SlideShare a Scribd company logo
1 of 17
Ethical theories and approaches
           in Business
Ethical theories provide a framework for judging
  right or wrong decisions.
There are two types of Ethical theories

1.consequentialist
2.Non consequestialist
Concequentialist theories
• If the consequences are good, the action is
  right; if they are bad, the action is wrong.
There are two theories under this category :

• Egoism
• Utilitarianism
Egoism as an ethical theory
• The view that equates morality with self-
  interest is referred to as egoism.
• An egoist contends that an act is morally right
  if and only if it best promotes his interests.
• Moral philosophers distinguish between two
  kinds of egoism:
• personal and
• impersonal.
• Personal egoists claim they should pursue their
  own best interests, but they do not say what
  others should do.
• Impersonal egoists claim that everyone should
  let self-interest guide his or her conduct.
UTILITARIANISM
• Utilitarianism tells us to bring about the most
  happiness for everyone affected by our
  actions.
• Jeremy Bentham and JohnStuart Mill were
  important early utilitarians.
Six Points about Utilitarianism
• First, when deciding which action will produce
  the greatest happiness, we must consider
  unhappiness or pain as well as happiness.
• Second, actions affect people to different
  degrees.
• Third, because utilitarian's evaluate actions
  according to their consequences and because
  actions produce different results in different
  circumstances, almost anything might, in
  principle, be morally right in some particular
  situation.
• Fourth, utilitarians wish to maximize
  happiness not simply immediately but in the
  long run as well.
• Fifth, utilitarians acknowledge that we often
  do not know with certainty what the future
  consequences of our actions will be.
  Accordingly, we must act so that the expected
  or likely happiness is as great as possible.
• Sixth : my pleasure as pain should be equally
  treated as others
Use of utilitarianism in organizational
                  context
Formulating policies
Second, utilitarianism provides an objective and
  attractive way of resolving conflicts of self-
  interest.
Third, utilitarianism provides a flexible, result-
  oriented approach to moral decision making.
Non-Utilitarian theories
1. Formulate the maxim of the action. That is,
    figure out what general principle you would
    be acting on if you were to perform the
    action.
("in situations in which I need money and know I
    can't pay it back, I will falsely promise to pay
    it back.")
2. Universalize the maxim. That is, regard it not
  as a personal policy but as a principle for
  everyone.
( "in situations in which anyone needs money
  and knows he or she cannot pay it back, he or
  she will falsely promise to pay it back."
3. Determine whether the universalized
  maxim could be a universal law, that is,
  whether it is possible for everyone to act as
  the universalized maxim requires.
(if everyone started making false promises, the
  institution of promising would disappear, so
  no one would be able to make a false
  promises, since there would be no such thing
  as a promise to falsely make.)
Humanity as an End, Never as Merely
              a Means
• Treat human being as end not as a mean :
Human are worth in themselves so you should
  respect their rights
All effort should be done to improve the well
  being of human being.
Organizational implications
There are two alternative formulations of the
  categorical imperative. The first is that an act
  is right only if the actor would be willing to be
  so treated if the positions of the parties were
  reversed.

The second is that one must always act so as to
  treat other people as ends, never merely as
  means.
Ethical theories and approaches in business
Ethical theories and approaches in business

More Related Content

What's hot

05 organization & business ethics
05 organization & business ethics05 organization & business ethics
05 organization & business ethics
Nimantha Perera
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibility
Shahzad Khan
 
corporate social responsibility
corporate social responsibility corporate social responsibility
corporate social responsibility
ashanrajpar
 
SOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESSSOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESS
Bharath Nair
 
Corporate governance
Corporate governanceCorporate governance
Corporate governance
Iqra Afsar
 

What's hot (20)

05 organization & business ethics
05 organization & business ethics05 organization & business ethics
05 organization & business ethics
 
Business Ethics and Social Responsibility
Business Ethics and Social Responsibility Business Ethics and Social Responsibility
Business Ethics and Social Responsibility
 
BUSINESS ETHICS & ITS THEORIES
BUSINESS ETHICS & ITS THEORIESBUSINESS ETHICS & ITS THEORIES
BUSINESS ETHICS & ITS THEORIES
 
Ethics & social responsibility
Ethics & social responsibilityEthics & social responsibility
Ethics & social responsibility
 
Business ethics
Business ethicsBusiness ethics
Business ethics
 
Business Ethics
Business EthicsBusiness Ethics
Business Ethics
 
Mba business ethics ppt
Mba business ethics pptMba business ethics ppt
Mba business ethics ppt
 
Ethical Decision Making in Business
Ethical Decision Making in BusinessEthical Decision Making in Business
Ethical Decision Making in Business
 
BUSINESS ETHICS- Features of Business Ethics
BUSINESS ETHICS- Features of Business EthicsBUSINESS ETHICS- Features of Business Ethics
BUSINESS ETHICS- Features of Business Ethics
 
Corporate Social Responsibility
Corporate Social ResponsibilityCorporate Social Responsibility
Corporate Social Responsibility
 
stakeholder theory.
stakeholder theory.stakeholder theory.
stakeholder theory.
 
