GMRC

https://www.youtube.com/watch?v=JCwyRn40fvk

Gestures

SOCRATES

 Greek philosopher and the main source of Western thought

 His "Socratic method," laid the groundwork for Western systems of logic and philosophy.
 Socrates always emphasized the importance of the mind over the relative unimportance of the
human body.
 he claimed to be ignorant because he had no ideas, but wise because he recognized his own
ignorance.
 The more I know, the more I do not know.
 An unexamined life is not worth living.

PLATO

 was a student of Socrates and a teacher of Aristotle

 founded the Academy in Athens
 Idealist
 His work on the use of reason to develop a more fair and just society that is focused on the
equality of individuals established the foundation for modern democracy.
 Plato claimed that knowledge gained through the senses is no more than opinion and that, in
order to have real knowledge, we must gain it through philosophical reasoning.
 Know yourself
 Constant struggle for humans is discovering the reality of the world while balancing what you
know to be true, and what the physical world is showing you to be true

 ARISTOTLE

 Focus on systematic concept of logic

 objective was to come up with a universal process of reasoning that would allow man to learn
every conceivable thing about reality.
 Realist
 The golden mean: Living a moral life is the ultimate goal.
ETHICS AND ETHICAL BEHAVORIAL

 Ethics – A code of moral standards of conduct for what is “good” and “right” as opposed to
what is “bad” or “wrong”.
 Ethical Behavior – That which is “right” or “good” in the context of governing moral code. –
Ethical behavior is value driven
• Ethical behavior is values driven.
• What is considered ethical varies among moral reasoning approaches.
• What is considered ethical can vary across cultures.
• Ethical dilemmas arise as tests of personal ethics and values.
• People have tendencies to rationalize unethical behaviors.

What Is Business Ethics?

• Business ethics involves applying general ethical principles and standards to business activities,
behavior and decisions

• Ethical principles in business are not different from ethical principles in general

• Business actions are judged – By general ethical standards of society – Not by more permissive
standards

ETHICS Values

• Values – Broad beliefs about what is appropriate behavior

• Terminal Values – Preferences about desired end states

• Instrumental Values – Preferences regarding the means to desired ends

 ETHICS Moral Reasoning

• Moral Reasoning – Reasons for various ethical practices

ETHICS Ethics and Culture

• Cultural Relativism – Suggest that there is no one right way to behave; cultural context
determines ethical behavior

 ETHICS

Ethics and Culture Excerpt From Universal Declaration of Human Rights United Nations

• Article 1—All human beings are born free and equal in dignity and right

• Article 18—Everyone has the right to freedom of thought, conscience, and religion

• Article 19—Everyone has the right to freedom of opinion and expression

• Article 23—Everyone has the right to work, to free choice of employment, to just and favorable
conditions of work

• Article 26—Everyone has the right to education

Ensuring a Strong Commitment to Business Ethics in Multinational Companies

• Three schools of thought about the extent to which ethical standards apply across countries and
cultures exist:

– Ethical Universalism

– Ethical Relativism

– Integrative Social Contracts Theory

Concept of Ethical Universalism

• According to the school of ethical universalism . . .

– Same standards of what is right and what is wrong are universal and transcend most cultures,
societies, and religions – Universal agreement on basic moral standards allows a multinational company
to develop a code of ethics that is applied evenly across its worldwide operations

Concept of Ethical Relativism

• According to the school of ethical relativism . . .

– What is ethical or unethical must be judged in light of local moral standards and can vary from one
country to another
• Some Companies code of conduct based upon the principle of ethical relativism assume that local
morality is an adequate guide for ethical behavior

Drawbacks of Ethical Relativism

• The ethical relativism rule of “when in Rome, do as the Romans do” presents problems – It is ethically
dangerous for company personnel to assume that local ethical standards are an adequate guide to
ethical behavior » What if local standards condone kickbacks and bribery? » What if local standards blink
at environmental degradation?

