Chapter 6

INDIVIDUAL FACTORS:
MORAL PHILOSOPHIES AND VALUES
©Asso. Pr Dr. Trương Thị Nam Thắng Business Ethics 1
 A comparison of the philosophies used in business decisions
Teleology Stipulates that acts are morally right or acceptable if they produce some
desired results, such as realization of self-interest or utility
Egoism Defines right or acceptable actions as those that maximise a particular
person’s self interest as defined by the individual
Utilitarianism Defines right or acceptable actions as those that maximise total utility, or the
great good for the greatest number of people
Deontology Focuses on the preservation of individual rights and on the intention
associated with a particular behavior rather than of its consequences
Relativist Evaluates ethicalness subjectively of the basis of individual and group
experience
Virtue Ethics Assumes that what is moral in a given situation is not only what conventional
morality requires, but also what the mature person with a “good” moral
character would deem appropriate
Justice Evaluates ethicalness on the basis of fairness: distributive, procedural, and
interactional

©Asso. Pr Dr. Trương Thị Nam Thắng Business Ethics 2

 Virtues that support business transactions
Trust The predisposition to place confidence in the behavior of others while taking the risk
that the expected behavior will not be performed. Trust prevents activities that monitor
compliance with agreements, contracts, and reciprocal agreements and saves costs
associated with them. There is the expectation that a promise or agreement can be relied
on
Self-control The disposition to pass up an immediate advantage or gratification. It indicates the
ability to avoid exploiting a known opportunity for self interest. The trade off between
short term self interest and long term benefits

Empathy The ability to share the feelings or emotions of others. It promotes civility because
success in the market depends on the courteous treatment of people who have the
option of other competitors. The ability to anticipate needs and satisfy customers and
employees contributes to a firm’s economic success
Fairness The disposition based on the desire to deal with the perceived injustices of others.
Fairness often relates to doing the right thing with respect to small matters to cultivate a
long term business relationship
Trustfulness The disposition to provide the facts or correct information as known to the individual.
Telling the truth involves avoiding deception and contributes to trust in business
relationships

©Asso. Pr Dr. Trương Thị Nam Thắng Business Ethics 3

 Justice Type Evaluations of Fairness

Distributive justice: based on the Benefits derived

evaluation of outcomes or results on the Equity in rewards
business relationship
Procedural justice: based on the Decision making process
processes and activities that produce the Level of access, openness, and
outcome or results participation

Interactional justice: based on the Accuracy of information

evaluation of the communication process Truthfulness, respect, and
used in the business relationship courtesy in process

©Asso. Pr Dr. Trương Thị Nam Thắng Business Ethics 4

 Kohlberg’s Stages of Cognitive Moral
Development
POSTCONVENTIONAL

State 6: Universal ethical • Adhere to a small number of abstract principles that transcend
principle specific, concrete rules. Answer to an inner conscience
LEVEL

• Recognise that rules are social agreement that can be changed

State 5: Social Contract when necessary
CONVENTIONAL

• Look to society as a whole for guidelines of behavior. Think of

State 4: Law and order rules as inflexible, unchangeable
LEVEL

State 3: Good boy/good • Make decisions based on what will please others. Concerned
girl about maintaining interpersonal relationships
PRECONVENTIONAL

• Recognise that others have needs, but make satisfaction of

State 2: Exchange of favors own needs a higher priority
LEVEL

State 1: Punishment – • Make moral decisions strictly based on basis of self interests.
Avoidance and Obedience Disobey rules if can do so without getting caught 5
 Corporate Moral Development

Ethical – we
Emerging will do the
ethical – we right thing
want to do (i.e. actual
Responsive –
the right implemented
decisions are policies are
guided by thing.
Legalistic – based on
enlightened
if an action core values).
self-interest.
is legal, then
it can be
Amoral – done.
the only
value is
greed.

©Asso. Pr Dr. Trương Thị Nam Thắng Business Ethics 6