Normative Theories of Business Ethics

Reporter: Jonas Canlas

 Ethical Theories
• The rules and principles that determines right
from wrong in any given situation
 Factors that affect Ethical Dilemmas
• Customer
• Product
• Customer Service
• Employee
• Government
 Two extreme positions in ethics
• Ethical Absolutism • Ethical Relativism
– Point to dogmatic view – Two contrasting beliefs
can be equally correct
depend on their culture
 Classification of Ethical Theories
• Normative Theories
– Point of expected way of acting morally
• Descriptive Theories
– Refers to the real practice
Categories of Normative Theories
• Teleological Theories
– Egoism
– Utilitarianism
• Deontological Theories
– Kantianism
– Divine Command Theory
– Ethics of Right and Justice
 Teleological(Consequentialist) Theories
• Moral judgement is based on the intended
outcomes, aims or goals of a certain action
 Egoism
• The moral agent will prioritize their own
interests
 Utilitarianism
• Consequence leads to maximum benefits and
minimum harm
 Deontological (Non-consequentialist) Theories

• The decision is driven by duty or principle

 Kantian Theory
Immanuel Kant – German Philosopher

• Maxim 1 (Consistency of action)

– The action is right if everyone can follow the same principle
• Maxim 2 (Human dignity)
– Respect for human dignity and individual freedom is
maintained
• Maxim 3 (Universality)
– This maxim examines if the principle can be applied to or is
acceptable to every human being
 Ethics of Right and Justice
John Locke – British Philosopher

• The principle states that some of the most

important rights are
– Life
– Freedom
– Property
– Speech
– Fair Legal Process