THE NATURE OF MORALITY

1. 1
BUSINESS ETHICS
DBE 2413

2. Chapter One:
The Nature of Morality

3. Overview
 Chapter One examines the following topics:
(1) Business and organizational ethics.
(2) Moral versus non-moral standards, etiquette
and professional codes.
(3) Religion and business morality.
(4) Ethical relativism and the “game” of business.
(5) Moral principles, conscience, and self-interest.
(6) Personal values, integrity, and responsibility.
(7) Moral Reasoning, arguments, and judgments.
The Nature of Morality
Chapter 1

4. Introduction to Business Ethics
 What is ethics? The study of right and wrong,
duty and obligation, moral norms, individual
character, and responsibility.
 What is business ethics? The study of right and
wrong, duty and obligation, moral norms,
individual character, and responsibility – in the
context of business.

5. Moral Versus Nonmoral Standards
 Nonmoral standards: Standards about behavior
or practices with no serious or immediate effects
upon human well-being.
 Moral standards: Standards about behavior or
practices with serious or immediate effects upon
human well-being.

6. Some Features of Moral Standards
 Moral standards take priority over nonmoral
standards.
 The soundness or validity of moral standards
depend on the quality of the arguments or the
reasoning that support them.

7. Morality and Etiquette
 Rules of etiquette are nonmoral in character and
are meant to serve as guidelines for socially
acceptable behavior.
 Violations of etiquette can sometimes have moral
implications.
 The strict observance of rules of etiquette can
sometimes conceal serious moral issues.
Moral Issues in Business
Chapter 1

8. (1) The Sources of Morality
 The justification of moral norms: Moral
philosophers study mainly the justification, rather
than the origin, of moral norms.
 The claim that morality is based on religion:
Religion provides incentives to be moral.
Religion provides moral guidance.
Moral norms are in essence divine commands.

9. (2) The Sources of Morality
 Ethical relativism: The view according to which
moral norms derive their ultimate justification
from the customs of the society in which they
occur.
 This means that moral norms are not universal,
but are dependent upon a particular cultural or
social context.

10. (3) The Sources of Morality
 Implications of relativism:
There is no independent standard by which to
judge the rightness or wrongness of other
societies.
The idea of ethical progress loses its
significance.
It makes no sense to criticize the moral code of
one’s own society or culture.

11. (4) The Sources of Morality
 Relativism and the “game” of business:
The idea that business is a just game captures
the thesis of Albert Carr.
He argued that business professionals are
expected to follow a code that has little or
nothing to do with ethics.
This view entails – incorrectly – that the
practices of business professionals cannot (or
should not) be evaluated from a moral
standpoint.

12. (1) The Importance of Moral
Principles
 What it means to have principles: Accepting
moral principles is not just a matter of intellectual
recognition, but of profound individual
commitment to a set of values.
 Conscience: The internalized set of moral
principles taught to us by various authority
figures – parents and social institutions.
 Conscience and its limits: Conscience is not always
a reliable guide because it can be (1) conflicted
and (2) erroneous.

13. (2) The Importance of Moral
Principles
 Moral principles and self-interest: The morality of
an action can run counter to our self-interest.
The moral point of view requires that we
restrict our self-interest to satisfy social co-
existence.
In situations of conflict between moral
principles and self-interest, it is important to
appeal to shared principles of justification.

14. Morality and Personal Values
 Morality in the narrow sense: The moral
principles or rules that do, or should, govern the
conduct of individuals in their relations with
others.
 Morality in the broad sense: The values, ideals,
and aspirations that influence the decisions and
lifestyles of individuals and entire societies.
 Business ethics are mainly concerned with
morality in the narrow sense.
 But values, ideals, and aspirations also affect the
behavior and ethical choices of business
professionals.

15. (1) Individual Integrity and Moral
Responsibility
 Organizational norms: Employees of business
organizations (especially corporations) are:
Expected to further profit goals.
Often pressured to compromise moral values
and ignore or violate rules of ethical conduct.
 Conformity: Studies show that individuals are
more prone to act unethically when they are a part
of an organization or a group.

16. (2) Individual Integrity and Moral
Responsibility
 Groupthink: The pressure on group members to
conform to morally questionable policies or
strategies, often resulting in unethical conduct.
 Diffusion of responsibility: The multiplicity,
complexity, and distribution of tasks that can lead
individuals to feel less responsibility or
accountability for their actions.