Business Ethics  “Nicomachean
investigations into the nature of human flourishing
I. Classical Philosophies
A. Socrates
 Classical Greek philosopher
 One of the Western philosophy founders
 Believed that a person had to truly know
themselves in order to be capable of wisdom
 “The unexamined life is not worth living.”
 “I know that I know nothing.”
 Socratic or dialectic method
 Face-to-face interrogations of another person
 Most pertinent questions that philosophy had to
deal with:
 How people should live their lives
 What kinds of actions were righteous
 How people should live together in
communities and states
 Best way to find knowledge is to have meaningful
conversations with people about basic principles
 Equated knowledge with virtue, which leads to
ethical conduct
 Virtue (Latin: virtus; Greek: arete) - moral
excellence
 Knowledge and understanding of virtue is
sufficient for someone to be happy
 “If knowledge can be learned, so can virtue.
Therefore, virtue can be taught.”
B. Plato
 Ancient Greek philosopher
 Socrates - teacher; Aristotle - student
 “Excellence is not a gift, but a skill that takes
practice.”
 Maintains a virtue-based eudaimonistic ethics
 EU (good) + DAIMANIA (soul)
“EUDAIMONIA” (human flourishing / good life)
 Highest aim of moral thoughts
 Virtues - requisite skills and character traits
 Four cardinal virtues:
 Wisdom
 Temperance
 Courage
 Justice
 “From virtue wealth and all other things become
good for people, both privately and publicly”
C. Aristotle
 Had a close relationship with Plato and was one of
his favorite pupil
Ethics” and “Politics” -
on the individual, familial, and societal levels
 The highest good and the end toward which all
human activity is directed is happiness
 Continuous contemplation of eternal and
universal truth
 Mortal virtue is a relative mean between extremes
of excess and deficiency, and in general the moral
life is one of moderation in all things.
 Doctrine of Mean - states that there is a balance
between two vices which he called the golden
mean
Vice of Virtuous Mean Vices of Excess 
Deficiency C
Cowardice Courage Rashness
ategorized three elements of character (ethos) in the
following manner:
 Phronesis - how to act in particular situations
 Arete - virtue
 Eunioa - goodwill
 Virtue theory
 Ethical theory that emphasizes an individual’s
character rather than following a set of rules
 “If we can just focus on being good people,
the rigt actions will follow, effortlessly.”
 Reflects the ancient assumption that human
have a fixed nature - “an essence” - and that
the way we flourish id by adhering to the
nature
 Nature has build us the desire to be virtuous
 “Having virtue just means doing the right
thing, at the right time, in the right way, in the
right amount, toward the right people.”
D. Virtue Ethics
=
 Identified as the one that emphasizes the virtues, or
moral character, in contrast to the approach that
emphasizes duties or rules (deontology) or that
emphasizes the consequences of actions
(consequentialism)
 Quest to understand and live a life of moral
character
 Helps us understand what it means to be virtuous
human being
 Acquire virtue through practice
 According to Aristotle, honing virtuous habits,
people will most likely make the right choice when
faced with ethical challenges.