Integrative Social Contracts Theory

• According to the integrative social contracts theory, the ethical standards a company should try to
uphold are governed by both A limited number of universal ethical principles that put ethical boundaries
on actions and behavior in all situations and 2. The circumstances of local cultures, traditions, and values
that further prescribe what constitutes ethically permissible behavior and what does not

 
Prioritizing Ethical Standards

• Integrative social contracts theory provides that “first order” universal ethical norms always take
precedence over “second order” local ethical norms when local norms are more permissive

ETHICS

Ethical Dilemma

• Ethical Dilemma – A situation that, although offering potential benefits, is unethical. – One of the most
common ethical dilemmas occurs when a company’s culture conflicts with an employee’s personal
ethics.

An Ethic Based on Individuals

• Individuals: – Have equal political rights – Deserve to be treated fairly – Have the right to live as they
want, as long as they do not harm the rights of others

• This includes the right to live badly

• A good society is one that treats individuals fairly and protects their rights. This requires: – Efficient,
non-corrupt government and business – A clean, non-toxic environment

An Ethic Based on Relationships, Family and Community

• Relationships, Families, and Communities require – Loyalty – Honor – Friendship – Humility – Self-
sacrifice – A clean, non-toxic environment

• A good individual has the qualities that promote stable, long-lasting relationships, families, and
communities.

Ethics

Hippocrates: 460 BC – 370 BC  He was an ancient Greek physician of Classical Athens and is considered
one of the most prominent figures in the history of medicine. He was the founder of the Hippocratic
School of Medicine. The school revolutionized medicine in ancient Greece by establishing it as a
discipline distinct from other fields such as theology, thus instituting medicine as a separate profession.
He also greatly advanced the systematic study of clinical medicine, summarized the medical knowledge
of previous generations, and prescribed practices for physicians through the Hippocratic Corpus and
other works.
Hippocratic Theory
Hippocrates is credited with being the first person to believe that diseases were caused naturally, not
because of superstition and gods.  He argued that disease was not a punishment inflicted by the gods
but rather the product of environmental factors, diet, and living habits.  Accordingly, there is not a
single mention of a mystical illness in the Hippocratic Corpus. The Hippocratic school achieved great
success by applying general diagnoses and passive treatments. With a focus on patient care, it advanced
the treatment of diseases and allowed for significant developments in clinical practice.

Professionalism and the Hippocratic Oath

The Oath required a new physician to swear that he will uphold a number of professional ethical
standards. It is believed to have been written by Hippocrates who is regarded as the father of western
medicine. Still today 2,400 years later, the oath is considered a rite of passage for practitioners of
medicine in many countries.

Hippocrates combined the philosophy of science with medicine. The medical profession and its
philosophy of science, logic and rational thought lead the way for the professionalization of many other
fields. Today the vast majority of professions not only require training but the practitioners must adhere
to a code of professional ethics. This tradition has its roots in ancient Greek philosophy. The Start of
Professions

Hippocrates and the 4 Es

 Education
 Experience
 Examination
 Ethics

Plato: 423 BC – 348 BC

 He was a classical Greek philosopher, a student of Socrates, and founder of the Academy in
Athens, the first institution of higher learning in the Western world.
 Along with his mentor, Socrates, and his student, Aristotle, Plato helped to lay the foundations
of Western philosophy and science.
 Plato's Socratic dialogues have been used to teach a range of subjects, including philosophy,
logic, ethics, rhetoric, and mathematics.

Aristotle: 384 BC – 322 BC

 The student of Plato and tutor to Alexander the Great.

 Authored many scrolls on virtue and the soul as well as helped to develop the concept of ethics.
 Aristotle argued that the correct approach to studying ethics is to start with what people of
good up-bringing and experience would agree to be true about ethics. To start with worldly
observations and work up to a higher theoretical understanding.

Aristotelian Ethics

 Ethics and virtue can be known through observation and rational thought (natural laws).
 Individuals should be free to choose to do the right thing on a regular basis as they live life
(natural rights).
  Righteous actions can be taught by leaders, philosophers and teachers (training).

