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What are Ethics?Moral Philosophy which involves systemat iz ing, defending, and recommending concepts of right and wrong conduct (According to Wikipedia)
Are not standards of the law, doesn’t always resulting in legal punishment
Consists of unwritten rules we have developed for our interactions with each other
What are Ethics?Generally accepted rules of conduct that govern society, play critical role in an orderly society
Both standards and expectations for behavior
Beyond laws and legal rights
Often correlated with norms and values such as fairness, justice, equality, honesty
Ethics E(que,e
moralprinciplesthatgovernourbehavior
setofrulesindica5ngtheproperandpolitewaytobehave
Principles behavior
differentthingstodifferentpeople
differaccordingtoculture,ethnicity,religion,country
personal;therightandwrongarejudgedindividually
social;itisnotcreatedbyanindividual
Theories to Resolve Ethical Dilemmas
Divine Command TheoryEthical Egoism TheoryThe Utilitarian Theory
The Categorical Imperative and Immanuel KantThe Contractarians and Justice
Rights TheoryBack to Plato and Aristotle: Virtue Ethics
Divine Command TheoryBased upon religious beliefs, tenets of faith.
Decisions are made on the basis of guidance from a divine being.
Runs in parallel with natural law in some countries.
• Example: 1. In Muslim countries, adultery = unethical,
illegal, punishable2. U.S. declaration of independence relied
on notion of natural law. We had rights because they were give to us by our Creator.
Advantages Disadvantages
Objec5ve:IfGodisthesourceofmoralitythenwearenotresponsiblefor
determiningamoraldecision,butsimplymakingitaccordingtoGod's
teachings
IfGoddoesn'texist,thenhecannotbethesourceofmorality
IfGodisthesourceofmorality,thenhisteachingswillinevitablybemoral
Theoryexcludesatheists;ifeveryonedoesnotbelieveinGod,theywillnot
liveaccordingtohismorals-notUniversal
Godisnon-physicalandgreaterthanthehumanmindcanunderstand,justasmoralsare,soitislogicaltosaythat
theysharethisrela5onship
ItisdifficulttointerpretGod'steachings,andhencehismoralsalso
Ethical Egoism TheoryKeyword: humans act based on their own self-interest
Morality should be based solely on self interest alone
Receives more contras since it is difficult to rely only on pattern of selfish behavior
Thus, there must be a greater power in government
Utilitarian Theory“Greatest happiness principle” à bring greatest good to the greatest number of people
Minimizing harms and bad impacts of our proposed solutions from the viewpoints of all those who are affected
Example: outsourcing manufacturing of clothing to developing countries
Utilitarian Theory
Advantages Disadvantages
Clearandaneasy-understandguidelines Whodecidesgoodandbad?
Focusonhappinessandbenefits Favori5sm
Takesintoaccountallelements Time-consuminganddifficult
The Categorical Imperative and Immanuel KantIn simplest terms, you cannot use others in a way that gives you one-sided benefit
Evaluating motivations for action, all based on goodwill and pureness of heart
Morality is obligation and duty
Example : do business in a good term (CSR, etc) since you want to earn popularity is not sufficient basis for your action.
Advantages Disadvantages
Mo5vesvaluedoverconsequences(whichwehavenocontrolof)
Inflexible,rigid
The Categorical Imperative and Immanuel Kant
The Contractarians and Justice Theory
Referred as theory of justice and social contract.Living in society requires rules and laws.
Fair equality of opportunity.
Theoretically, viable to the extent that individuals are relatively equal in power when the contract is both negotiated and renegotiated.
In real world, we always have an imperfect contract which represents the interests of the stronger, more interested, or more persuasive parties.
