, biology, and zoology.
Aristotle is one of the most important
founding figures in Western philosophy.
Virtue ethics' founding fathers are Plato
and, more particularly Aristotle (its roots in
Chinese philosophy are even more
ancient) and it persisted as the dominant
approach in Western moral philosophy .
 Virtue Ethics
Utilitarian and duty-based ethics focus
on deciding what actions we should
take in situations because, from our
perspective, they are the right thing to
do.

Virtue ethics asks instead , what

kind of person should we be ?
Moral character rather than right action
is fundamental in this ethical theory.

Aristotle
 Virtue Ethics
Virtue-based ethical theory place less
emphasis on which rules people should
follow and instead focus on helping people
develop good character traits, such as
kindness and generosity.
These character traits will, in turn, allow a
person to make the correct decisions later
on in life.
Virtue theorists also emphasize the need
for people to learn how to break bad habits
of character, like greed or anger.
These are called vices and stand in the
way of becoming a good person.
The role of ethics according to Aristotle is
to enable us to lead successful , rewarding
lives- the kind of lives we would call “the
good life”
The good life in Aristotle’s sense is
possible only for a virtuous persons – that
is persons who develop the traits of
character that we call the virtues .
According to Aristotle, when people
acquire good habits of character, they are
better able to regulate their emotions and
their reason.
This, in turn, helps us reach morally
correct decisions when we are faced with
difficult choices
He believed that we can achieve
happiness—or the “good life”—by
developing virtue.

The good life in Aristotle’s sense is

possible only for virtuous persons –that is,
persons who develops the traits of
character that we call virtues.
 ARISTOTLE AND VIRTUES
• Aristotle thought that the virtues are important
because the virtuous person will fare better in
life, and the virtuous person is the happy
person.

• For Aristotle, we need virtues in order to live

well, in order to conduct ourselves properly.

• Despite all of their differences, we can say

that the virtues all have in common that they
are needed to live successfully.
 What is Virtue ?
Virtue to Aristotle meant the excellence of a
specific thing.
The virtue of a knife is that it cuts well; the
virtue of a teacher is that he or she imparts
knowledge successfully to others.
The virtue of human beings in general is our
rationality. To determine the specific virtue
of a specific thing simply ask what purpose
that thing serves in society.
“Our job as human beings is to use our
rationality to find the golden mean in
every virtue and then to practice and
live it until it becomes a habit.”

Courage is a virtue, but too little

courage becomes cowardice and too
much becomes recklessness. In
between these two extremes is the
golden mean of courage.
Courage is a virtue, but too little
courage becomes cowardice and too
much becomes recklessness. In
between these two extremes is the
golden mean of courage.

Our job as human beings is to use

our rationality to find the golden mean
in every virtue and then to practice
and live it until it becomes a habit.
 Aristotle's Concept of the
Golden Mean
DEFECT BALANCE + Excess +

COWARDICE COURAGE RASHNESS

STINGINESS LIBERALITY EXTRAVAGANCE

HUMILITY MODESTY PRIDE

SLOTH AMBITION GREED

 What is Virtue
Aristotle describes Virtue as character
trait that manifests itself in Habitual action
Honesty for example , cannot consist in
telling the truth once; it is rather a trait of
person who tells the truth as a general
practice
For Aristotle, virtue is something that is
practiced and thereby learned—it is habit .
Honesty is not simply a matter of knowing
how to tell the truth but involves habitually
telling the truth
 Aristotle classified virtue as a state of
character , which is different from feeling or
skill.

