This document presents an ethical dilemma regarding pollution. It describes a society with highly polluting cars where an individual can install a device to stop their car's pollution, but it costs money. If others also use the device, the air will be cleaner even if just one person uses it. However, if others do not use it, the air will still be dirty even if one person uses it. So there is no incentive for any individual to use the device if others do not, leading to a social dilemma where no one acts and pollution increases.

2. DILEMMA..!??!!
Suppose you live in a society that has highly polluting cars. You
can install a device that will stop the pollution from your car, but it
will cost some money. If others use the device, then the air will be
clean (your car isn’t going to make the air very dirty by itself).
Therefore, if others use the device, then it is in your interests not
to, in order to save money. On the other hand, if others aren’t
using the device, then the air will be dirty even if you use it.
Therefore, you had might as well not use it, since you only put
yourself at a disadvantage if you do.. Since everyone can follow the
same reasoning, no one will use the device and everyone will be
worse off due to pollution. Unless, of course, we are all parties to a
binding contract which requires us to use the device so that we all
benefit.

3. ETHICAL DILEMMA
0 Ethical dilemmas, also known as a moral dilemmas,
are situations in which there are two choices to be
made, neither of which resolves the situation in an
ethically acceptable fashion. In such cases, societal
and personal ethical guidelines can provide no
satisfactory outcome for the chooser.
0 Ethical dilemmas assume that the chooser will abide
by societal norms, such as codes of law or religious
teachings, in order to make the choice ethically
impossible

4. MORALITY OR LEGALITY ??

5. Ethical Theories
Normative Theories
Consequentialist Theories
Egoism
Utilitarianism
Non-consequentialist Theories
Ethics of Duties
(Deontological)
Ethics of Rights
& Justice
Normative Theories of Business Ethics
Stockholder Theory
Stakeholder Theory
Social Contract Theory

6. Normative theories
0 There are two broad categories of ethical theories
concerning the rightness or wrongness of actions:
0 consequentialist
0 non-consequentialist.

7. Consequentialist Theory
•
•
A consequentialist theory judges the rightness or
wrongness of an action based on the consequences
that action has.
The most familiar example would be utilitarianism-``that action is best that produces the greatest good
for the greatest number'' (Jeremy Bentham).

8. Non-consequentialist theory
0 A non-consequentialist theory of value judges the
rightness or wrongness of an action based on
properties intrinsic to the action, not on
its consequences.
0 As for instance, Libertarianism--People should be free
to do as they like as long as they respect the freedom
of others to do the same.

9. Egoism
0 Contributors :
Adam Smith
0 Type
Consequentialist
0 Focus:
Individual desires or interests
0 Rules
Maximization of desires/self-interest
Concept of human beings:
Man as an actor with limited knowledge & objectives

10. Egoism
0 In Europe, a woman was near death from a special kind of
cancer. There was one drug that the doctors thought might
save her. It was a form of radium that a druggist in the same
town had recently discovered. The drug was expensive to
make, but the druggist was charging ten times what the drug
cost him to make. He paid $400 for the radium and charged
$4,000 for a small dose of the drug. The sick woman's
husband, Heinz, went to everyone he knew to borrow the
money and tried every legal means, but he could only get
together about $2,000, which is half of what it cost. He told
the druggist that his wife was dying, and asked him to sell it
cheaper or let him pay later. But the druggist said, "No, I
discovered the drug and I'm going to make money from it." So,
having tried every legal means, Heinz gets desperate and
considers breaking into the man's store to steal the drug for
his wife.

11. Utilitarianism
0 Contributors:
Jeremy Bentham, John Stuart Mill
0 Type:
Consequentialist
0 Focus:
0 Collective welfare
0 Rules:
Act/rule utilitarianism
0 Concept of human beings:
Man is controlled by avoidance of pain & gain of pleasure
(hedonist)

12. Utilitarianism
A lady from out of town calls you to list her deceased
parent’s home in Central Kolkata.
She is not sure what it is worth, but says she will be
happy to get Rs 50,00,000 for the home. You look at the
home and feel it is worth at least Rs 75,00,000 and
realize it would be perfect for your brother.
What do you do?

