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1.1 Explain the background and development theoretical ethical approaches. In general, there are two types of theoretical ethical approaches which are deontological and teleological ethical theories. Through a simple understanding, deontological ethical theory is more interested in duty while teleological ethical theory is more interested in consequences. Deontological Deontological theory was introduced by Immanuel Kant. He was a philosopher and scientist t born in 1724 in the Prussian city of Konigsberg. At the age of eight, he attended the Collegium Fridiricianum, a Latin school that taught primarily classicism. After over eight years, he went to the University of Konigsberg to study about philosophy, mathematics and physics. However, he left the university and earned a living as a private tutor after the death of his father. Luckily, in 1755, his friend lends a hand for him to resumed his study and Kant was receiving his doctorate in 1756. He died in 1804. The term of deontology comes from the Greek word “deon”, meaning duty. It states that we are morally obligated to act in accordance with a certain set of principles and rules regardless of outcome. (Kantian Duty Based Deontological Ethics). Based on this ethical approach, the organization or the individual itself should know their duties as well. It’s can be says that when the organization or the individual itself obey the duties, then they are doing morally things but if they are failed to do so, then it was immoral things. As the result, deontological concerned on the

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Page 1: Assignment 1 Business Ethics

1.1 Explain the background and development theoretical ethical

approaches.

In general, there are two types of theoretical ethical approaches which are

deontological and teleological ethical theories. Through a simple understanding,

deontological ethical theory is more interested in duty while teleological ethical

theory is more interested in consequences.

Deontological

Deontological theory was introduced by Immanuel Kant. He was a philosopher

and scientist t born in 1724 in the Prussian city of Konigsberg. At the age of

eight, he attended the Collegium Fridiricianum, a Latin school that taught

primarily classicism. After over eight years, he went to the University of

Konigsberg to study about philosophy, mathematics and physics.

However, he left the university and earned a living as a private tutor after the

death of his father. Luckily, in 1755, his friend lends a hand for him to resumed

his study and Kant was receiving his doctorate in 1756. He died in 1804.

The term of deontology comes from the Greek word “deon”, meaning duty. It

states that we are morally obligated to act in accordance with a certain set of

principles and rules regardless of outcome. (Kantian Duty Based Deontological

Ethics).

Based on this ethical approach, the organization or the individual itself should

know their duties as well. It’s can be says that when the organization or the

individual itself obey the duties, then they are doing morally things but if they are

failed to do so, then it was immoral things. As the result, deontological concerned

on the action itself, but not on the result of the action. Therefore, if the action is

wrong, then don’t do it.

Three deontological frameworks:

a) Existentialism

b) Contractarianism

c) Kant’s ethics

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‘MIRI: A former accounts clerk was sentenced to 56 months imprisonment by the

Magistrate's Court today after pleading guilty to three charges of criminal breach

of trust involving three cheques worth RM11,313’. (Borneo, 2015)

Based on case above, we can relate with the deontological theory which is the

duty of account clerk. Based on deontological theory, she should obligate her

duties as an account clerk of the company. The company that running the aircraft

business operation realize that their account clerk has breach of trust with the

cheques of the company. She should not do that because it was immoral action

based on the deontological theory. When the action is wrong, she should avoid

that.

Kant theory

Kant argued that morality is only possible in a community of beings that possess

the natural attributes of rationality and free will. (White, n.d.)

In this theory, the organization or the individual itself cannot asked for someone

responsible for his or her actions unless he or she is capable of knowing right

from wrong; and unless that person is capable doing right and avoiding wrong.

From this aspect, knowing what is right or wrong is different from doing what is

right or wrong. (White, n.d.)

