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Ethics and Our Law Chapter 2

Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

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Page 1: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Ethics and Our Law

Chapter 2

Page 2: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

GOALS

• Define ethics

• Describe each element of the definition

• Define business ethics

Page 3: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

What is Ethics?

• Lisa found a $20 bill in the girl’s restroom at school. She bought her sister a gift with part of the money and put the rest of the money in her savings.

• Jim found $20 in the boy’s restroom. He knows whoever lost the money would probably need it, so he turned the money in to the office.

• Who is displaying more ethical behavior?• What would you do?

Page 4: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Hot Debate

• Should Julian inform the INS of Achmed’s whereabouts? If so, why?

• What are the reasons in favor of Julian not informing the INS?

Page 5: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

What’s your Verdict?

• Has Jane made an ethical decision?• If you were in Jane’s position, what would you

do?• Why so you think Jane's decision is okay?

Not okay?• What do you think Jane should do with the

exam she found?

Page 6: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Ethics

• Deciding what is right or wrong in a reasoned, impartial manner

Page 7: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

3 Elements:

1. Decision about right or wrong action

2. Decision is reasoned

3. Decision is impartial

Page 8: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

1) Decision about Right or Wrong Action

• Decision to buy blue jeans with wide pant legs or narrow pant legs?– Ethical component?

• Decision to discontinue medical support for an unconscious, terminally ill relative.– Ethical component?

• Many decisions have little effect on other persons or yourself

• To involve ethics, a decision must affect you or others in some significant way

Page 9: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

2) Reasoned Decisions

• We often act in response to our ________.EMOTIONS

• Ethical decision must be based on reason, not our emotions

• Usually refer to a written authority that provides consistency– Law– Religious texts

• “I believe that God is the source of the Bible and the Bible tells me not to lie. Therefore, it would be wrong, or unethical, for me to lie”

Page 10: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

3) Impartial Decisions

• Impartiality– The idea that the same ethical standards are

applies to everyone

• Ethics does not value one person or group of persons more than any other does– Men vs. Women

• Each person is an individual and should receive equal respect and consideration from others

Page 11: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Impartial Decisions (cont)

• It requires us to make ethical decisions while we balance our self-interest with the interest of others

• If you hit someone’s car and no one sees you, is it ethical not to report it?– Who is affected?

All of our actions affect others

Page 12: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Impartial Decisions (cont)

• Particularly important when organizations and institutions are involved– “It was only the school’s property”– “Just the insurance company was cheated”– Consider how the people behind the

institution are affected by the action

Page 13: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

In this Case

• What would you have done in Gabe’s place?• Why?• What would prompt them to keep the wallet?

Return the wallet?

Page 14: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Business Ethics

• The ethical principles used in making business decisions

• Too often, ethics are not considered when business decisions are made

• Why?

PROFIT MAXIMIZATION

Page 15: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Business Ethics (cont)

• Move factories offshore and cut jobs to reduce costs– Increase profits for the business owners

• The profit maximization ethic will need to be replaced by the more humane ethical standards

Page 16: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Assignment

• Pg 27 #1-11• Make sure that you answer all parts of

the question!!!!• Complete sentences

Page 17: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Reasoning About Right & Wrong

2-2

Page 18: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Goals

• Reason based on consequences

• Reason using ethical rules

Page 19: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Based on Consequences

• Rightness or wrongness is based only on the results of the action

• Particular acts have no ethical, or moral character

• A good act = good consequences

• A bad act = bad consequences

Page 20: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Based on Ethical Rules

• Acts are either right or wrong– Truth = right– Lying = wrong

• Good consequences do not justify wrong or bad acts– Can’t justify lying if it has a good

consequences

Page 21: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Same Conclusions

• For almost all ethical decisions, you reach the same conclusion using either form of reasoning– One should not lie

• Consequence-based reasoning – Recognizes that lying usually produces bad

consequences

• Rule-based ethics – Lying is always wrong

Page 22: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Ethical Reasoning Based on Consequences

1. Describe alternative action

2. Forecast consequences

3. Evaluate consequences1. Selecting the standard for judging

consequences as right or wrong

2. Counting the persons affected

Page 23: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

The Good

• The standard for judging right or wrong

Page 24: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Fundamental Ethical Rule

• Fundamental Ethical Rule – the acts themselves are judged as right or wrong

• Standard for judging comes from 2 sources:– Recognized Authority (law, religious text)– Human Reasoning (shows that things are

basically wrong)

• A test has been devised to determine whether an action is right or wrong……

Page 25: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Universalizing

• Picturing in your mind’s eye everyone in the world doing the action– Irrational?– Illogical?– Self-Defeating?