Rights Theory or Entitlement Theory (Contract-based)Everyone has a set of rights
It’s up to governments to protect those rights (enforcement of laws with right intentions)
Members of society agree to give up some freedoms for the protection enjoyed by organized society
Example: protection of human rights (sweatshops, euthanasia, abortion, privacy)
Moral Relativists Theory
Believes in time-and-place ethics
No absolute rules, virtue ethics or even social contract
Focus on pressure of the moment and whether pressure justifies the actions taken
Example: parents stealing for their starving child will be justified
Moral Relativists Theory
Advantages Disadvantages
Promotestoleranceandnon-judgmentalcomprehension
Someac5onsarenotexcusable
VirtueEthicsTheory
Emphasize the role of character and virtue in moral philosophy rather than either doing one’s duty or acting in order to bring about good consequences
Requires training as individuals are able to resolve dilemmas if they have cultivated and nurtured virtue
Example : 1. Attentiveness = listening and understanding2. Courage = doing the right thing despite the cost3. Justice = treating others fairly
THE TYPES OF ETHICAL DILEMMAS
Taking Things That Don’t Belong to YouSaying Things You Know Are Not TrueGiving or Allowing False ImpressionsBuying Influence or Engaging in Conflict of InterestHiding or Divulging InformationTaking Unfair AdvantageCommitting Acts of Personal DecadencePerpetrating Interpersonal AbusePermitting Organizational AbuseViolating RulesCondoning Unethical ActionsBalancing Ethical Dilemmas
TAKING THINGS THAT DON’T BELONG TO YOU
Regardless of s ize or motivation, unauthorized use of someone else’s property or taking property under false pretenses still means taking something that does not belong to you
USING THE PHOTOCOPY MACHINE AT WORK FOR YOUR PERSONAL NEED
USING YOUR FRIEND’S PEN WITHOUT PERMISSION, THEN KEEP IT FOR YOURSELF
STATED COLLEGE DEGREE ON RESUME, BUT HAVE NOT YET GRADUATED.
ASSUME YOU ARE TRYING TO SELL YOUR CAR, ONE IN WHICH YOU HAVE AN ACCIDENT, BUT
WHICH YOU HAVE REPAIRED. IF THE POTENTIAL BUYER ASKS IF THE CAR HAS BEEN IN
ACCIDENT AND YOU REPLY “NO”
GIVING OR ALLOWING FALSE IMPRESSIONS
Legal technicality category
What you have said is technically the truth, but it does mislead the other side
Allowing False Impressions
IF YOU REMAIN SILENT WHEN YOUR COWORKER WAS BLAMED FOR SOMETHING
YOU DID, YOU WOULD LEAVE A FALSE IMPRESSION.
YOU HAVEN’T LIED BUT YOU ALLOWED AN IMPRESSION FALSE BLAME TO CONTINUE.
BUYING INFLUENCE OR ENGAGING IN CONFLICT OF
INTEREST
Finds someone in the position of conflicting loyalties
The officer is conflicted between hi duty to negotiate the best contract and price for his corporation and his interest as a business owner in maximizing his profits
The interest are in conflict, and this category of ethical breach dictates that those conflicts be resolved or avoided
HIDING OR DIVULGING INFORMATION
Taking your firm’s product development or trade secrets to a new place of employment constitutes an ethical violation:Divulging proprietary information.
Hiding the fact that your company’s product has significant side effects (could be harmful to consumers) is the ethical violation:Hiding Information
A BANK THAT SELLS FINANCIAL AND MARKETING INFORMATION ABOUT ITS
CUSTOMER WITHOUT THEIR KNOWLEDGE HAS DIVULGED INFORMATION THAT SHOULD BE
KEPT CONFIDENTAL.
