Introduction to Business Ethics 1: Introduction Santi Martínez, 2013

Introduction to Business Ethics1: Introduction

Santi Martínez, 2013

Let’s start with a story…

Introduction to Business Ethics 2013 – Santi Martínez

Today’s agenda

Presentation and introduction

Contents of the course and learning objectives

Practical issues

Paradox

What is Ethics?

The main schools in normative ethics (I)


Introduction: me

M. Soc. Sciences (Univ. of Helsinki) ja MBA

(HSE)

Partner and trainer at Providentia Oy

www.hyvejohtajuus.fi

Expectations on this course

Introduction: you


Learning objectives

Learn the basic theories and concepts of Business Ethics.

Get the sensibility to grasp the presence of ethical dimensions.

Get the capability to analyse coherently and constructively ethical theories and ethical challenges in business.

Get the ability to discuss ethical challenges and dilemmas.

Get the ability to make the right decisions in real life under preassure.Introduction to Business Ethics 2013 – Santi Martínez

Description of the course

Introduction. Main schools of normative ethics (I)

Corporate Social Responsibility (I) Corporate Social Responsibility (II) Main schools of normative ethics (II) Ethical excellence at business (I): managerial

and subordinate skills Ethical excellence at business (II): decision

making & communication


Completion of the course

Lectures 18 h Active participation max 1 extra point to the final

mark (0-5)

Essays (2 pcs) ”Reaction paper” on two well-known articles Final ”reflexion essay” Minimum requirement: 1 point from each essay


Lectures

3 h = 9 – 12

1. Monday 11.3.2. Monday 18.3. 3. Monday 8.4.

4. Monday 15.4.5. Monday 22.4.6. Monday 29.4.


Instructions for the essays

Essay 1: Friday 18.4 (by 23.55) Essay 2: Monday 16.5 (by 23.55) Reccomended length: approx. 4-5 pages Delivery:

a) Hard copy during the lecturesb) Sent by e-mail to [email protected]


Paradox: Basic Question

Where does unethical behaviour come from? The desire to obtain a benefit at the expense of

others

Human weakness and human freedom

Wrong incentives and preassure to get results Deformed values

Moral illness


Paradox: Basic Starting Challenges

”Business is a game” ”Business relations are a special category of human

relationships. Their basic elements are competition, profit

maximization and personal success.”

“Business is therefore a kind of game, like football or

boxing.”

“In games, you don’t follow general moral principles, but

the rules of the game.”

“Therefore, in business you don’t follow general moral

principles, but the rules of business, which are competition,

profit maximization and personal success.”Introduction to Business Ethics 2013 – Santi Martínez

Paradox: Basic Starting Challenges


Paradox: Starting Challenges

Official corporate culture

• Official mission• Ethical values and

codes• Memos, manuals,

etc.

Real corporate culture

• Role models• Expectations• Personal values• Dreams, feelings• Real behaviour• The company’s own

history

vs.

Cases: Enron, Arthur Andersen…


Paradox: Starting Challenges


What is Ethics all about?

What did the story tell you?

http://www.justiceharvard.org/


Ethics -> greek ”ethos” (costume, habit) Morals -> latin ”mos-moris”

A part of philosophy that studies the behaviour of man, from the point of view of whether it is good or evil,

right or wrong.

INDIVIDUAL




GOOD

NORMS

PRACTICETHEORY



GOOD

NORMS

PRACTICETHEORY

Part of philosophy that teaches how man can reach a good life.


How Business and Ethics are linked together?

The triple ”E” of excellence

Efficiency Efficacy Ethics


Why Business Ethics?

Individual• Ethical

decision making

• Motivation at work

Organization• Ethical

cooperation

Environmet• Good image

TRUST


Teleology: consequentialism (telos = end, purpose)

GOOD

NORMS

PRACTICETHEORY


Teleology: consequentialism

Jeremy Bentham (1748-1832) An Introduction to the Principles of Morals and Legislation (1789)

Consequentialism:

The moral value of an action depends on

its consequences.


Teleology: utilitarianism

John Stuart Mill (1806-1873) Utilitarianism (1861)

UTILITY: HAPPINESS

”It is better to be a human being

dissatisfied than a pig satisfied; better to be Socrates dissatisfied than a fool satisfied.”


Teleology: consequentialism and utilitarianism

The objective of morals is the promotion of the good of society.

The good of society is the sum of its individuals’ happiness.

A moral priciple is ideally valid if, and only if, it maximises the good of society.

UTILITY BASED THINKING


Teleology: consequentialism and utilitarianism

Utilitarianism strongly present in:

The planning of the welfare politics Cost-benefit -analysis


Teleology: a criticism of consequentialism

Difficult to define and measure utility and happiness.

What should be done? Consequentialism does not make a difference

between desired and foreseen consequences. The moral value of any choice/action is known

only after it is made/done. ”I do not learn as long as I am lucky.” It allows hypocracy.


Deontology: rule –based ethics (deon = obligation)

GOOD

NORMS

PRACTICETHEORY


Deontology: rule –based ethics

Immanuel Kant (1724-1804) Critique of Pure Reason (1781) Groundwork of the Metaphysic of Morals(1785) Critique of Practical Reason (1788) Metaphysics of Morals (1797)



An inconditional obligation that binds all rational beings.

CATEGORICAL IMPERATIVE

For an action to have moral value, it must be done for the sake of duty.



“Always act according to that maxim whose universality as a law you can at the same time will.”

“The rational being must be trated as an end in itself.”

“Act as if your maxims should serve at the same time as the universal law.”



Deontology strongly present in:

Human rights related issues Issues related to distributive justice.


Deontology: a critic of rule –based ethics

Law is good because it obliges: duty is good. What is the foundation of absolute principles? ”I don’t care as long as I don’t get caught”:

rules are outside me.


Documents

Introduction to Business Ethics 1: Introduction Santi Martínez, 2013