 More concerned with assessing the moral integrity
and character of the person
 Focuses on the person (agent-based)
  Virtue - kind of knowledge called practical b) Motivational hedonism
wisdom  Only pleasure and pain cause
 Moral exemplars - people who already possess people to do what they do
virtuous c) Egotistical hedonism
 Morality for Aristotle - being the best you can be,  Requires a person to consider
honing your strengths while working on your only his or her own pleasure in
weaknesses. making choices
d) Altruistic hedonism
II. Contemporary Philosophies  The creation of pleasure for all
A. Deontology people is the best way to
 Duty ethics measure if an action is ethical
 Uses rules to distinguish right from wrong
 Requires people to follow rules and do their duty III. Normative Ethical Theories
 Fit well with our natural intuition about what is or A. Ethical Theory
isn’t ethical  Rules and regulations that determine right or
 Consequences DO NOT matter wrong in any given situation
 Immanuel Kant  Two extreme position in ethics:
 His moral theory is based on his view of the 1. Ethical Absolutism
human being as having the unique capacity  Point to dogmatic views
for rationality  Prescribe an objective view point in
 Believed that ethical actions follow universal making of right or wrong decisions
moral laws
 States that we should act in accordance with a
certain set of principles and rules regardless of the 2. Ethical Relativism
outcome  Two contrasting beliefs can be equally
 Action is considered morally good because of the correct depend on their culture
action itself, not because the product of the action  Context is an important factor in
is good determining morality = subjective
 People have a duty to do the right thing, even it  Offers a perspective and helps develop an enriched
produces bad result moral reasoning
1. Normative Theory
B. Consequentialism  Rules and principles that determine right
 Ethical theory that judges whether or not or wrong in any given situation
something is right by what its consequences are  Refers to the theories that point to
 The end justifies the means expected ways of acting morally
1. Utilitarianism a) Teleological Theories
 Judges consequences by a “greatest good  “Teleos” (Greek) - goals
for the greatest number” standard  Referred as consequensialist
 Only moral framework that can be used theories
to justify military force or war i. Egoism
 Most common approach to moral  Moral agenst
reasoning used in business because of preserve their own
the way in which it accounts for costs interests
and benefits ii. Utilitarianism
2. Hedonism b) Deontological Theories
 Judges if something is “good” if the  “Deonto” (Greek) - duty
consequences produces pleasure or  Non-consequentialist theories
avoids pain i. Kantian Theory
a) Normative hedonism  Means are more
 Idea that pleasure should be important than
people’s primary motivation outcomes
  Maxim 1 -  Jesus “Yeshua” - Yahweh is Salvation
consistency of an  The Holy Spirit
action  God is the spirit
 Maxim 2 - examines  The Holy Spirit is God
the dimension of  The Bible
human dignity  The Bible is the “inspired” or “God-breathed”
 Maxim 3 - examines  Word of God
the dimension of  The Bible in its original manuscripts is
universality without error
ii. Ethics of duty  Divided into two: Old Testament and New
 Complex, Testament
undervaluing  God’s Plan of Salvation
outcomes, and to  Humans were created in the image and
optimistic likeness of God
iii. Ethics of Rights and  All people have sinned
Justice  Salvation is a free gift from God
 John Locke  Hell is a place for punishment
2. Descriptive Theory  Christians will be raised from the dead when
 Refer to the real practice Jesus returns

IV. Christianity C. Impact of Beliefs

A. Background  Studied by a Biblical scholar Traugott Jahnichen
 World’s largest religion (31.2% of world’s  Three biblical themes that are relevant in the
population) conduct of one’s business
 Many sects and dominations (Roman Catholic, 1. Loving God and loving neighbor
Protestants, Anglicans, Eastern Orthodox, etc.)  Both the Old and New Testament are
 Jesus Christ is the central figure of the Christian replete with texts that supports the
faith commandment of loving one another
 Jew
 Also known as the Son of God, Light of the
World, Lamb of God, and the Good Shepherd “It shall not be so among you. But whoever would be great
among you must be your servant.” - Matthew 20:26