• If any of the three are true, the action is inconsistent with reason and therefore ethically wrong

Page 26: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Moral Rights

• Rightful claims on other people that flow from each person’s status as human beings

Page 27: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

How is Ethics Expressed in Our Laws?

Lesson 2-3

Page 28: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

• Majority Rule– Elected representatives vote for laws

acceptable to the majority of people they represent

• Do our laws more reflect consequence based or rule based ethics?– Consequence

Page 29: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

National Legislature

Congress

The House of Representatives The Senate

Page 30: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Our Laws Reflect Rule-Based Ethics

• Laws desired by the majority may conflict with moral rights– The majority may benefit from unjust laws

• The courts would declare invalid because they deny “equal protection of the law” to the minority

Page 31: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Our Laws Reflect Rule-Based Ethics

• The U.S. supports and recognized human rights– Undermine human rights = unconstitutional

• Civil Rights– Personal, human rights recognized and

guaranteed by the U.S. Constitution

Page 32: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Our Laws Reflect Rule-Based Ethics

• Federal Judges– Appointed NOT elected– Appointed for life

• Protect human rights without risking their job

Page 33: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Declaration of Independence

• Recognizes our fundamental rights

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness”

Page 34: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Other Ethical Goals Reflected in Our Law

• Laws need to be clearly stated and communicated– Ex. – Grades

• What’s your Verdict?

Page 35: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Are We Obligated to Obey Laws?

• Yes – Ethical reasoning demands it (avoid punishment)

Page 36: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Are We Obligated to Obey Laws?

• Ethics demands that we obey• We consent to be governed by laws• Integrity

– The capacity to so what is right even in the face of temptation or pressure to do otherwise

• We want to avoid punishment– Fined, jailed, put to death– Barred from jobs with security clearance

(Banks)– Licensed (Lawyers, doctors, accountants)

Page 37: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

• Employers usually purchase fidelity bonds for persons who handle large sums of money (cashiers)

• Fidelity Bond– An insurance policy that pays the employer

money in the case of theft by employees• Serious crimes do cannot qualify

Page 38: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Are We Ever Justified in Violating The Laws?

• What’s your verdict?

• Civil Disobedience– Open, peaceful, violation of a law to protest its

alleged injustice• Participants may be willing to be arrested in order to test

the validity of the law in court

– Goal = to make the legal system more just

Page 39: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Are We Ever Justified in Violating The Laws?

• Scofflaws– Persons who do not respect the law

• They assess the risk of being caught against the benefits they obtain

• They are NEVER ethically justified in violating the law

Page 40: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Chapter Review

• Ethics applies when decisions affect people

• Ethical decisions must be grounded on reason and impartiality

• There are two basic forms of ethics: those based on consequences and those based on fundamental ethical rules

• Ethics based on consequences evaluates only the results or effects of acts

Page 41: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Chapter Review (cont)

• The law tries to advance the goals of– Reflecting the will of those governed– Preserving natural rights– Maintaining order

• Both consequential and rule-based ethics compel us to obey the law

• Integrity is doing what is right even in the face of temptation or pressure to so what is wrong

Page 42: Ethics and Our Law Chapter 2. GOALS Define ethics Describe each element of the definition Define business ethics

Chapter Review (cont)

• We are obligated to obey the law because, by accepting society’s benefits, we have consented to be bound by laws

• We are obligated to obey the law if we believe in helping others. Civil disobedience is only justifies in rare and extraordinary circumstances

• We should obey the law if we desire to avoid punishment

• Civil disobedience is the open, peaceful violation of a law to protest its alleged injustice or unfairness