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Ethics in the International Context
Tuesday, May13th 2014
Prof. Birgit Weyer, M.Sc., D.M.
07.04.2016
International Project Week, Helsiniki
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1 What are goals of today‘s lecture?

Students are able to understand the context of ethics in business

They know the basic assumptions of how individuals develop morals

They can name business functions frequently concerned with ethical
questions

They now how Corporate Social Responsibility is defined and how it can
be measured
07.04.2016
International
Unternehmensethik
Project Week, Helsiniki
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2.1 Definition Ethics und Moral

Morals = Norms and values in action = Behavior

Ethics = Clarification and justification of these norms and values
based on reflection
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International Project Week, Helsiniki
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2.2 Ethics in the Business Context
Ethical Framework
(Applied Ethics)
Business Ethics
(Valuebased Leadership)
Individual Ethics
(Scientific reflection
on morals)
(Source: see Waibl, 2005)
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International Project Week, Helsiniki
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2.3 Ethics – a Science
Ethics
(Philosophy of
morals)
Descriptive
Ethics
07.04.2016
Prescriptive
(normative)
Ethics
International Project Week, Helsiniki
Meta-Ethics
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2.3 Ethics – a Science
Ethics
(Philosophy of
morals)
Descriptive
Ethics
07.04.2016
Prescriptive
(normative)
Ethics
International Project Week, Helsiniki
Meta-Ethics
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3. How We Develop Morals
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International Project Week, Helsiniki
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´3.1 Nature or Nurture?

Experiment streetcar out of control
15 workers in deadly danger, what would you
do? Switch the tracks – 1 innocent man dead,
push the heavy-set person, do nothing?

300.000 people questioned

Religion, education, age, culture are not a
factor

Moral is nature not nurture
(Marc Hauser, Cognitive Psychology Harvard
Universität)
Wir don‘t care about side effects,
if we don‘t have to act directly!
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International Project Week, Helsiniki
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3.2 Do Animals have Morals?

Experiment Primates – Cucumbers or grapes?
Franz Deval (Center for primates in Atlanta)

Sense of fairness as basis for moral understanding

Moral beginns with carrying for others
- empathy
- favours for one another
- care for others
- making up after quarrels
Advantages for survival by holding back egoism
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International Project Week, Helsiniki
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3.3 Tabula Rasa or Everything There?

Aristoteles (blank slate being written on successively)

Jean Piaget (4 step of development)

Kohlberg (Cognitive theory of development of moral judgement)

Experiment „Is it ok to steal sweets and how would you feel when eating
them?“
Moral knowledge has categorical meaning
(it is bad, but not, it is not allowed)

Moral motivation develops later
(stolen sweets taste good to kids up until 11 years of age)
Moral knowledge and moral motivation
are different processes
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International Project Week, Helsiniki
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3.4 Do Babys have an understanding of
morals?

Babys between 6 and 10 month old

Observation of figures with different colors

Figure tries to climb hill – helper – hinderer are being shown

Later on, babies choose helper

Facial reaction when closeness to hinderer is befriended
Social understanding necessary for moral
system
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International Project Week, Helsiniki
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3.5 Universal grammar of moral

Universal principles of morals are natural, not conscious

Differentiation between active and projected passive damage (e.g.
assisted death)

Action is evaluated as more negative, even when the result is the same

Moral decision are frequently a reflex and are taken sub-consciously
Intuitive actions should be replaced by
rational decisions
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International Project Week, Helsiniki
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3.6 How our brain takes moral
decisions?