B. Basic Tenets
 God the Father
 There is only one God
 God is omniscient, omnipotent, and “Whoever is generous to the poor lends to the Lord, and he
omnipresent will repay him for his deed.” - Proverbs 19:17
 God is love
 God is the creator of everything that exist
 The Holy Trinity
2. Value of human labor
 God is three in one or a trinity
 We are called to be active workers in His
 God the Father, Jesus Christ the Son, and the
creation
Holy Spirit
 Human labor, therefore, has an inherent
 Jesus Christ
dignity
 Jesus Christ is God
 Fully human and fully divine
 Jesus was born of a virgin - Mary conceived
“A slack hand causes poverty, but the hand of the diligent
him through the Holy Spirit
makes rich” - Proverbs 10:4
 The only way to God the Father
 “Messiah” - The Anointed One
 “Emmanuel” - God is with us
“Whatever you do, work heartily, as for the Lord and not for 1) RERUM NOVARTUM (On the Condition of
men, knowing that from he Lord you will receive the Labor) - Pope Leo, 1891
inheritance as your reward. You are serving the Lord 2) QUADRAGESIMO ANNO (After Forty Years) -
Christ” - Colossians 3:23 Pope Pius XI, 1931
3) MATER ET MAGISTRA (Christianity and
Social Progress) - St. John XXIII, 1961
3. Notion of private property 4) PACEM IN TERRIS (Peace on Earth) - St. John
 Under the fair and just social XXIII, 1963
relationships, the person who labors 5) GAUDIUM ET SPES (Pastoral Constitution on
must enjoy the fruits of their labor the Church in the Modern World) - Second
 Private property must always be Vatican Council, 1965
understood in relation to God and to 6) DIGNITATIS HUMANAE (Declaration on
one’s neighbor Religious Freedom) - Second Vatican Council,
1965
7) POPULORUM PROGRESSIO (On the
“You shall not steal.” - Exodus 20:15 Development of Peoples) - St. Paul VI, 1971
8) OCTOGESIMA ADVENIENS (A Call to
Action) - St. Paul VI, 1971
9) EVANGELII NUNTUANDI (Evangelization in
the Modern World) - St. Paul VI, 1975
“... entitled to appropriate rewards for their labors.” - 1
10) LABOREM EXERCENS (On Human Work) -
Corinthians 9:9-11
St. John Paul II, 1981
11) SOLLICITUDO REI SOCIALIS (On Social
“Private property is both a gift and a certain type of power
Concern) - St. John Paul II, 1987
God has entrusted in humanity as stewards. It was God’s
12) CENTESIMUS ANNUS (The Hundredth Year) -
intention that mortals should be equipped with this gift and
St. John Paul II, 1991
power and that under God they should exercise dominion
13) VERATATIS SPLENDOR (The Splendor of
over the earth.” - Dr. Walter C. Kaiser, Jr.
Truth) - St. John Paul II, 1993
14) EVANGELIUM VITAE (The Gospel of Life) -
D. Christian Business Ethics
St. John Paul II, 1995
 Ethics are outlined specifically in the Bible
15) DIGNITAS PERSONAE (The Dignity of a
 Understand that God called us to work
Person) - Congregation for the Doctrine of Faith,
 Work in such a way that glorifies God
1998
 Work so that you can share with those who
16) COMPENDIUM OF THE SOCIAL
need it
DOCTRINE OF THE CHURCH - Pontifical
 Be faithful in your work so that you can earn
Council for Justice and Peace, 2004
respect from others
17) DEUS CARITAS EST (God is Love) - Pope
 Do not be lazy or careless
Benedict XVI, 2005
 Provide for yourself and family
18) CARITAS IN VERITATE (Charity in Truth) -
E. Catholic Social Teaching
Pope Benedict XVI, 2009
 Writings of popes and other Catholic leaders
19) EVANGELII GAUDIUM (The Joy of the
 Rich treasure of wisdom about building a just
Gospel) - Pope Francis, 2013
society and living lives of holiness amidst the
20) LAUDATO SI’ (On Care for Our Common
challenges of modern society
Home) - Pope Francis, 2015
 Encyclicals
 Long letters written by popes to the Church
G. Key themes of Catholic Social Teaching
and the world
1. Life and Dignity of a Human Person
 About social issues that affect the society
 Foundation of all other themes and principles
 Modern CST began in 1891 - Pope Leo XIII
of Catholic Social Teaching
(Rerum Novarum - On the Condition of Labor)
 Every human being has a mission, purpose,
and part of God’s plan
F. Foundational Documents of CST
  We, children of God, represent God and the
likeness of God
 Right to life - conception to actual death
 Human race is a family because we are all
children of God
 Creating opportunities for everyone to have
the fullness of life
 Human life is sacred and that the dignity of
the human person is the foundation of a moral
vision for society
“There is a growing awareness of the sublime dignity of
