Academic presentation of foundations of business ethics. Download the file and click on the speaker icon to hear the audio commentary on each slide.

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Global Business Ethics

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Global Business Ethics
 Definition
 The application of ethical theories to business
contexts
 Logical, Appeals to sound ethical principles,
Appeals to facts
 Understand theories
 Kantianism, Utilitarianism, Aristotelianism,
Other Non-consequentialists (Ross)

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Understand theories
 Immanuel Kant
 Groundwork of the Metaphysics of Morals (1785)
 Nothing in the world is good in itself except human
will
 Our intention to act in accordance with a universal
principle is the measure of our humanity
 Persons are rational agents, due equal respect,
cannot be used as objects
 Christianity on steroids – without God

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Understand theories
 Utilitarianism
 Principles of Moral Legislation (1789)
 Utilitarianism (1861)
 The greatest good for the greatest number
 A calculation done by an ideal (indifferent) spectator
 Quantity as well as quality of “pleasures” (benefits,
welfare)
 Aimed against intuition, “feeling”

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Understand theories
 Virtue Theory
 Aristotle (384 - 322 BCE): Nichomachean Ethics
 Common sense in high gear
 Virtues are perfections of innate human capacities
 The Golden Mean:
 Courage = neither fearful nor foolhardy
 Intellectual and Moral virtues develop over time
 Naturalistic: the basis for “natural law” moral system

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Understand theories
 W. D. Ross – Prima Facie Duties
 Fidelity, Reparation, Gratitude
 Non-injury, Harm prevention
 Beneficence: foster health, security, wisdom, moral
goodness, happiness of others – rests on fact of
existence of “others.”
 Self-improvement, Justice
 Suggested additions: Respect for Freedom, Care,
Non-partisanism

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Understand theories
 Summary: Use of traditional theories involves
understanding, applying and balancing four
kinds of concerns:
 Human dignity – value of each individual
 Humanity at large – benefits to all concerned
 Human virtues/perfections – natural capacities
 Duties – intuitive/cultural mandates

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Understand Theories
 Example: Outsourcing/Plant Closing
 Human dignity – value of each individual
 Do not “use” human beings; do not throw them away
 Humanity at large – benefits to all concerned
 People in third world liberated from poverty
 Human virtues/perfections – natural capacities
 People in both worlds ultimately have new opportunities
 Duties – intuitive/cultural mandates
 Prior promises, obligations to shareholders, employees

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Understand Theories
 Example: Ford Pinto Case
 Costs: 2100 accidents, with 180 fatalities and
180 serious burns
 Cost of cars ($700 each)
 Social cost of burn victims ($67,000 each)
 Social cost of deaths ($200,000 each)
 Total = $46 million
 Benefits:
 Save $11 on 12.5 million cars and trucks
 Total = $146 million
 Duties? Kantian considerations? Virtues?
See Shaw and Barry, Moral Issues in Business, 9th
ed., p. 85

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Summary
 Business Ethics = apply known moral theories
 Kantianism – morality of intentions
 Utilitarianism – morality of consequences
 Aristotelianism – virtues
 Prima Facie Duties – obvious obligations
 Application is only as good as theory
 Study cases from several angles before
reaching a conclusion