A virtue is something that we admire in a

person ; a virtue is an excellence of some
kind that is worth having for its own sake.
A skill like carpentry is useful for building a
house , for example , but not every one
need to be a carpenter .
Honesty , by contrast , is a trait that every
one needs for a good life.
This has clear implications for moral
education, for Aristotle obviously thinks
that you can teach people to be virtuous
Virtues are habits. That is, once they are
acquired, they become characteristic of a
person.
For example, a person who has developed
the virtue of generosity is often referred to
as a generous person because he or she
tends to be generous in all circumstances.
Moreover, a person who has developed
virtues will be naturally disposed to act in
ways that are consistent with moral
principles. The virtuous person is the
ethical person.
 Concluding Evaluation

Virtues are those strengths of character

that enable us to flourish
The virtuous person has practical
wisdom, the ability to know when and
how best to apply these various moral
perspectives.
 Virtue Ethics in business
Virtue ethics can be applied to business
directly by holding that the virtues of a
good business person are same as those
of good person
Insofar as business is a part of life , why
should the virtues of a successful living not
apply to this realm as well ?
 Virtue Ethics in business
However business persons face situations
that are peculiar to business , and so they
need certain business related character
traits.
Some virtues of every day life , moreover ,
are not wholly applicable to business.
Honesty , is a virtue in business ,but certain
amount of bluffing or concealment is
accepted in negotiations.
Any manager should be caring , for
example , but a concern for employee
welfare can go only so far when layoff is
unavoidable .
How do we actually think about
decisions
Although utilitarianism and Kantian ethics
provide universal moral principles that can be
applied to a specific cases , the proponents of a
virtue ethics approach respond that people
generally do not reason that way.
The response of most people to a complex
ethical dilemma is to ask what they feel
comfortable with or what person they admire
would do.
Ideally , morality should be something that
we do not think about at all – but merely
do out of habit .
The distinguishing feature of virtue is its
insistence that being of certain character
and not perfomining right actions is central
to morality.
If we expect an ethical theory to help us
solve the really hard and complex problems
of life ,than an ethics of right action may be
more helpful . If on other hand , we are
more concerned with living our daily life in a
community with others ,then perhaps an
ethics of character is more appropriate.
JUSTICE
Justice like rights is an important moral
concept with wide range of applications.
We use it to evaluate not only the actions
of individuals but also social , legal political
, and economic practices and institutions.
Question of justice often arise when there
is something to distribute
If there is a shortage of organ donors , for
example , we ask what is a just , or fair
way of deciding who gets a transplant ?
If there is a burden, such as taxes , we
want to make sure that every one bears a
fair share.
Justice is also concerned with the righting
of wrongs,
It requires , for example that a criminal be
punished for a crime and that the
punishment fit the crime by being neither
too lenient nor too severe.
Justice also requires that something to be
done to compensate the victims of
discrimination or defective products or
industrial accidents.
 Main Types of Justice

1. Distributive justice

2. Retributive justice

3. Compensatory justice
 Distributive justice

Which deals with the

distribution benefits and
burdens.
 Retributive justice

Which involves the

punishment of wrong doers.
 Compensatory justice

Which is a matter of
compensating persons for
wrong done to them.
JUSTICE AND THE MARKET
SYSTEM
The concept of justice is relevant to
business ethics primarily in terms of the
distribution of benefits and burdens,
although the justice of the economic
system in which business activity takes
place is also an important consideration
in business ethics.
Principles of Distributive Justice

Strict Egalitarian : Every person should

receive equal benefits and burdens

Merit--Plato's Version : People should be

rewarded with positions of responsibility
according to their intelligence, capacity for
devotion to the public good, and
education.
"Socialist“ : People should be assigned
burdens according to abilities, benefits
according to need.

Libertarian : Burdens should be assigned

as they are voluntarily accepted, benefits
as others voluntarily give them
Capitalism : Benefits should be
distributed according to the value of
contribution individual makes to the
society , and benefits are the direct results
of your efforts
 Theories of justice
Following are the four prominent theories of
justice:

Aristotle’s principle of proportionate equality.