Aristotelian Virtues

 A person of "great soul" is someone who would be truly generous and altruistic and therefore
deserving of high praise.
 A virtuous person is a just and fair leader in a good community (a republic).
 A virtuous person exercises good practical judgment and is a good representative (or manager).
 A virtuous person is a trustable, reliable and a truly good friend.

Marcus Cicero: 106 BC – 43 BC

 Cicero was a Roman philosopher, lawyer, and constitutionalist.

 He is widely considered one of Rome's greatest orators.  He introduced the Romans to Greek
philosophy and distinguished himself as a linguist and philosopher.
 Medieval philosophers were influenced by Cicero's writings on natural laws and rights.
 The rediscovery of Cicero's writings created interest in ancient Greek writings and motivated the
search for Classical Antiquity that led the west out of the dark ages to the Renaissance in the
14th century.
 Following the invention of the printing press, Cicero's letters was the second book to be printed
after the Gutenberg Bible.
 Cicero’s republican philosophy inspired the Founding Fathers of the United States.
 John Adams said of him "As all the ages of the world have not produced a greater statesman
and philosopher united than Cicero, his authority should have great weight."
 Thomas Jefferson named Cicero as one of a handful of major figures who contributed to a
tradition “of public rights” that guided his draft of the Declaration of Independence and shaped
the American understanding of “the common sense” basis for natural rights.

Thomas Aquinas: 1225 – 1274

 He was an Italian Dominican priest of the Roman Catholic Church, and an immensely influential
philosopher and theologian.
 He was the foremost classical proponent of natural theology.
 His influence on Western thought is considerable, particularly in the areas of ethics, natural law,
metaphysics, and political theory.
 Much of modern philosophy was conceived as a reaction against or as an agreement with, his
ideas.

Luca Pacioli: 1445 – 1517

 Was an Italian mathematician, Franciscan friar, and collaborator with Leonardo da Vinci.
 A seminal and significant contributor to the fields of accounting and math.  His writings
including the first published description of bookkeeping that Venetian merchants used during
the Italian Renaissance known as the double-entry accounting system.
  The system he published included most of the accounting cycle as we still practice it today, 500
years later.
 Also, his treatise touches on a wide range of related topics from accounting ethics to cost
accounting.
 His ethics were very applied:
o stay organized,
o keep your books in balance,
o work hard,
o develop good math skills,
o get up early,
o do not be wasteful,
o and keep track of costs.
 He described the use of journals and ledgers as well as the rules that state debits equaled
credits and that assets equal liabilities plus equity.
 The balance sheet was developed as a mathematical expression of property rights (a natural
right).
 Asset (business property) = Liabilities (creditor property) + Equity (owner property)

 John Locke: 1632 - 1704

 His contributions to classical republicanism and liberal theory are reflected in the United States
Declaration of Independence.
 Locke's theory of mind is often cited in the work of later philosophers such as Hume and Kant.
 He believed the mind was a blank slate and posited we are born without innate ideas and
knowledge is determined only by experience derived from sense and perception.
 Locke uses the term property in both broad and narrow senses.
 In a broad sense, it covers a wide range of human interests and aspirations.
 More narrowly property refers to material goods. He argues that property is a natural right and
it is derived from labor.
 Locke argues that the individual ownership of goods and property is justified by the labor
exerted to produce that property.
 He also believed that the production of goods is beneficial to human society.
 Locke stated his belief that nature on its own provides little of value to society; he postulated
that labor expended in the creation of goods gives them their value.
 Accordingly, Locke believed that ownership of property is created by the application of labor.
 In addition, he believed property precedes government and government cannot "dispose of the
estates of the subjects arbitrarily."
 Karl Marx later critiqued Locke's theory of property in his own social theory.
Immanuel Kant: 1724 – 1804

