Business Ethics: Transcending Requirements through Moral Leadership ------- Chapter 12 – Moral Accountability.

Business Ethics: Business Ethics: Transcending Transcending

Requirements through Requirements through Moral LeadershipMoral Leadership

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Chapter 12 – Moral AccountabilityChapter 12 – Moral Accountability

© Cavico & Mujtaba, 2005

CHAPTER 12 – MORAL CHAPTER 12 – MORAL ACCOUNTABILITYACCOUNTABILITY

A.A. Introduction Introduction B.B. Moral Accountability for ActingMoral Accountability for ActingC.C. Moral Accountability-Not Acting-The Moral Accountability-Not Acting-The

Ethical Principle of “Last Resort”Ethical Principle of “Last Resort”D.D. Social ResponsibilitySocial ResponsibilityE.E. AltruismAltruismF.F. Moral Saints and HeroesMoral Saints and HeroesG.G. Ethical CodesEthical CodesH.H. Role ResponsibilityRole ResponsibilityI.I. Agent ResponsibilityAgent ResponsibilityJ.J. Collective ResponsibilityCollective Responsibility


Introduction: Casual and Introduction: Casual and LegalLegal

The purpose of this section is to enumerate and The purpose of this section is to enumerate and explain various types or levels of moral explain various types or levels of moral accountability. In order to comprehend degrees accountability. In order to comprehend degrees of moral responsibility, however, it is necessary of moral responsibility, however, it is necessary first to examine casual and legal accountability.first to examine casual and legal accountability.

A person is accountable casually for all A person is accountable casually for all consequences of his or her actions, regardless of consequences of his or her actions, regardless of intent, volition, or the length and attenuation of intent, volition, or the length and attenuation of the causation chain of events. the causation chain of events.

A person is responsible legally for his or her A person is responsible legally for his or her intentional, wrongful actions, and careless, intentional, wrongful actions, and careless, negligent, wrongful actions, as well as the negligent, wrongful actions, as well as the foreseeable consequences thereof.foreseeable consequences thereof.


Moral Accountability for Moral Accountability for ActingActing

A person is responsible morally for an A person is responsible morally for an action he or she knowingly and freely action he or she knowingly and freely performed or brought about; he or she is performed or brought about; he or she is responsible immorally when the act was responsible immorally when the act was morally wrong to be performed or brought morally wrong to be performed or brought about.about.

Moral responsibility may be excused or Moral responsibility may be excused or lessened because of the actor’s ignorance, lessened because of the actor’s ignorance, inability, or lack of freedom.inability, or lack of freedom.

Performing an immoral action, or failing to Performing an immoral action, or failing to perform a moral action, without a perform a moral action, without a recognized excuse reflects poorly on one’s recognized excuse reflects poorly on one’s moral character.moral character.


Moral Obligation to Act – Moral Obligation to Act – Ethical Principle of “Last Ethical Principle of “Last

Resort”Resort” The ethical principle of “last resort” indicates The ethical principle of “last resort” indicates

when one has a moral duty to act, to aid when one has a moral duty to act, to aid another, or to rescue.another, or to rescue.

The principle is based partially on Kant’s The principle is based partially on Kant’s admonition that “ought implies can,” that is admonition that “ought implies can,” that is that one is obligated to do only what one can that one is obligated to do only what one can do.do.

The “last resort” principle usually involves an The “last resort” principle usually involves an obligation of immediacy and high priority obligation of immediacy and high priority posed by an emergency; it thus generates posed by an emergency; it thus generates moral obligation to act that one cannot ignore moral obligation to act that one cannot ignore without moral condemnation.without moral condemnation.


Social ResponsibilitySocial Responsibility

The term “social responsibility” may be The term “social responsibility” may be defined as taking an active part in the defined as taking an active part in the social causes and civic life of one’s social causes and civic life of one’s community and society. While community and society. While corporations may be limited in their corporations may be limited in their abilities to solve the multitude of social abilities to solve the multitude of social problems, they stand to gain an problems, they stand to gain an improved public image by being socially improved public image by being socially responsible thus the possibility of responsible thus the possibility of gaining more customers.gaining more customers.


