This document provides an overview of business ethics and social responsibility. It discusses why ethics are important for businesses and society. Four main ethical theories are examined: rights theory, justice theory, utilitarianism, and profit maximization. Rights theory focuses on respecting individual rights, while justice theory aims to distribute benefits fairly. Utilitarianism chooses alternatives that provide the greatest good for the most people. Profit maximization selects options that earn the most profit legally. The document also covers logical fallacies, evaluating ethical decisions, and resisting unethical requests.
Individual Factors: Moral Philosophies and Valuedgoti3111
Most discussions of business ethics address the role of the individual in ethical decision making.
HOW DOES INDIVIDUAL'S BACKGROUNDS AND PHILOSOPHIES INFLUENCE ONE'S DECISION?
A presentation held by Tabea Hirzel at the SMCU Residency with Prof. Hardy Boullion.
Abstract.
“Anarchy, State, and Utopia” [CITATION Noz74 \l 2055 ] is a work in the libertarian tradition of constitutional theory in which Robert Nozick sets up an explanation why societies are organized as states and how these states came to be. His major point is to justify the state and the state’s actions morally. Nozick bases his theory on the normative paradigm of rights held by individuals where the act of violating them is considered unfair and unjust [ CITATION Lef79 \l 2055 ]. Starting from a state-of-nature theory he defines rights as redistributive side constrains [CITATION Noz74 \p 32 \l 2055 ] leading to what he denominates his “entitlement theory” from which, by each and every one’s primordial intention to protect one’s own rights, emerges the state in an evolutionary process based on free exchange of obligations and rights. This theory defines the minimal state as the ideal form and any further extended state as illegitimate, following that its extension could only come in existence by violation of individual rights only. Even though his theory remains at the end unreliable its moral justification [ CITATION Bar77 \l 2055 ] or “incoherent” in his explanatory attempt [ CITATION Dav77 \l 2055 ], his approach based on rights where people as free agents use moral values as functions towards the goal of the individuals higher happiness is revolutionary in constitutional theories and future theories may find a rich foundation to build on its dynamics.
Individual Factors: Moral Philosophies and Valuedgoti3111
Most discussions of business ethics address the role of the individual in ethical decision making.
HOW DOES INDIVIDUAL'S BACKGROUNDS AND PHILOSOPHIES INFLUENCE ONE'S DECISION?
A presentation held by Tabea Hirzel at the SMCU Residency with Prof. Hardy Boullion.
Abstract.
“Anarchy, State, and Utopia” [CITATION Noz74 \l 2055 ] is a work in the libertarian tradition of constitutional theory in which Robert Nozick sets up an explanation why societies are organized as states and how these states came to be. His major point is to justify the state and the state’s actions morally. Nozick bases his theory on the normative paradigm of rights held by individuals where the act of violating them is considered unfair and unjust [ CITATION Lef79 \l 2055 ]. Starting from a state-of-nature theory he defines rights as redistributive side constrains [CITATION Noz74 \p 32 \l 2055 ] leading to what he denominates his “entitlement theory” from which, by each and every one’s primordial intention to protect one’s own rights, emerges the state in an evolutionary process based on free exchange of obligations and rights. This theory defines the minimal state as the ideal form and any further extended state as illegitimate, following that its extension could only come in existence by violation of individual rights only. Even though his theory remains at the end unreliable its moral justification [ CITATION Bar77 \l 2055 ] or “incoherent” in his explanatory attempt [ CITATION Dav77 \l 2055 ], his approach based on rights where people as free agents use moral values as functions towards the goal of the individuals higher happiness is revolutionary in constitutional theories and future theories may find a rich foundation to build on its dynamics.
Deontological Ethical Philosophies
Lecture
Rights
Merriam-Webster defines "right" as "something to which one has a just claim." That which he or she claims can be a tangible object, a privilege, the opportunity to behave in a certain way, or to have others behave towards him or her in a certain way. Some rights are legal and others are moral. If one's rights are protected by law, we consider them to be legal rights. Boatright also points out a distinction between specific and general rights. General rights might be considered “human rights” as they apply to all people. Specific rights are those that particular people possess due to their circumstances, such as an employment contract.
Rights can also be described as positive or negative. Negative rights act as barriers that keep others from limiting our rights, while a positive right obligates others to support our right or position in some way. My right to life is a negative right that keeps others from taking my life. However, it does not require others (individual people, organizations, or governments) to do anything or give anything to give me life.
