1 Some Different Views About Business Ethics David Long Canterbury Christ Church University IPW Helsinki Metropolia Business School, Finland May 13 – 17 2013
Dec 25, 2015
11
Some Different Views
About Business Ethics
David LongCanterbury Christ Church University
IPW Helsinki Metropolia Business School, Finland May 13 – 17 2013
22
Aims of this Lecture
The aims of this lecture are to introduce:
The difference between ethics and the law The concepts of Moral Absolutism and Moral
Relativism To contrast Consequentialism and Non-
Consequentialism To understand a range of different views about
business ethics.
33
Good people do not need laws to tell them what to do
Bad people will always find a way round.
Ethics and the Law
Ethics
Law
grey area
Source: Crane & Matten (2010) p7
55
Ethics and the Law
ALegal
Ethical
BNot Legal
Ethical
CLegal
Unethical
DNot legalUnethical
Ideal statetrue free market
Minimal compliancewith the law
Difficult decisionsethics influencenew laws
Worse casescenario
© Long & Taylor, 2007
66
If Laws are what you MUST do ...
Ethics are what you OUGHT to do
77
Moral Absolutism vs Moral Relativism
Moral AbsolutismUniversal notions of right and wrong associated (often) with religious and humanist schools of thought
Moral RelativismNotions of right and wrong depend on the circumstances (e.g. Culture, environment, pressure etc.)
88
Consequentialism vs Non-Consequentialism
ConsequentialismThe result of an action determines what is right or wrong. The means (action taken) are justified by the ends achieved e.g. Utilitarianism
Non-ConsequentialismRight and wrong determined by motives, principles or rules, not outcomes. There is a primary need to respect persons e.g. Deontology/Kantianism
99
Consequentialism:Utilitarianism
According to Utilitarianism, an action is According to Utilitarianism, an action is morally right if it results in the greatest morally right if it results in the greatest amount of good for the greatest number of amount of good for the greatest number of people affected by the actionpeople affected by the action
Maximise benefits to society and minimise harmsMaximise benefits to society and minimise harms Net balance of good consequences over badNet balance of good consequences over bad Assumes all people are equalAssumes all people are equal Not a perfect picture, but to bring the greatest Not a perfect picture, but to bring the greatest
pleasure to the greatest number of people, but pleasure to the greatest number of people, but not all the people.not all the people.
1010
Deontology/Kantianism
• Proposed by the Greek Philosopher Plato
• Idealists regard moral values as unchanging
• Immanuel Kant (German Philosopher 1724-1804) extended Plato’s ideas
– Categorical Imperatives of Consistency, Dignity & Universality
– Primary Respect for Persons.
Non-Consequentialism:
1111
Now some Post-Modernist Views about Business Ethics ...
1212
“Business is Part of Society”Richard De George
“Business is not just a matter of economic exchange … it involves human interactions, is basic to human society”
Moral judgements sometimes differ from business judgements
Good ethical practice pays in the long term
- Difficulties with moral pluralism in the world
- Wealth arguments … who deserves profit?
- The importance of moral education and the social impact of decisions.
(source: Chryssides & Kaler, 1993, original article 1978)
1313
“The Poker Game Analogy”Albert Carr
“The ethics of business are not those of society, but rather those of the poker game”
Pressure to deceive in business Two sets of ethical standards:
- Home- Office
Duty to obey the laws, not to make them Self-regulation versus legislation The ‘game’ of business.
(source: Chryssides & Kaler, 1993, original article HBR 1968)
1414
“The Social Responsibility of Business is to Increase its Profits”Milton Friedman
Only human beings have a moral responsibility for
their actions It is a manager’s responsibility to act solely in the
interests of shareholders Social issues and problems are the proper province
of the state rather than corporate managers.
(source: Chryssides & Kaler, 1993, original article NY Times 1970)
1515
“The Stakeholder Theory of the Modern Corporation”Edward Freeman
Managers have a fiduciary responsibility to
stakeholders of a business This responsibility goes wider than shareholders, to
include employees, customers, the local communities and governments
Each stakeholder has the right not to be treated as a ‘means to an end’.
(source: Chryssides & Kaler, 1993, pp 254-265)
1616
Different Views of Ethics:Summary of Learning
People hold different views about right and wrong, both within and between different national cultures
There appears to be no single right way to resolve ethical issues
Frameworks exist to explain different behaviour.
1717
And Finally, Ernest Hemingway Wrote About Ethics
I know only that ..I know only that ..
What is moral … you feel good afterWhat is moral … you feel good after
What is immoral … you feel bad afterWhat is immoral … you feel bad after
Ethics is what you do … hoping others Ethics is what you do … hoping others will feel good after!will feel good after!