Transcript 3. Ethical Theories

Ethics and the Conduct of Business
Eighth edition
Chapter 3
Ethical Theories
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Modules
• Introduction: Ethical Theories
• 3.1: Utilitarianism
• 3.2: Kantian Ethics
• 3.3: Virtue Ethics
• 3.4: Rights
• 3.5: Justice
• Conclusion: Ethical Theories
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Learning Objectives (1 of 2)
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3.1: Describe the four theses of classical utilitarianism, the
utilitarian approach to decision making, and the main
criticisms of the cost-benefit analysis method
3.2: Summarize the two intuitive principles of Kantian ethics
and their implications for moral reasoning
3.3: Define virtue and explain how virtues and principles of
virtue ethics are relevant to business
3.4: Identify the meaning and importance of rights and the
types of rights that apply in different situations
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Learning Objectives (2 of 2)
•
3.5: Explain the role of justice in business ethics, the three
kinds of justice outlined by Aristotle, and the contemporary
principles of justice offered by Rawls and Nozick
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Introduction: Ethical Theories
• Types of ethical theories
• Teleological theories
• Deontological theories
• Virtue ethics
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Figure 3.1
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3.1: Utilitarianism
Objective: Describe the four theses of classical utilitarianism, the utilitarian approach to
decision making, and the main criticisms of the cost-benefit analysis method
• 3.1.1: Principle of Utility
– Four these of utilitarian principle
– Act- and rule-utilitarianism
– Calculating utility
• 3.1.2: Cost-Benefit Analysis
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Quantitative method for decision making
Advantage of cost-benefit analysis
Evaluation of cost-benefit analysis
Assigning monetary values
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Table 3.1: Pros and Cons of CostBenefit Analysis
Points
Pros
Cons
Consequences measured by
monetary value in a market
The market price or value of goods
and services can be used to compare
outcomes.
Not all costs and benefits have a
discernible market value or can be
objectively valued.
Shadow pricing of nonmarket
goods
Market value can be estimated by
analyzing the relative worth of
choices suggested by actual
behavior.
Not all people are able to act or
choose in accordance with their
preferences, or make rational
decisions.
Placing a value on human life and
experiences
Can apply cost-benefit analysis to
issues such as human health and
safety
Seems cold-hearted and reductive;
life, love, happiness, etc. cannot be
bought and are cheapened by
assigned values
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3.2: Kantian Ethics
Objective: Summarize the two intuitive principles of Kantian ethics and their implications
for moral reasoning
• 3.2.1: Universalizability
– Categorical imperative
– Implications for moral reasoning
• 3.2.2: Respect for Persons
– Features
– Respect people as human beings
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3.3: Virtue Ethics
Objective: Define virtue and explain how virtues and principles of virtue ethics are relevant
to business
• 3.3.1: What Is Virtue?
– Aristotle’s idea about virtue
– Characteristics of virtuous people
• 3.3.2: Defending the Virtues
– Traits required for a good life
• 3.3.3: Virtue in Business
– Applying virtue ethics to business
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Table 3.2: Virtues and Vices in Business
Job
Virtue
Vice
Bank loan officer
Prudence, Caution
Charity
School guidance counselor
Empathy, Enthusiasm
Indifference
Personnel manager
Resourcefulness, Impartiality
Prejudice
Corporate executive
Confidence, Focus
Arrogance
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3.4: Rights
Objective: Identify the meaning and importance of rights and the types of rights that apply
in different situations
• 3.4.1: Meaning of Rights
– Confusing claim of rights
– Understanding rights as entitlements
• 3.4.2: Kinds of Rights
– Different kinds of rights
– Natural rights theory by John Locke
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3.5: Justice (1 of 2)
Objective: Explain the role of justice in business ethics, the three kinds of justice outlined
by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick
• 3.5.1: Nature and Value of Justice
– Aristotle’s categorization of justice
• 3.5.2: Aristotle on Distributive Justice
– Aristotle’s principle of distributive justice
– Justifying features
• 3.5.3: Rawls's Egalitarian Theory
– Rawl’s principle on justice
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3.5: Justice (2 of 2)
Objective: Explain the role of justice in business ethics, the three kinds of justice outlined
by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick
• 3.5.4: Nozick's Entitlement Theory
– Difference between Rawls’s theory and Nozick’s
theory
– Main principles of Nozick’s theory
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Conclusion: Ethical Theories
• Main concepts and theories of ethics
• Useful in evaluating business activities
• Continue to be a source for improvement
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