Immanuel Kant developed an approach to decision making that requires one to act in a certain way simply because it is the right thing to do. He calls the approach the "categorical imperative," and communicates this imperative in various formulations. In addition to the categorical imperative, Kant wrote about hypothetical imperatives. These are conditional requirements, so that if a person wants something or believes he should do something, then he or she should take the necessary steps to fulfill that desire or that sense of obligation. The categorical imperative is not conditional in nature. There are two primary formulations of the categorical imperative.
First, Kant stated, "I ought never to act except in such a way that I can also will that my maxim should become a universal law." Do you think the decision makers who took Enron down the wrong road would recommend their decisions for all business people everywhere and at all times? Most likely not.
This formulation includes the concept of reversibility, which sounds like the Golden Rule. Basically, I must be willing for others to use my same rationale against me if the roles are reversed. Further, the concept also includes the element of universalizability. Every person at all times should be able to follow the rationale I use.
Kant's second formulation says, "Act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as means, but always at the same time as an end."
People should follow these formulations, according to Kant, even if breaking them seems to have more of a utilitarian benefit. Holding down one person or one class of persons might benefit society in general, but does not pass the test of reversibility or universalizability. For example, slavery is a very efficient means of increasing work productivity and keeping co.
Managerial Ethics And Corporate Social Responsibility Sabih Kamran
MGT 201 Helpful Slides For Management Students Of Different Universities In Karachi And All Over Pakistan And World Managerial Ethics And Corporate Social Responsibility
The biggest corporation, like the humblest citiz.docxmehek4
“The biggest corporation, like the humblest citizen, must be held to strict compliance with the will of the people.”
--Theodore Roosevelt
Ethics:
The values an individual uses to interpret whether any particular action or behavior is considered acceptable or appropriate.
The social rules that govern & limit our conduct, especially the ultimate rules concerning right and wrong.
The basic guidelines for cooperative social existence.
Serves to restrain the purely self-interested desires in each of us in order to make it possible for all of us to live together.
The collective values of a business organization that can be used to evaluate whether the behavior of the collective members of the organization are considered acceptable and appropriate.
Business Ethics:
Moral/Ethical problems in business:
a conflict between financial performance (revenues, costs, & profits) and social performance (obligations to all stakeholders).
Ethical standards get confused with:
Law
Etiquette
Conscience
Corporate/Professional codes
Religion
Moral or Ethical Perspectives:
Moral RelativismMoral UniversalismMoral Perspecivalism
Moral Relativism:
The belief that morality is just a function of what a particular society happens to believe, that what is right is determined by what a society says is right.
e.g. abortion is condemned as immoral in Catholic Spain, but is practiced
as a morally neutral form of birth control in Japan.
Moral relativists believe that there is no absolute moral standard, no universal definition of right or wrong.
e.g. polygamy, stealing, slavery have all been tolerated by the moral system
of one society or another
Moral Relativism Presents some unpleasant implications:
1. it undermines any moral criticism of the practices of other
societies as long as their actions conform to their own standards
e.g. can't say that slavery in the American South was immoral as long as
that society allowed it to be morally permissible
2. the concept of ethical progress does not exist
e.g. can't say that our moral standards today are more enlightened
than those in the Middle Ages
Moral Universalism: In contrast, is the belief that variations in moral standards reflect different factual circumstances rather than fundamental differences in values.
Which is right??
It is good to emphasize that in viewing other cultures we should keep an open mind and not simply dismiss their social practices.
Moral Perspectivalism:
Compromise position is between moral relativism and universalism.the consideration of multiple perspectives while at the same time asserting universal truths.through examination of a variety of perspectives, one might be able to come closer to the ideal moral standards toward which to strive.
Ethical Theories:
There are many, many ethical theories, or in other words, ethical frameworks through which we can examine and attempt to understand an ethical dilemma. In the following ...
Management EthicsEthics, Diversity and Organizational .docxtienboileau
Management Ethics
Ethics, Diversity and Organizational Culture
Age and Cultural Diversity can make Business Ethics stumble
With MULTIPLE generations now in the workforce, many employers have embraced age and cultural diversity initiatives with an objective of creating create an all-inclusive workplace. However, cultural diversity can give rise to ethical issues that can be challenging for managers and employees to resolve.