Societal AccountabilitySocietal Accountability Although business may not have a moral Although business may not have a moral

responsibility, based on the principle of responsibility, based on the principle of “last resort,” to improve the quality of “last resort,” to improve the quality of life in the community and society, life in the community and society, business may be obligated by a standard business may be obligated by a standard of social responsibility to work for social of social responsibility to work for social as well as economic betterment.as well as economic betterment.

The words “accountability” and The words “accountability” and “responsibility,” imply some sort of an “responsibility,” imply some sort of an obligation on the part of business to deal obligation on the part of business to deal with social problems. with social problems.


Moral Saints and HeroesMoral Saints and Heroes A person is deemed a saint or hero if he or she does A person is deemed a saint or hero if he or she does

an act or performs a duty under circumstances in an act or performs a duty under circumstances in which almost all people would not. Saint and hero which almost all people would not. Saint and hero status invariably involves great sacrifice.status invariably involves great sacrifice.

Saints and heroes differ in that a saint primarily Saints and heroes differ in that a saint primarily resists desires and self-interest, whereas a hero resists desires and self-interest, whereas a hero primarily resists fear and self-preservation. Saint primarily resists fear and self-preservation. Saint status also usually entails a consistency in status also usually entails a consistency in character, purpose, and deeds over a period of character, purpose, and deeds over a period of time, whereas a person can become a hero by the time, whereas a person can become a hero by the performance of a single heroic act.performance of a single heroic act.


Business HeroBusiness Hero A business hero has vision. He or she must be A business hero has vision. He or she must be

willing to take risks and must be determined willing to take risks and must be determined and persistent in achieving his or her objectives.and persistent in achieving his or her objectives.

The business hero puts one’s vision into action The business hero puts one’s vision into action and successfully leads others through the and successfully leads others through the future.future.

In the world of business, people do not see In the world of business, people do not see themselves as heroes but maybe they should. themselves as heroes but maybe they should. Explaining their contributions to society could Explaining their contributions to society could be one way in altering the world’s view about be one way in altering the world’s view about business and heroes. business and heroes.


Ethical CodesEthical Codes

An ethical code should serve human An ethical code should serve human needs. A code cannot demand conduct needs. A code cannot demand conduct beyond the capacity of ordinary people beyond the capacity of ordinary people in ordinary circumstances.in ordinary circumstances.

Distinguishing levels of conduct is Distinguishing levels of conduct is extremely important when one extremely important when one attempts to hold people accountable attempts to hold people accountable and to exert moral pressure in the and to exert moral pressure in the form of praise and blame.form of praise and blame.


Demands of CorporationsDemands of Corporations

There are three legitimate types of demands There are three legitimate types of demands that can be made against a corporation. that can be made against a corporation. Legally, a corporation must obey the law and Legally, a corporation must obey the law and is held accountable for breaking the law. A is held accountable for breaking the law. A corporation is morally accountable. The corporation is morally accountable. The essence of a corporation’s moral obligation is essence of a corporation’s moral obligation is to do no moral harm. A corporation should be to do no moral harm. A corporation should be involved socially to a limited degree, and a involved socially to a limited degree, and a corporation must be cognizant of the fact that corporation must be cognizant of the fact that society can impose on business certain social society can impose on business certain social obligations that are neither legal nor moral.obligations that are neither legal nor moral.


Role ResponsibilityRole Responsibility Role responsibility encompasses assuming a Role responsibility encompasses assuming a

certain position, role, or occupation in society or certain position, role, or occupation in society or in an organization. A parent, for example, has a in an organization. A parent, for example, has a moral obligation to sustain and nurture his or her moral obligation to sustain and nurture his or her child and a corporate executive has a moral child and a corporate executive has a moral obligation to be an honest and efficient manager obligation to be an honest and efficient manager for the benefit of the shareholders.for the benefit of the shareholders.

When one assumes a position in a business as an When one assumes a position in a business as an employee, one takes on the responsibility of employee, one takes on the responsibility of performing the functions of that role and obeying performing the functions of that role and obeying the rules of the employer. However, if an the rules of the employer. However, if an organizational rule or employer order requires organizational rule or employer order requires one to act immorally that employee is not one to act immorally that employee is not exonerated. Role responsibility is subordinate to exonerated. Role responsibility is subordinate to general moral responsibility, as determined by general moral responsibility, as determined by ethical principles.ethical principles.


