Ethics…???
Relativism
Egoism
The 4
Concepts of
Ethics
Utilitarianism
Deontologism
Concepts of Ethics
 Developed by moral philosophers over
generations
 Used to distinguish ethical from unethical
behavior
 Each has problems
Relativism
 There is no universal standard by which
morality can be judged
 What is correct for one society may be
wrong for another
 Ethics and morality are relative
 THE SAUDI ARABIA CASE STUDY?
Relativism - Problems
 There are no absolutes - murder, slavery,
torture, discrimination is all OK
 What is meant by a society?
Sub-societies
 Leads to conclusion - each person’s opinion
is correct
 Nothing that anyone does is morally wrong
Egoism
 One ought to act in his or her own self
interest
 Ethical behavior is that which promotes
one’s own self interest
 Does not mean should not obey laws - only
do so if in self interest
Egoism
 AIRCRAFT FAULTY BRAKES CASE
STUDY
 Problem - Externalities associated with
private actions - OK to dump toxic wastes
as long as don’t get caught
Utilitarianism
 The morality of an action can be determined
by its consequences
 Cost Benefit Analysis
 An action is ethical if it promotes the
greatest good for the greatest number
Utilitarianism Example
 FORD PINTO CASE STUDY
Measurement Problems…
 How do you quantify benefits and costs?
 How do you value benefits and costs?
 Can lead to unjust consequences
 Restrictions against the majority to protect a
minority is not utilitarian
RIGHTS & JUSTICE
 Utilitarianism cant deal with either…
 ILL UNCLE CASE STUDY
 UNDESIRABLE LABOUR Vs CHEAP
GOODS CASE STUDY
BUT Utilitarianism also says…
 Its not so much about greater good for
greater number
 Its about…whether your action meets
correct moral standards (rule utilitarian)
RIGHTS & DUTIES
 WALT DISNEY CASE STUDY
 Concept of Right: Individuals entitlement to
something
 Legal Rights: limited to jurisdiction
 Moral Rights (Human Rights): based on
moral norms
MORAL RIGHTS
 Tightly correlated with duties
 Provide individuals with autonomy and
equality in the free pursuit of their interests
 Provides a basis for justifying one’s actions
and for invoking the protection or aid of
others
…Rights
 Negative Rights
 Positive Rights
 Contractual Rights
Deontologism
 Derived from the Greek word for Duty
 Actions are not justified by their
consequences. Factors other than good
outcomes determine the rightness of actions
Utilitarianism Vs. Deontologism
 Utilitarianism - The ends justify the means
 Deontologism - It is the means which are
important
Catagorical Imperative
 Developed by Immuel Kant
 “I ought never to act except in such a way
that I can also will that my maxim should
become a universal law”
 Are you willing to permit everyone to adopt
the action?
 Yes - Moral
No - Immoral
Guidance in Dealing with People
 People should never be treated as a means
to an end, but as ends in themselves
 To treat people as ends requires respect for
persons
 Reject slavery
 Deals with murder, rape, etc
 How to deal with employees
Examples
 Is it Ethical to Rob Banks?
 Is it Ethical to Give Everyone in this Class
an A?
An economics professor stated he
had never failed a single student
before, but had failed recently an
entire class.
His class had insisted that
Obama's socialism worked and
that no one would be poor and no
one would be rich, after the Great
Equalizer completes his plans.
The professor then said, "OK, we
will have an experiment in this
class on Obama's plan". All
grades would be averaged and
everyone would receive the same
grade so no one would fail and no
one would receive an A.
After the first test, the grades
were averaged and everyone got
a B. The students who studied
hard were upset and the students
who studied little were happy.
As the second test rolled around,
the students who studied little
had studied even less and the
ones who studied hard decided
they wanted a free ride too so
they studied little.
The second test average was a D!
No one was happy.
When the 3rd test rolled around,
the average was an F.
The scores never increased as
bickering, blame and namecalling all resulted in hard
feelings and no one would study
for the benefit of anyone else.
All failed, to their great surprise,
and the professor told them that
socialism would also ultimately
fail because when the reward is
great, the effort to succeed is
great but when government takes
all the reward away, no one will
try or want to succeed.
HENCE…..
 What do you understand by this?
 How could we prevent this?
What Do You Think of
Deontologism?
 Conflicts between duties
 Utilitarians argue that secretly appeal to
consequences to demonstrate the rightness
of actions
Categorical Imperatives: Respect
 “Always treat humanity, whether in
yourself or in other people, as an end in
itself and never as a mere means.”
Categorical Imperative:
Publicity
 Always act in such a way that you would
not be embarrassed to have your actions
described on the front page of The New
York Times.
--Probably not Bill Clinton
Ethical Tests
What about you?
 Most of us live by rules, obedience to which
we take as a duty.
– What are the most important rules you live by?
– What were the most important rules in your
family?
– What rules have you rejected as you have
gotten older?
Is It Legal Test?
Ethical
Quadrant II
Ethical and Illegal
Quadrant I
Codification
Ethical and Legal
Manifestation
Illegal
Corporate
Legal
Decisions
Quadrant IV
Quadrant III
Unethical and Illegal
Unethical and Legal
Unethical
Ethical Tests
1.
Is It Legal?
I
Ethical - Legal
II
Ethical - Illegal
III Unethical - Legal
IV Unethical - Illegal
I and IV Easy
II and III Difficult
Ethical Tests
2. Benefit Cost Test
Do the benefits exceed the costs to
whomsoever they accrue?
3. Categorical Imperative
Are you willing to allow everyone to
practice the proposed action or do you want
to be a special case?
Ethical Tests
4. Light of Day Test
What would be your reaction if the
action were brought out into the open for
public scrutiny?
5. Do Unto Others Test
Golden Rule - If you would like others
to do the same to you - passes the test
Ethical Tests
6. Ventilation Test
Seek out others views. Discuss the 5
tests with them. If others feel it is OK passes the test
Examples
 Robbing a Bank
 Driving Above the Speed Limit
 Cheating on an Exam
 Having affair with your boss
Ethical Dilemmas in Business
 Conflict of Interest
Have two interests - cannot purse one
without having negative impact on other
 Two Types
Private Interest Conflicts with Corporate
Business Interest Conflicts with Public
Conflict of Interest Mini Case
 Personnel Director
 Brother - in - law out of work
 Lackluster performer
 Unemployment about to run out - will loose
house
 Sister asks you to recommend him for job
 What would you do?