ETHICS
•Definition
•Legal vs. ethical
•Frameworks or
theories
•Ethical principles
Ethics
Principles of morality or rules of conduct
The study of morals and systems or
morality or principles of conduct
concerned with:
right or wrong
should or should nots in behavior
and 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 Typology
Ethical
4
1 E.G. Chemical manager
refuses to promote a
pregnant female into an
area of potential hazardous
exposure.
Desired quadrant
Legal
Illegal
Undesired quadrant
E.G. Marketing infant formula
that needs to be mixed with
water in an illiterate country
with poor sanitation.
3
2
Unethical
Ethical or Moral Frameworks
• Consequential
Theories
• Rule-Based
Theories
• Cultural
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.
Examination of Ethics – Group
Exercise
• Discuss scores on survey (you may
abstain if you so choose)
– Obtain a group average. Record to hand in.
• Do Group Exercise 2 – page 120.
– Record on same sheet of paper.
– When done, contact me for scoring sheet.
– Compute scores and record.