Normative theories of ethics ppt

Chapter Two:
Normative Theories of Ethics
*

*

Ponzi scheme

Bernie Madoff and the SEC

Bernie Madoff’s Ponzi scheme may have cost investors up to $65 million
Many organizations failed after Madoff ‘s crimes discovered
Securities and Exchange Commission had numerous complaints that it failed to follow up on properly
Subsequent SEC analysis claimed errors due to inexperienced staff
A painful reminder that we depend on regulatory agencies to protect us
*

Bernie Madoff (arrested Dec 11, 2008)

*

Introduction

Ethical dilemmas: Situations involving conflict between ethical principles or normative priorities
Dilemmas have deep impact on the evolution of ethical reflection.
Solving ethical dilemmas involves:
Appeal to theoretical constructs
Reevaluation of established moral standards and inherited intuitions
Moral Issues in Business

Chapter 2

*

Consequentialist and Nonconsequentialist Theories

Consequentialist theories: Those that determine the moral rightness or wrongness of an action based on the action’s consequences or results
Nonconsequentialist (or deontological) theories: Those that do not only determine the moral rightness or wrongness of an action based on the action’s consequences
Moral Issues in Business

Chapter 2

*

Egoism

Egoism: The view that morality coincides with the self-interest (well-being) of oneself or an organization one is part of
Egoists: Those who determine the moral value of an action based on the principle of self-interest
An action is morally right if it promotes one’s long-term self-interest.
An action is morally wrong if it undermines the agent's self-interest.
Moral Issues in Business

Chapter 2

*

Egoism

Personal egoists: Those who adopt an egoist ethic for themselves but do not make the universal claim that all individuals should do the same
Impersonal egoists: Claim that the pursuit of one’s self-interest should motivate everyone’s behavior
Egoists do not necessarily care only about pursuing pleasure (hedonism) or behave dishonestly and maliciously toward others.
Egoists can assist others if doing so promotes their own well-being.
Moral Issues in Business

Chapter 2

*

Utilitarianism

Definition: The moral theory that we should act in in ways that produce the most pleasure or happiness (and least amount of suffering) for the greatest number of people affected by our actions
Main representatives: The British philosophers Jeremy Bentham (1748–1832) and John Stuart Mill (1806–1873)
The principle of utility: Actions are right if they promote the greatest human welfare, and wrong if they do not
Moral Issues in Business

Chapter 2

*

Utilitarianism

Four points concerning utilitarianism:
In choosing between alternative courses of action, we should consider the net worth of happiness vs. unhappiness produced by each course of action.
Moral Issues in Business

Chapter 2

*

Utilitarianism

(2) Anything can be morally praiseworthy in some circumstances if it promotes the greatest balance of pleasure vs. pain for the greatest number of people.

(3) We should seek to maximize happiness, not only immediately, but in the long run.

(4) We should do what is likely to cause happiness and likely not to cause suffering when we lack certainty.

Moral Issues in Business

Chapter 2

*

Utilitarianism

Utilitarianism in an organizational context:
Provides a clear and straightforward standard for formulating and testing policies
Offers an objective way for resolving conflicts of self-interest
Suggests a flexible, result-oriented approach to moral decision making
Moral Issues in Business

Chapter 2

*

Utilitarianism

Criticisms of utilitarianism:
The practical application of the principle of utility involves considerable difficulties.
Some actions seem to be intrinsically immoral, though performing them can maximize happiness.
Utilitarianism is concerned with the amount of happiness produced, not how the amount is distributed, so the theory can run counter to principles of justice.
Moral Issues in Business

Chapter 2

*

Utilitarianism

Utility and self-interest: Businesses are concerned with increasing profit and can be viewed as egoistic, but pursuing one’s own economic advantage can increase the well-being of society as a whole.
Adam Smith (1723–1790): The main promoter of classical capitalism who argued that society can flourish if businesses are left to freely pursue their self-interests.
Moral Issues in Business

Chapter 2

*

Kant’s Ethics

Immanuel Kant (1724–1804): A German philosopher with a nonconsequentialist approach to ethics
Said the moral worth of an action is determined on the basis of good will
Good will: The capacity to act from rational moral principles. A person who acts from good will acts “out of duty”.
Moral Issues in Business

Chapter 2

*

Kant’s Ethics

The categorical imperative: Morality as a system of laws analogous to the laws of physics in terms of their universal applicability
Moral Issues in Business

Chapter 2

*

Kant’s Ethics

An example of the categorical imperative:
A building contractor promises to install a sprinkler system in a project
But he is willing to break that promise to suit his purposes
His view can be expressed as: “I’ll make promises that I’ll break whenever keeping them no longer suits my purposes”
By willing the view to become a universal law, the contractor undermines promises in general
Moral Issues in Business

Chapter 2

*

Kant’s Ethics

Kant in an organizational context:
The categorical imperative provides a solid standard for the formulation of rules applicable to any business circumstances.
Kant emphasizes the absolute value and dignity of individuals.
Kant stresses the importance of acting on the basis of right intentions.
Moral Issues in Business

Chapter 2

*

“Is the categorical imperative an adequate test of right? A moral rule must function without exception, according to Kant. How applicable is that tenet to torture?”

*

Prima Facie Obligations

W. D. Ross (1877–1971): British scholar who held that our moral experiences are too complex to be reduced to the principle of utility or the categorical imperative. His beliefs:
We have various duties that oftentimes come into conflict with each other.
There are no universal rules for the resolution of conflicts of duties.
Different situations generate different priority orders of duties.
Moral Issues in Business

Chapter 2

*

Prima Facie Obligations

Prima facie obligation: Can be overridden by a more important duty in specific circumstances Example:
We are in conflict over the duty to keep our promise to a friend and the duty to help a person in need.
We may have to override the promise and favor the more important duty to help the person.
But in some other circumstances we ought to do the opposite.
Moral Issues in Business

Chapter 2

*

Moral Decision Making

How do we reach an agreement on controversial ethical issues in business?
In any moral discussion, make sure participants agree about the relevant facts.
Once an agreement on factual matters is reached, try to spell out the moral principles endorsed by the participants.
Articulate the common grounds between the diverse ethical viewpoints of the participants.
Moral Issues in Business

Chapter 2

*

(3) Moral Decision Making

Guidelines for handling cases involving conflicting obligations, ideals, and effects:
Choose the stronger of two or more conflicting obligations.
Honor the more important of two or more conflicting ideals.
Of two or more rival actions, choose the one that produces the greater good or the lesser harm.
Moral Issues in Business

Chapter 2

*