Teleological

The word teleology comes from Greek ‘telos’ which means end or purpose. This is

an ethics approach where actions are judged morally based upon their

consequences. It is counter approach to the deontological ethics. ( Teleological

ethics, 2013)

Teleological is differing than deontological ethics. Teleological ethical theory

focusing on the consequences rather than the duties. It can be says that “What

are those actions that produce the best possible results”

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For the same case of accounts clerk that worked at Rotorwing (M) Sdn Bhd, she

has known the consequences happened due to her action. Based on teleological

perspective, this ethical theory is concern on the consequences rather than the

duties itself. As in this case, the defendant needs to liable on the all

consequences due to her action before. Below are all the consequences that she

needed to liable with;

a. Based on the first charge, the defendant as an accounts clerk entrusted

with the control of company property Rotorwing (M) Sdn Bhd, OUB Bank

chequebook, has committed breach of trust by using the cheque to buy a

tile worth RM2, 990 for her own use.

b. While the second charge, she had repeated the same action with a

company cheque to buy a half leather sofa set worth RM5, 000 for her own

use.

c. While the third charge, she again has used company cheque for the

purchase of cosmetics set worth RM3, 323 for her own use.

For a first offense, the defendant was sentenced to 14 months in prison, second

offense was sentenced to 24 months and a third offense is punishable with

imprisonment of 18 months.

Mill theory

This ethical theory proposed by John Stuart Mill (1806-1873). He was a

philosopher, author, political scientist, scholar and also an economist that born in

London, United Kingdom. John Stuart Mill began his intellectual journey at an

early age, starting his study of Greek at the age of three and Latin at eight.  (John

Stuart Mill Biography)

As of overall, both of the ethical approaches have its own strengths and

weaknesses. However, our country, Malaysia is practising Islamic concept. In

Islam, Muslim should follow the right action that parallel with right consequences.

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1.2 Compare and contrast absolute and relative ethics.

Absolute ethics

Absolute ethics also known as moral absolutism which mean as the ethical belief

that there are absolute standards against which moral questions can be judged,

and that certain actions are right or wrong, regardless of the context of the act.

Thus, actions are inherently moral or immoral, regardless of

the beliefs and goals of the individual, society or culture that engages in the

actions. It holds that morals are inherent in the laws of the universe, the nature

of humanity, the will of God or some other fundamental source. (Mastin, 2008).

Therefore, when the universal standards of right or wrong apply to all people at

all times irrespective of their cultures or beliefs.

Relative ethics

Relative ethics known as moral relativism is a philosophy that asserts there is no

global, absolute moral law that applies to all people, for all time, and in all places.

Instead of an objective moral law, it espouses a qualified view where morals are

concerned, especially in the areas of individual moral practice where personal

and situational encounters supposedly dictate the correct moral position.

(Schumacher).

Based on relative ethics, the individual itself can decide what is right for them as

can say that “It’s true for me, if I believe it”. This ethic is based on the theory that

truth and rightness is different for different people of cultures.

Similarities between absolute and relative ethics

Page 5: Assignment 1 Business Ethics

Absolute Relatives

As a guideline

Table 1.1: Similarities between absolute and relative ethics

Based on table above, the similarities between absolute and relatives ethics is

both of the ethics are become a guideline. Based on both ethics, it says that what

right things to be done are and what are should not to be done. This guideline is

very essential especially for the business operation to operate ethically.

Differences between absolute and relative ethics

Absolute Relatives

Intolerant of other peoples’ beliefs and

moral ethics.

More tolerant of others & accept

different cultures live differently.

Fixed ethical code Flexible

Focus on the consequences Focus on the action

Table 1.2: Differences between absolute and relative ethics

One of the differences between absolute and relative ethics is about toleration.

As in table above, absolute ethics is intolerant of other peoples’ beliefs and moral

ethics as well. In this type of ethic, absolutists believe that their way is right and

could be accused of arrogance.

While for relatives, these ethics is more tolerant of others and accept that

different cultures live differently and follow different moral codes for whatever

reason. This is due to many traditions, religion or simply for practical survival as

well. (Andrews)

Absolute and relative also can be differ on what it focuses on. The absolute ethics

is focusing on the consequences which are the effect of the action itself. It is

focus on the good or wrong impacts. Meanwhile, relative ethics is focusing on the

action itself. This is due to the variable and will changes based on the

surrounding.

