Business Ethics

What and how of

BE?

Why study ethics?

Build a positive vision of the world
Enhance critical thinking skill
Deal with the question of how ought I
live?
Certain preliminary assumptions:
1. We are in conversation to discover what
is good living
2. As we are capable of acting from the
point of universe

Goal of ethics: Upward

Human
nature: Poles apart but
drive
continuums

One extreme
Individual
Egoist
Cater to the Base
Cater to desires and
instincts

Actions are Instinctive

Fundamental force
Instinct for survival of
the self
Lower self

Other extreme
Social
Altruist
Cater to the Highest
Search for meaning of life
and existence

Actions moderated by
Universal Reason
Fundamental force
Longing to expand
limitlessly

Complex Human
Nature

Higher self

Ethics implants a broader perspective

in Business
Other disciplines
Managerial Efficiency Capitalist
Good business

Creating hegemony
Exclusivity
Survival of the strongest

Appeal to the Basic in us

instinct

Basis of explanation
Scientific: reason, logic

Ethics
Human efficiency
Holistic
Good life

All inclusive
Space for all
Survival of even the weakest

Appeal to the Highest in

us
Meaning of life

Basis of explanation
Scientific: reason, logic
Empathy

What Is Ethics?

Ethics is not science.

Ethics is not the same as feelings.
Ethics is not religion.
Ethics is not following the law.
Ethics is not following culturally
accepted norms.

Ethics/Morality/Values/Ethos
Ethics and morality
Morality - Mores norms of the culture
Ethics is an systematic inquiry

Ethics and law

Legal codes are more precise
Law is enforceable by the court of law
Ethical codes may be vague at times
Enforcement of ethics is complex social process

Values (tangible[economic], intangible[ethical])

Ethos the moral character of a culture
Caste division/hierarchy
Notion(s) about marriage

Can You Teach Ethics?

Socrates: Ethics consists of knowing
what we ought to do, and such
knowledge can be taught.

Two Conceptions of Morality

We can contrast two approaches to the moral
life.
The childhood conception of morality:
Comes from outside (usually parents).
Is negative (dont touch that stove burner!).
Rules and habit formation are central.

The adult conception of morality.

Comes from within (self-directed).
Is positive (this is the kind of person I want to be.).
Virtue-centered,often modeled on ideals.

Stages of Moral Thought

(Kohlberg)
Pre-Conventional defines right and
wrong in terms of what authorities
say
Conventional defines right and
wrong in terms of group loyalty
(friends, family, gang, nation)
Post-Conventional views right and
wrong from universal standards of
justice, human rights, and human
Education is what stimulates growth through
welfare
levels.

Ethical Frameworks
Egoism self love / self interest
Altruism self sacrifice
Classical: character
Virtue Ethics golden mean for general well being and well
being of self virtue - character- practical wisdom
Modern: Universal standards established through reason
Utilitarianism human flourishing and amelioration of
suffering Maximum benefit for maximum number
Deontology universal rules of justice respect for rights
and dignity of others
Contractual system social survival and resolving conflict of
interest principles + practice
Post Modern: varies with change of perspective
Feminist Ethics amelioration of power and domination
Ethics of Care
Can we deal with all purposes in any given case?
Satisfactorily?
The alternative is Tradeoffs

Kant?

Aristotle
Tocquevilles
Self-interest rightly understood

High
Altruism
Self-interest
and regard
for others
converge

Self-sacrificing
altruism

Low
Egoism

High
Egoism
Not beneficial
either to self
or others

Drug addiction
Alcoholism, etc.

Self-interest
at the expense
of others

Low
Altruism

Hobbess
State of Nature,
Nietzsche?

