Moral Theories

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Chapter One

Ethical Theory and Business

Practice

Ethical Theory and Business, 6th EditionTom L. Beauchamp & Norman E. Bowie


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Objectives

After studying this chapter the student should

be able to:

Distinguish between morality and ethical theory.

Distinguish between morality and prudence.

Distinguish between morality and law.

Explain the three approaches to the study of

morality.

Describe the moral theory of relativism.

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Objectives

Discuss the egoism moral theory.

Explore some of the problems of the egoism

theory.

Interpret the different types of utilitarian theory.

Discuss some of the problems of the utilitarian

theory.

Apply Kantian ethics using different scenarios.

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Objectives

Explain the principles behind the common

morality theories.

Explore the concept of rights theories.

Distinguish between virtue ethics, and feministtheories and the ethics of care.

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Overview

Morality

Approaches to the Study of Morality

Relativism Egoism

Utilitarian Theories

Kantian Ethics Common Morality Theories

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Overview

Rights Theories

Virtue Ethics

Feminist Theories and the Ethics of Care Analysis of Cases

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Morality

Principles or rules of moral conduct that

people use to decide what is right or wrong.

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Morality v. Ethical Theory

Morality is concerned with the social practices

defining right and wrong.

Ethical theory and moral philosophies provide

guidelines for justification of right or wrong

actions when settling human conflict.

No one moral philosophy is accepted by

everyone!

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ETHICS AND MORALITY

The Law of Business must consider ethics and

morality.

Ethics: guiding philosophy of a group, societalvalues concerning right and wrong.

Morals: principles of right and wrong measured by

an individuals conscience.

Ethics vary from society to society whereasindividual morals remain fairly constant.



Morality v. Prudence

Rules of prudence promote self-interest, doing

what is prudent for oneself.

Rules of morality promote the interest of

other people.

Morality and prudence should generally work

hand-in-hand if a business is to succeed.

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Law

Public's agency for translating morality intoexplicit social guidelines and practices and

for stipulating punishments for offenses.

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Morality v. Law

Statutory law v. case law

Statutory laws are federal / state statutes and

their accompanying administrative regulations.

Case laws are judge-made laws that establish

influential precedents that provide material for

reflection on both legal and moral questions.

Morality and ethics begin where the law isunclear or not defined!

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Rule of Conscience

Consciences:

Vary from person to person and time to time.

Are altered by circumstance, religious belief, life

experiences, and training.

Are not consistent from day to day.

Moral justification must then be based on a

source external to conscience itself.

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Approaches to the Study of

Morality

Descriptive approach - provides a factual

description and explanation of moral behavior

and beliefs, as performed by anthropologists,

sociologists, and historians.

Referred to as the scientific study of ethics.

Conceptual approach - analyzes meanings of

central terms in ethics such as right,obligation, justice, good, virtue, and

responsibility.

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Approaches to the Study of

Morality

Prescriptive approach - attempts to formulate

and defend basic moral norms or standards by

determining what ought to be done versus

what is being done.

Referred to as normative ethics.

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ETHICAL THEORIES

Consequential and Non-consequential

Principles.

Consequential: evaluate action by examining theconsequences produced by the action.

Non-consequential: focus of the concept of duty

rather than what is right or wrong.



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ETHICAL THEORIES

Consequential Ethics. Egoism: rightness determined by consequences the act

produces for person performing the action. Holds one will actin a manner which produces greatest balance of good over

bad for oneself. Utilitarianism: rightness determined by consequences the act

produces for ones group. Holds one should act in such amanner which will, over time, produce most good over badfor ones group.

Feminism: emphasizes attention be paid to the effect ofdecisions on individuals. Focuses on character traits.



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ETHICAL THEORIES

Non-Consequential Ethical Theories.

Kant and the Categorical Imperative: suggests certain

universal moral truths every person must follow in order to

act morally and ethically. Imperative that one follow certainperfect truths.

Rawls and the Veil of Ignorance: theory suggesting that rules

of ethical behavior be created by persons who ignore their

own characteristics and circumstances including gender,

race, ethnicity, and/or religion.


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ETHICAL THEORIES

Other Theories:

Relativism: states that two people or two societies

may hold opposed ethical views to one another,and yet both may be correct.

The Golden Rule: advises each person to do onto

others as you would have others do unto you.


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Relativism

An ethical theory that claims right and

wrong is subjectively determined by each

culture.

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Relativism

What is good is socially accepted and what is

bad is socially unacceptable in a given culture.

There is no such thing as universal truth in

ethics, there are only the various cultural

codes and nothing more.

An argument against relativism:

There are some basic moral principles that all

societies will have in common, because those

rules are necessary for society to exist.

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Methods to Easing Moral

Disagreements

Obtaining objective information

Definitional clarity

Example-counterexample Analysis of arguments and positions

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Egoism

A moral theory that contends all choiceseither involve or should involve self-

promotion as their sole objective.

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Psychological Egoism

Everyone is always motivated to act in his or

her own perceived self-interest.

A main argument against psychological egoism

is that there may be no purely altruistic moral

motivation to help other people unless there

is personal gain.

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Ethical Egoism

The only valid standard of conduct is the

obligation to promote one's own well being

above everyone else's.

Ethical egoists believe that people should not

be their brothers keeper, because people do

not completely understand the true needs of

others.