John Mill’s theory of justice based on utility.
John Rawls’s egalitarian theory of justice.
Robert Nozick’s libertarian entitlement theory.
Egalitarian theory
Selecting Principles of Justice.
Different principles of distributive justice
are proposed by different philosophers.
What is needed is a way to determine
when social systems, or the rules of justice
that govern society a s a whole, are just.
Such an approach to the selection of rules
of distributive justice is provided by John
Rawls.
John Rawls
(February 21, 1921 –
November 24, 2002)
was an American
philosopher and a
leading figure in moral
and political
philosophy.
The Egalitarian Theory of John
Rawls

The contemporary American philosopher John

Rawls has developed an egalitarian theory of
justice that embodies the Kantian conception of
equality and offers an alternative to
utilitarianism.
Rawls’s theory focuses on social justice, which
he regards as a feature of a well-ordered society.
 Rawls’s egalitarian theory
Theory of Justice : A Theory of Justice is a
widely-read book of political philosophy and
ethics by John Rawls. Published in 1971
His objection to utilitarianism , as we have
already seen , is that it does not give
adequate attention to the way in which the
utility is distributed among different
individuals
Utilitarianism ,”Rawls’s charges “, does not
take seriously the difference between
persons “

As a alternative to the utilitarian ideal of

society with the highest level of welfare ,
Rawls proposes a society that recognizes its
free and equal moral persons , a concept he
attributes to Kant.
For Rawls ,questions of justice arise
primarily when free and equal persons
attempt to advance their own interest and
come into conflict with others pursuing
their self interest .
The key to a well ordered society is the
creation of institutions that enables
individuals with conflicting ends to interact
in mutually beneficial ways
The focus of Rawls’s theory , is on social
justice , that is, on a conception of justice
that is suited to a well ordered society .

Once we have determined what constitutes

a just society , however we can apply the
results to questions of justice in the political
,legal and economic spheres.
 John Rawls' Method
Rawls begins by asking us to imagine a
situation in which free and equal persons ,
concerned to advance their own interests,
attempt to arrive at unanimous agreement
on principles that will serve as the basis
for constructing the major institutions of
society.
He assumes , that people he is describing
are rational in the sense that they
conceive ends and act purposefully to
achieve them and that they are willing to
cooperate with others when this is
possible and to abide by any agreements
made.
 John Rawls' Method
We are to imagine ourselves in what Rawls
calls the Original Position.
We are all self-interested rational persons
and we stand behind "the Veil of
Ignorance." To say that we are self-
interested rational persons is to say that we
are motivated to select, in an informed and
enlightened way, whatever seems
advantageous for ourselves.
To say that we are behind a Veil of
Ignorance is to say we do not know the
following sorts of things: our sex, race,
physical handicaps, generation, social
class of our parents, etc.
But self-interested rational persons are not
ignorant of (1) the general types of
possible situations in which humans can
find themselves; (2) general facts about
human psychology and "human nature".
Self-interested rational persons behind the
Veil of Ignorance are given the task of
choosing the principles that shall govern
actual world.
Rawls believes that he has set up an
inherently fair procedure here.
Because of the fairness of the procedure
Rawls has described, he says, the
principles that would be chosen by means
of this procedure would be fair principles.
According to Rawls, ignorance of these
details about oneself will lead to principles
that are fair to all.
If an individual does not know how he will
end up in his own conceived society, he is
likely not going to privilege any one class
of people, but rather develop a scheme of
justice that treats all fairly.
In particular, Rawls claims that those in
the Original Position would all adopt a
maximin strategy which would maximise
the prospects of the least well-off .
John Rawls' principles of justice
The First Principle of Justice- Each person
is to have an equal right to the most
extensive scheme of equal basic liberties
compatible with a similar scheme of
liberties for others .
The basic liberties of citizens are, roughly
speaking, political liberty (i.e., to vote ),
freedom of speech , liberty of conscience,
freedom of property; and freedom from
arbitrary arrest.
The first principle is more or less absolute,
and may not be violated, even for the sake
of the second principle.

The task of ensuring that every one has

basic rights ought to be completed before
any inequalities based on the second
principle are permitted.
The Second Principle of Justice
Social and economic inequalities are to be
arranged so that :
a) they are to be of the greatest benefit to
the least-advantaged members of society
(the difference principle).
b) offices and positions must be open to
everyone under conditions of fair equality
of opportunity
The second principle recognizes ,however
that there are conditions under which
rational self-interested persons would
make an exception to the first principle
and accept less than equal share of some
primary goods.