Apart from that, the absolute ethics is the fixed ethical code. When the universal

standards of right or wrong apply to all people at all times irrespective of their

culture or beliefs. While for relative ethics, it was more flexible than absolute.

Relative is based on the theory that truth and rightness is different for different

people or cultures. (Andrews)

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1.3 Explain the ethical issues which can affect the operational

activities of a business.

Marketing

Nestle Corporation unethically gave Nestle Formula Samples that make mothers’

breast milk would dry up for their own benefit in order to sell more infant formula

in third world countries. In order to get attraction from customers, Nestle hired

dressing women with no specialized training as nurses. Others than that, Nestle

did not provide enough information on their products sold.

As a result, in 1977, the world wide boycott was launch against the Nestle

Corporation. All the consumers all over the world stopped purchasing Nestle

products. Apart from that, the World Health Organization (WHO) drafted the

International Code on the Marketing of Breast Milk Substitutes.

Due to unethical way of Nestle Corporation, the operational business activities

especially in the production department of infant formula need to stop for a while

because of the boycott launched by the worldwide. The company’s sales also

affected where the sales of Nestle decreases after all the worldwide boycotting

them. Apart from that, the marketing and financial department also affected As a

result, the company needs to make a change in order to attract back their

customer.

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Discrimination

Discrimination is the act of treating someone differently-typically by restricting or

excluding the person from opportunity that are available to others-solely because

of that person's membership in a certain class or category of people. (Schneider,

2011). There are many types of discrimination which is the company try to

discriminate their workers based on gender, race, religion, skin color and many

more. This usually happened in companies that operating their business because

of special interest of the company it and they did not care about the different

culture of different people as well.

Religious discrimination refers to treating people differently because of their

religious beliefs and practices. (Schneider, 2011)

We can refer on case that happened at one big company which is Walt Disney

World and a Muslim woman.

‘A former Disney employee on Monday sued the California-based entertainment

giant, charging harassment and religious discrimination against her based on

her Muslim religion and ethnic origins in North Africa’. (Huus, 2012)

Based on this case, the company should not discriminate their employees

because they have contributed something for the company itself. The company

had unethically because asked the Muslim woman to open her hijab. The Disney

officials insisted that the women either wear different headgear or transfer to a

position where she would not be in the public's view.

In Islam, the Al-Quran mention in Chapter 24 known as an-Nur (the Light), in

verse 30, Allah commands Prophet Muhammad as follows:

Page 8: Assignment 1 Business Ethics

ظ)ن& ف& ي&ح) و& ار/ه/ن. &ب)ص& أ م/ن) ن& ض) ي&غ)ض8 ن&ات/ ؤ)م/ ل/ل)م8 ل) ق8... ن. ه8 و)ج& ر8 ف8

“Say to the believing women that: they should cast down their glances and guard their private

parts (by being chaste)…”

Since that woman is Muslim, she has responsibility and also compulsory to cover

her ‘aurat’ that have been teach in Islam. The reason why all the organization in

Malaysia should not discriminate on religious because to take care of the

harmony that practice in everyday life as our country as well. This also will lead

our company and economy towards a better economy and efficient progress.

This case had attracted the media attention and at the same time also affects the

business operation activities of Walt Disney World. It’s become viral and the

Muslim people all around the world criticized what have the company done. As a

result, the company Walt Disney World make a conference with the public to

make an explanation on the case happened.

Page 9: Assignment 1 Business Ethics

Conclusion

As a conclusion, as a human being, we are always make mistakes either we

realize or not. Some people trying to be fair, trying to be good without thinking

the consequences that he or she will liable with. As long as the action is correct

and no matter what will happened. There also some people that did not care

about the action that they will take but they concern on the consequences of the

action.

