Chapter 4 - Constitutional Authority to Regulate Business

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Clarkson-11e
Appendix I:
Sample Answers for End-of-Chapter
Questions with Sample Answer
Chapter 5: Ethics and Business Decision Making
5–2. Question with Sample Answer
If a firm engages in “ethical” behavior solely for the purpose of gaining profits
from the goodwill it generates, the “ethical” behavior is essentially a means
toward a self-serving end (profits and the accumulation of wealth). In this
situation, is the firm acting unethically in any way? Should motive or conduct
carry greater weight on the ethical scales in this situation?
Sample Answer:
This question essentially asks whether good behavior can ever be unethical. The
answer to this question depends on which approach to ethical reasoning you are
using. Under the outcome-based approach of utilitarianism, it is simply not
possible for selfish motives to be unethical if they result in good conduct. A good
outcome is moral regardless of the nature of the action itself or the reason for the
action. Under a duty-based approach, motive would be more relevant in
assessing whether a firm’s conduct was ethical. You would need to analyze the
firm’s conduct in terms of religious truths or to determine whether human beings
were being treated with the inherent dignity that they deserve. Although a good
motive would not justify a bad act to a religious ethicist, in this situation the
actions were good and the motive was questionable (because the firm was
simply seeking to increase its profit). Nevertheless, unless one’s religion
prohibited making a profit, the firm’s actions would likely not be considered
unethical. Applying Kantian ethics would require you to evaluate the firm’s
actions in light of what would happen if everyone in society acted that way
(categorical imperative). Here, because the conduct was good, it would be
positive for society if every firm acted that way. Hence, the profit-seeking motive
would be irrelevant in a Kantian analysis. In a debate between motive and
conduct, then, conduct is almost always given greater weight in evaluating ethics.
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