8/7/2019 moral philosophy presentation

1/14

Presentation ByPresentation By

Dr. SEEMA GUPTADr. SEEMA GUPTA

ROLE OF MORAL PHILOSOPHY ON ETHICALROLE OF MORAL PHILOSOPHY ON ETHICAL

DECISION MAKINGDECISION MAKING

8/7/2019 moral philosophy presentation

2/14

Moral PhilosophyMoral Philosophy

Much of the recent ethics research inMuch of the recent ethics research in

business has focused on factors influencingbusiness has focused on factors influencing

unethical behavior of managers.unethical behavior of managers.

The influence of moral philosophy andThe influence of moral philosophy and

values on managerial decisionvalues on managerial decision--making hasmaking has

been well recognized in the development ofbeen well recognized in the development of

theoretical models of decisiontheoretical models of decision-- making.making.

8/7/2019 moral philosophy presentation

3/14

Johnson and JohnsonJohnson and Johnson -- The TylenolThe Tylenol

casecase

8/7/2019 moral philosophy presentation

4/14

Johnson & Johnson Tylenol CaseJohnson & Johnson Tylenol Case

1.1. Tylenol is one of the companys successful products.Tylenol is one of the companys successful products.

2.2. The sales of the product had captured over 35 percent of the $The sales of the product had captured over 35 percent of the $1 billion analgesic market1 billion analgesic market-- over three times the market shareover three times the market shareof the nearest competitor.of the nearest competitor.

3.3. The product contributes about 17 percent of the companysThe product contributes about 17 percent of the companysprofits. The cyanide that caused the deaths was placed inprofits. The cyanide that caused the deaths was placed incapsules of Tylenol.capsules of Tylenol.

4.4. Though the product was available in both capsule and tabletThough the product was available in both capsule and tabletform, the capsule form became instantly popular since it wasform, the capsule form became instantly popular since it was

easier to swalloweasier to swallow

8/7/2019 moral philosophy presentation

5/14

Johnson and Johnson faced twoJohnson and Johnson faced two

problems.problems. The first issue is to whatThe first issue is to what

information to release toinformation to release to

the media and to thethe media and to the

worried customers?worried customers?

Should the companyShould the company

recall capsules onlyrecall capsules only

from Chicago or thefrom Chicago or the

nation wide?nation wide?

The second problemThe second problem

was how to save thewas how to save the

Tylenol brand name.Tylenol brand name.

Many marketing expertsMany marketing experts

were convinced that thewere convinced that the

brand was doomedbrand was doomed

that the public wouldthat the public would

associate it with death.associate it with death.

This decision would have cost an estimated 31 million bottleswith a retail value of $ 100 million and the permanent loss of

market share.

8/7/2019 moral philosophy presentation

6/14

8/7/2019 moral philosophy presentation

7/14

The response ofJohnson & Johnson to the TylenolThe response ofJohnson & Johnson to the Tylenol

crisis can be explained as sound business decisioncrisis can be explained as sound business decision

making. The efforts to restore a valuable brandmaking. The efforts to restore a valuable brand

name were costly but it paid off. This approach isname were costly but it paid off. This approach is

also called deontologist approach or rule basedalso called deontologist approach or rule basedapproach to decision making.approach to decision making. An important factor inAn important factor in

deciding on a recall was the companys Credo, whichdeciding on a recall was the companys Credo, which

has guided several generations of the company to takehas guided several generations of the company to take

right decisions.right decisions.

8/7/2019 moral philosophy presentation

8/14

Ford Pintos CarFord Pintos Car

8/7/2019 moral philosophy presentation

9/14

8/7/2019 moral philosophy presentation

10/14

8/7/2019 moral philosophy presentation

11/14

While Ford was acquitted of criminal charges, itWhile Ford was acquitted of criminal charges, itlost several million dollars and gained a reputationlost several million dollars and gained a reputationfor manufacturing "the barbecue that seats four.for manufacturing "the barbecue that seats four.

In 1981 inIn 1981 in Grimshaw v. Ford Motor CoGrimshaw v. Ford Motor Co the Californiathe CaliforniaCourt ofAppeal for the Fourth Appellate DistrictCourt ofAppeal for the Fourth Appellate Districtreviewed Ford's conduct, and upheldreviewed Ford's conduct, and upheld compensatorycompensatorydamagesdamages of $2.5 million ($5.86of $2.5 million ($5.86 million today) andmillion today) and

punitive damagespunitive damages of $3.5 million ($8.2of $3.5 million ($8.2 millionmilliontoday)today) against Ford. It also upheld the judge'sagainst Ford. It also upheld the judge'sreduction of the punitive damages from the jury'sreduction of the punitive damages from the jury'soriginal verdict of $125 million ($293original verdict of $125 million ($293 million today).million today).

8/7/2019 moral philosophy presentation

12/14

MORAL PHILOSOPHYMORAL PHILOSOPHY

DEONTOLOGYDEONTOLOGY

JUSTICEJUSTICE

RELATIVISMRELATIVISM

CONTRACTUALISMCONTRACTUALISM

TELEOLOGYTELEOLOGY

UTILITARIANISMUTILITARIANISM

EGOISMEGOISM

8/7/2019 moral philosophy presentation

13/14

JusticeJustice:: ethicalethical actsacts oror decisiondecision areare thosethose thatthat leadsleads toto anan equitableequitabledistributiondistribution ofof goodsgoods andand servicesservices..

ItemsItems:: JustJust andand FairFair

ContractualismContractualism:: refersrefers toto thethe creationcreation ofof socialsocial moralmoral codescodes byby agreementagreement,,

notnot enforcedenforced byby anyany authorityauthority.. ItemsItems:: ViolatesViolates unwrittenunwritten contract,contract, ViolatesViolates unspokenunspoken PromisePromise..

RelativismRelativism :: allall ethicalethical beliefsbeliefs andand valuesvalues areare relativerelative toto onesones ownown culture,culture,feelings,feelings, oror religionreligion.. EveryEvery person,person, oror perhapsperhaps everyevery culture,culture, devisesdevises itsitsownown setset ofof moralmoral standardsstandards..

ItemsItems :: InIn thethe BestBest InterestsInterests ofof Company,Company, Selfish,Selfish, PersonallyPersonally SatisfyingSatisfying

Deontology : actions, persons, or motives are tobe judged by their conformity to moral rules.

8/7/2019 moral philosophy presentation

14/14

UtilitarianismUtilitarianism:: AnAn actact isis ethicallyethically rightright ifif itit leadsleads toto aa netnet increaseincreaseinin thethe overalloverall goodgood;; anan actact isis ethicallyethically wrongwrong ifif itit leadsleads toto aa netnetdecreasedecrease inin thethe overalloverall goodgood..

ItemsItems:: greatestgreatest goodgood forfor thethe greatestgreatest number,number,

EgoismEgoism :: anan actact isis ethicalethical whenwhen itit promotespromotes thethe individualsindividuals bestbestlonglong--termterm interestsinterests.. EgoismEgoism meansmeans oneone takestakes thethe actionaction thatthat resultsresults ininthethe greatestgreatest goodgood forfor oneselfoneself..

ItemsItems:: InIn thethe bestbest interestsinterests ofof company,company, Selfish,Selfish, PersonallyPersonally SatisfyingSatisfying..

Teleological Theories: actions,persons or motives are to be judged

by their consequences