Deontological v/s teleological approach to ethics
Deontological A non consequentialist theory. Motivation & principle is important. Action is based on Moral. 3 maxims/ tests of action, to know if action is morally right- all 3 maxims must be satisfied. Consistency- Action is right if everyone can follow the same principle Human dignity – Treat humanity as an end, never as a means . Humanity inside you and inside people. Universality- Would others / external parties , view the action as moral or suitable
Deontological approach- categorical imperative Maxim 1 Act only according to that maxim by which you can desire that it should become a universal law. Explanation Action is right if everyone follows the same principle. Eg certain behaviors are judged as immoral by almost everyone , namely; murder, child abuse, fraud.
Maxim 2- Principle of human dignity Act to treat humanity , in yourself and in others , always as an end , never as a means only. Explanation Never consider humans as slaves , or as only providers of service only Consider their needs and expectations Some concept of Empowerment of employees
Maxim 3- Principle of Universality Act only so that the will , through its maxims , could regard itself at the same time as universally law giving. Principle of universality Will an action be viewed as moral when viewed by external parties. Not by the initiator of the action/decision. Outside – in approach. If the initiator doubt of the moral founding/ grounding of the action, then the moral status is doubtful. Examples
Teleological approach Consequentialist theory The right or wrong depends on conseqences/ outcomes of the decision. If the outcome is right , then the action itself is irrelevant. 2 perspectives to view an outcome Egoism Utilitarianism
Teleological approach The goal is important , not the means to get there. Consequentialist theory- whether a decision is right or wrong will depend on the outcomes of the decision. Utilitarianism highly subjective approach The effect of collective welfare Concept of utility Measuring good or bad utility produces a Cost benefit analysis of decisions , thus making those decisions
Individuals tend to move from Level 1 to Level 3 as they grow older.
The move is decided by how a decision is made , not what the decision is about.
Research show that most people , including business managers tend to reason on Level 2.
Kohlberg Cognitive Moral development theory CMD theory- explain the reasoning process behind moral judgments. The theory views ethical decisions from an individual’s perspective. CMD theory derived from Piaget’s work Piaget’s work was to assess kids below 10 yrs and how they responded to problems and dilemmas different from much older kids. Kohlberg built on Piaget’s work and interviewed kids and teens about moral dilemmas. He found other moral stages that went far beyond Piaget’s traditional model.
Critics of CMD theory Gender bias-study interviewed only young American males Too great emphasis on rights & justice compared to other bases of morality. People use different moral reasoning strategies in different situations so there may not be any sequence of stages. Moral reasoning strategies – the brain react differently to all sorts of stressing situations. When in happy situations , brain will react more positively and will be more creative.
C.M.D (explained) Pre conventional – obedience & punishment Right/wrong defined according to expected rewards / punishments from people of authority Eg – eyee make unethical decision and believes they won’t be punished. Pre Conventional – Instrumental purpose & exchange Right is defined according to whether there is fairness in exchange Self interest prevails
C.M.D (explained) Conventional – interpersonal accord & conformity Action is guided by what is expected from peers & close ones Conventional – social accord & system maintenance Expectations of others extended / broadened to social accord Not limited to immediate peers
C.M.D (explained) Post conventional- social contract & individual rights Right / wrong determined i.r.o : Basic rights Values Contracts of society Post conventional – universal ethical principles Decisions taken, based on self chosen principles which the person believe , everyone should follow. Autonomy in decision making.
Social responsibility Org need to be socially responsible. This entails – Social accountability Gray, Owens & Adams theory – 7 positions on social responsibility.
Social responsibility – 7 positions Pristine capitalist Expedient Proponents of social contract Social ecologist Socialist Radical feminist Deep ecologist
Pristine capitalist S/h wealth maximization is of Value. What reduces s/h wealth is Theft. Liberal democratic economy is correct. Business have no moral obligations beyond their responsibilities to s/h & creditors. Explanation Shareholders’ needs are the most important for the org. Low CSR consideration Shareholders expect maximum returns No returns tantamount to theft
Expedients Some social expenses needed to position the org. Concept of “ enlightened self-interest”. Minimum social responsibility necessary to achieve Long term economic stability & welfare. CSR is acceptable if it is within interest of business. Explanation Business need some minimum ethical guidelines. Impact on society need to be considered. A co can’t simply use resource & not consider impact on society.
Proponents of social contract Co has license , granted by society Co exist at society's will, must serve society Behave according to ethical norms of society Behavior change as norms change Explanation Existence of co & decisions made are justified if they serve public interest. But responsibilities & accounting requirements are not clear.
Social ecologist A biz has a social & environmental footprint. Therefore is responsible to minimize the footprint There is an overall concern for the environment Recognition that large organizations cause environmental & social problems. Explanation More concern for resource allocation , pollution effect & waste control. With these changes , it is assumed that quality of life will be improved or will be constant.
Socialist Actions of biz = actions of capitalist oppressing other lower classes. This is the view of the socialist and their recurrent battle. Biz should help to correct imbalance in society Capitalist should not dominate social , economic or political life Change needed to reduce capitalist power In the socialist system , capitalist oppress workers So change is required. Explanation Economic systems & the creation of things is a secondary objective rather than a primary Mistrust of accounting & CSR systems No clue how these can be amended
Radical feminist Society & biz should be based on feminine characteristics. E.g. equity , dialogue, compassion, fairness. More emotional side Business reflect too much masculine concepts of aggressivity. Need more feminine values of compassion, love & cooperation. Radical change needed in ownership & structure of society More towards feminist viewpoint
Deep ecologist Human beings have no monopoly on the world’s resources Biz have to be cautious with the environment Lack of environment awareness by biz There is too much negative impact on the environment caused by co’s operations.
Variables determining cultural context of ethics & csr Focus on Profit Focus on Law & Compliance Focus on what is right Focus on doing what is desired
Variables (cont’d) Ethics & csr will vary according to Culture The 4 variables will vary according to European and US culture. European = Ethics & philanthropic actions can be enforced legally US= Focus on discretionary actions of co’s & individuals Caroll model of CSR …
Corporate & personal ethical stances Corporate stance- approach of the org to the different theories. Personal stance – Approach of the individual to different theories.
Multiple stakeholder theories Short –term shareholder interests Corporate stance - In short term, org need adequate ROI. - Conflict exist in 2 areas : 1) Need to pay dividend & investing in the co.'s future. 2) Shareholder’s expectations of return Personal stance
S.T interests depend on the type of s/h
Small/ minority s/h need annual Roi as a form of income + capital growth
Larger s/h have little interest in short term returns. For them short term dividend may conflict with long term goals.
Multiple stakeholder theories Long-term shareholder interests Corporate stance In L.T , org need to maintain existence- going concern. This objective may conflict with Short term return needs. Org will cater for LT s/h interests with capital growth. So that these s/h retain their investments in the Co. Large scale sale of shares is considered a weakness sign which affect L.T prospects of the org. Personal stance In LT , s/h concerned with security of inv as well as capital growth These goals are congruent with org objectives. But org will tend to resolve conflicts between org existence & s/h conflict.
Multiple stakeholder theories Multiple stakeholder obligations Corporate stance Organizational stance is to identify stkh with high power & influence over the org. Then involve these stkh in decision making & provide them with returns they are expecting. There will be conflicts because of different needs of different groups. Egeyees expect increase in salary, compared to s/h who expect more capital growth & dividends. Personal stance Each stkh group expect their interests to be understood & acted upon. Lack of action will increase outside pressure on the org to meet those interests Eg needs for dividends will decrease if s/h understand that h& s issues are important and will lead to more productivity from eyees , thus more return in the future for