Personal Ethics and Business Ethics

Morality is simply the attitude we adopt towards people whom we personally dislike.
~ Oscar Wilde on morality

Morality and Law

Philosopher James Rachels

suggest two criteriaReason & Impartiality. William Shaw1. An action can be illegal, but morally right. 2. An action that is legal can be morally wrong.

 How are moral Standards Formed ? Religion and Morality Morality, Etiquette and Professional Codes Management and Ethics

Moral Standards Vs Standards

Associated with special emotions & Vocabulary Deal with matters that we think can seriously injure or benefit human beings

Characteristics that distinguish Moral standards with Standards

Moral standards are not established or changed by the decisions of particular authoritative bodies Moral standards to be preferred to other values including self interest Moral standards are based on impartial considerations

Normative Theories
Normative Theories

Consequentialist

Non-Consequentialist
( Deontological-Duty Based)

Egoism

Utilitarianism

Kantian Theories

Egoism
The view that associates morality with selfinterest is referred to as egoism. Psychological Egoism: To derive their basic moral principle from the alleged fact that humans are by nature selfish Criticism of the Theory of Psychological Egoism: 1. Egoism as an ethical theory is not really a moral theory at all. 2. Psychological egoism is not a sound theory in as much it assumes that all actions of men are motivated by self interest. 3. Ethical egoism ignores blatant wrongdoings.

Utilitarianism: Ethics of Welfare

Classical Utilitarianism & Traditional Utilitarianism The creators of Traditional Utilitarianism were Jeremy Bentham(1748-1832) and John Stuart Mill(1806-1873) Benthams principle can be stated as- The seeking of pleasure and avoidance of pain, ,that is , happiness, is the only right and universally desirable end of human action.

Jeremy Benthams Version of Utilitariasm

An action is right from an ethical point of view if and only if the sum total of utilities produced by that act is greater than the sum total of utilities produced by any other act the agent could have performed in its place. sum up all the values of all the pleasures. Sum up all pains find the balance

John Stuart Mills Version of Utilitarianism

The creed which accepts as the foundation of morals, utility or the greatest happiness principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness

John Stuart Mills version of Utilitarianism

is

It is better to be a human being dissatisfied than a pig satisfied. It is better to be Socrates dissatisfied than a fool satisfied. And if the fool or the pig are of a different opinion, it is because they know only, their side of the question.

Utilitarianism Principle
It is stated as, An action is right if and only if it produces the greatest balance of pleasure over pain for everyone.
Universalism Utilitarian Principle Involves

Consequ entialism

Maximalism

Hedonism

Classical Utilitarianism
The amount of utility( balance of pleasure and pain for each individual affected by an action)

Classical Utilitarianism Needs to determine

The amount of utility for a whole society

Two versions of Utilitarianism

Act Utilitarianism(AU): An action is right if and only if it produces the greatest balance of pleasure over pain for every one; simple theory and provides an easily understandable decision procedure

Two versions Of Utilitarianism

Rule-Utilitarianism (RU): An action is right if and only if it conforms to a set of rules, the general acceptance of which would produce the greatest balance of pleasure over pain for every one; gives finer grouped to the rules of morality and to roles obligations, which are problems of all teleological theories.

Business Survival
A . States legal regulations

Business Survival

Is not just to
Make profit but,

To comply with

B. Societys Moral values

Business Prosperity
Equity and responsibility in dealings with employees, customers, suppliers Include Points like Community involvement Environmental Concern Openness Integrity and responsiveness to criticism And complaint

Business Prosperity

Kantianism: Ethics of Duty

Immanuel kant (1724-1804):
The most important ethician in the rationalistic school in modern times. Good will The notion of Good Will is the concept of Duty The imperatives of morality are not hypothetical but categorical. The moral duty that binds us is unconditional. The core idea of his categorical imperative is that an action is right if and only if we can will it to become a universal law of conduct.

Organizational Importance of Kantian Philosophy

In the ethical theories of egoism and moral utilitarianism humans are considered means to achieve the ends. Kant gives more importance to individuals. an action has moral worth only when it is done from a sense of duty. Reason is the final authority for morality. Blind beliefs or rituals cannot be the foundations of morality. Two formulations of Kant: 1. To act only in ways that would one would wish others to act when faced with the same circumstances. 2. Always treat other people with dignity and respect.

Theories of Business Ethics

Normative Theories of Business Ethics

Stockholder Theory

Stakeholder Theory

Social Contract Theory

Stakeholders of a Firm
Primary
Survival of the firm depends on

Secondary
Those who affect or are affected by the Firm Media Consumers Government Judiciary Competitors General Public/Society Political groups Activist groups Trade Unions Customer Advocacy Groups Trade Associations Financial Community Local Community Environment

Stockholders Employees Suppliers Creditors Customers