Week 1.2 ethics and normative standards

1. Introduction to
Professional Ethics
Week 1.2

2. Outline
1. Ethics and Normative Standards
2. Types of Values
3. Stakeholders
4. Social Responsibility

3. deals with norms, those standards of
appropriate and proper (or ‘normal’)
behavior
Ethics as Normative
Guidelines
on how we
should act
presuppose
some underlying
values
NORMS

4. 4
Ethics and Normative Standards
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accessible website, in whole or in part.
A higher
standard
than law
Honesty Fairness

5. What are values?
A company’s core values are those beliefs and principles that provide the
ultimate guide to its decision-making.
- The underlying beliefs that incline us to act or to decide one way rather
than the other.
The value I place on
education leads me to make
the decision to study rather
than play video games. I
believe that education is
more worthy than playing
games.
I make decision to spend my
money on groceries rather
than on a vacation because I
value food more than
relaxation.
What do you value? Why?

6. Types of Values
Financial serves monetary ends
Religious serve spiritual ends
Legal serves law, order, justice, etc.
Aesthetic serve the end of beauty
Corporate serves corporations’ culture, guidance, etc.
Nutritional serves health ends
Political serves public service
How are ethical values to be distinguished from these
other types of values? What ends do ethics serve?

7. Ethics Values VS Other Values
ETHICAL
VALUES
Serves the ends of human
well-being.
Acts and decision seek to promote
human welfare
OTHER
VALUES
Not a personal and selfish
well-being
Serves different (more specific) ends

8. Ethics as Practical Reason
Ethics
practical and normative, having to do with
our actions, choices, decisions, and reasoning
about how we should act.
Therefore, it is a vital element of practical reasoning: reasoning
about what we should do, and is distinguished from theoretical
reasoning, which is reasoning about what we should believe.
Theoretical reason is the pursuit of truth, which is the highest
standard for what we should believe.

9. Philosophical Ethics And Theories
Is there a comparable methodology or procedure for
deciding what we should do and how we should act?
ETHICALTHEORIES ARE PATTERNS OF
THINKING, OR METHODOLOGIES,TO
HELP US DECIDEWHATTO DO.

10. Group Discussion
What other classes of yours advise you about proper
and correct ways to act and decide? Identify any
implied behavioral norms and explain how the norms
embedded in those classes differ from ethical norms.
 Behavioral norms – standard of behavior
 Ethical norms - about how we should act. practical and
normative, having to do with our actions, choices, decisions,
and reasoning
E.g.
Do not plagiarize.
Behavioral norms: It is cheating and it is not good.
Ethical norms: who are the affected stakeholders. How would each stakeholder be affected?
How does it oppose to your values and personal integrity or your principles?

11. Stakeholders Define Ethical
Issues in Business
Stakeholders: Those who have a stake or claim
in some aspect of a company’s products,
operations, markets, industry, and outcomes
Customers Investors
Employees Suppliers
Government agencies Communities
Stakeholders can influence and are influenced by
businesses
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12. Identifying Stakeholders
 Primary stakeholders: Those whose continued
association is necessary for a firm’s survival
 Employees, customers, investors, governments, and
communities
 Secondary stakeholders: Are not essential to a
company’s survival
 Media, trade associations, and special interest
groups
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13. © 2013 Cengage Learning. All Rights Reserved. 13
The Stakeholder Interaction Model

14. A Stakeholder Orientation
The degree to which a firm understands
and addresses stakeholder demands
 Three activities
 Generation of data about stakeholder groups
 Distribution of the information throughout the firm
 Organization’s responsiveness to this intelligence
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15. 1. AT&T
2. Mattel Inc.
3. Bristol-Myers Squibb Co.
4. Eaton Corp.
5. Intel Corp.
6. Gap Inc.
7. Hasbro Inc.
8. Merck; Co. & Inc.
9. Campbell Soup Co.
10. Coca-Cocal Enterprises Inc.
https://www.forbes.com/pictures/efkk45ehlfk/no-10-coca-cola-
enterprises-inc/#1e8b62047afb 15
Best Corporate Citizens 2019

16. Social Responsibility
An organization’s obligation to maximize its
positive impact on stakeholders and
minimize its negative impact.
 Four levels of social responsibility
 Economic
 Legal
 Ethical
 Philanthropic
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17. The Importance of a Stakeholder
Orientation
Social responsibility cannot be reactive
 Must be part of business strategy
 Is associated with
 Increased profits
 Increased employee commitment
 Greater customer loyalty
Business ethics involves carefully thought-
out rules of conduct that guide decision
making
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18. © 2013 Cengage Learning. All Rights Reserved. 18
The Steps of Social Responsibility

20. Assignment 1:
Pair Task
Due: Week 2 Tuesday