Ethical theories
Ethical theoriesEthical theories
Ethical theories
 
Business ethics and values
Business ethics and valuesBusiness ethics and values
Business ethics and values
 
corporate social responsibility
corporate social responsibility corporate social responsibility
corporate social responsibility
 
SOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESSSOCIAL RESPONSIBILITY OF BUSINESS
SOCIAL RESPONSIBILITY OF BUSINESS
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 
Corporate governance
Corporate governanceCorporate governance
Corporate governance
 
Business ethics theories
Business ethics theoriesBusiness ethics theories
Business ethics theories
 
Business ethics..
Business ethics..Business ethics..
Business ethics..
 
BUSINESS ETHICS
BUSINESS ETHICS BUSINESS ETHICS
BUSINESS ETHICS
 

Viewers also liked (11)

Business ethics ethical theory
Business ethics   ethical theoryBusiness ethics   ethical theory
Business ethics ethical theory
 
Ethics Training by SEIU
Ethics Training by SEIUEthics Training by SEIU
Ethics Training by SEIU
 
Csr on international context
Csr on international contextCsr on international context
Csr on international context
 
Developing an Effective Ethics Program Training by Cengage Learning
Developing an Effective Ethics Program Training by Cengage LearningDeveloping an Effective Ethics Program Training by Cengage Learning
Developing an Effective Ethics Program Training by Cengage Learning
 
Introduction to ethics first class ppt
Introduction to ethics first class pptIntroduction to ethics first class ppt
Introduction to ethics first class ppt
 
Developing an Effective Ethics Program
Developing an Effective Ethics Program Developing an Effective Ethics Program
Developing an Effective Ethics Program
 
Theories of ethics
Theories of ethicsTheories of ethics
Theories of ethics
 
Ethics, definitions & theories
Ethics, definitions & theoriesEthics, definitions & theories
Ethics, definitions & theories
 
Ethics & value s ppt
Ethics & value s ppt Ethics & value s ppt
Ethics & value s ppt
 
What is ethics
What is ethicsWhat is ethics
What is ethics
 
Ethics
EthicsEthics
Ethics
 

Similar to Ethical theories and approaches in business

Business EthicsSession 2 Business Ethics Theories I
Business EthicsSession 2 Business Ethics Theories IBusiness EthicsSession 2 Business Ethics Theories I
Business EthicsSession 2 Business Ethics Theories I
VannaSchrader3
 
Bev 4-types of ethical theories
Bev 4-types of ethical theoriesBev 4-types of ethical theories
Bev 4-types of ethical theories
sukhdeeptyagi
 
Utilitarianism (good)
Utilitarianism (good)Utilitarianism (good)
Utilitarianism (good)
t0nywilliams
 
GEC 8- ETHICS wEEK 2 - Utilitarianism.pptx
GEC 8- ETHICS wEEK  2 - Utilitarianism.pptxGEC 8- ETHICS wEEK  2 - Utilitarianism.pptx
GEC 8- ETHICS wEEK 2 - Utilitarianism.pptx
rodeldbriones
 
The biggest corporation, like the humblest citiz.docx
The biggest corporation, like the humblest citiz.docxThe biggest corporation, like the humblest citiz.docx
The biggest corporation, like the humblest citiz.docx
mehek4
 
Utilitarian
UtilitarianUtilitarian
Utilitarian
dev
 

Similar to Ethical theories and approaches in business (20)

Business Ethics Concepts & Cases .Business Ethics Concepts & Cases
Business Ethics  Concepts & Cases .Business Ethics  Concepts & Cases Business Ethics  Concepts & Cases .Business Ethics  Concepts & Cases
Business Ethics Concepts & Cases .Business Ethics Concepts & Cases
 
Chapter 2 PPT (1).ppt.x civic and moral ethics
Chapter 2 PPT (1).ppt.x civic and moral ethicsChapter 2 PPT (1).ppt.x civic and moral ethics
Chapter 2 PPT (1).ppt.x civic and moral ethics
 
BUSINESS ETHICS MODULE 1 UNIT I_B.pdf
BUSINESS ETHICS MODULE 1 UNIT I_B.pdfBUSINESS ETHICS MODULE 1 UNIT I_B.pdf
BUSINESS ETHICS MODULE 1 UNIT I_B.pdf
 
ETHICAL THEORIES.pptx
ETHICAL THEORIES.pptxETHICAL THEORIES.pptx
ETHICAL THEORIES.pptx
 