Its every man for himself in this world!

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Moral theories that assert an actions

rightness is determined by the actual or

probable consequences that the action will

have for the greatest number of people

affected by that action.

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Utilitarian theories hold that the moral worth

of actions or practices are determined solely

by their consequences.

An action or practice is right if it leads to the

best possible balance of good consequences

over bad consequences for all the parties

affected.

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Act utilitarianism

Argues that in all situations the utility of an action

is based on an act that leads to the greatest good

for the greatest number.

Treats rules as useful guidelines to help determine

ethical behavior.

Will break a moral rule if breaking the rule leadsto the greatest good for the greatest number.

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Rule utilitarianism

The morality of an action should be evaluated on

the basis of principles or rules designed to

promote the greatest utilityfor the greatestnumber.

Rule utilitarians hold that rules have a central

position in morality that cannot be compromised

by the demands of particular situations.

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Utilitarian decision-making relies on tools such

as cost-benefit analysis and risk assessment to

determine the greatest utility.

Main argument against utilitarianism is

questioning whether units of happiness or

some other utilitarian value can be measured

and compared in order to determine the bestaction among alternatives.

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Kantian Ethics

A moral theory that holds you should followonly those rules which you would will to be

universal laws for everyone, including

yourself.

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Kantian Ethics

Categorical imperativeprinciple states "Iought never to act except in such a way that Ican also will that my maxim should become

universal law." The principle is categorical because it admits of no

exceptions and is absolutely binding, and isimperative because it gives instruction on how

one must act. Respect-for-persons principle states persons

should never be used as a means to an end.

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Kantian Ethics

Kant believed that morality should follow

absolute rules that admit no exceptions,

which has been a major argument against this

theory.

Another argument against Kantian theories is

that they are narrow and inadequate to

handle various problems in the moral life.

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Common Morality Theories

A moral theory based on the concept thereis a common morality that all people share

by virtue of communal life.

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Common Morality Theories

The greatest obligation in any given

circumstance must be found based on the

greatest balance of right over wrong in that

particular context.

Obligations and rights are not inflexible

standards, but rather strongprima facie moral

demands that may be overridden incircumstances of competition with equal or

stronger moral claims.

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Rights Theories

A moral theory based on the concept that all

people have human rights that form the

justifying basis of obligations because they

best express the purpose of morality, which

is the securing of liberties or other benefits

for a right-holder.

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Rights Theories

Human rights are held independent ofmembership in a state or other socialorganization.

Human rights evolved from the notion ofnatural rights.

Natural rights are rights that belong to all personspurely by virtue of their being human.

Negative rights pertain to the obligations onthe part of other people to refrain frominterfering with our freedom of action.

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Rights Theories

Positive rights impose obligations on people to

provide other people with goods or services.

A primary problem with this theory is that

there is no hierarchy for rights claims:

How does someone determine which right takes

precedence or has more value over other rights?

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Virtue Ethics

This moral theory suggests that morality is

comprised of virtue, which has to do with aperson's character and the types of actions

that emanate from that character.

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Virtue Ethics

Some typical virtuous traits in the business

arena would be integrity, honesty,

truthfulness, courage, loyalty, courteousness,

and conscientiousness.

Virtuous traits are acquired and developed

throughout our life experiences.

A primary problem with this theory is thatpeople have varying definitions of what traits

are considered virtuous.

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Feminist Theories and the Ethics of

Care

This moral theory focuses on a set of

character traits that are deeply valued in

close personal relationships.

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Care

Typical traits would include sympathy,

compassion, fidelity, love, friendship, and the

like.

This theory grew out of two feminist

presuppositions:

The subordination of women is as wrong as it is

common. The experiences of women are worthy of respect

and should be taken seriously.

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F i i Th i d h E hi f


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Care

An argument against this theory is that the

focus is on how power is used to oppress

women only, whereas traditional ethics is

based on the assumption that its values andrules apply to all rational persons equally.

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Analysis of Cases

The case method in law is used to show

examples of established precedents of

evidence and justification.

The case method in business is used to

present managerial situations so managers

will know how to think when confronted with

a dilemma.

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Analysis of Cases

The casuistical method for case analysis in

ethics is used to show conclusions on ethical

matters, then to compare and contrast the

central features of the morally clear andsettled cases with the features of unsettled

cases.

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GAME THEORY OF BUSINESS

ETHICS

Business is an Amoral Institution: originally

held business to be amoral meaning they

could not act morally or immorally as theywere not natural persons.

The Game Theory: operating a business is

like playing a game. No longer practical as

government now establish the rules (legalregulations) for business.


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SOCIAL CONTRACT THEORY

Holds that businesses owe duties to societyas society allows business to exist. SocialContract Theory considers:

The Changing Social Environment.

Problems with Business Ethics: no fixedguidelines to follow and no formal code of ethicsthat a business should follow.

The Human Factor. The Legal Aspect.


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MULTINATIONAL ETHICS

Global Competition and Marketing

Opportunities.

Demand business consider social values in othercountries where firms do business.


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RECOMMENDATION FOR BUSINESS

Create framework for business ethics:

Adopt synthesis approach to resolve ethical issues.

Consider public image and consequences of actions.Adapt ethical standards as rapid change is constant in

business.

Work with government rather than against

Will not be easy but alternative is increased regulation and

public mistrust.

Documents

Moral Theories