Business Ethics Chapter 2

Normative theories

Propose some principle or principles for distinguishing right actions from wrong actions. There are two kinds: consequentialist and non-consequentialist

Consequentialist theories

the moral rightness of an action is determined solely by its results. If its consequences are good, then the act is right; if the consequences are bad, then the act is wrong.

Consequentialists

Moral theorists who follow consequentialism deterring what is right by weighing the ration of good and bad that an action will produce. The right act is the one that produces at least as great or greater a ratio of goodness.

Two most important consequentialist theories

Answer the question, "consequences for whom" includes egoism and utilitarianism.

Egoism

An act is morally right if and only if it best promotes the agent's own interests. Agrees that the rightness and wrongness are solely a function of the action's results.

Impersonal Egoist

Claim that everyone should let self-interest should guide his or her conduct.

Personal Egoist

Claim they should pursue their own best interests but they do not say what others should do.

Utilitarianism

Holds that one must take into account everyone affected by the action. We should always act to produce the greatest possible balance of good over bad for everyone affected by our actions. "Good" means happiness or pleasure. Agrees that the rightness and w

Non-consequentialist "dentological" theories

Also known as dentological theories contend that right and wrong are determined by more than the likely consequence of an action. They suggests that what makes an act is wrong is not just the consequences that it causes but the fact that some things are i

Hedonism

All egoists do not endorse hedonism, the view that pleasure or happiness is the only thing that is good in itself, that it is the ultimate good, the one thing in life worth pursuing for its own sake. Greek philosopher, Epicurus said that other egoists hav

Psychological egoism

The idea that human beings are naturally selfish creatures. It asserts that all actions are selfishly motivated and that truly unselfish acts are therefore impossible.

Problems with Egoism

1. Psychological Egoism is not a sound theory - says that self-interest is the only thing that motivates anyone ever. Take the example of the trucker who saves someone from the scene of an accident and leaves before being recognized.
2. Ethical Egoism is

Jeremy Bentham & John Stuart Mill

Believers of utilitarianism. Early things who had a strong interest in legal and social reform. They used the utilitarian standard to evaluate and criticize the social and political institutions of their day. As a result, utilitarianism has long been asso

Jeremy Bentham

The interests of the community are the sum of the interests of its members. Said that pains and pleasures are mere sensations. He offered a hedonic calculus of 6 criteria for evaluating pain and pleasure exclusively by their quantitative differences- spec

John Stuart Mill

Thought that Bentham's view of pleasure was too simple. He believed that the pleasures of intellect and imagination have a higher value than those of mere physical sensation. For mill the utility principle must take into consideration the relative quality

Act utilitarianism

states that we must act ourselves what the consequences of a particular act in a particular situation will be for all those affected.
According to act utilitarianism we have only one moral obligation, the maximization of happiness for everyone concern and

Six Points about Utilitarianism

1. When deciding which action will produce the greatest happiness, we must consider unhappiness or pain as well as happiness.
2. Actions affect people to different degrees.
3. Because utilitarians evaluate actions according to their consequences and becau

Three features of utilitarianism that make it appealing in an organizational context

1. utilitarianism provides a clear and straightforward basis for formulating and testing policies
2. utilitarianism provides an objective and attractive way of resolving conflicts of self-interest.
3. utilitarianism provides a flexible, result-oriented ap

Critical Inquiries of Utilitarianism

1. Is utilitarianism really workable? It is very complex; in difficult situations is may be difficult to be certain about the other options open to us and it gets increasingly complex as the number of people increase.
2. Are some actions wrong, even if th

Eminent Domain

The idea that a government may appropriate private property for public use (after compensating the owner).

Interplay between self-interest and utility

Both self-interest and utility play important roles in organizational decisions, and the views of many businesspeople blend these two theories. To the extent that each business pursues its own interests and each businessperson tries to maximize personal s

Adam Smith

Argued that leaving business and businesspeople to pursue their self-interest will serve the good of society.

Business egoism

The view that it is morally acceptable (or even morally required) for individuals to pursue their economic interests when engaged in business is defended on utilitarian grounds.

Immanuel Kant

NONCONSEQUENTIALIST - He believed that moral rule can be known as a result of reason alone and are not based on observation. He holds that we do not have to know anything about the likely results of telling a lie, for example, to know that it is immoral.

Priori

Moral reasoning is not based on factual knowledge and that reason by itself can reveal the basic principles of morality.

Moral Worth

Kant said that only when we act from a sense of DUTY does our action have moral worth. When we act only out of feeling, inclination, or self-interest, our actions- although they may be otherwise identical with ones that spring from the sense of duty, have

Categorical Imperative

For Kant, the moral law must hold in all circumstances.
Kant believed that there is just one command that is categorical and thus necessarily binding on all rational agents, regardless of any other considerations. From this one categorical imperative, aka

Hypothetical Imperative

Tells us what we must do on the assumption that that we have some particular goal. For example: If you want to be a doctor you must go to medical school. In contrast, Kant's imperative is categorical meaning that it commands unconditionally.