One such condition is that every one

would be better off with the inequality than
without it.
If it is possible to increase the total amount
of income , for example , but not possible
to distribute it equally , than resulting
distribution is still just, according to Rawls
as long as the extra income is distributed
in such a way that every one benefits from
inequality.
Principle 2(b) , the principle of equal
opportunity is similar to the view that
careers should be open to all on the basis
of talent.

Whether a person gets a certain job , for

example ought to be determined by
competence in that line of work and not by
skin color ,family connection or any other
irrelevant characteristic.
What does the Difference Principle mean?
It means that society may undertake
projects that require giving some persons
more power, income, status, etc. than
others, e.g., paying accountants and
upper-level managers more than
assembly-line operatives, provided that
the following conditions are met:
(a) the project will make life better off for
the people who are now worst off, for
example, by raising the living standards of
everyone in the community and
empowering the least advantaged persons
to the extent consistent with their well-
being,
and (b) access to the privileged positions
is not blocked by discrimination according
to irrelevant criteria.
Rawls' claim in a) is that departures from
equality of a list of what he calls primary
goods – 'things which a rational man
wants whatever else he wants' - are
justified only to the extent that they
improve the lot of those who are worst-off
under that distribution in comparison with
the previous, equal, distribution
Libertarianism
 Libertarianism
Libertarianism is, as the name implies, the
belief in liberty. Libertarians strive for the
best of all worlds - a free, peaceful,
abundant world where each individual has
the maximum opportunity to pursue his or
her dreams and to realize his full potential.
 Libertarians believe that each person
owns his own life and property, and has
the right to make his own choices as to
how he lives his life - as long as he simply
respects the same right of others to do the
same.
Libertarianism is thus the combination of
liberty (the freedom to live your life in any
peaceful way you choose), responsibility
(the prohibition against the use of force
against others, except in defense), and
tolerance (honoring and respecting the
peaceful choices of others).
Libertarians believe that this combination
of personal and economic liberty produces
abundance, peace, harmony, creativity,
order, and safety
Another way of saying this is that
libertarians believe you should be free to
do as you choose with your own life and
property, as long as you don't harm the
person and property of others.
 Friedrich von hayek
Hayek was an economist who made
important contributions to political theory.
He was a critic of socialism.
He was against the system of state
planned economies.
He believed in “spontaneous order” and
advantage of market in processing
information
 Spontaneous order
Human activity requires a, certain order
which is to say rules and institutions that
provide a basic frame work for people
interaction.

One concept of order is a planned order,

in which a ruler or a group of leaders set
goals and organise people activities to
achieve them.
An alternative to a planned order is a
system in which individuals , within certain
general rules , make decisions that result
in Spontaneous order
Hayek cites the development of language ,
money and the first laws as examples of
such spontaneous order.
Spontaneous order protects and expands
the basic right to liberty and property.
 Robert Nozick- Entitlement
Theory
Entitlement Theory is a theory of private
property created by Robert Nozick .

The entitlement theory can be stated very

simply . A distribution is just “ if every one
is entitled to the holdings they possess”
Whether we are entitled to a certain
holdings is determined by tracing their
history.
Most of us what we possess comes from
others through transfers , such as
purchases and gifts.
As long as each transfer was just and the
original acquisition was just, then our
present holding is just.
 Nozick's entitlement theory
comprises 3 main principles

1 A principle of justice in acquisition -

This principle deals with the initial
acquisition of holdings. It is an account of
how people first come to own common
property, original settlers acquired by
clearing the land and tilling it .
2 A principle of justice in transfer - This
principle explains how one person can
acquire holdings , including voluntary
exchange and gifts.
3 A principle of rectification of injustice -
how to deal with holdings that are unjustly
acquired or transferred, whether and how
much victims can be compensated, how to
deal with long past transgressions or
injustices done by a government, and so
on.
Nozick believes that if the world were
wholly just, only the first two principles
would be needed .
Thus, Entitlement Theory would imply "a
distribution is just if everyone is entitled to
the holdings they possess under the
distribution" Unfortunately, not everyone
follows these rules: "some people steal
from others, or defraud them, or enslave
them, seizing their product and preventing
them from living as they choose, or forcibly
exclude others from competing in
exchanges" . Thus the third principle of
rectification is needed.
Thank You