This document provides an introduction to business ethics, including definitions of ethics and business ethics. It discusses why ethics are important in business due to society's reaction against unethical practices and the need for cooperation and virtue. The document then outlines several moral theories used to determine right and wrong conduct, including utilitarianism, deontology, virtue ethics, moral relativism, and rights-based approaches.

1. Slides linked to The Ethical Business, Mellahi, Morrell & Wood
Book. 2nd Ed.

2. Introduction

Ethics: is a branch of philosophy that
involves systematizing, defending, and
recommending concepts of right and wrong
conduct
Ethics: Doing what is good & what is bad.
Business Ethics: right/wrong, good/bad &
desirable non-desirable in business world.
It’s the study of Business from an ethical
point of view. For example, in marketing ,
environmental issues, working conditions,
accounting, employee treatments

3. Why is Ethics Important?

Valuable in todays fast changing environment
Without a sense of community and
cooperation there would be no firms.
Without individual and corporate virtue to
benefit society all success would be empty.
Society has a reaction against unethical
business practices.

4. Class Activity

A tobacco company that gives a percentage of
its revenue to the orphanage as a charity.
Does that make it an ethical business?
Think of other businesses
(e.g. counterfeit, smuggling, trafficking, and arms)

5. Moral Theories

It explains why people behave differently
from each other and different situations.
Moral theories are meant to help us figure out
what actions are right and wrong.
It could provide a guidance to people in
business and how to behave.
There are many types of Moral theories, in
this class we will discuss only 6.

6. 1. Utilitarianism

Consequentialist.
Reasoning from consequences.
Rightness of an act is linked to goodness of
the result.
If the result of the action benefits the majority
of people, it is ethical.
EXAMPLE: Smoking in public is bad
because it will harm majority of people.

7. 2. Deontology

Non-Consequentialist
Reasoning from duty or rules
When we follow our rules, we are behaving
morally. When we fail to follow our rules, we
are behaving immorally. We cannot change
what is right based upon the outcome.
The rightness of an act is linked with a rule.
EXAMPLE: I will not lie because it’s against
the law, even if it will save someone's life.

8. 3. Virtue

Reasoning based on a person’s
character, values and conscience
People follow this theory usually ask "What
sort of person should I be?“
Their actions are influenced by values.
EXAMPLE: I don’t lie because I’m an honest
person. For me a liar is a ‘bad’
person, therefore, I cannot lie.

9. 4. Moral Relativism

Morality is a matter of religion, culture,
tradition, norms and customs.
Good and bad differs from place to another.
Class Activity:
In teams discuss an issue where it could be
viewed as ethical in one place and unethical in
another.

10. 5. Rights-based approaches

There are universal rights for everyone.
 Right to live, to be respected and treated fairly
etc.
This theory affected policies in USA and UK
during 80s.
It helped protecting the interest of individuals
against powers of corporations.
Example: People have the right to live in a
clean environment, factories should not create
pollution.