Business ethics

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Business ethics

  1. 1. Ethics and Leadership
  2. 2. Outline What is ethics? Three approaches to resolving ethical conflicts Making ethical decisions
  3. 3. Ethics: What Does It Really Mean? Definitions Ethics involves a discipline that examines good or bad practices within the context of a moral duty Moral conduct is behavior that is right or wrong
  4. 4. Two Key Branches of Ethics Descriptive ethics involves describing, characterizing and studying morality  “What is” Normative ethics involves supplying and justifying moral systems  “What should be”
  5. 5. 3 Models of Leadership Ethics1. Immoral Leadership—A style devoid of ethical principles and active opposition to what is ethical.2. Moral Leadership—Conforms to high standards of ethical behavior.3. Amoral Leadership  Intentional - does not consider ethical factors  Unintentional - casual or careless about ethical considerations in business
  6. 6. Resolving Ethical Conflicts Three Approaches Conventional Principles Ethical tests
  7. 7. Conventional Approach to Ethics  Conventional approach to ethics involves a comparison of a decision or practice to prevailing societal norms  Pitfall: ethical relativism Decision or Practice Prevailing Norms
  8. 8. Leadership and Ethics Culture RelativismMany people in contemporary society are inclined toward relativism - roughly, the view that there is no objective truth in morality, right and wrong are only matters of opinion that vary from culture to culture, and possibly, from person to person.
  9. 9. Leadership and Ethics Culture RelativismDescriptive relativism claims that members of different cultures have different moral beliefs.Normative relativism claims that the truth of moral beliefs depends upon particular cultures, such that the belief that cannibalism is right can be true for culture A but false for culture B.
  10. 10. Leadership and Ethics Culture RelativismNormative relativism has some rather undesirable implications:  it prohibits us from ever morally condemning another culture’s values and practices;  it suggests that we need look no further that our own culture for moral guidance;  it renders the notions of moral progress and moral reform incoherent.
  11. 11. Sources of Ethical Norms Regions ofFellow Workers Fellow Workers Country Family Profession The Individual Conscience Friends Employer The Law Religious Society at Large Beliefs
  12. 12. Principles Approach to Ethics Principles Approach Anchors decision making on an ethical principle such as: Utilitarianism  Caring Rights  Virtue ethics Justice  Servant leadership  Golden Rule
  13. 13. Principles Approach to EthicsPrinciple of Utilitarianism focuses on an actthat produces the greatest ratio of good to evilfor everyone Consequentialist theory
  14. 14. Principles Approach to EthicsPrinciple of Rights focuses on examining andpossibly protecting individual moral or legal rights
  15. 15. Principles Approach to Ethics
  16. 16. Principles Approach to Ethics Principle of justice involves considering what alternative promotes fair treatment of people Types of justice  Distributive  Compensatory  Procedural
  17. 17. Principles Approach to Ethics Principle of caring focuses on a person as a relational (cooperative) and not as an individual  Feminist theory Virtue ethics focuses on individuals becoming imbued with virtues  Aristotle and Plato
  18. 18. Servant Leadership and Ethics Characteristics of Servant Leaders Listening  Foresight Empathy  Conceptualization Healing  Commitment to the growth of people Persuasion  Stewardship Awareness  Building community
  19. 19. Golden RuleGolden rule focuses on the premise that youshould of unto others as you would havethem do unto you
  20. 20. Ethics Test Approach Ethics Test Approach Test of common sense Test of one’s best self Test of making something public Test of ventilation Gag test
  21. 21. Ethical Decision-Making Identify decision you are about to make Articulate all dimensions of proposed decisionConventional Approach Principles Approach Ethical Tests ApproachStandards/Norms Ethical Principles Ethical Tests-Personal -Justice -Common sense-Organizational -Rights -One’s best self-Societal -Utilitarianism -Public disclosure-International -Golden Rule -Gag test . . . Course of action fails Course of action passes ethics screen ethics screen Do not engage in course Engage in course of of action action Identify new course of action
  22. 22. Ethical Decision Models Utilitarian Model  An ethical decision is one that produces the greatest good for the greatest number of people. Moral Rights Model  An ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it. Justice Model  An ethical decision is one that distributes benefits and harms among individuals in a fair, equitable, or impartial way.
  23. 23. Ethical Models JusticeUtilitarian IDEAL Outcome Moral Rights
  24. 24. Steps to Ethical Decision Making What are the consequences of your decision How can the option be implemented Decide which option is most ethical Consider options Think through dilemma; identify all components as objectively as possible.

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