Business Ethics

Business Ethics What and how of BE?Why study ethics?Build a positive vision of the worldEnhance critical thinking skill Deal with the question of how ought I live?

Certain preliminary assumptions:We are in conversation to discover what is good livingAs we are capable of acting from the point of universeCapable of changing social forces that is reasoned to be unjust/oppressiveHuman nature: Poles apart but continuums One extreme IndividualEgoistCater to the BaseCater to desires and instincts

Actions are Instinctive Fundamental forceInstinct for survival of the self

Other extremeSocialAltruistCater to the HighestSearch for meaning of life and existenceActions moderated by Universal ReasonFundamental forceLonging to expand limitlesslyComplex Human NatureLower selfHigher selfGoal of ethics: Upward driveEthics implants a broader perspective in BusinessOther disciplinesManagerial Efficiency - Capitalist Good businessCreating hegemonyExclusivitySurvival of the strongestAppeal to the Basic in usinstinctBasis of explanationScientific: reason, logic EthicsHuman efficiency Holistic Good lifeAll inclusiveSpace for allSurvival of even the weakestAppeal to the Highest in usMeaning of lifeBasis of explanationScientific: reason, logicEmpathyWhat Is Ethics?Ethics is not science. Ethics is not the same as feelings.Ethics is not religion. Ethics is not following the law. Ethics is not following culturally accepted norms. Ethics/Morality/Values/EthosEthics and moralityMorality - Mores norms of the culture Ethics is an systematic inquiry Ethics and lawLegal codes are more preciseLaw is enforceable by the court of lawEthical codes may be vague at timesEnforcement of ethics is complex social processValues (tangible[economic], intangible[ethical])Ethos the moral character of a cultureCaste division/hierarchyNotion(s) about marriageCan You Teach Ethics?Socrates: Ethics consists of knowing what we ought to do, and such knowledge can be taught. Two Conceptions of MoralityWe can contrast two approaches to the moral life.The childhood conception of morality:Comes from outside (usually parents).Is negative (dont touch that stove burner!).Rules and habit formation are central.The adult conception of morality.Comes from within (self-directed).Is positive (this is the kind of person I want to be.).Virtue-centered,often modeled on ideals.8Stages of Moral Thought (Kohlberg)Pre-Conventional defines right and wrong in terms of what authorities sayConventional defines right and wrong in terms of group loyalty (friends, family, gang, nation)Post-Conventional views right and wrong from universal standards of justice, human rights, and human welfare Education is what stimulates growth through levels.Egoism self love / self interestAltruism self sacrificeClassical: characterVirtue Ethics golden mean for general well being and well being of self virtue - character- practical wisdomModern: Universal standards established through reasonUtilitarianism human flourishing and amelioration of suffering Maximum benefit for maximum numberDeontology universal rules of justice respect for rights and dignity of othersContractual system social survival and resolving conflict of interest principles + practicePost Modern: varies with change of perspectiveFeminist Ethics amelioration of power and dominationEthics of CareCan we deal with all purposes in any given case? Satisfactorily?The alternative is TradeoffsEthical FrameworksHighAltruismLow EgoismLowAltruismHighEgoismSelf-sacrificingaltruismSelf-interestat the expenseof othersSelf-interestand regardfor othersconvergeNot beneficialeither to selfor othersKant?HobbessState of Nature,Nietzsche?Drug addictionAlcoholism, etc. Aristotle Tocquevilles Self-interest rightly understood Lawrence M. Hinman123 4

2002 HBSPorter and KramerA Business case of ReconciliationThe Utilitarian Approach Focuses on the consequences that actions or policies have on the well-being of all persons directly or indirectly affected by the action or policy. The principle states: "Of any two actions, the most ethical one will produce the greatest balance of benefits over harms." https://www.youtube.com/watch?v=kBdfcR-8hEY

Misguided Utilitarianism in A Business Case Cost benefit analysis of Ford motorsCost of redesigning Pinto: $11 12.5 million autos = $137 million

Redesign would prevent 180 deaths, 180 burn injuries and 2100 burned vehicles

Benefits of redesigning (180 deaths $ 200,000) + (180 injuries $ 67,000) + (2,100 Vehicles $ 700) = $49.15 million The Rights Approach Ethical action is the one that best protects and respects the ethical rights of those affected.Each person has a fundamental right to be respected and treated as a free and equal rational person capable of making his or her own decisions.

Categorical Imperative: Immanuel KantVeil of IgnoranceTo design fair rules John RawlsShould be designed by ensuring objective conditionsOne Method: Veil of IgnoranceWherever absolute fairness can not be securedRules must be to the advantage of the less advantage

More accurate picture of human nature includes;We are embodied defined by our life circumstances-gender, class, family etc as opposed to ObjectiveWe are emotional naturally predisposed to a wide range of feelings that cannot help but possess as opposed to RationalWe are social naturally predisposed to be with and have feelings for others as opposed to Individualistic

Feminism and ethicsThe Virtue Approach Focuses on attitudes, dispositions, or character traits that enable us to be and to act in ways that develop our human potential. Examples: honesty, courage, faithfulness, trustworthiness, integrity, etc. The principle states: "What is ethical is what develops moral [ethical] virtues in ourselves and our communities." Education + HabitVirtue As the Golden MeanStrength of character (virtue), Aristotle suggests, involves finding the proper balance between two extremes.Excess: having too much of something.Deficiency: having too little of something.

Extravaganza generosity stinginessFoolhardiness courage cowardice

Not mediocrity, but harmony and balance.

Rightly-ordered DesiresAristotle draws an interesting contrast between:Continent people, whose desires are naturallyor through habit, second-naturedirected toward that which is good.Temperate people, who have unruly desires but manage to control them.Weakness of will (akrasia) occurs when individuals cannot keep their desires under control.Still they are able to make rational judgement

20How To Make an Ethical DecisionRecognize that decisions have ethical implicationsDevelop a method for exploring the ethical aspects of a decision Objective basisImmanuel Kants Categorical ImperativeRousseaus General WillJohn Rawls Veil of Ignorance

Recognize an Ethical IssueIs there something wrong personally, interpersonally, or socially? Could the conflict, the situation, or the decision be damaging to people or to the community?Does the issue go beyond legal or institutional concerns? What does it do to people, who have dignity, rights, and hopes for a better life together?

How to prioritize values?

A complex tradeoffReasoned choice with a sort of universal appealSafeguards rights Intrinsic (human) valuesRights of the vulnerable rights, justice, equality (at least impartiality) Best outcome utility - ConsequenceEmotions -CareIntention/motiveCharacter practical wisdom

Objectivity: social/ethical conflictObjectivity is located in the notion of adequately responding to all aspects of a conflictAnd rational agreement is brought in subsequently as part of what an adequate response involvesEngineers way of solving design problemsUnlikely to arrive at a unique resolution able to address every relevant aspect of the conflictTake a number of shortcuts in order to arrive at some reasonable resolution of the problemIt would be irrational not to, given the need to resolve the conflictTradeoffsIn designTradeoff between: precision, speed, capacity, weight, volume, power, aesthetics, so on.

In ethicsSelf and othersConsequence/utility and Intrinsic (human) values: Rights, justice, equality (at least impartiality) so onReason/rationality and Emotions, Duty and Care/love, Intention/motive and outcomePractical wisdom/Character and context

UltimateJean Paul Satre explains: Man makes himself. He isnt ready made at the start. In choosing his ethics, he makes himself, and force of circumstances is such that he cannot abstain from choosing one.

What are we doing: helping to choose (a better) one? How: through critical analysis?