8/31/22

Chapter 2: THEORIES OF ETHICS

Instructor: L.T.T. Xuan 1

Learning objectives
- Assess the various roles of theories of ethics
- Identify key features of representative range of
theories of ethics
- Critically evaluate the applications of these theories

Instructor: L.T.T. Xuan 2

1
 8/31/22

DISCUSSION

Two issues to consider before reviewing theories:

1. Is a ethical ideas a (i) tool for decision making,
or are they (ii) ways to depict, explain and
reflect decisions we make independently of
theory?
2. What exactly does a theory of ethics tell us
about right or wrong?
Instructor: L.T.T. Xuan 3

DISCUSSION
Case 1:
You are out on the ocean – your ship has sunk.
There are only 2 survivors, you and another person.
Both of you cling on to a piece of wood. It can hold
only one of you.
-What do you do?
-How does your decision change if the other person
if your best friend/wife?

Instructor: L.T.T. Xuan 4

2
 8/31/22

DISCUSSION
Case 2:
You need to submit your course paper by tonight,
but you haven’t really got around the work. When
you meet your friend in the café this afternoon, you
see that he carries his report with him. He leaves for
the restroom, the report lies on the table.
-What do you do? Would you have a look at the
report?
-What if your friend offer you to read his paper?

Instructor: L.T.T. Xuan 5

DISCUSSION
Case 3:
You drove too fast – and in front of you is a police
control. The fine is $100, but the police officer hints
that he might be let you go if you pay a small ‘tip’
of $20.
-What do you do? Would you bribe the policeman?
-Why? Why not?

Instructor: L.T.T. Xuan 6

3
 8/31/22

THEORIES OF ETHICS
ETHICAL EGOISM AND SUBJECTIVISM

Ethical egoism: What is right is simply what is one’s own interests.

But what is right now, may not be right in the future?

• A rational egoism is self-orientated

• Self-interest implies a sense of responsibility to oneself

A fundamental question here is the

difference between short-run self-interest
(responsibility) and long-run self-interest
(responsibility).

Instructor: L.T.T. Xuan 7

Instructor: L.T.T. Xuan 8

4
 8/31/22

THEORIES OF ETHICS
ETHICAL EGOISM AND SUBJECTIVISM

Subjectivism: No objective considerations regarding morals.

• Each individual ethical position is not subject to rational

criticism from others
• Ethical statements are expressions of personal choice,
emotions or attitudes.
This does not imply that nobody (everybody)
are ethical. But it implies that we are
recognising both altruism and ethics as a
criterion by which we evaluate the acts of
others.
Instructor: L.T.T. Xuan 9

THEORIES OF ETHICS
ETHICAL EGOISM AND SUBJECTIVISM

What is your opinion of child labour?

Instructor: L.T.T. Xuan 10

10

5
 8/31/22

THEORIES OF ETHICS
VIRTUE ETHICS

Virtue ethics: Emphasizes the specific features of an individual.

• The theory focus on the character or personality of

individual to consider right or wrong
• Less a theory of a tool and more a theory as a depiction
• Our interpretation of ethics depends on our characterises
and qualities, such as: honesty, integrity, kindness, fairness and
prudence guide our ethical behaviour

Instructor: L.T.T. Xuan 11

11

THEORIES OF ETHICS
DEONTOLOGICAL THEORIES

Deontological: Judges ethical issues based on the adherence to

rules and or duties.

• Focus on what human can be fully responsible for

• An ethical choice is expressed in universal terms
• Categorical imperative
• To be really effective it requires managers to have a keen sense of
rightness and wrongness if I do something for a certain
reason it must be possible for
anyone else to adopt the same
reason (Kant’s approach)
Instructor: L.T.T. Xuan 12

12

6
 8/31/22

THEORIES OF ETHICS
CONSEQUENTIALIST THEORIES: EVALUATING CHOICES
IN TERMS OF THE OUTCOMES THEY BRING ABOUT

Consequentialist theories: The ethics of an action is to

be evaluated and judged in terms of the consequences Fined or
it carries. ‘tip’???
• Stems from a natural instinct that humans have
• In direct contrast with deontology, where some acts are wrong no
matter what the consequences.
• Best known example of consequentialism is utilitarianism – the view
that an action is right if it promotes the greatest good for the greatest
number of people.
• Its greatest weakness is its failure to adequately explain what counts as
the basic values against all action are to be evaluated.
Instructor: L.T.T. Xuan 13