Business EthicsSession 2 Business Ethics Theories I
Business EthicsSession 2 Business Ethics Theories IBusiness EthicsSession 2 Business Ethics Theories I
Business EthicsSession 2 Business Ethics Theories I
 
Lec2
Lec2Lec2
Lec2
 
Bev 4-types of ethical theories
Bev 4-types of ethical theoriesBev 4-types of ethical theories
Bev 4-types of ethical theories
 
Velasquez_C2.pdf
Velasquez_C2.pdfVelasquez_C2.pdf
Velasquez_C2.pdf
 
chapter02
 chapter02 chapter02
chapter02
 
BIOETHICS.pptx
BIOETHICS.pptxBIOETHICS.pptx
BIOETHICS.pptx
 
Utilitarianism
UtilitarianismUtilitarianism
Utilitarianism
 
Deontological Ethics by Christine Wandolo
Deontological Ethics   by Christine WandoloDeontological Ethics   by Christine Wandolo
Deontological Ethics by Christine Wandolo
 
Deontological Ethics Christine Wandolo
Deontological Ethics   Christine WandoloDeontological Ethics   Christine Wandolo
Deontological Ethics Christine Wandolo
 
Foundations of ethics
Foundations of ethicsFoundations of ethics
Foundations of ethics
 
Ethics unit 3 pgdm 1st trisemester
Ethics unit 3 pgdm 1st trisemesterEthics unit 3 pgdm 1st trisemester
Ethics unit 3 pgdm 1st trisemester
 
Utilitarianism (good)
Utilitarianism (good)Utilitarianism (good)
Utilitarianism (good)
 
GEC 8- ETHICS wEEK 2 - Utilitarianism.pptx
GEC 8- ETHICS wEEK  2 - Utilitarianism.pptxGEC 8- ETHICS wEEK  2 - Utilitarianism.pptx
GEC 8- ETHICS wEEK 2 - Utilitarianism.pptx
 
The biggest corporation, like the humblest citiz.docx
The biggest corporation, like the humblest citiz.docxThe biggest corporation, like the humblest citiz.docx
The biggest corporation, like the humblest citiz.docx
 
Utilitarian
UtilitarianUtilitarian
Utilitarian
 
Sec 2 4
Sec 2 4Sec 2 4
Sec 2 4
 

More from Chandra Pandey

Gyananushasan
GyananushasanGyananushasan
Gyananushasan
Chandra Pandey
 
Ch09 managing decision making and problem solving
Ch09 managing decision making and problem solvingCh09 managing decision making and problem solving
Ch09 managing decision making and problem solving
Chandra Pandey
 
Introto environmentalscanningpresentation 000
Introto environmentalscanningpresentation 000Introto environmentalscanningpresentation 000
Introto environmentalscanningpresentation 000
Chandra Pandey
 
Human relations movement (2)
Human relations movement (2)Human relations movement (2)
Human relations movement (2)
Chandra Pandey
 
Corporate value chain analysis
Corporate value chain analysisCorporate value chain analysis
Corporate value chain analysis
Chandra Pandey
 
Organizational appraisal
Organizational appraisalOrganizational appraisal
Organizational appraisal
Chandra Pandey
 
Role of strategic management in marketing,
Role of strategic management in marketing,Role of strategic management in marketing,
Role of strategic management in marketing,
Chandra Pandey
 
Introto environmentalscanningpresentation 000 (1)
Introto environmentalscanningpresentation 000 (1)Introto environmentalscanningpresentation 000 (1)
Introto environmentalscanningpresentation 000 (1)
Chandra Pandey
 
Environmental threat and opportunity profile
Environmental threat and opportunity profileEnvironmental threat and opportunity profile
Environmental threat and opportunity profile
Chandra Pandey
 

More from Chandra Pandey (20)

Gyananushasan
GyananushasanGyananushasan
Gyananushasan
 
Advance discussion in strategic decision making
Advance discussion in strategic decision makingAdvance discussion in strategic decision making
Advance discussion in strategic decision making
 
Business policy
Business policyBusiness policy
Business policy
 
Hathrone experiments
Hathrone experimentsHathrone experiments
Hathrone experiments
 
Ch09 managing decision making and problem solving
Ch09 managing decision making and problem solvingCh09 managing decision making and problem solving
Ch09 managing decision making and problem solving
 
Introto environmentalscanningpresentation 000
Introto environmentalscanningpresentation 000Introto environmentalscanningpresentation 000
Introto environmentalscanningpresentation 000
 
Human relations movement (2)
Human relations movement (2)Human relations movement (2)
Human relations movement (2)
 
Henry fayol
Henry fayolHenry fayol
Henry fayol
 
Hawthrone xperiments
Hawthrone xperimentsHawthrone xperiments
Hawthrone xperiments
 