Kant's method involves trying to convert our everyday, obvious, rational knowledge of morality into
philosophical knowledge.  Using practical (deductive) reasoning to reach conclusions which are able to
be applied to the real world of experience and choice.  Deductive reasoning involves using given true
premises to reach a conclusion that is also true.  But not deriving any principles from personal
experience. 37

38. Kant  He thought that action should have pure intentions behind it.  Kant believed that an action
should be done with the motive of duty and have moral value.  He did not necessarily believe that the
final result was the most important aspect of an action.  How the person felt while carrying out the
action was the value that applied to the result.  Kant also posited the counter-utilitarian idea that
considerations of individual rights temper calculations of aggregate utility (a concept that is a principle in
economics). 38

39. Adam Smith: 1723 to 1790  Smith was a Professor of Moral Philosophy at the University of Glasgow
in Scotland author of “The Theory of Moral Sediments”.  A significant figure in the Scottish
Enlightenment he worked with David Hume.  Known as the father of economics and capitalism since
“An Inquiry into the Nature and Causes of the Wealth of the Nations” established the field of modern
economics. 39

40. Smith  The “Theory of Moral Sentiments” culminated in man as self-interested and self-
commanded individual.  In “Moral Sentiments” Smith first referred to the "invisible hand" to describe
the benefits to society of people pursuing their own interests.  Individual freedom, according to Smith,
was rooted in self-reliance, the ability of an individual to pursue his self-interest while commanding
himself based on the principles of natural laws and rights. 40

41. Smith  Smith writes: “... In spite of their natural selfishness and rapacity, though they mean only
their own conveniency, though the sole end which they propose ... be the gratification of their own vain
and insatiable desires, they divide with the poor the produce of all their improvements. They are led by
an invisible hand to make nearly the same distribution of the necessaries of life, which would have been
made, had the earth been divided into equal portions among all its inhabitants, and thus without
intending it, without knowing it, advance the interest of the society.” 41

42. Smith  In other words, when the business owner pursues wealth they create jobs, serve customers
and enrich investors as an untended consequence of their self enlightened actions.  By serving
themselves, they serve the greater good of society.  Their intentions are irrelevant (the opposite of
Immanuel Kant).  The interests of the rich are aligned with the needs of the poor. 42

43. David Hume: 1711 - 1776  Hume strove to create a total naturalistic "science of man" that
examined the psychological basis of human nature.  In stark opposition to the rationalists who
preceded him (such as Immanuel Kant), he concluded that desire rather than reason governed human
behavior.  A prominent figure in the skeptical philosophical tradition and a strong empiricist, he argued
against the existence of innate ideas, concluding instead that humans have knowledge only of things
they directly experience. 43

44. Hume  He developed the position that mental behavior is governed by customs and our use of
induction (inferring general principles or rules from specific observable facts).  For example, our actions
are justified only by our idea of observable causes and effects.  He concluded that humans have no
actual conception of the self, only of a bundle of experiences associated with the self.  He was also held
that ethics are based on feelings rather than abstract moral principles.  In other words, you are a
product of your experiences and environment. 44

45. John Stuart Mill: 1806 – 1873  Utilitarianism was described by John Stuart Mill as the “greatest
happiness principle".  Is an ethical theory holding that the proper course of action is the one that
maximizes the overall "happiness".  His “harm principle” holds that each individual has the right to act
as he wants, so long as these actions do not harm others.  It is a form of consequentialism, meaning
that the moral worth of an action is determined only by its resulting outcome, and that one can only
weigh the morality of an action after knowing all its consequences. 45

46. Karl Marx: 1818 – 1883  Marx's theories hold that all societies progress through class struggle. 
This is a conflict between an ownership class which controls production and a lower class which
produces the labor for goods.  Heavily critical of capitalism, he believed capitalism to be run by the
wealthy classes purely for their own benefit.  He predicted that capitalism would inevitably produce
internal tensions which would lead to its self-destruction and replacement by a new system of socialism.
46