13. Ethics of duties
0 Contributors:
Immanuel Kant
0 Type:
Non-Consequentialist
0 Focus:
Duties
0 Rules:
Categorical imperative
0 Concept of human beings:
Man is a rational moral actor

14. Ethics of duties
An example would be reporting unethical wrongdoing by a
boss who is engaged in some form of corporate fraud. Many
employees in this situation would be conflicted in their fear of
losing their jobs, making it difficult for them to meet
obligations to provide for their families. However, by not
reporting the wrongdoing, they put other stakeholders in
jeopardy.

15. Rights & justice
0 Contributors:
John Locke, John Rowls
0 Type:
Non-Consequentialist
0 Focus:
Rights
0 Rules:
Respect for human beings
0 Concept of human beings:
Man is a being that is distinguished by dignity

16. Rights & Justice
0 Michael had several friends including Roger and Daniel. Roger
has recently met and started dating a wonderful lady named
Phyllis. He is convinced this is a long term relationship.
Unknown to Roger, Michael observed them at a restaurant
several days ago and realized Phyllis is the wife of his other
friend Daniel.
0 Michael is deciding whether to tell Roger that Phyllis is
married when he receives a call from Daniel. Daniel suspects
his wife is having an affair and since they and Michael share
many friends and contacts, he asks if Michael has heard
anything regarding an affair.
0 To whom does Michael owe greater friendship to in this
situation? No matter who he tells, he is going to end up
hurting one, if not both friends. Does he remain silent and
hope his knowledge is never discovered?

17. Stockholder theory
0
0
0
Businesses are merely arrangements in
which one group of people, namely, the
shareholders advance capital to another
group, viz., managers to realize certain ends
beneficial to them.
Managers have no option but to follow the
dictates of their masters.
Managers should pursue profit only by all
legal, non-deceptive means.

18. Stockholder theory
0 There are Companies that produce cigarettes,
liquor and pistols and make money to
maximize shareholder’s returns. In all such
cases, shareholders seem to be happy with the
high dividends they get apart from an increase
in market capitalization of their stock and
therefore , there is no reason for them to issue
directions that contradicts the manager’s
action.

19. Stakeholder theory
0
0
Regardless of the fact whether the
management achieves improved financial
performance or not, managers should
promote the interests of all stakeholders.
It considers a firm as an instrument for
coordinating stakeholder interests &
considers managers as having a fiduciary
responsibility not merely to the
shareholders, but to all of them.

20. Stakeholder theory
0 British Petroleum developed their image considerably; altering
the meaning of BP to mean ‘Beyond Petroleum’ and aiming to
‘reduce greenhouse gas emissions by 10% between 1990 and
2010, which they did successfully; signaling their intent to either
aid the environment in their business practices or simply to
cultivate a ‘greener’ image to ensure the ever more
environmentally aware public will favour their products, and to
capture the developing market for alternative energy. Using
Friedman’s theory it can be argued that BP uses this image to
maximise profit. Conversely, Freeman’s Stakeholder theory
indicates how BP’s ethical stand point considers the broader
responsibilities contributing to the businesses’ decisions and
policies. It is necessary to established whether ethical decisions
and Corporate Social Responsibility (CSR) are based upon
intentions, goals, outcomes; or, a mixture of each.

21. Social Contract Theory
0
0
All businesses are duty-bound to increase
the welfare of the society by catering to the
needs of the consumers and employees
without in any way endangering the
principles of natural justice.
It is assumed that there is an implicit
agreement between the society & any
created entity such as a business unit

22. Social Contract Theory
0Criminals who are convicted for heinous
and brutal crimes such as terrorist
activities amounting to mass killings and
gang rapes or rapes of minor and who are
awarded death penalty also have the right
of being represented by a lawyer in the
Indian Judicial System.

23. Dealing With Ethical Dilemmas
0 Unfortunately, there is no perfect method for dealing with
ethical dilemmas. Regardless of the choice, we will need to
face and accept the consequences of our actions.
0 However, there are two ways to look at your situation to
help you come to a decision:
0 The first way is to evaluate the potential actions you can
take and then pick the course that is least morally
problematic.
0 The second involves analyzing the potential outcomes of
your actions and selecting the course of action with the
most benefits or least harm.