Hathrone xperiments
Hathrone xperimentsHathrone xperiments
Hathrone xperiments
 
Csr
CsrCsr
Csr
 
Planning
PlanningPlanning
Planning
 
Functional analysis
Functional analysisFunctional analysis
Functional analysis
 
Corporate value chain analysis
Corporate value chain analysisCorporate value chain analysis
Corporate value chain analysis
 
Organizational appraisal
Organizational appraisalOrganizational appraisal
Organizational appraisal
 
Strategic intent
Strategic intentStrategic intent
Strategic intent
 
Role of strategic management in marketing,
Role of strategic management in marketing,Role of strategic management in marketing,
Role of strategic management in marketing,
 
Introto environmentalscanningpresentation 000 (1)
Introto environmentalscanningpresentation 000 (1)Introto environmentalscanningpresentation 000 (1)
Introto environmentalscanningpresentation 000 (1)
 
Industry analysis (2)
Industry analysis (2)Industry analysis (2)
Industry analysis (2)
 
Environmental threat and opportunity profile
Environmental threat and opportunity profileEnvironmental threat and opportunity profile
Environmental threat and opportunity profile
 

Ethical theories and approaches in business

  • 1. Ethical theories and approaches in Business
  • 2. Ethical theories provide a framework for judging right or wrong decisions. There are two types of Ethical theories 1.consequentialist 2.Non consequestialist
  • 3. Concequentialist theories • If the consequences are good, the action is right; if they are bad, the action is wrong. There are two theories under this category : • Egoism • Utilitarianism
  • 4. Egoism as an ethical theory • The view that equates morality with self- interest is referred to as egoism. • An egoist contends that an act is morally right if and only if it best promotes his interests.
  • 5. • Moral philosophers distinguish between two kinds of egoism: • personal and • impersonal. • Personal egoists claim they should pursue their own best interests, but they do not say what others should do. • Impersonal egoists claim that everyone should let self-interest guide his or her conduct.
  • 6. UTILITARIANISM • Utilitarianism tells us to bring about the most happiness for everyone affected by our actions. • Jeremy Bentham and JohnStuart Mill were important early utilitarians.
  • 7. Six Points about Utilitarianism • First, when deciding which action will produce the greatest happiness, we must consider unhappiness or pain as well as happiness. • Second, actions affect people to different degrees.
  • 8. • Third, because utilitarian's evaluate actions according to their consequences and because actions produce different results in different circumstances, almost anything might, in principle, be morally right in some particular situation.
  • 9. • Fourth, utilitarians wish to maximize happiness not simply immediately but in the long run as well. • Fifth, utilitarians acknowledge that we often do not know with certainty what the future consequences of our actions will be. Accordingly, we must act so that the expected or likely happiness is as great as possible. • Sixth : my pleasure as pain should be equally treated as others
  • 10. Use of utilitarianism in organizational context Formulating policies Second, utilitarianism provides an objective and attractive way of resolving conflicts of self- interest. Third, utilitarianism provides a flexible, result- oriented approach to moral decision making.
  • 11. Non-Utilitarian theories 1. Formulate the maxim of the action. That is, figure out what general principle you would be acting on if you were to perform the action. ("in situations in which I need money and know I can't pay it back, I will falsely promise to pay it back.")
  • 12. 2. Universalize the maxim. That is, regard it not as a personal policy but as a principle for everyone. ( "in situations in which anyone needs money and knows he or she cannot pay it back, he or she will falsely promise to pay it back."
  • 13. 3. Determine whether the universalized maxim could be a universal law, that is, whether it is possible for everyone to act as the universalized maxim requires. (if everyone started making false promises, the institution of promising would disappear, so no one would be able to make a false promises, since there would be no such thing as a promise to falsely make.)
  • 14. Humanity as an End, Never as Merely a Means • Treat human being as end not as a mean : Human are worth in themselves so you should respect their rights All effort should be done to improve the well being of human being.
  • 15. Organizational implications There are two alternative formulations of the categorical imperative. The first is that an act is right only if the actor would be willing to be so treated if the positions of the parties were reversed. The second is that one must always act so as to treat other people as ends, never merely as means.

Editor's Notes

  1. For example, whereas breaking a promise generally produces unhappiness, there can be circumstances in which, on balance, more happiness would be produced by breaking a promise than by keeping it. In those cases, utilitarianism would require us to break the promise
  2. If I take my friend’smoney, unbeknownst to him, and buy lottery tickets with it, there is a chancethat we will end up millionaires and that my action will have maximized happinessall around. But the odds are definitely against it; the most likely result isloss of money (and probably of a friendship, too). Therefore, no utilitarian couldjustify gambling with purloined funds on the grounds that it might maximizehappiness