Ethics - 1

Class COR3302

Type Seminar

Reviewed

Status Not started

Status Done

CP -> 15%

Midterm quiz week 9 – close book – mcq + open ended -> 15%

Group project -> 8 groups of 5/6 people - 20 page report-> 20%

Finals – open book to 3 A4 papers(double side) as cheat sheets

Norms: Standards of appropriate behavior, how and why people should act in a
certain way. It is thus normative.
There’s a lot of intersections between business, ethics, and law.
Law provides an important guide to ethical decision making but the law may not
necessarily be ethical. Additionally, laws vary based on jurisdiction. Thus, law is
the minimum ethical requirement. Note that it is impossible to legislate for every
scenario.

ETHICAL FRAMEWORKS:

1. Utilitarianism:

Analyze based on consequences, looks for what results in the greatest

good for the largest number. The greatest good can focus on happiness,
wealth, environment etc., it has a broad definition.

g.: Child labor, although inherently evil, may be understandable under

utilitarianism in such a scenario where the child’s labor allows them to earn
enough money to support their family’s wellbeing

Practically, there are limitations, as it is-

Ethics - 1 1
 Difficult to compare consequences/intensity of the good as it is not
necessarily quantifiable

Does the end always truly justify the means?

Utilitarianism does not respect individual rights

Case study- US saving GM from crashing by bailing them out

Stakeholders: employees, supply chain 3 parties, shareholders,

other gov entities, taxpayers, shareholders
rd

Who was affected

Positive: most stakeholders

Negative: other govt entities who suffer from opportunity cost,

maybe the environment

Overall cost/benefit to the auto industry

Allows for the continuation of the auto industry, saves the trust
in the US economy, maintains possible avenues for future
exports

However, also creates a situation where big corporations will

believe that the US will bail them out of tough situations,
essentially encouraging risky behavior.

2. Principles-based ethics

What rules to follow?

Legal rules, organizational rules, role-based rules, professional

rules(icaew/isca code of ethics)

Kantianism: where we wish to protect an individual’s human rights

Case study 2: GM

From a utilitarian perspective, the greatest good can’t be said to be

maximized as their decision to not add the tool/recall earlier has
resulted in the deaths of 13 people. Although initially it would have
been beneficial to shareholders and employees, their decision to focus

Ethics - 1 2
 on short-term profitability has resulted in criminal charges which will
have a more substantial impact on their stakeholders.

On a principle basis, GM had the ethical responsibility to provide its customers

with safe and correctly functioning products which it has failed to comply with

Ethics - 1 3