Religious Differences
Gender Issues (more women in work force than ever before)
Hiring Decisions
General Business Practices
Age differential
As a group, please come up with one ethics-related situation that occurred since the last class. Share with the class the ethical conflict, action, and results.
Chapter Three:
Justice and Economic Distribution
5
Management Ethics
Reflection Questions
Chap 3 – Justice and Economic Distribution
1. What does the concept of justice mean to you?
“Injustice anywhere
is a threat to
justice everywhere.”
Martin Luther King Jr.
MANAGEMENT ETHICS 5-1
What is Justice ?
Moral principle that determines what is just, equitable, and morally right based on ethical, political, environmental, and religious beliefs and values.
-- guided by truth, reason, and fairness --
Promoting welfare, virtue, and freedom
Keeping intact the foundations of our democracy including upholding the law
Securing natural rights
According to Merriam Webster dictionary
-- Justice is the use of law and being fair --
MANAGEMENT ETHICS 5-1
Justice involves REAL issues that deal with the equality and fair treatment of humanity and the environment.
Justice also involves the laws in a country or nation, and the arrangement of how a government will protect it’s values and maintain order while preserving the rights of the people.
What is Justice ?
MANAGEMENT ETHICS 5-1
Maximizing Welfare
Improving standard of living for society as a whole
Bringing the “greatest happiness for the greatest number” of people = UTILITARIAN
This means that a person’s theory of justice is based on promoting prosperity or spurring economic growth, to seek the greatest happiness for the greatest number of people.
Examples: Social Security, healthcare (Medicare and Medicaid), public schools, criminal justice system with prisons
MANAGEMENT ETHICS 5-1
Respecting Freedom
Having respect for individual rights and universal human rights.
e.g. the Bill of Rights
Emphasis on respect for individual rights
Laissez-faire camp (free-market libertarians)
Policies that respect voluntary choices so minimal government intervention in individual lives and choices.
Fairness camp (egalitarian theorists)
Policies that give everyone a fair chance at success so government passes laws that ensure everyone has equal opportunity.
MANAGEMENT ETHICS 5-1
Promoting Virtue
Looking at justice by affirming certain virtues and conceptions of the ‘good life’.
These virtues must b.
Theoretical Bases for Analyzing the Ethics of a DecisionAdapte.docxsusannr
Theoretical Bases for Analyzing the Ethics of a Decision
Adapted from a chapter by John R. Deckop, in Vida Scarpello (ed). The Handbook of Human Resource Management Education: Promoting and Effective and Efficient Curriculum, Los Angeles: Sage Publications, 2008.
Philosophers have pondered ethical questions for millennia, and have developed numerous theoretical perspectives to aid in ethical decision-making. The range and depth of philosophical theories on ethical decision-making can be daunting. So much so that arguably, presenting all the major philosophical perspectives, and their nuances, is likely to fail from a pragmatic standpoint because there is no way most students can absorb, much less apply on a day-to-day level, so much material.
So this analysis will be restricted to the two “dominant” (Beauchamp & Bowie, 1997) philosophical perspectives on ethics: utilitarianism and universalism, and will deal with only the most general features of these theories. Things will be complicated a little, in that a third theoretical perspective that is a subset of utilitarianism will also be discussed: profit maximization.
The goal is to provide three perspectives (utilitarianism, profit maximization, and universalism) on ethical decision-making that can actually be easily remembered, taught, and used in daily decision-making. Later other perspectives will be overviewed, including theory that challenges the two dominant perspectives.
Utilitarianism
The theory. Utilitarianism, developed primarily in the 19th century, can be understood by the common phrases “The greatest good for the greatest number” and “The ends justify the means.” The utilitarian believes that the potential outcomes of a decision should be analyzed to see who benefits and who is harmed. The decision that results in the most total benefit compared to harm is the best decision. The utilitarian is often portrayed figuratively as holding a scale, with the benefits on one side being weighed against the harm on the other.
A critical aspect of this theory is that a decision can result in harm to some individuals and still be the most ethical course of action. As long as benefit versus harm is maximized, the “ends justify the means.” From a utilitarian perspective, an organizational downsizing for example would be ethical as long as the good that comes from it, perhaps in the form of long-term company health and shareholder value, outweighs the harm to dismissed and current employees, and other stakeholders.
