Alternative perspective on ethical theory

Approach is based on character and integrity.

Virtue ethics
Contents that morally correct actions are those undertaken by actors with virtuous characters.
therefore, the formation of a virtuous character is a first step towards morally correct behaviour.

Acquired traits
• Intellectual virtues
• moral virtues: which comprise a long list of possible characteristics such as honesty, courage,
friendship, mercy, loyalty, modesty, patience etc.

All these virtues are manifested in actions that are habitual pattern of behaviour of the virtuous
person rather than just occurring once or and one-of decisions.

As these are traits are not ours by birth, we acquire them by learning and most notably in business
by being in a relationship with others in a community of practise. Virtues are learned by experience.

Aristotelian virtues dealt with leaders only:

• Courage, justice, wisdom, temperance.

Modern day virtues:

• Friendship, consciousness, faithfulness, kindness, cooperativeness.

Criticisms of virtue theory

• Unethical acts can be acceptable if done by a virtuous individual that Is everyone capable of
learning virtues? Does everyone want to be virtuous?
• Difficulty in defining a list of virtues.
• Different societies may need and value different virtues

Ethical approaches based on relationships and responsibility

An approach that prioritises empathy, harmonious and healthy social relationships, care for one
another, and avoidance of harm above abstract principle.

Key elements
• Relationships
➢ Decisions taken in context of personal human interrelations.
• Responsibility
➢ Active ‘taking’ of responsibility, rather than merely ‘having’ it.
• Experience
➢ Learn and develop from experience.
Approach is based on procedures of normal generation
Aims to solve ethical conflicts by providing a process of norm generation through rational Reflection
on the real-life experiences of all relevant participants.
Key elements
• Ultimate goal of ethical issues in business should be the peaceful settlement of conflicts
• Different parties in a conflict should sit together and engage in a discourse about the
settlement of the conflict and ultimately provide a situation that is acceptable to all.
‘Ideal discourse’ criteria

Approach is based on empathy and moral impulse postmodern ethics

An approach that locates morality beyond the sphere of rationality in an emotional ‘moral impulse’
towards others. it encourages individual actors to question everyday practises and rules, and to
listen to and follow their emotions, inner convictions and ‘gut feelings’ about what they think is right
and wrong in a particular incident of decision-making.

Postmodern business ethics

• Postmodern business ethics emphasises (Gustafson, 2000:21)
➢ Holistic approach
➢ Examples rather than principles
➢ ‘Think local, act local’
➢ Preliminary character
Pluralism
Crane and Maten (2010) argued that for the practical purpose of making effective decisions in
business:

• Not suggest one theory or one approach as the best or true view of a moral dilemma
• Suggest that all these theoretical approaches through light from different angles on one an
same problem
• Complementary rather than mutually exclusive

Advocate position of pluralism

• Middle ground between absolutism and relativism

Making decisions in business ethics

Descriptive business ethics theories

Seeks to describe how ethics decisions are actually made in business, and what influences the
process and outcomes of these decisions.

Main factors in deciding the moral status of a situation.

What is ethical decision?
• Decision likely to have significant effects on others
• Decision likely to be categorised by choice, in that alternative courses of action are open
Decision in perceived as ethically relevant by one or more parties
Relationships with normative theories
The role of normative theory in the stages of ethical decision-making is primarily in relation to moral
judgement.

• Moral judgments can be made according to consideration of rights coma beauty,

consequences, etc.
• Commercial managers tend to rely on consequentialist thinking
• However, the issue of whether and how normative theory is used by an individual
decisionmaker depends on a range of different factors that influence the decision-making
process

Influences on ethical decision-making

Two broad categories: individual and situational (Ford and Richardson 1994)

• Individual factors- unique characteristic of individual making a relevant decision

➢ Give at birth
➢ Acquired by experience and socialisation
• Situational factors- Particular features of the context that influence whether the individual
make an ethical or unethical decision.
➢ Word context
➢ The issue itself including o Intensity o ethical framing.

Limits of ethical decision-making models

• Models useful for structuring discussion and seeing the different elements that come into
play
• Limitations
 ➢ Not straight forward or sensible to break model down into discrete units
➢ Various stages related or interdependent
➢ National or culture bias
• Model is intended not as a definitive representation of ethical decision-making, but as a
relatively simple way to present a complex process.

Individual influences ethical decision-making

Age and Gender

• Age
➢ Results contradictory
➢ Have experiences may have impact
• Gender
➢ Individual characteristic most often researched
➢ Results contradictory
• These categories too simplistic

National and cultural characteristics

• People from different cultural backgrounds likely to have different beliefs about right and
wrong, different values, etc. and this will inevitably lead to variations in ethical decision
making across nations, religions and cultures.
• Hofstede (1980; 1994) Influential in shaping our understanding of these differences - our
‘mental programming’:
➢ Individualism/collectivism
➢ Power distance
 ➢ Masculinity/femininity
➢ Long term/short term orientation
➢ Indulgence

Education and employment

• Type and quality of education may be influential
➢ E.g. business students rank lower in moral development than others and more
likely to cheat
• ‘Amoral’ business education reinforces myth of business as amoral.

Psychological factors
Cognitive moral development (CMD) Refers to the different levels of reasoning that an individual can
apply to ethical issues and problems, depending on their cognitive capacity.

• 3 levels (details on image 2.1 below)

• Criticisms of CMD
➢ Gender bias
➢ Implicit value judgments
➢ invariance of stages

An individual’s locus of control determines the extent to which they believe that they have control
over the events in their life.

Stages of cognitive moral development (Image 2.1)

Personal values, integrity and moral imagination
Personal values

• And enduring belief that a specific mode of conduct or end-state of existence is personally or
socially preferable to an opposite or converse mode of conduct or end-state (Rokeach 1973:5)

Personal integrity

• Defined as an adherence to moral principles or values

Moral imagination

• Concerned with whether one has ‘’a sense of variety or possibility and more consequences
of their decisions, the ability to imagine a wide range of possible issues, consequences, and
solutions’’ (Werhane, 1998:76)

Situational influences on decision-making

How ethical decisions are justified: Rationalisation tactics

Authority and Bureaucracy

Authority
• People do what they are told to do-or what they think they are being told to do
• Recent survey of government employees (Ethics resource centre, 2008:9):
➢ 20% think top leadership is not held accountable
➢ 25% believe top leadership tolerates retaliation against those reporting ethical
misconduct
➢ 30% do not believe their leaders keep promises

Bureaucracy
• Jackall (1988), Bauman (1989,1993) and ten Bos (1997) argue bureaucracy has a number
of negative effects on ethical decision-making
➢ Suppression of moral autonomy
➢ Instrumental morality
➢ Distancing
➢ Denial of moral status

Work roles and organisational norms and culture

Work roles

• Work roles can encapsulate a whole set of expectations about what to value, how to relate
to others, and how to behave
• Can be either functional or hierarchical

Organisational norms and culture

• Group norms delineate acceptable standards of behaviour within the work community
➢ E.g. Ways of talking, acing, dressing or thinking