13

THEORIES OF ETHICS
JUSTICE AND RIGHTS-BASED THEORIES: EVALUATING
CHOICES IN TERMS OF THEIR SOCIAL IMPACT

RIGHTS

Ø The idea that there are some rights that people have
solely by virtue of their being human

Shaw’s properties of human rights: Who should

have a chance
• Universal application
to be alive???
• Equality of application
• Non-destructibility of rights
• Independence of social or political institutions or practices

Instructor: L.T.T. Xuan 14

14

7
 8/31/22

THEORIES OF ETHICS
JUSTICE AND RIGHTS-BASED THEORIES: EVALUATING
CHOICES IN TERMS OF THEIR SOCIAL IMPACT

JUSTICE

Ø Equated with the idea of the fair and equal

application of laws and moral codes and rules

• Concepts of justice can be differentiated on

the basis of process or outcomes
• Rawlsian social contract theory
• Marxism

Question to discuss: Are business ethics situational or universal?

Instructor: L.T.T. Xuan 15

15

THEORIES OF ETHICS
JUSTICE AND SENIOR MANAGERS' REMUNERATION
A common argument made in favour of senior managers being treated
differently from other organizational members is that they often have to
devote a greater proportion of their life to their job, can often run substantial
personal career risks depending on the kinds of decision they make, and by
their actions can often add - or subtract - a huge amount of value to (or from)
the organization. Hence, many private companies will pay their most senior
executives percentage salary increases well beyond those of other staff, while
public sector organizations may allow senior staff access to much more
generous benefits than other employees, including 'golden hello' and
'goodbye' starting and termination pay premiums, enhanced
pensions and privileged expense allowances.
How far is this compatible with principles of natural justice? How far can this
be justified in terms of equality, fairness or deservingness? How would you
present your position to a group of chief executives who have themselves
benefited from such arrangements and practices?

Instructor: L.T.T. Xuan 16

16

8
 8/31/22

THEORIES OF ETHICS
CULTURAL RELATIVISM

Ø The idea that the values embodied in different cultures can

only be understood in their own terms.
Ø No practice specific to a culture can be validly critiqued
from the point of view of any other culture.
Ø Emphasis on the differences between national cultures.
Ø A narrow view of culture – and ignore ‘acculturation’

As a principle of caution in how to debate the values

of others, cultural relativism is a useful tool. As an
overall theory of ethics, however, it is not defensible.
Instructor: L.T.T. Xuan 17

17

THEORIES OF ETHICS
MAKING SENSE OF THEORY

Instructor: L.T.T. Xuan 18

18

9
 8/31/22

THEORIES OF ETHICS
MAKING SENSE OF THEORY

• Clear that some theories can be used as tools to help

specific choices, while other can’t.
• May lead to managers reflecting on their behaviour and
integrity.
• Important to note that these theories are often
complementary to one and another.
• Any of these theories could present a challenge for
managers who need to make an ethical decision.
• However, these theories do not form a mechanical whole
that forces on to go through a pre-defined series of steps.
Instructor: L.T.T. Xuan 19

19

THEORIES OF ETHICS
SUMMARY

• Ethical theories may be categorized in terms of their focus on particular

aspects of the process of decision making.
• Virtue ethics focuses on the character of individuals.
• Kantian deontology focuses on the idea of a duty being rationally based.
• Consequentialist theories attempt to measure the rightness of actions in
terms of the total outcomes they bring about.
• Rights and justice theories look at the social impact of ethical policies in
the long term.
• Cultural relativism asset that values can only be understood by those
within the specific culture from which these emanate.
• Critical theory takes a view on ethical theories as products of their social
context.
• The theories are best regarded as complementary, raising questions in
their own right but no integrated in a mechanistic way.

Instructor: L.T.T. Xuan 20

20

10