REVIEWER IN ETHICS

LESSSON 1 Ethics and Business

ETHICS-

Morality-

Definition of terms

Ethics- A branch of knowledge that deals with moral principles

Morality- Principles concerning the distinction between right and wrong or good and bad
behavior.

Moral reasoning-A thinking process with the objective of determining whether an idea is right or
wrong.

Business Ethics- A form of applied ethics or professional ethics, that examines ethical principles
and moral or ethical problems that can arise in a business environment.

Profit- motive- The desire for financial gain as an incentive in economic activity.

Law is the system of rules a particular country or community recognizes as regulating the actions
of its members and may enforce by the imposition of penalties.

Essential Distinctions

Morality governs private, personal interactions.

Ethics governs professional interactions.

Law governs society as a whole, often dealing with interactions between total strangers.

Major Areas of Ethics as a study

1. Metaethics – deals with the nature of moral judgment. It looks at the origins and meaning
of ethical principles.
2. Normative ethics – is concerned with the content of moral judgement and the criteria for
what is right or wrong.
 3. Applied ethics – looks at controversial topics like war, animal rights and capital
punishment.

Domains of Ethics

1. Descriptive ethics – consists in the study of what person (or societies) actually believe or
act on, in terms of right and wrong, virtue and vice, goodness and badness.
2. Evaluative ethics – inquiry into what should be evaluated as right or wrong, virtue or
vice, good and bad

Subareas of Applied Ethics

1. Biomedical ethics
2. Political ethics
3. Journalistic ethics
4. Legal ethics
5. Environmental ethics
6. Business ethics

Lesson 2 The Nature and Importance of Ethics in Business

Myths No. 1 Ethics It is a Personal Affair and not a Public Debatable Matter.

Myths No. 2 Business and Ethics Do Not Mix

Myths No. 3 Ethics in Business is Relative

Myths No. 4 Good Business means good Ethics

Myths No. 5 Business is a war

Peter Drucker argues that the enterprises in an organ of society and its actions have a
decisive impact on the social scene. Drucker simply reminds us that the business Corporation is
not just created to make profits but to consider its moral and social obligations to the
stakeholders. Businesses should not just look after their own interests but also the interests of the
common good.

Lesson 3 Moral Reasoning in Business

Why study business ethics?

The essence of studying Business Ethics is to provide managers and decision-makers with a
framework for the resolution of moral issues and problems affecting business activities and the
organization.

What is moral reasoning?

Moral reasoning is a process in which ethical issues and problems are benchmarked against a
moral standard so that a moral judgment is made possible. Since managers are tasked to solve
problems in the organization and its activities, it is also the responsibility of managers to help in
the resolution, if not, the prevention of moral problems in business activities and the enterprise.

Characteristics of a good moral standard

 A good moral standard is one that looks at the issue as something that is very serious for
example, murder, graft-and- corruption, and stealing.
 A good standard must be grounded in a good moral argument. A good argument is an
argument that always tells the truth. A solid moral argument leaves no room for
loopholes in counterarguments.
 A good standard should be objective and not subjective. It should be universally
accepted and should apply to all. What is good for one person should be at the same time
good for everybody.
 A good standard, when violated, brings about feelings of guilt, shame, and remorse of
conscience.

Characteristics of a good moral judgment

 A good moral judgment must be logical. This means that the decision maker must arrive
at an informed resolution of the issue based on logical reasoning.
 A good moral judgment must be based on facts and solid evidence .The information used
in the process of moral reasoning must not come from weak sources like hearsay rumors
and Grapevine.
  A good moral judgment must be based on sound indefensible moral principles. A weak
ethical principle is open to a lot of criticisms.

The Morality of Profit Motive

People go into business for personal satisfaction

 To earn a livelihood
 To serve the society
 To make profit; for personal success