6 Ethics of Business - The Theoretical Basis Chp 5 (Feb. 3)
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Transcript 6 Ethics of Business - The Theoretical Basis Chp 5 (Feb. 3)
Canadian Business and Society:
Ethics & Responsibilities
Chapter
Five
Ethics of Business:
The Theoretical Basis
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
1
Chapter Outline
Business
Ethics: Key Terms
Ethical Implications in Business
Influences on Ethical Behaviour
Theoretical Basis for Ethical Conduct
Moral Reasoning Process
Kohlberg’s Stages of Moral
Development
Chapter 5
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
2
Business Ethics
Ethics of business: rules, standards, codes, or
principles that provide guidelines for morally
right behaviour and truthfulness in specific
situations.
Value judgments: subjective evaluations of what
is considered important.
Moral standards: the means by which
individuals judge their actions and the actions of
others.
Chapter 5
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
3
Types of Ethical Assessment
Amoral
Awareness of Implications
Individual and Societal Influences
Value judgments
Moral standards
Systematic Analysis
Chapter 5
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4
Influences on Ethical Behaviour
Individual morals
National and ethnic cultures
Government legislation and regulation
The legal system
Religion
Colleagues or peers
Education
Media
Corporate mission, vision and values statements
Union Contracts
Competitive behavour
Activist or advocacy groups
Business or industry organizations
Professional associations
Chapter 5
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
5
Self-Interest (Ethical Egoism)
Individuals or corporations set their own
standards for judging the ethical
implications of their actions; only the
individual’s values and standards are the
basis for actions.
Chapter 5
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Egoism (Self-interest)
Self-interest not necessarily the same as:
selfishness, greed, disregard for the rights
and interests of others, hedonism, or
materialism.
Not “eat, drink and be merry”
That’s not in your best interest
Chapter 5
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Egoism (Self-interest)
Look out for # 1
No moral obligation to help others
Moral obligation is to do the best you can
do for yourself
Can involve helping others as long as it
furthers your own interests
Chapter 5
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Egoism (Self-interest)
Self-interest to some degree is always
present
Short-term vs. Long-term
Negative light
Enlightened egoist
Scale
Chapter 5
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Personal Virtues Ethic
An individual’s or corporation’s behaviour
is based upon being a good person or
corporate citizen with traits such as
courage, honesty, wisdom, temperance,
and generosity.
Chapter 5
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Personal Virtues Ethic
Honor, pride, and self-worth
Not about kindness or compassion
Not about rights or benefits
All about the character of actions
Ask, how would I feel if my actions
were explained on television?
Chapter 5
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11
Ethics of Caring
Gives attention to specific individuals or
stakeholders harmed or disadvantaged
and their particular circumstances.
Chapter 5
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Ethics of Caring
Responsibility to reduce harm or suffering
of others
Golden rule: Do unto others as you would
want done to you.
Chapter 5
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Ethics of Caring
Upside for business:
Flexible
Quick response
Downside for business:
Miss the big picture
Subjective criteria
Chapter 5
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Government Requirements Ethic
The acceptance of a code of laws as the
governing rules of society or as a contract
with society that determines what is
considered right or appropriate behaviour.
The law represents the minimal moral
standard.
Chapter 5
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Government Requirements Ethic
Legal system and a code of laws
Government enforces obedience to
provide fair competition and peace
“It’s legal so it’s okay”
Do laws cover everything?
Chapter 5
Copyright © 2008 McGraw-Hill
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Utilitarian Ethic
Focuses on the distribution of benefits
and harms to all stakeholders with the
view to maximizing benefits.
“The greatest good for the greatest
number.”
Chapter 5
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Utilitarian Ethic
Cost-Benefit analysis
Good means happiness or pleasure
Anything has the potential of being
morally right
Take the long-term into account
Can we predict the future?
Chapter 5
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18
Universal Rules Ethic
Ensures that managers or corporations
have the same moral obligations in
morally similar situations.
Treat people as means in themselves
(i.e., with respect) and never as a means
to one’s own ends.
Chapter 5
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Universal Rules Ethic
Goal: eliminate self-interest
Create rules and morals that are fair to
everyone
Only act if you are willing for it to become
a universal law
Drawback: no exceptions
Chapter 5
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Individual Rights Ethic
Relies on a list of agreed upon rights for
everyone that will be upheld by everyone
and that becomes the basis for deciding
what is right, just, or fair.
Examples: Rights to safety, information,
privacy, property.
“Universal Declaration of Human Rights”
Chapter 5
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Economic Efficiency Ethic
Judges the moral implications of a
decision by its economic consequences
and provides the moral justification for a
market system.
Adam Smith: By focusing on efficient
operations, profits are maximized, and
society ultimately benefits.
Chapter 5
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Ryerson Ltd.
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Economic Efficiency Ethic
Market and legal constraints
No wasted resources
Environmental sustainability
Economic efficiency
Competitive effectiveness
Chapter 5
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Ethics of Justice
Considers that moral decisions are based
on the primacy of a single value: justice.
Social contract
Chapter 5
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Ethics of Justice
Different types of justice:
Procedural justice
Corrective justice
Retributive justice
Distributive justice
Chapter 5
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Ethics of Justice
Benefits:
Logical and impartial process
Equal rights
Drawbacks:
Who has moral authority?
Stakeholder may be overlooked
Impersonal, inflexible, cold and uncaring
Markets are unjust
Chapter 5
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
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