Role MoralityRole Morality Business people must be careful and Business people must be careful and

avoid adopting a “role morality” avoid adopting a “role morality” mentality, which may cause them to mentality, which may cause them to abandon their ethics in the belief that abandon their ethics in the belief that the sacrifice is necessary to succeed in a the sacrifice is necessary to succeed in a highly competitive environment. highly competitive environment.

Clearly, it must be understood that Clearly, it must be understood that business objectives, and even profession business objectives, and even profession status, do not supersede fundamental status, do not supersede fundamental ethical principles.ethical principles.


Agent ResponsibilityAgent Responsibility A large organization, such as a corporation, usually A large organization, such as a corporation, usually

reflects a hierarchical structure of authority, where reflects a hierarchical structure of authority, where orders and directives emanate from those higher in the orders and directives emanate from those higher in the organization to a variety of subordinates, who act on the organization to a variety of subordinates, who act on the basis of orders from their superiors. This type of basis of orders from their superiors. This type of structure at times may cause problems of moral structure at times may cause problems of moral accountability.accountability.

One view holds that the subordinate, even though he or One view holds that the subordinate, even though he or she was the agent in the immoral act’s execution, she was the agent in the immoral act’s execution, nonetheless is absolved from responsibility and only the nonetheless is absolved from responsibility and only the superior is accountable. It is wrong, however, to superior is accountable. It is wrong, however, to exonerate the subordinate totally if he or she knowingly exonerate the subordinate totally if he or she knowingly performs an immoral act.performs an immoral act.

The superior, of course, morally is held accountable The superior, of course, morally is held accountable because he or she knowingly and freely brought about because he or she knowingly and freely brought about the immoral act through the means or agency of the the immoral act through the means or agency of the subordinates.subordinates.


Collective ResponsibilityCollective Responsibility

Assigning or assuming moral accountability Assigning or assuming moral accountability within an organization raises the issue of within an organization raises the issue of collective responsibility.collective responsibility.

Legally, the acts of the corporation generally Legally, the acts of the corporation generally are attributed to the entity, so long as the are attributed to the entity, so long as the board of directors, managers, agents, and board of directors, managers, agents, and employees act with authority and within the employees act with authority and within the scope of their authority. The notion of scope of their authority. The notion of collective moral accountability, however, is collective moral accountability, however, is ambiguous and may be interpreted in a ambiguous and may be interpreted in a variety of ways.variety of ways.


Moral Responsibility Moral Responsibility ViewsViews

The “individual responsibility” view holds The “individual responsibility” view holds that those people who knowingly and freely that those people who knowingly and freely did what was necessary to produce the did what was necessary to produce the corporate act are morally accountable.corporate act are morally accountable.

The “group responsibility” view holds that The “group responsibility” view holds that when a group of people jointly act to produce when a group of people jointly act to produce a result, the act is the act of the group, and a result, the act is the act of the group, and thus the group is morally responsible.thus the group is morally responsible.

The “legal” view of collective moral The “legal” view of collective moral accountability attributes responsibility to the accountability attributes responsibility to the entity itself and not to the people involved entity itself and not to the people involved either as individuals or as a group.either as individuals or as a group.


ConclusionConclusion

In conclusion, individuals are In conclusion, individuals are ultimately responsible morally for the ultimately responsible morally for the known, intended, and foreseeable known, intended, and foreseeable consequences of their freely chosen consequences of their freely chosen actions and also for joining their actions and also for joining their actions with others to produce a actions with others to produce a group result. Moral accountability is group result. Moral accountability is attributed to the entity, the group, as attributed to the entity, the group, as well as to the individuals involved.well as to the individuals involved.

ReferenceReference

Cavico, F. & Mujtaba, B., (2005). Cavico, F. & Mujtaba, B., (2005). Business Ethics: Business Ethics: Transcending Requirements through Moral Leadership.Transcending Requirements through Moral Leadership. Pearson Custom Publications. U.S.A. ISBN: 0-536-5783-0. Pearson Custom Publications. U.S.A. ISBN: 0-536-5783-0. Address: Address: 75 Arlington Street, Suite 75 Arlington Street, Suite 300. Boston 300. Boston Mass, 02116. Phone: (800) 374-Mass, 02116. Phone: (800) 374- 1200. Or: (800) 922-1200. Or: (800) 922-0579.0579.

Business Ethics: Transcending Requirements through Moral Leadership ------- Chapter 12 – Moral Accountability.

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