BA 310 Ch 1 Chapter 1 The Foundation of Ethical Thought Goals 1 Define the terms ethics and business ethics 2 Describe the different types of ethical examinations and frameworks 3 Explain the seven deadly sins and their relationships to ethical behavior 4 Discuss the Global Business Standards Codex with respect to a company s responsibility 1 Ethics the values which an individual uses to interpret whether any particular action or behavior is considered acceptable or appropriate Guides us to what is right or wrong Questions to ask to identify values needed to interpret ethical action or behavior i ii iii iv Is the behavior or action consistent with the overall basic duties of the individual in question Does the behavior or action acknowledge and respect the underlying rights of all the individuals who will be impacted by the action Would the behavior or action be considered the best practice in that specific set of circumstances Does the behavior or action match the overall entrenched beliefs of the individual Business Ethics collective values of a business or organization that can be used to evaluate whether the behavior of the collective members of the organization are considered acceptable and appropriate has many shades of gray rather than black and white From frameworks to guiding principles business ethics is a multifaceted concept that has many dimensions The Role of Morals Individual moral values have three components i ii The individual s principles The individual s character strength of character based on adhering to one s moral beliefs even if it will result in a great cost for the individual virtue embodies prudence fairness trustworthiness and courage integrity the ability to have a clear conscience and be at peace with your actions iii The consequences of a particular action The ends and the means are critical issues related to business ethics as they are incorporated into a free enterprise Inherent conflict in capitalistic economy The free enterprise system is based on motivating individuals to be productive The more productive they are the more resources they are able to accumulate Thus according to Gekko Wall Street movie individual self interests and greed are integral for the success of a capitalistic society society 1 BA 310 Ch 1 2 Foundation of Ethical Theory Types of Ethical Examinations i ii iii i ii iii i ii iii Descriptive Ethics the presentation of facts related to the specific ethical actions of an individual or organization Description Used when an observer wants to understand the course of events that generated the ethical issue how and when Analytical Ethics aka metaethics understanding the reasons a course of action that may have an ethical impact took place Motive Moves from the how and when inquiry to asking why Normative Ethics a prescribed course of action that attempts to ensure that ethical behavior will be followed in the future Moves the evaluation of ethical behavior from the past to future tense Presents info on what should be done in the future rather than what was done in the past Example Congress response to the Enron collapse and passing of the Sarbanes Oxley Law 2002 which requires more transparent financial statements from companies SarbOx has fortified the image and belief that the US has the strongest due diligence and protection of investor rights compared with any other country in the world Teleological Frameworks focus on whether the results of the conduct of the individual are favorable or not Greek word telos meaning fulfillment Three frameworks Ethical Egoism based on the belief that every individual should act in a way to promote him herself if the net result will generate on balance positive rather than negative results Latin word ego means one s self Thomas Hobbes credited with development inspired by Plato Utilitarianism any action of an individual will provide the greatest good for the greatest number of people 181th century Ends justify the means Based on the principle of utility where each person s actions add to the overall utility good of the community Jeremy Bentham and John Stuart Mills developed Sidgwick s Dualism attempts to resolve the difference of whether the actions for one s self benefit impact just the individual or others Bridges gap between ethical egoism prudence and utilitarianism rational benevolence 19th century English Philosopher Henry Sidgwick argued that utilitarianism is a foundation component of any ethical framework and an individual should not sacrifice his her own happiness to help others Sidgwick said both theories had elements of using cost benefit analysis to help analyze the actions of individuals Adam Smith author argued the greatest good for the greatest number is achieved by individuals pursuing their own self interest in the marketplace Existentialism based on the underlying belief that the only person who can determine right and wrong is the person making the decisions Each individual determines his or her own actions and is ultimately responsible for the consequences of those actions Contractarianism aka social contract theory based on the belief that all individuals agree to a social contract to be productive members of society Membership in society comes with certain duties and responsibilities and individuals agree to the norms of society Based on books by John Locke Garrett Hardin and John Rawls Rawls challenged the utilitarianism philosophy by stating that is would not be acceptable to focus on actions for the greater good if minorities do not also benefit from the decision Kant s Ethics the free will to make decisions that were considered rational needed to be converted into an universal will Considered dualism because it attempts to bridge the gap between existentialist and contractarian points of view Late 18th century German Philosopher Immanuel Kant Deontological Frameworks focus on the duty or obligation in determining whether the actions are right or wrong Three frameworks 2 BA 310 Ch 1 7 Guiding Principles to Support Ethical Actions Developed by W D Ross Scottish Philosopher Fidelity ability to keep explicit and implicit promises existentialism contractarianism 1 2 Reparation an individual must repair the consequences for wrongful acts 3 Gratitude an individual must show thankfulness for kindness shown by others 4 5 Beneficence one should focus on trying to improve the lives of others utilitarianism 6 Self Improvement one should improve his herself through virtue and