human persons, who stand above all things and whose
rights and duties are universal and inviolable. They ought,
therefore, to have ready access to all that is necessary for
living a genuinely human life: for example, food, clothing,
housing, … the right to education, and work.” - Gaudium Et
Spes
2. Care for God’s Creation
 God gave us this gracious gift and it’s up to
us to care for it and respect it
 We are stewards of nature
 When creation suffers, it hurts the poorest of
people
 Care for creation translate into the care for our
brothers and sisters
 Called to protect people and the planet
 Living our faith in relationship with God’s
creation
“A true ecological approach always becomes a social
approach; it must integrate questions of justice in debates
on the environment, so as to hear both the cry of the earth
and the cry of the poor… Everything is connected.” -
Laudato Si’
3. Option for the Poor and Vulnerable
 Put the needs of the poor and vulnerable first
 God has a special love for those who had no
one to turn to because they are in need
 The people we serve in poverty is the face of
Christ
 Poor - people who are really marginalized,
vulnerable, forgotten in society
 Whatever we do, we should always put the
poor first
“The Church’s love for the poor… is a part of her constant
tradition. This love is inspired by the Gospel of the
Beatitudes, of the poverty of Jesus, and of his concern for
the poor.” - Centismus Annus
4. Call to Family, Community, and Participation
 Person - sacred and social
 How we organize our society directly affects
human dignity and the capacity of individuals
to grow in community
 Have a right and a duty to participate in
society
 Seeking common good and well-being of all,
especially the poor and vulnerable
 Families - center of the roles of the society
 God himself is a community - Father, Son,
and the Holy Spirit
5. Rights and Responsibilities
 Human dignity can be protected and a healthy
community can be achieved only if human
rights are protected and responsibilities are
met
 We have the responsibility to contribute to the
society
 Life is required to in order to have other rights
and in order to fulfill our other responsibilities
 Required to have more than existence
“In human society one man’s natural right gives rise to a
corresponding duty in other men; the duty, that is, of
recognizing and respecting that right.” - Pacem in Terris
6. Solidarity
 We are one human family whatever our
national, racial, ethnic, economic, and
ideological differences.
 We are our brothers’ and sisters’ keepers
 Loving our neighbor has global dimensions in
a shrinking world
 Common belief: Everything is created by
God, therefore, all creatures are related to one
another
 Solidarity - commitment for the welfare of the
other one
“The solidarity which binds all men together as members of
a common family makes it impossible for wealthy nations to
look with indifference upon the hunger, misery and poverty
of other nations whose citizens are unable to enjoy even
elementary human rights.” - Mater et Magistra
7. The Dignity of Work and Rights of Workers
  The economy must serve the people not the
other way around
 Work is more than a way to make a living; it
is a form of continuing participation in God’s
creation
 If the dignity of work is to be protected, then
the basic rights of workers must be protected -
the right to productive work, to decent and
fair wages, to the organization and joining of
unions, to private property, and to economic
initiative.
 Work is God’s gift to us - we are able to use
His gifts to make the world a better place
 Work exist for people not people exist for
work

“A society in which this right is systematically denied, in

which economic policies do not allow workers to reach
satisfactory levels of employment, cannot be justified from
an ethical point of view, nor can that society can attain in
social peace.” - Centisimus Annus

V. Islam
A. Background
 World’s fastest growing religion
 Islam came from an Arabic word meaning
“submission to God - Allah” with its roots in the
word “Salam” meaning peace
 Muslims = followers of Islam
 Monotheistic and their God is called Allah
 Believe that nothing can happen without Allah’s
permission, but human have free will
 Aims to live a life of complete submission to Allah
 Allah’s word was revealed to prophet Muhammad
through the angel Gabriel

B. Basic Tenets
C. Impact of Beliefs
D. Application