However, as a Muslim people, we should follow what Islam teach and back to the

straight path. Before make any action, we should think first what the

consequences happened if we do so. What the effects toward ourselves,

surrounding and also considered about other peoples too. As we know, in Islam,

we have ‘Kifarah’ which mean that what you give, you’ll get back; either it’s in a

good way or vice versa. Allah is fair. Terry Mark says that ‘Thinking before acting

is wisdom but acting before thinking is regret’.

Since both of the deontological and teleological theory are not really relevant to

be use nowadays, as a Muslim people we should follow what this Hadith mention:

Prophet (PBUH) said “I leave you two things.  As long as you follow these you will

never go astray: Allah’s Book (Quran) and the Sunnah of the Prophet.” (Muwatta,

Al-Qadr (Decree) 3).

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In a 2007 interview Noam Chomsky defined universalism or absolute as “If

something's right for me, it's right for you; if it's wrong for you, it's wrong for

me”. Differ with the relative, for example, slavery was considered moral in the

United States at one time but not anymore. If one society believes that slavery is

wrong and another believes that slavery is right, a moral relativist would say that

either side may be correct. We have no way of knowing for sure whether slavery

is ethically right or wrong, since human beings have not yet found an absolute

moral yardstick with which we can judge. (Connick)

The ethical issues that happened nowadays especially Malaysia becoming

serious. As for example in the corruption issue, our country has increased the

corruption index. According to The Star, Malaysia has climbed up three places in

the Corruption Perceptions Index (CPI) table for 2014. Malaysia scored 52 points

in the CPI score, two more points than they did last year. (Zainal, 2014). As a

result, the government and non-goevernment organisation should come with

solution in order to overcome the ethical issues happened in Malaysia.

References

Amendment to Article 8 (2) of the Federal Constitution. (2001, July 26). Retrieved from The Malaysian Bar: http://www.malaysianbar.org.my/press_statements/amendment_to_article_82_of_the_federal_constitution.html

Andrews, S. (n.d.). Explain the differences between relative morality and absolute morality. Retrieved from Marked by teacher: http://www.markedbyteachers.com/gcse/religious-studies-philosophy-and-ethics/explain-the-differences-between-relative-morality-and-absolute-morality.html

BBC. (2014). Duty-based ethics. Retrieved February 27, 2015, from BBC: http://www.bbc.co.uk/ethics/introduction/duty_1.shtml

Borneo, P. T. (2015, January 15). Kerani akaun pecah amanah dipenjara 56 bulan. Retrieved from Borneo Post: http://www.theborneopost.com/2015/01/15/kerani-akaun-pecah-amanah-dipenjara-56-bulan/

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Connick, W. (n.d.). Opposing Viewpoints: Moral Universalism vs. Moral Relativism. Retrieved from Tailored Content: http://www.tailoredcontent.com/library/metaethics.php

Huus, K. (2012, August 13). Muslim woman sues Disney over wearing hijab at work. Retrieved from US News: http://usnews.nbcnews.com/_news/2012/08/13/13261567-muslim-woman-sues-disney-over-wearing-hijab-at-work

John Stuart Mill Biography. (n.d.). Retrieved from Biography: http://www.biography.com/people/john-stuart-mill-9408210#synopsis

Kantian Duty Based Deontological Ethics. (n.d.). Retrieved from Seven Pillars Institute: http://sevenpillarsinstitute.org/morality-101/kantian-duty-based-deontological-ethics

Mastin, L. (2008). Moral Absolutism. Retrieved from The Basics of Philosophy: http://www.philosophybasics.com/branch_moral_absolutism.html

Teleological ethics. (2013, May 14). Retrieved from Priyanka: https://priyanka92.wordpress.com/2013/05/14/deontological-teleological-and-situational-ethics/

Schneider, B. (2011). Business Ethics for Dummies. Canada: Wiley Publishing.

Schumacher, R. (n.d.). What is Moral Relativism? Retrieved from CARM: https://carm.org/moral-relativism

Zainal, H. (2014, December 3). Malaysia climbs up three places in Corruption Index. Retrieved from The Star: http://www.thestar.com.my/News/Nation/2014/12/03/cpi-malaysia-50-improves-two-places/