Prefrontal cortex localized through MRT

However, brain is a network and very complex

Braindamaged patients have no „emotional breaks“, they only act based
on the end (e.g. streetcar accident)
Map of the brain is not really researched
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International Project Week, Helsiniki
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3.7 The Moral Dilemma
(Source: see. Kohlberg, 1996)
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International Project Week, Helsiniki
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3.8 Levels of Moral Behavior
(Source: see Kohlberg, 1996)
3. Postconventionelle
Ebene
(few adults after
age 20)
2. Conventional
Level
(most teenagers
and adults)
1. Preconventional Level
(up to 9 years)
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Levels of Moral Development
Preconventional level
① Reward and punishment
Punishment should be avoided and the power of authority should be
obeyed
② Keeping the goal in mind
Interests and needs are satisfied while living in a world where
consideration for others is necessary.
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Levels of Moral Development
Conventional Level
③ Agreement with others
One wants to fulfill the expectations of loved ones. It is important to
have positive intentions and to help others.
④ Orientation toward society
It is good and important to support groups or institutions.
Responsibilities have to be fulfilled and law has to be obeyed (unless
this collides with other commitments)
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International Project Week, Helsiniki
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Levels of Moral Development
Postconventional Level
⑤ Social contract and individual rights
Laws are to benefit every one and to protect the rights of all. There
should be biggest possible use for the greatest number of people. Life
and freedom are values of absolute value.
⑥ Ethical principles
An individual who is reasoned believes in the validity of moral principles
and feels personaly obligated. Principles are general believes of
fairness, e.g. equal rights.
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Moral Thinking and Acting are
Situational

Component 1:
Interpretation of the situation with regard to the effects on our behavior
on others

Component 2:
State what a moral action would be: Identification of what moral actions
would look like in a specific

Component 3:
If, conflicting values, select the value which is most important. Decision
on whether to act on the value in a particular situations

Component 4: Acting upon and finishing what you intend to do.
(Source: see Rest, 1986)
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International Project Week, Helsiniki
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2.4 Ethics – a Science
Ethics
(Philosophy of
morals)
Descriptive
Ethics
07.04.2016
Prescriptive
(normative)
Ethics
International Project Week, Helsiniki
Meta-Ethics
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4. Which Values Give Orientation?
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Value Oriented Thinking as Support for
Normative Ethics
1. Philosophy (Aristoteles, Kant)
(Philosophical ideas give concrete behavioral advise)
2. Society
(Businesses are part of the system with norms and values)
3. Law
(Basic values are reflected in laws and regulations)
4. Theology
(Principles and guidelines reflect religious believes)
(Quelle: vergl. Haupt & Lachmann, 1998)
07.04.2016
International
Unternehmensethik
Project Week, Helsiniki
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5. Moral Topics in Business

http://www.scu.edu/ethics/practicing/focusareas/cases.cfm
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5.Should Businesses Carry Moral
Responsibility?

Who?

For Whom?

What For?

http://www.scu.edu/
ethics/practicing/foc
usareas/cases.cfm
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Beyond legal requirements…

Germany § 14 Constitution

Property is an obligation. Using it should be positive for society.

EU Commission has picked up on this thought in 2000
Greenbook
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6. Corporate Social Responsibility
„Concept, which should be the basis
for companies to include social
matters and environmental
matters into business and
stakeholder management on a
voluntary basis...“
http://www.youtube.com/watch?v=yzvy5IgqT
vw
Source: Greenbook, Europäische Kommission, 2001
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International Project Week, Helsiniki
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6.1 What promotes CSR?

Reduced influence of governments due to
- Reduced Ressources
- Misstrust against regulation

Call for more transparence

Increased customer interest on ethical behavior of companies
influencing
- Buying behavior
- Investment behavior

Battle for employees

Conditions on the supplier market
(Source: http://www.bsdglobal.com/issues/sr.asp)
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6.2 Levels of Responsibility
Core Business
Society
Legal Framework
Source: Hansen & Schrader, 2005
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Tripple Bottom Line oder 3-Pillar
Principal
Sustainability
Ecology
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Society
International Project Week, Helsiniki
Economy
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Central Elements in CSR

CSR in the Core Business (own company and suppliers)
- Environmentally safe production
- Minding working norms
- Protection of human rights
- Avoiding corruption

CSR in society
- Corporate Giving (Spenden und Sponsoring)
- Corporate Volunteering

CSR in legal framework
- Lobbying
- Self-regulation
Quelle: Hansen & Schrader, 2005
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6.3 CSR Related Concepts
Corporate
Governance
Foundations
Giving
Corporate
Citizenship
CSR
Sustainable
Development
Volunteering
Business Ethics
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What are typical measures?

Engagement in society and science
(foundations, education, societal support)

Engagement for environment
(sustainability, architecture, energy efficiency, recycling, CO2-reduction)

Engagement for employees
(development, life balance, equal opportunity, health and safety)

Protection of youth
(Behavioral codex)
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An Example....

http://www.youtube.com/watch?v=_1YKPF2ycLQ
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