47. Marx He argued that under socialism, society would be governed by the working class in what he
called the workers' democracy.  He believed that socialism would eventually be replaced by a stateless,
classless society called communism.  Marx arguing that both social theorists and underprivileged
people should carry out organized revolutionary action to topple capitalism and bring about socio-
economic change.  He believed that it is ethical to confiscate private property from capitalists and
redistribute it to workers.  He believed in physical rights such as a right to food and education (positive
rights and entitlements).  Marx failed to adequately address the behavioral effect of incentives on
individual behavior. 47

48. Joseph Schumpeter: 1883 – 1950  Supported the idea of Creative Destruction which is the process
of transformation that accompanies innovation.  Entry by entrepreneurs creates new products and
business models which sustains long-term economic growth, even though it may destroy the value of
established companies.  Disruptive technologies do not collapse the system but allow for human
progress.  Creative destruction is also known as social Darwinism or economic Darwinism. 48

49. Schumpeter: Examples of Creative Destruction  Cassette tape replaced the 8-track.  Compact disc
replaced records, cassette and video tapes.  Compact disc is now being undercut by MP3 players and
downloadable media.  Wal-Mart has achieved a strong market position, through its use of supply chain
efficiency, marketing, and personnel-management techniques, to lower prices and gain market share
over older or smaller companies such as Kmart and Sears. 49

50. Objective 3 Discuss various ethical theories. 50

51. Various approaches to Ethics  Utilitarian Approach: produces the greatest good over harm, a moral
theory that says that what is morally right is whatever produces the greatest overall good for the
greatest number. Utilitarianism is attributed to the work of J.S. Mill. It is an approach that emphasizes
the result or the outcome.  Fairness or Justice Approach: all equals should be treated equally. 
Common Good Approach: life in a community is a good that should be supported by the actions of
individuals.  Legal Approach: the letter of the law must be obeyed.  Natural Law: believers in natural
law hold that there is a natural order to the human world, that this natural order is good, and that
people should not violate that order. 51

52. Ethics  Natural Rights: are human rights that are universal and inalienable. They do not come from
governments but from our creator and are rational, logical and self evident. They cannot be taken away
by law, democracy, or a king. They are the basis for the Magna Carta, Declaration of Independence, and
the US Constitution.  Libertarianism: refers to a political philosophy maintaining that all persons are the
absolute owners of their own lives. Individuals should be free to do whatever they wish with their
persons or property as long as they allow others the same liberty. Libertarians favor an ethic of self-
responsibility and strongly oppose the welfare state. They believe forcing someone to provide aid to
others is ethically wrong and ultimately counter- productive. 52

53. Ethics  Pluralism: The belief that there are multiple perspectives on an issue, each of which contains
part of the truth but none of which contain the whole truth. In ethics, moral pluralism is the belief that
different moral theories each capture part of truth of the moral life, but none of those theories has the
entire answer.  Relativism: In ethics, there are two main types of relativism. Descriptive ethical
relativism simply claims that different people have different moral beliefs, but it takes no stand on
whether those beliefs are valid or not. Normative ethical relativism claims that each culture’s (or
group’s) beliefs are right within that culture and that it is impossible to validly judge another culture’s
values from the outside. 53

54. Ethics  Rights Approach: best protects the rights of those affected. Rights are entitlements to do
something without interference from other people (negative rights) or entitlements that obligate others
to do something positive to assist you (positive rights). Some rights (natural rights, human rights) belong
to everyone by nature or simply by virtue of being human. Legal rights belong to people by virtue of
their membership in a particular political state. Moral rights are based in acceptance of a particular
moral theory.  Personal Virtue: is based on the work of Aristotle, Plato, and Socrates. It reinforces that
we should act in ways that convey a sense of honor and self-worth. Ethical actions should be consistent
with virtues such as honesty, courage, compassion, generosity, tolerance, love, fidelity, integrity,
fairness, self- control, prudence, etc…