Ethics –

Philosophical
Theories and
Traditions
Ms. Rochelle M. Maloles
Gospel Reading & Reflection
LAVISH LOVE
1 John 3:1 (KJV) "Behold, what manner of love the Father hath bestowed upon us, that we should be
called the sons of God: therefore the world knoweth us not, because it knew him not."
REFLECTION: How great is the Father’s love for us; a love beyond all comprehension and reason.
Why should God love those who are so unworthy, so unlovable, so full of sin? God’s love for
humankind is incomprehensible, yet unquestionable. If we ever doubt God’s love for us, remember
what Jesus did so that He could claim us as His own. God sent His only son to die on our behalf
(Romans 5:8), so that we might experience His lavish love for us both now and in the future. As
believers, our self-worth is based on the fact that God loves us and calls us His children (1 John 3:1).
"But as many as received him, to them gave He power to become the sons of God, even to them
that believe on his name." (John 1:12). It takes the lavish love of the Father to make us His children.
It is not our own doing, but entirely His. All who welcome Jesus Christ as Lord of their lives receive
and live in the power of this lavish love. In this life we will never know a love like God’s. No human is
capable of offering us unconditional, constant and continuous love like God does. God’s love is
totally unselfish; there are no hidden agendas or motives. His love is pure and righteous, good and
kind. His love is always in our best interests, not His.
PRAYER: ‘Heavenly Father help me to live fully in Your love. Thank You that Your love is greater than
any other love I will ever know. Open my heart to receive more of Your love.’ I pray to You, in Jesus
name. Amen.
Module Learning Outcomes

Apply appropriate skills in handling ethical situations and/or corporate dilemma in

formulating a business decision.
Understand basic ethical philosophies, theories, and traditions
Provide risk and opportunity based decision.
At the end of this module students should be able to;
1. Understand the basic principles of Ethics through frameworks
2. Describe how utilitarianism impacts economic and business decision making
3. Explain several challenges to principle-based ethics
4. Describe and explain virtue-based framework for thinking about ethical character
5. Understand the critical role of Accountancy Profession
6. Connect professional accountant’s responsibility to the client / employer and to
public interest
 Outline
What is Ethics?

 Understanding Ethics through Ethical Frameworks and Theories

 Utilitarianism

 Deontology

 Virtue Ethics
Other Related Topics:
• Code of Ethics for Professional Accountants in the Philippines (An Overview)
• Ethical & Unethical Behavior in Business
• Values of Ethical Behavior
• Challenges to Ethical Behavior in Business
• Embracing Ethical Behavior
Ethical Theories
& Frameworks
Ethical theories provide part of the decision-making foundation for Decision Making
When Ethics Are In Play because these theories represent the viewpoints from which
individuals seek guidance as they make decisions. Each theory emphasizes different
points – a different decision-making style or a decision rule—such as predicting the
outcome and following one’s duties to others in order to reach what the individual
considers an ethically correct decision. In order to understand ethical decision
making, it is important for students to realize that not everyone makes decisions in
the same way, using the same information, employing the same decision rules. In
order to further understand ethical theory, there must be some understanding of a
common set of goals that decision makers seek to achieve in order to be successful.
Four of these goals include beneficence, least harm, respect for autonomy, and
justice.
Ethical
Dilemma
A problem that involves
two or more possible
solutions, all of which
entail violating moral
principles and values.
 How do we decide?
Imagine you are a manager and visit a factory an affiliate owns in Colombia,
only to discover the use of child labor in the plant. Upon studying the
problem, you learn that child labor is accepted in many developing
economies, even though girls are vulnerable and may be abused or exploited
and work prevents children from attending school, which would improve
their prospects for a better life. There are more than 50 million children
working in India alone.
However, you also learn that without their children’s income, families often
go hungry. If the kids are dismissed from the plant, many will turn to other
income sources, including prostitution and street crime. The age at which
children are deemed adults varies worldwide and is sometimes as young as
15 years. What should you do? Do you make a fuss about the immorality of
child labor, or do you look the other way?
What is Ethics?
 Ethics attempts to answer the
question of how we should live
and gives the reasons to support
the answers

 It seeks to provide a rational

justification for why we should act
and decide in a particular
prescribed way
Ethical Frameworks
 Ethics of Consequence (Utilitarianism) result
; disregarding the means to justify the end

 Ethics of Principles (Deontology) morally right

 Ethics of Personal Character (Virtue Ethics)

What is Utilitarianism?

