Business Ethics

Lecture 02:

Chapter one:
Introduction to Business Ethics

Sources: Velasquez
Shaw
Prepared by: Md. Tapan
1
Mahmud (MTM)
Definition of Ethics

The Principles of conduct governing an individual

or a group.

Ethics is the study of morality.

Ethics is a kind of investigation which includes

both the activity of investigating as well as the
results of that investigation. (Investigation in
accordance with the reference of morality).
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Definition of Ethics

The discipline that examines ones moral

standards or the moral standards of a society.

Ethics (also known as moral philosophy) is a

branch of philosophy that addresses questions about
moralitythat is, concepts such as good and bad,
noble and ignoble, right and wrong, justice, and
virtue. (Wikipedia).

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Morality

The Standards that an individual or a group has

about what is right and wrong or good and evil.

Morality is mere thought (positive or negative)

about a certain phenomena.

Prepared by: Md. Tapan Mahmud (MTM) 4

Moral Standards

Moral standards include the norm we have about

the kinds of action we believe are morally right or
wrong as well as the values we place on the kinds
of objects we believe are morally good and morally
bad.

Action__ It is wrong to take the assets of the poor.

Object__ Honesty is a great virtue.

Prepared by: Md. Tapan Mahmud (MTM) 5

Moral Standards
Sources:

Church, School Television, Magazine, Music,

association (Group), Culture, Early upbringing,
Experience & Critical reflection on those
experiences.

Further experience, Learning, Intellectual

development may also assist to mould or modify
prior moral standards.
Prepared by: Md. Tapan Mahmud (MTM) 6
Non-moral Standards

It includes the standards of etiquette by which we

judge manners as good or bad.

By Standards of Law, we judge lawful right and

wring
By language standards we judge whether a
particular writing is grammatically right or wrong.

Prepared by: Md. Tapan Mahmud (MTM) 7

Morality in all sorts of decision making

Whenever we make judgments about the right or

wrong way to do things (Literally any thing) , or
judgments about what things are good or bad; our
judgments are based on standards on some kind
(Moral or Non-moral).

Irony of fate__ We sometime choose non-moral

standards over our moral standards.
Prepared by: Md. Tapan Mahmud (MTM) 8
Morality in all sorts of decision making

Example: A recession is going on in the economy

and the company is going through constant loss. In
this situation, the CEO follows the company by-
laws and lay off some of the employees. Here he
doesnt consider the impact of this lay off on the
employee and on his family. Rather he chose the
non-moral standard of by-laws over the moral
standard of looking out for the negative
consequences of his act on the employee.
Prepared by: Md. Tapan Mahmud (MTM) 9
5 Characteristics of moral standards by which we
can distinguish between moral and non-moral
standards:

1. Moral standards deal with matters that we

think can seriously injure or seriously benefit
human being.

Example: Theft, enslavement, murder, child

abuse, assault, slander, fraud etc. (Moral)
Grammatical mistake on a report (Non-moral)
Prepared by: Md. Tapan Mahmud (MTM) 10
2. Moral standards are not established or changed
by the decision of particular authorities bodies.

Example: Law of a country is made or

modified by a particular body or authority;
whereas morality is self made by an individual
or a particular group.

Prepared by: Md. Tapan Mahmud (MTM) 11

3. Moral standards should be preferred over other
values including self interest.

Example: If someone has to make a particular

decision by which his self interest would be
harmed but welfare would be done, then
welfare should be chosen over self-interest.

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4. Moral standards are based on impartial
consideration. Moral standards are based on
moral point of view which goes beyond the
personal interest to a universal standpoint in
where everyones interest are impartially counted
as equal.
Example: when we are in an ethical dilemma to
make a mutually exclusive decision, where me and
mass are related; then we should choose the
decision which would not hamper the interest of
mass or would benefit them.
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Exception :
sometimes being partial is morally supported!! In
case of family members.

Example: Suppose in a war scene me and my family

have to escape from a particular area. We need to
pass a river to do so. On the boat, only 6 people can
be accommodated. My family member consists of 4
male and 2 female. I have another 3 person from my
neighborhood. In this context, if I take only my
family members and leave those neighbors; it is
morally supported.Prepared by: Md. Tapan Mahmud (MTM) 14
5. Moral standards are associated with special
emotions and a special vocabulary.

Example: If I act contrary to a moral

standards I would normally feel guilty. I
would experience a loss of self esteem.

If I take the assets of a poor or do something

which has negative impact on the society, my
self valuation (self-esteem) would be
downward sloppy.
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 In a nutshell__

Moral Standards:
Deal with matters of serious consequences,
Are based on good reasons and are not based on
authority,
Override self-interest,
Are based on impartial consideration,
Are associated with feelings of guilt and shame
and with a special moral vocabulary,

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Morality and Law

Law:
Strict (Cant be altered)
Made by a Particular Authority
Focus is very specific
Floor level of decision making reference

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Morality and Law

Morality
Changes according to values, culture,
tradition & custom of a society ,
Judged and made by a particular
individual or community,
Focus is very broad,
Ceiling of decision making.

Prepared by: Md. Tapan Mahmud (MTM) 18

 Morality and Law

An action can be illegal but morally right

An action can be legal but morally wrong

The law generally prohibits egregious affronts

to a societys moral standards and in that sense
is the FLOOR of moral conduct; but
breaches of moral conduct can slip through
cracks in that floor!!
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 Morality and Law

An action can be illegal but morally right.

Example: In the second world war the German

government made a law to kill the Jew whenever
found and also compelled the Germans to help
capturing them. In this context, if a German family
hides a Jew family; it is illegal but morally right.

Prepared by: Md. Tapan Mahmud (MTM) 20

 Morality and Law

An action can be legal but morally wrong.

Example: Consider that last example. If the

German family help the German Military to capture
a Jew family; it would be legal but not morally
right.

Prepared by: Md. Tapan Mahmud (MTM) 21

Morality and Religion

Religion is one of the most important vibrator

in the formulation of a particular communitys
belief / believes; but religion is not the
morality itself.

This point can be clarified with the next three

upcoming arguments in the next slide.

Prepared by: Md. Tapan Mahmud (MTM) 22

 Morality and Religion

1. Although a desire to avoid hell and go to

heaven may prompt some of us to act morally,
this is not the only sole or common reason for
which people behave morally.
We are often motivated to do what is morally
right out of concern for others or just because it
is right.
Atheists generally live life as moral and upright
as those of believers.
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 Morality and Religion

2. The moral instructions of the worlds great

religions are general and can be interpreted in
different ways in different contexts.

3. The Divine Command Theory postulates that

if something is wrong then the only reason for
which this is wrong that God commands us
not to do it. (Continued to next slide)

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Morality and Religion

God forbids us to steal from others. It doesnt

mean it is forbidden for just it is a God
Almightys command; rather it is forbidden
because it (to steal) by itself a bad human
behavior which can hurt other human.

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Morality and Religion

Most religion holds that human religion is

capable of understanding what is right and
wrong. So it is human reason to which you will
have to appeal in order to support your ethical
principle.

Prepared by: Md. Tapan Mahmud (MTM) 26