TAKING UNFAIR ADVANTAGE
Taking unfair advantage to those who were not e d u c a t e d o r w e r e unable to discern the nuances of complex contracts
COMMITING ACTS OF PERSONAL DECANDENCE
Personal conduct outside the job can influence performance and company reputation
A COMPANY DRIVER MUST ABSTAIN FROM SUBSTANCE ABUSE BECAUSE WITH ALCOHOL OR DRUGS IN HIS BLOOD, HE CREATES BOTH
SAFETY AND LIABILITY ISSUES FOR HIS EMPLOYER
PERPETRATING INTERPERSONAL ABUSE
Consists of conduct that is demeaning, unfair, or hostile, or involves others so that privacy issues
arise
A CEO UPBRAIDED HIS MANAGER WHO HAD NOT MET THEIR MONTHLY SALES TARGET IN
FRONT OF OTHER MANAGERS
The Former CEO of HealtSouth, Richard Scrushy
PERMITTING ORGANIZATIONAL ABUSE
Covers the way companies treat employees
The critical issues raised are child labor, low wages, and overly long work hours.
Although a business cannot change the culture of another country, it can perpetuate – or alleviate –
organizational abuse through standards of fairness and respect in its operation here
VIOLATING RULES
Many rules, particularly those in large o rgan iza t ion tha t end toward bureaucracy from a need to maintain internal controls or follow lines of authority
Stanford used funds from the federal grant for miscellaneous university purposes.
Questions arose about the propriety of the expenditures,Which quite possibly could have been legal under federal regulations
But were not within the standards, policies, and guidelines on what were considered appropriate research expenditures.
CONDONING UNETHICAL ACTIONS
The wrong is actually a failure to report an ethical breach in any of the
other categories
RECENT STUDIES INDICATES THAT OVER 80% OF STUDENTS WHO SEE A FELLOW STUDENT
CHEATING WOULD NOT REPORT THE CHEATING
IF YOU WERE TO STAND BY SILENTLY WHILE YOU WITNESSED A FELLOW EMPLOYEE
EMBEZZLING COMPANY FUNDS BY FORGING HER SIGNATURE ON A CHECK THAT WAS TO BE
VOIDED
BALANCING ETHICAL DILEMMAS
There are no right or wrong answer
Rather, there are dilemmas to be resolved
Levi Strauss and Google struggled with their decisions. Whether to do business in PRC or not.
• Human Rights violation by the government there
• Government’ censorship on information distribution, including through the internet
CALL IT BY A DIFFERENT NAME
Example: Ilegal music downloading is unethical, but we call it sharing music thus make ourself less guilty.
By labeling what we do in a good way, we make ourself believe that it is a good thing,
but the truth is that we are lying to ourself so we won’t feely guilty or facing the
consequences.
RATIONALIZING DILEMMAS AWAY
“EVERYBODY ELSE DOES IT”
We simply convince ourself if “everybody does it” then it become right.
Example : If everyone speed during the red light, then others will follow, by seing other done it making them less guilty
RATIONALIZING DILEMMAS AWAY
“IF WE DON’T DO IT, SOMEONE ELSE WILL”
In a though competition people need to think ahead from their competitors, so in
some cases they feel like they are compel to do something risky and unethical and people
will rationalize their action be convincing themself that “ if we didn’t do it, someone else will”
Example: A food company “CelineFood” buy their ingredients from meat supplier that have no health certificate which make the price cheaper, they rationalize their action if we didn’t Do it first soon other will have the same ideas and try to do it as their leverage.
RATIONALIZING DILEMMAS AWAY
“THAT’S THE WAY IT HAS ALWAYS BEEN DONE”
We convince ourself that a certain values or activity are right because “thats the way
It has always been done”, we are afraid to erase those things because it make us feel
that we erase a tradition/ some part of our identity.
Example: In our C community women always at home do their do dishes, clean house, etc. It is unethical, we cannot keep women inside a house like a prisoners, but C have always been taught that way thus if he erase those things he would be feeling responsible for ignoring the elders way of life and losing of his community identity.
RATIONALIZING DILEMMAS AWAY
“WE’LL WAIT UNTIL THE LAWYERS TELL US IT’S WRONG”
We look at the other side when we know that what we do is wrong, we will stoponce some tell us to stop or giving us a punishment.
Example : Jerry is selling drugs to teenagers , in the end he get caught by the police and sentence into 10 year in prison, he regret what he did but its already too late.