Lawrence M. Hinman

A Business case of
Reconciliation

Porter and Kramer

2002 HBS

The Utilitarian Approach

Focuses on the consequences that actions
or policies have on the well-being of all
persons directly or indirectly affected by the
action or policy.
The principle states: "Of any two actions,
the most ethical one will produce the
greatest balance of benefits over
harms."
https://
www.youtube.com/watch?v=kBdfcR-8hEY

Misguided Utilitarianism in A Business Case

Cost benefit analysis of Ford motors
Cost of redesigning Pinto:
$11 12.5 million autos = $137 million
Redesign would prevent 180 deaths, 180 burn
injuries and 2100 burned vehicles
Benefits of redesigning
(180 deaths $ 200,000) + (180 injuries $
67,000) + (2,100 Vehicles $ 700) = $49.15
million

The Rights Approach

Ethical action is the one that best protects
and respects the ethical rights of those
affected.
Each person has a fundamental right
to be respected and treated as a free
and equal rational person capable of
making his or her own decisions.

Categorical Imperative: Immanuel Kant

Veil of Ignorance
To design fair rules John Rawls
Should be designed by ensuring
objective conditions
One Method: Veil of Ignorance

Wherever absolute fairness can not

be secured
Rules must be to the advantage of the
less advantage

Feminism and ethics

More accurate picture of human nature
includes;
We are embodied defined by our life
circumstances-gender, class, family etc as
opposed to Objective
We are emotional naturally predisposed to
a wide range of feelings that cannot help but
possess as opposed to Rational
We are social naturally predisposed to be
with and have feelings for others as
opposed to Individualistic

The Virtue Approach

Focuses on attitudes, dispositions, or
character traits that enable us to be
and to act in ways that develop our
human potential.
Examples: honesty, courage,
faithfulness, trustworthiness,
integrity, etc.
The principle states: "What is ethical
is what develops moral [ethical]
virtues in ourselves and our
communities."

Virtue As the Golden Mean

Strength of character (virtue), Aristotle suggests,
involves finding the proper balance between two
extremes.
Excess: having too much of something.
Deficiency: having too little of something.
Extravaganza generosity stinginess
Foolhardiness courage cowardice

Not mediocrity, but harmony and balance.

Rightly-ordered Desires
Aristotle draws an interesting contrast between:
Continent people, whose desires are naturallyor
through habit, second-naturedirected toward that
which is good.
Temperate people, who have unruly desires but
manage to control them.
Weakness of will (akrasia) occurs when individuals
cannot keep their desires under control.
Still they are able to make rational judgement

How To Make an Ethical

Decision
Recognize that decisions have ethical
implications
Develop a method for exploring the
ethical aspects of a decision
Objective basis
Immanuel Kants Categorical
Imperative
Rousseaus General Will
John Rawls Veil of Ignorance

Recognize an Ethical Issue

Is there something wrong personally,

interpersonally, or socially? Could the
conflict, the situation, or the decision be
damaging to people or to the
community?
Does the issue go beyond legal or
institutional
concerns? What does it do to people,
who have dignity, rights, and hopes for a
better life together?

How to prioritize values?

A complex tradeoff
Reasoned choice with a sort of universal
appeal
Safeguards rights Intrinsic (human)
values
Rights of the vulnerable rights, justice,
equality (at least impartiality)
Best outcome utility - Consequence
Emotions -Care
Intention/motive

Character practical wisdom

Objectivity: social/ethical
conflict

Objectivity is located in the notion of adequately

responding to all aspects of a conflict
And rational agreement is brought in
subsequently as part of what an adequate
response involves
Engineers way of solving design problems
Unlikely to arrive at a unique resolution able to address
every relevant aspect of the conflict
Take a number of shortcuts in order to arrive at some
reasonable resolution of the problem
It would be irrational not to, given the need to resolve
the conflict

Tradeoffs
In design
Tradeoff between: precision, speed, capacity, weight,
volume, power, aesthetics, so on.
In ethics
Self and others
Consequence/utility and Intrinsic (human) values:
Rights, justice, equality (at least impartiality) so on
Reason/rationality and Emotions,
Duty and Care/love,
Intention/motive and outcome
Practical wisdom/Character and context

Ultimate
Jean Paul Satre explains: Man makes himself.
He isnt ready made at the start. In choosing his
ethics, he makes himself, and force of
circumstances is such that he cannot abstain from
choosing one.

What are we doing: helping to choose (a better)

one?
How: through critical analysis?