Some criticisms of the theory. One criticism of utilitarianism is that the ends may not always justify the means. Universalism, the other dominant ethical theory to be discussed below, argues that humans have inherent worth and thus fundamental rights that should not be violated under any circumstances. Thus, for example, while a utilitarian may defend drug testing, a universalist might argue that drug testing fundamentally violates an employe.
Chapter One Theory of Health Care Ethics 12.docxtiffanyd4
Chapter One
Theory of Health Care Ethics
1
2
Why Study Ethics?
Because health care is changing, you need tools for making necessary and difficult decisions.
It will help you better understand patients, fellow professionals, and the system in general.
It will assist you in building and maintaining your career.
3
3
Types of Ethics
Normative ethics
Is the study of what is right and wrong.
Metaethics
Is the study of ethical concepts and theories.
4
4
Types of Normative Ethical Theories
Authority-based
Egoistic
Natural law
Deontological
Teleological
Virtue
5
5
Ethical Relativism
Ethical relativism purports that there is no absolute theory for ethics.
However, this lack of a complete theory does not mean everything is relative.
People need to make rational decisions about ethics-based issues.
Therefore, ethics theories are useful.
6
6
Egoism as Ethics Theory
Egoism is based on the idea that one’s self interest is the basis of one’s ethics decisions.
Theory is not helpful in health care ethics because professionals are taught to set aside self-interest.
The interests of the patient should come first.
7
7
Authority-based Ethics Theory
Decisions about ethics (right or wrong) are based on central authority such as in a theology or an ideology.
For health care ethics, there may be difficulty deciding which authority is the correct one.
However, knowing this view of ethics helps with understanding patients and health policy decisions.
8
8
Virtue Ethics Theory
Is founded in the writings of Aristotle.
Everything moves from potentiality to actuality.
Character development allows you to actualize your highest good.
Eudaimonia should be sought as the highest good.
9
9
Virtue Ethics Theory
Eudaimonia means that you seek to build your character and increase virtue.
Professional education seeks to develop people of high character.
People who work toward eudaimonia become persons of practical wisdom.
10
10
Virtue Ethics Theory
Principles of ethics can help to define your character and assist with your actions. See Chapter Two for more.
Virtue ethics is criticized as being elitist.
Virtue ethics requires the balancing of conflicting obligations.
People with practical wisdom can make appropriate ethical decisions.
11
11
Natural Law Theory
It is founded in the writings of St. Thomas Aquinas
It assumes that nature is rational and orderly.
Humans are part of the natural world and are given the ability to be rational.
Our natural reason allows us to distinguish right from wrong.
12
12
Natural Law Theory
Reason is also action in that humans can choose to do good or evil.
The Principle of Double Effect helps us decided which action is good.
Good is also defined as that which helps to maximize potential such as preserving life, gaining wisdom, and knowing God.
13
13
Natural Law Theory
In natural law, there are some acts that are not ethical because they violate the ability to reach one’s potent.
PHI 210RS – Module 3 Case Analysis Rubric Identify the .docxkarlhennesey
PHI 210RS – Module 3 Case Analysis Rubric
Identify the moral issue(s) and the parties involved; discuss the case with respect to the principle of utility, taking care to identify the benefits and burdens that pertain to the parties
affected.
Student Name: ___________________________________________ Date: _______________________
Rating Scale Exemplary: Corresponds to an A- to A (90-100%) Novice: Corresponds to D to D+ (60-69%)
Proficient: Corresponds to B- to B+ (80-89%) Not Attempted: Corresponds to an F (0-59%)
Basic: Corresponds to C- to C+ (70-79%)
Students will complete the assignment with attention to the following criteria:
Elements
Criteria
Score
Not Attempted
(Criterion is missing
or not in evidence)
Novice
(does not meet
expectations;
performance is
substandard)
Basic
(works towards meeting
expectations; performance
needs improvement)
Proficient
(meets expectations;
performance is
satisfactory)
Exemplary
(exceeds expectations;
performance is outstanding)
Analyzing case in
terms of the
principle of utility
(identification of
parties involved,
benefits and
burdens, and
alternative
possible actions or
policies)
90%
0-53.99%
Paraphrases the
information in the
case without
attempting an
analysis or states
opinions without
attempting an
analysis. Discusses
irrelevant facts
54-62.99%
Attempts to provide an
analysis of the case, but
does not connect
analysis to facts of the
case. Is vague on three
counts: identifying the
parties involved, the
benefits and burdens at
stake, and the alternative
possible actions or
policies at stake
63-71.99%
Attempts to provide
an analysis of the case;
connects analysis to facts
of the case; is vague on
two of the following:
identifying the parties
involved or the benefits and
burdens at stake, or the
alternative possible actions
or policies at stake
72-80.99%
Attempts to provide an
analysis of the case;
connects analysis to facts
of the case; is vague on
one of the following:
identifying the parties
involved or the benefits
and burdens at stake, or
the alternative possible
actions or policies at stake
81-90%
Provides a well-rounded analysis of
the case; connects analysis to facts
of the case; is successful in all
three of the following: identifying
the parties involved, the benefits
and burdens at stake, and the
alternative possible actions or
policies at stake
___/90
Mechanics of
Writing
10%
0-5.99%
Little to no
evidence of proper
writing mechanics
6-6.99%
The grammar of the case
analysis greatly impedes
understanding of content
7-7.99%
The case analysis needs a
good deal of improvement
with respect to grammar,
spelling, and/or style
8-8.99%
The case analysis is
mostly free of errors with
respect to grammar,
spelling, and/or style, but
needs some improvement
9-10%
The case analysis is near ...
