MAN4701 Test 2 10 4 NO CLASS 10 9 NO CLASS 10 11 ETHICS MORALS AND SOCIAL RESPONSIBILITY Common Definitions of Ethics Doing the Right Thing Treating people fairly Abiding by the Norms of Society To follows one s conscience To maximize benefits and minimize harm to stakeholders To do no harm TREAT PEOPLE RIGHT Difference between Ethics and Morals Morals personal standards Internal beliefs about what s right and what s wrong in terms of values o Basic standards of Right and Wrong o Personal o May encompass behavior intentions attitudes o Derived from religion parents peers role models social information and PERSONAL JUDGMENT Ethics o General and specific expectations of behaviors that affect others o Socially defined o Focuses on behavior not intentions o Based on commonly accepted standards of morality and appropriate behavior and the expectations of parties involved Why are ethics socially important guidelines Makes society safer to live in because people feel compelled to act a certain way Makes behavior more predictable without resorting to force or inducement Makes it easier to interact based on trust Contributes to perceptions of common social identity When internalized may be effective in elevating personal moral standards Is it unrealistic to expect people to be ethical Normative Ethics Highest standards of ethics characteristics of exemplary individuals Descriptive Ethics The standards that we actually expect of others Descriptive ethical standards recognize that people aren t perfect but still maintain some standard of integrity Important things to remember Without clearly understood and accepted standards the terms ethical and unethical are meaningless The fact that a specific behavior falls ethically short does not necessarily make the person unethical NO ONE IS PERFECT We commonly use the term ethics in different contexts Levels of Ethical Application which can confuse our understanding Levels of Ethical Application Personal Ethics Civic Ethics Business and Professional Ethics 10 16 PERSONAL ETHICS Ethics of Humanity CIVIC ETHICS Ethics of the Community How should a moral person treat others Personal Ethics are generally Universal in that they should apply to all persons equally and reciprocally Limitation on it Who is a person Who is a human being How should one behave in order to create a good community Applies only within the community Expectations are rooted in Person Ethics but are more specific and sometimes have higher standards Types of Civic Responsibilities include o Citizen to Citizen Standard of Behavior for individuals o Citizen to Community Individual responsibilities to the whole jury duty o Community to Citizen Collective responsibilities to the individual citizen rights are protected BUSINESS AND PROFESSIONAL ETHICS Ethics of Stakeholder Relations How should people treat each other in the context of their economic relationship Based on fundamental ethical principles but specific responsibilities may differ based on the relationship between the parties Some stakeholders may be entitled to special consideration because of legal considerations vulnerability or mutual dependence Professions Law Medicine etc are Distinct Because The current practitioners have some control over who can practice They are recognized to have special responsibilities to some parties that may come before They have clear Codes of Ethics that define their responsibilities and the ability to their own interests enforce them Why is Business Different than a business license established within a firm There are generally no competency standards or permissions required to participate other There are usually no Codes of Ethics that mean anything except SOME of the Codes You are on your own to figure out ethical responsibilities Is it important for Businesses to be Ethical Practical Justifications People prefer to do business with ethical firms People prefer to work for ethical businesses Unethical businesses attract regulation Friends come and go but enemies accumulate Personal Justifications Self image and social acceptance Personal values Basic Problems in Business Ethics Common approaches to Ethical Reasoning Virtues Process Based Ethics o Utilitarianism Rule Based Ethics o Rights o Justice How do you determine what is Ethical When stakeholders are affected differently how do you set priorities Virtue Ethics Basic Premises Virtues Personal qualities that are characteristic of a good person Typical examples include Honesty Courage Patience Prudence Loyalty Compassion Society should define behavioral expectations and reward virtue with respect and punish vice with disapproval Arguments in Favor of Virtue Ethics Emphasizes personal responsibility Consensus on virtue and vice enhances social cohesiveness Meaningful social consequences can be an effective means of behavioral control Problems with Virtue Ethics may turn a virtue into a vice Good character involves a balance of virtues Emphasizing one while neglecting others For virtue to be an effective means of social control social approval and disapproval must be clear and meaningful In societies with little consensus on virtue a high level of cynicism or personal anonymity virtue is ineffective UTILITARIANISM Basic Premises The goal of Ethics is to maximize human happiness When selecting a course of action from a group of options the most ethical choice is that which produces the most benefits with the least harm The greatest good for the greatest number Arguments in Favor of Utilitarianism Perception of Fairness considers the interests of all parties Perception of Objectivity treats all parties equally without favoritism Criticisms of Utilitarianism Assumes equality of Interests Ignores specific Duties to some parties that are characteristic of Business Ethics Assumes inclusiveness It is often not possible to identify all affected parties and how Assumes Comparability It is often impossible to equate one party s benefits to another Potential for rationalization Illusion of objectivity and lack of guidelines makes it too Utilitarianism can and has been used to justify any harm to some parties by claims of they will be affected party s costs easy to justify what is convenient greater common benefit 10 18 The Prize part 3 Two approaches and how you evaluate them Dwight Eisenhower 10 23 RULE BASED ETHICS Deontology Basic Premises personal choice Duty responsibilities to others based on membership in a society social position or A good