• Actions are morally permissible

• IF AND ONLY IF

• They produce at least as much net

happiness (BETTER CONSEQUENCE) as any
other available action
PROS & CONS

PROS CONS

Simple, elegant theory with When focus tips only to

universal application happiness

Egalitarian & Intuitive Quantitative aspect on

deciding what is ethical
What is Deontology?

• Actions are morally permissible

• IF AND ONLY IF

• They are the RIGHT thing to do

PROS & CONS

PROS CONS
Consistency (black and white Inflexible
principles)
Improved control through De-emphasizes consequences
focus on intention
What is Virtue Ethics?

• Actions are morally permissible

• IF AND ONLY IF

• They are based on a person’s character

• (enduring disposition, attitudes, values
and beliefs)
PROS & CONS

PROS CONS
Use of role model for virtues Vague in guiding actions
Allows individual to examine Moral narcissism
oneself
 Ethical behavior is essential for successful
business in today’s global marketplace.
Ethical behavior is about doing the right
things
Ethical behavior for
is essential the company,
for successful the
business in today’s employees,
global marketplace. the
Ethical behavior is about doing the right things for the company, the employees, the community, the government, and
community, the government, and the
the natural environment.
It requires companies to act in ways that stakeholders consider honest and fair.
natural environment.
It requires companies to act in ways that
stakeholders consider honest and fair.
Value of Ethical Behavior: Key Reasons
1. Acting in a fair and respectful way that does not harm human rights is
the right thing to do.

2. Ethical behavior is often prescribed within laws and regulations.

Violating laws and regulations has obvious legal consequences.

3. Customers, governments, and the news media demand ethical

behavior. Firms that commit ethical blunders attract unwanted attention
from opinion leaders.

4. Ethical behavior is good business, leading to enhanced corporate

image and selling prospects.
Unethical Behavior
If ethical behavior is imperative, why do we still encounter abundant
examples of questionable ethical practices or even breaches of
responsible conduct?

A study in the Harvard Business Review found that bad behavior

results when:
1. Top management sets goals and incentives aimed at promoting
good outcomes (e.g., profits) that instead encourage bad
behaviors.
2. Employees overlook unethical behavior because of peer pressure
or self-interest.
3. Managers tolerate lower ethical standards in value-chain
activities suppliers or third-party firms perform.
4. Unethical practices are allowed to accumulate in the firm slowly
over time.
5. Questionable means are justified by good ends.
Examples of Unethical Behavior
• Firms may:
• Tolerate sweatshop conditions or otherwise abuse
employees.
• Pay or accept bribes, kickbacks, or inappropriate gifts.
• Falsify or misrepresent contracts or financial statements.
• Undertake false advertising and other deceptive marketing
practices.
• Engage in pricing that is deceptive, discriminatory, or
predatory.
• Deceive or abuse intermediaries in international channels.
• Engage in activities that harm the natural environment.
Ethical Challenges in Business
• Corruption
Bribery, Embezzlement, Fraud,Extortion &
Blackmail)
• Harmful Work Environment
• Unethical Business Practices
• Harmful Global Sourcing
• Illicit Products & Marketing
• Intellectual Property Infringement (Trademarks,
Copyrights)
 Embracing Ethical Behavior
In a world ever sensitive to social and environmental issues, managers increasingly
undertake the following types of practices:
 Build internal and external capabilities to enhance the firm’s contribution to the local
com-munity and global environment.
 Ensure that diverse voices are heard by creating organizational structures that employ
man-agers and workers from around the world.
 Develop global ethical standards and objectives that are communicated and
implemented across the firm worldwide.
 Train managers in global ethical principles and integrate these into managerial
responsibilities.
 Develop closer relations with foreign stakeholders to understand their needs better and
jointly work toward solutions.