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
1. Business 18: Introduction to Business Law ( S.Spencer)
Page 1 of 7
Lecture Notes – Chapter 2: Business Ethics & Social Responsibility
“What you are thunders so loudly that I cannot hear what you say to the contrary”
-- Ralph Waldo Emerson
WHY BOTHER WITH ETHICS?
We need to study business ethics to make better decisions for ourselves, the businesses
we work for and the society we live it.
Society as a Whole Benefits
o Corporate compliance with the law is insufficient alone to ensure ethical conduct
b/c the laws do not encompass all expressions of ethical behavior. (Corporate
Social Responsibility Debate)
STAKEHOLDER THEORY vs. PROFIT MAXIMIZATION THEORY
People Feel Better
o Studying ethical concepts and theories will help individuals define ethical conduct
and learn to use a strategy or framework for making decisions.
o Studying ethical concepts and theories helps us understand ourselves and others
better.
Unethical Behavior Can Be Very Costly
o Corporations are in positions of power that allow them to do greater damage to
others when they act unethically or socially irresponsibly.
o Increased exposure to liability and the passage of onerous legislation
controlling/monitoring business activity.
Civil and criminal actions against wrongdoing corps. & their executives.
Congress passed the Sarbanes-Oxley Act of 2002 which increased penalties
for corporate wrongdoers & established rules designed to deter and prevent
future wrongdoing. Purpose of Statute: Encourage & enable corporate
executives to be ethical & socially responsible.
o Negative impact of public criticism on reputation and corps ability to earn profits.
o Negative impact within the firm (Unethical environment may encourage even
more unethical conduct on part of employees)
2. Business 18: Introduction to Business Law ( S.Spencer)
Page 2 of 7
WHAT IS ETHICAL BEHAVIOR?
(See the Ethics Checklist & Analysis, pages 32- 36)
We will examine FOUR ETHICAL THEORIES:
1. RIGHTS THEORY
2. JUSTICE THEORY
3. UTILITARIANISM
4. PROFIT MAXIMIZATION
These four theories can be classified in two ways:
Teleological Ethical Theories = Focus on the CONSEQUENCES of a decision
Deontological Ethical Theories (“deeds”) = Focus on the DECISION itself.
RIGHTS THEORY
Encompasses a variety of ethical philosophies holding that certain human rights
are fundamental and must be respected by other humans
Focus is on each individual member of society and his/her rights
Each of us faces a moral obligation not to harm the fundamental rights of others
KANTIANISM
Immanuel Kant Strict deontologist
18th century philosopher
Humans are moral actors free to make choices and are able to judge the
morality of any action by applying his famous Categorical Imperative
o “Act only on that maxim whereby at the same time you can will that it
shall become a universal law.” In other words, we judge an action by
applying it universally.
For example: Borrowing money even though you know you will never
repay it. Using the categorical imperative, you would state the following
rule/maxim: “When I want money, I will borrow money and promise to
repay it, even though I know I won’t repay it.” According to Kant, you
would not want this maxim to become a universal law because no one
would believe in promises to repay debts and you would NOT be able to
borrow money when you wanted or needed to. So, the maxim fails the
categorical imperative test, and you are compelled ethically NOT to
promise falsely that you will repay a loan.
o “Always act to treat humanity, whether in yourself or others, as an end in
itself, never merely as a means.” In other words, we may not use or
manipulate others to achieve our own happiness. In the example above,
you are using the individual/entity that you are borrowing from b/c if they
knew all the facts, they wouldn’t agree to the loan.