Universal Acceptability

This is another way of looking at the categorical imperative. You can embrace something as a moral law only if all other rational beings can also embrace it. To see whether a rule or principle is a moral law, we can thus ask if what it commands would be a

Humanity as an End, Never as Merely a Means

As rational creatures we should always treat other rational creatures as ends in themselves and ever as only means to our own ends. This underscores Kant's belief that every human being has an inherent worth resulting from the sheer possession of rational

Kant in an organizational context

Like utilitarianism, Kant's moral theory has application for organizations.
1. The categorical imperative gives us firm rules to follow in moral decision making, rules that do not depend on circumstances or results and that do not permit individual except

Critical inquiries of Kant's ethics

1. What has moral worth? Many theorists believe that Kant was to severe on the point that only if an act is done out of duty does it have moral worth. Is that really true? I think not.
2. Is the categorical imperative an adequate test of right? Critics sa

Other Nonconsequentialist Perspectives

Kant is not the only nonconsequentialist!!!
Other nonconsequentialists believe that a duty to assist others and to promote total happiness is only one of a number of duties incumbent upon us.

W.D. Ross

REJECTS KANTIANISM - arguing that we have many moral obligations.
Ross rejected utilitarianism as too simple and as untrue to the way were ordinarily think about morality and about our moral obligations. According to Ross, we see ourselves as being under

Prima Facie Obligation

is an obligation that can be overridden by a more important obligation.

Nonconsequentialist and Assisting Others

Nonconsequentialists believe that utilitarianism presents too simple a picture of our moral world. In addition, they worry that utilitarianism risks making us all slaves to the maximization of total happiness.
Nonutilitarian philosophers believe that we h

Supererogatory actions

Actions that would be good to do but not immoral not to do. I.E. You don't have to be mother teresa.

Legal right

a right that you are entitled to under the law.

Moral right

rights that derive from special relationships, roles, or circumstances in which we happen to be. Example: If I have agreed to water your plants while you are on vacation, you have a right to expect me to look after them in your absence.

Human rights

Moral rights that are not the result of particular roles, special relationships, or specific circumstance. Human rights have 4 characteristics
1. Human rights are universal.
2. Human rights are equal rights.
3. Human rights are not transferable, nor can t

Negative Rights

Reflect the vital interests that human beings have in being free from outside interference. The rights guaranteed in the Bill of Rights - freedom of speech, assembly, religion, and so on fall within this category.

Positive Rights

Reflect the vital interests that human beings have in receiving certain benefits. Require others to to provide us with these rights. Positive rights include the right to education, medical care, equal job opportunity etc.

Nonconsequentialism (for non kantians) in an organizational context

1. In its non-Kantian forms nonconsequentialism stresses that moral decision making involves the weighing of different moral factors and considerations. It does not reduce morality solely to the calculation of utility rather it recognized that an organiza

Critical inquiries of nonconsequentialism

1. How well justified are these nonconsequentialist principles and moral rights? Even moral principles that seem obvious or a matter of common sense have to be examined critically
2. Can nonconsequentialists satisfactorily handle conflicting rights and pr

Rule Utiltarianism

Maintains that the utilitarian standard should be applied not to individual actions but to moral codes as a whole. The rule utilitarian asks what moral code a society should adopt to maximize happiness. RICHARD BRANT - defended this theory. He said, A rul

Optimal Moral Code

The "optimal" moral code does NOT refer to the set of rules that would do the most good if everyone conformed to them all the time. It must take into account what rules can reasonably be taught and obeyed, as well as the costs of inculcating those rules i

What will the optimal code look like?

1. People will make mistakes if, before they act, they try to calculate the consequences of each and every thing they might possibly do.
2. If all of us were act utilitarians, practices such as keeping promises and telling the truth would be rather shaky

Critics of Rule Utilitarianism

1. Act utilitarians maintain that a utilitarian who cares about happiness should be willing to violate rules in order to maximize happiness.
2. Nonconsequentialists, while presumably viewing rule utilitarianism more favorably than act utilitarianism, stil

How to have a productive conversation about different morals?

1. Make sure participants agree about the relevant facts.
2. Once there is a general agreement on factual matters, try to spell out the moral principles to which different people are appealing.

Ideal

Is a morally significant goal, virtue, or notion of excellence worth striving for.

The approach moral decision making

A two-step approach to moral decision making is to identify the relevant obligations, ideals, and effects and then decide which consideration deserves the most emphasis.

Maxim (according to google)

Act only on those maxims (or rules of action) that you could at the same time will to be a universal law. The Categorical Imperative is a rule for testing rules. Basically it requires the following steps: Before you act, consider the maxim or principle on