RATIONALIZING DILEMMAS AWAY
“IT DOESN’T REALLY HURT ANYONE”
We believe that what we do won’t harm anyone or assume that it is fo the greater good,
but in the reality what we do will always has it consequences, so when you do
bad things we will face its consequences.
Example: WM Company produced a toxic smoke every day it could effect its surrounding. They convince the people that it won’t harm them, but in the future there will be consequences.
RATIONALIZING DILEMMAS AWAY
“THE SYSTEM IS UNFAIR”
We blame others in our fault, in our misery, thus when we do something unethical
it make us feel much better or less guilty.
Example: A pick pocket blame the government for its poor living condition now, but in reality the pick pocket never try to a decent job in the first place.
RATIONALIZING DILEMMAS AWAY
“IT’S A GRAY AREA”
We believe there is no right or wrong in certain situation, thus it rationalize us to do things
Using our own beliefs as an indicator of what is ethical and unethical.
Example: A 17 year old girl is pregnant, her mother want her to keep the baby because She believe that killing the baby is not the solution, but her father want her to do the abortion because he believe if she keep the baby she will disgrace the family name in the society.
RATIONALIZING DILEMMAS AWAY
“I WAS JUST FOLLOWING ORDERS”
When our lives depend on others we tend to follow their orders blindly, even when we
Know its wrong they simply have a bigger influence than us.
Example: Andrew is an accuntant to company E, the company orders Andrew to manipulate its income to evade paying taxes, Andrew cannot refuse its clients demand because Andrew make a living from making E company report.
“1” REPRESENTS “COMPLETELY AGREE”
“4” REPRESENTS “COMPLETELY DISAGREE”
CIRCLE THE NUMBER FROM 1 TO 4
I CONSIDER MONEY TO BE THE MOST IMPORTANT REASON FOR WORKING AT A JOB OR IN AN ORGANIZATION1 2 3 4
I WOULD HIDE TRUTHFUL INFORMATION ABOUT SOMEONE OR SOMETHING AT WORK TO SAVE MY JOB1 2 3 4
LYING IS USUALLY NECESSARY TO SUCCEED IN BUSINESS1 2 3 4
1
2
3
CUTTHROAT COMPETITION IS PART OF GETTING AHEAD IN THE BUSINESS WORLD1 2 3 4
I WOULD DO WHAT IS NEEDED TO PROMOTE MY OWN CAREER IN A COMPANY, SHORT OF COMMITING A SERIOUS CRIME1 2 3 4
ACTING ETHICALLY AT HOME AND WITH FRIENDS IS NOT THE SAME AS ACTING ETHICALLY ON THE JOB1 2 3 4
4
5
6
RULES ARE FOR PEOPLE WHO DON’T REALLY WANT TO MAKE IT TO THE TOP OF A COMPANY1 2 3 4
I BELEVE THAT “THE GOLDEN RULE” IS THAT THE PERSON WHO HAS THE GOLD RULES1 2 3 4
ETHICS SHOULD BE TAUGHT AT HOME AND IN THE FAMILY, NOT IN PROFESIONAL OR HIGHER EDUCATION 1 2 3 4
7
8
9
TOTAL THE NUMBERS YOU CIRCLED
THE LOWER YOUR SCORE, THE MORE QUESTIONABLE YOUR ETHICAL PRINCIPLES REGARDING BUSINESS ACTIVITIES.
THE LOWEST POSSIBLE SCORE IS 10THE HIGHEST SCORE IS 40
BIBLIOGRAPHY• Business Ethics Picture www.skilledup.com• Obama and Japanese Emperor Picture www.daily.co.uk.com • Newspaper, https://news.google.com/newspapers?
nid=1314&dat=19901215&id=zW5RAAAAIBAJ&sjid=YwgEAAAAIBAJ&pg=4344,2693396&hl=en
• Business Ethics Case Studies and Selected Readings Sixth Edition. Jennings, Marianne.