Modern Rights Theories
3. Business 18: Introduction to Business Law ( S.Spencer)
Page 3 of 7
Propose mixed deontological theories b/c strict Kantianism’s duties are
absolute and sometimes create inappropriate results. (One can NEVER lie or
kill even though in some circumstances -- such as self-defense -- it may be
acceptable to do so.)
Abide by a moral rule unless a more important rule conflicts with it. (In other
words, don’t compromise a person’s right unless a greater right takes priority
over it.) For example, members of society have a right NOT to be lied to.
However, if you could save someone’s life by telling a falsehood, such as NOT
telling a criminal the true location of a witness who will testify against him,
you would be compelled under the modern theory to save the witness’ life by
NOT telling the truth.)
Major Strength:
It protects fundamental rights unless some greater right takes precedence.
Major Criticisms:
Difficult to achieve agreement about which rights are protected. (Rights
fundamental to industrialized nations may be unknown or severely restricted
in developing nations. E.g., certain freedoms, the treatment of women OR
Even w/n a country, citizens may disagree about the ranking of rights. E.g.,
Some Americans argue that the right to health care is an important need that
should be met by the gov’t or a person’s employer while others are opposed to
funding universal health care b/c they want gov’t intervention limited.)
Doesn’t consider the costs or benefits associated w/rights
Creates a sense of entitlement that may have a negative impact on motivation.
(e.g., If one is entitled to a job, a place to live, food and healthcare regardless
of how hard he works, he may not be motivated to work to earn those things.)
Summary:
Determine whether anyone’s rights are negatively affected by an alternative.
JUSTICE THEORY
John Rawls, published A Theory of Justice, in 1971
Argued it was right for gov’ts to redistribute wealth in order to help the poor and
disadvantaged.
Greatest Liberty Principle: Each person has an equal right to basic rights and
liberties. This is limited by the Difference Principle: Social inequalities are
acceptable only if they cannot be eliminated without making the worst-off class
even worse off.
Focus is on outcomes. Are people getting what they deserve?
Strength: Basic premise - The protection of those who are least advantaged in
society.
Criticisms: Doesn’t examine the costs of producing the equality.
Summary:
Choose the alternative that allocates society’s benefits and burden most fairly.
4. Business 18: Introduction to Business Law ( S.Spencer)
Page 4 of 7
UTILITARIANISM
Identified most with 19th century philosophers Jeremy Bentham and John Stuart
Mill
Requires a decision maker to maximize utility for society as a whole
Max Utility = achieving the highest level of satisfactions over dissatisfactions
It judges our actions based on outcomes (teleological)
Strength: Easy to articulate the standard of conduct – Merely do what is best for
society as a whole.
Criticisms:
o Difficulty in measuring benefit & harm to all members of society.
o Unequal distribution of costs & benefits may lead to detrimental results
for a particular class or group of people.
Sumamry:
Choose the alternative that promises the highest net welfare to society as a whole.
PROFIT MAXIMIZATION
Maximize the business’ long-run profits within the limits of the law
Based on the Laisse Faire Theory of Capitalism first expressed by Adam Smith in
the 18th century
Argues total social welfare is optimized if humans are permitted to work toward
their own selfish goals
The role of gov’ts and the law is limited solely to ensuring the workings of a free
market (by NOT interfering w/economic liberty, eliminating collusion among
competitors, & promoting accurate information in the marketplace.
Strength: Allocation of society’s resources to those units that are most efficient
increases overall productivity and maximizes total social utility.
Criticisms:
Doesn’t concern itself with HOW wealth is allocated in society. (for example,
in the USA, 50% of our wealth is held by 10% of the population).
Market imperfections and a person’s station at birth interfere w/his ability to
compete.
The ability of laws and market forces to control corporate behavior is limited
Summary: Choose the alternative that produces the most long-run profits for the
company within the limits of the law.
