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EthicsEthics Principles of morality or rules of conductPrinciples of morality or rules of conduct
The study of morals and systems or The study of morals and systems or morality or principles of conduct morality or principles of conduct concerned with:concerned with:
right or wrongright or wrong
should or should nots in behavior should or should nots in behavior and decision makingand decision making
Ethical versus Legal Behavior
• Not all moral norms have been codified.
• Society relies on more than laws to function effectively
• Acting legally is the minimum required behavior for business people– Trust is paramount – hence morality
• Not all laws are moral
Henderson’s TypologyEthical
Unethical
Illegal Legal
1 4
2 3
Desired quadrant
Undesired quadrant
E.G. Chemical manager refuses to promote a
pregnant female into an area of potential hazardous
exposure.
E.G. Marketing infant formula that needs to be mixed with water in an illiterate country
with poor sanitation.
Consequential Theories
• Focus on goals, end results and/or consequences of decisions or actions
• Concerned with doing the maximum good and minimum harm
• Cost-benefit approach• Example: Utilitarianism
– Do the best for the most– Produce the most net utility
• Reliance on objective data when possible
Rule-Based Theories
Emphasis is on duty, obligations and rights• Categorical imperative (Kant)
– Individuals should be treated with respect and dignity as an end in itself. No end justifies a harmful means
– Criteria for treatment consistently applies across people (Justice criterion)
• Fundamentalism – rules come from “higher authority”– Torah, Koran, Bible, etc
• Rights – make decisions that respect and protect basic rights of individuals – e.g. Respecting Bill of Rights – U.S.
Cultural Theories
• Emphasizes different standards of conduct in different locations (like Texas)
• Local standards prevail
• Cultural relativism
Situational Ethics
• Similar to cultural relativism
• What is right varies with the situation
• Is this really ethical?
• Use the ethics principles and models for ethical decision making
Ethical Principles – Self Serving Models for Decisions
• Hedonist principle– Do whatever is in one’s self interest and not
illegal
• Might-equals-right principle– Do whatever one is powerful enough to
impose – but not illegal
• Organization interests principle – Do what is good for the organization – but not
illegal
Ethical Principles – Balancing Interests Principles
• Means-ends principle– Overall good justifies any moral transgression
• Utilitarian principle– Act on the basis of whether the harm inherent
is outweighed by the good
• Professional standards principle– Act on the basis of whether the decision can
be explained before a group of peers
Ethical Principles - Concern for Others Principles
• Disclosure principle– How would the general public likely respond
to the rational of the action or decision?
• Distributive justice principle– Act on the basis of treating an individual or
group equitably
• Golden rule principle– Place yourself in the position of someone
affected by your decision.