Professional Ethics

HU-222

Instructor
Dr. Ehsan ul Hassan
Ethical Principles
in Business

Chapter 2
Content Summary
3

Business Ethics – Concept & Cases

by Manuel G. Velasquez
Part One
Basic Principles

• CHAPTER 1 Ethics and Business Describes what

business ethics is in general.

• CHAPTER 2 Ethical Principles in Business Describes

several approaches to business ethics which together
furnish a basis for analyzing ethical issues in business.
 4

Ethical Principles in Business

• What is the utilitarian approach to moral decision-making?

• How do human rights apply to business situations?
• What is “justice”?
• Why are personal relationships essential to an “ethic of care”?
• How can we integrate the various approaches to moral
evaluation?
• What role does character play in morality?
• Why do many of our moral decisions seem to be automatic
and unconscious?
 Ethics of Care Ethics of Virtue
An ethic that emphasizes An ethic based on evaluations
caring for the concrete well of the moral character of
being of those near to us. persons or groups

Business

Utilitarianism
Rights
Justice
Caring
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Utilitarianism
A general term which holds that actions and
policies should be evaluated on the basis of
benefits and costs they will impose on society.
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Weighing social costs and benefits
in Ford’s Pinto case study

Cost of changing tank design of 12.5 million autos would be 11$ each
i.e. 11$ x 12.5 million = 137$ million
Life losses estimated based on Statistical study = 180 burn deaths
= 180 burn injuries
= 2100 vehicle damages
Insurance paid for life losses = 200,000$
Insurance paid for burn injuries= 67000$
Insurance paid for vehicle damages = 700$
Benefits = (180 death x 200000$)+(180 injuries x 67000$)+(2100x700$)
Total = 49.15$
Net loss would be: 137$ - 49.15$ = 87.85$ million