APPLYING THE ETHICS CHECKLIST: MAKING DECISIONS
(Apply the Ethics Checklist & Analysis, pages 32- 36)
Organization’s Responsibility to Society Advertising Dilemma
Organization’s Responsibility to its Customers Landlord’s Dilemma (Section 8 Housing)
Organization’s Responsibility to its Employees Enron’s Pension Plans (Rank-and-file vs. Executive plan)
Organization’s Responsibility to its Shareholders Ford’s decision re: fuel efficient SUV (Environmentalist)
Organization’s Responsibility OverseesSweat shops in developing countries
Employees’ Responsibility to their OrganizationDishonesty among managers (False info provided)
5. Business 18: Introduction to Business Law ( S.Spencer)
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THINKING CRITICALLY: EVALUATING ARGUMENTS LOGICALLY
Non Sequiturs = A conclusion that does not follow from the facts or premises one
sets out.
Appeals to Pity = Generate support for a proposition by focusing on a victim’s
predicament.
False Analogies = An analogy essentially argues that since something is like
something else in one or more ways, it is also like it in some other respect. We should
make sure that the two situations are similar enough to make the analogy valid.
Begging the Question = Taking for granted or assuming the thing you are trying to
prove; circular reasoning.
Argumentum ad Populum = Argument to the people. An emotional appeal to
popular beliefs, values or wants. The fallacy is that just because many or all people
believe something does NOT mean it is true.
Bandwagon Fallacy = Similar to argumentum ad populum. States that we should do
(or not do) something merely because one or more other people or firms do it.
Argumentum ad Baculum = Argument to the club. The arguer uses threats or fear to
bolster his position.
Argumentum ad Hominem = Argument against the man. This tactic attacks the
speaker, NOT his reasoning.
Argument from Authority = Arguments from authority rely on the quality of an
expert or person in position of authority, NOT the quality of the individuals
argument. Similar is the argument to reverence or respect.
False Cause = This fallacy results from observing two events and concluding that
there is a causal link between them when there is no such link. This occurs b/c we do
not attempt to find all the evidence proving or disproving the causal connection.
The Gambler’s Fallacy = Results from the mistaken belief that independent prior
outcomes affect future outcomes.
Reductio ad Absurdum = “Slippery Slope” argument. Carries an argument to its
“logical” end without considering whether it is an inevitable or probable result.
Appeals to Tradition = Infer that because something has been done a certain way in
the past, it should be done the same way in the future.
The Lure of the New = Opposite of “appeals to tradition”. The idea that we should
buy something merely because it is “just released” or “improved”.
Sunk Cost Fallacy = An attempt to recover invested time, money and other resources
by spending still more time, money and resources. “Throwing Good Money After
Bad”
6. Business 18: Introduction to Business Law ( S.Spencer)
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HOW TO RESIST REQUESTS TO ACT UNETHICALLY
Recognize Unethical Requests and Bosses
Buy Time
Find a Mentor & Peer Support Group
Find “Win-Win” Solutions
Work Within the Firm to Stop the Unethical Act
Prepare to Lose Your Job (Last resort b/c it’s difficult to make change effectively
from the outside.)
Web sites to Review
People of good character are “TRRFCC”. (Pronounced “terrific”)
Can you identify these “Six Pillars of Character”? Go to
http://www.charactercounts.org/defsix.htm.
The Josephson Institute of Ethics http://www.josephsoninstitute.org/. Scroll down and
select the “Making Ethical Decisions – A Step-by-Step Guide” link at the bottom of
the page.
7. Business 18: Introduction to Business Law ( S.Spencer)
Page 7 of 7
GROUP EXERCISE: Critical Thinking and Rationalizing Pirating Digital Music
Let’s apply what you’ve learned from the chapter to a context many of you may be
familiar with: Downloading Copyrighted Music Files from the Internet at sites like
Napster, Kazaa and Morpheus.
At the height of Napster’s popularity, 100 users a second downloaded copyrighted music
for free. In 2002, each month, nearly 20 million consumers used the digital underground
to download bootlegged copies of music, games, movies and software.
Downloading copyrighted music files without permission of the copyright owner is
clearly illegal, yet the practice continues. Why? Because downloaders use five common
rationalizations to justify stealing music files. Consider the following excuses and
identify the possible fallacies in each.
Excuse #1: Everybody does it.
Excuse #2: It’s the music labels’ fault. They release albums with only one good track
per album, yet charge 15 to 20 dollars at retail.
Excuse #3: I wouldn’t buy the CD anyway.
Excuse #4: Musicians and labels make enough money already.
Excuse #5: I’m merely sampling the music to decide if I like it, just as I test drive a
car before I buy it.