Business Ethics

2-1

Universalizing

A tool to decide if an action is ethical

Picture everyone in the world doing the action.

-Would that make the world better or worse?

2 Ways to look at Ethical Decisions

Consequence based reasoning

Rule based reasoning

Consequence Based Reasoning

Rightness or wrongness is based only on the outcome of the action.

An act that produces good consequence is ethical, an act that produces bad consequences is unethical.

Recognizes that lying USUALLY produces bad consequences and is unethical.

Rule Based Reasoning

Based on ethical rules

Acts are either right or wrong

Example: telling the truth is always right, lying is always wrong.

Good consequences do not justify wrong or bad actions.

The two methods OFTEN result in the same outcome of an ethical decision.

Example:Lying is always wrong vs. lying produces

bad outcomes.

Consequence Based First looks for alternative ways to

alter the current situation. Then it attempts to forecast the

consequences that will arise from each alternative.

Finally, it evaluates those possible outcomes to select the alternative that will generate the greatest good.

1. Select the standard for judging consequences as right or wrong.

2. Counting the people affected - greatest good for greatest number of people.

Rule Based

The acts themselves are judged as right or wrong.

Standard for judging usually comes from one of two sources

1. A recognized authority - law or religious text

2. Human reasoning - use the universalizing test

What’s Your Verdict?

John inherited his grandparents’ home. He built a garage for his car in the yard between his house and his neighbor’s property line. Later, when he decided to build a fence on the border, he discovered that the garage was too close to the property line. So, he built the fence one foot onto the neighbors’ property. John lived alone and three people lived on the neighbor’s property.

Rule Based Reasoning

Was the action wrong?

Consequence Based Reasoning

What are the possible actions?Does the action create the greatest

good for the greatest number of people?

Which alternative is best?