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Lecture 3: What does

ethics (in business)
mean?

 


x Why theories of ethics?

x Traditional ethics (egoism, utilitarian, ethics
of duties, ethics of rights)
x Limitations of traditional ethics
x Contemporary ethics (virtue ethics, feminist
ethics, discourse ethics, post-modern ethics).
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x Gften faced with dilemma or choices between

competing value positions (MNCs).
x We make decisions upon the backdrop of some
theory about what is ethical and not ethical.
x Ethical theories are the rules and principals that
determine right and wrong in a given situation
x Ethical absolutism, ethical relativism and ethical
pluralism.
x Ethical pluralism is the ability to consider a range of
ethical perspectives.
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x ºn assumption about what is moral and is

not will always inform theories of ethics and
vice versa.
x Morality is a social phenomenon (descriptive
relativism and the problems with relativism).
x Morality is generally about avoiding harms
and providing benefits
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x They develop general uses to be applied in

any given situation to make a an ethical
decision and are therefore absolutist.
x Eschew uncertainty and provide an
unequivocal solution.
x Consequential approach: based on intended
outcomes, aims and goals (teleological).
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x èollowing the theory of egoism, an action is

morally right if the decision maker freely
decides in order to pursue either their short
term desires or long term interests (ºdam
Smith)
x Enlightened egoism
x Weakness: what if I pursue my interests at
the expense of others?
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x ºccording to utilitarianism, and action is

morally right if it results in the greatest good
for the greatest mount of people affected by
the action (Bentham & J. Stuart Mill).
x Hedonistic, eudemonistic and ideal view:
focuses on collective welfare and µutility¶.
x Weakness: subjective (re: pleasure and
pain), difficulty of quantification, bad for
minorities.
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x ·ant¶s categorical imperative:

x ºct only according to the maxim that you think could
be a universal rule (consistency: µcould¶).
x ºct so you treat others as ends and never only as
means (dignity).
x ºct as if the maxim is universally law giving
(universality: should)
x Weaknesses: outcomes ignored, complexity and
very optimistic about people.
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x Natural rights are moral claims that humans

are entitled to, which should be respected
and protected (Locke).
x Rights to life, freedom and property.
x Ethical action adheres to the principle of
respecting and protecting human rights.
x Weaknesses: assumes universality and has
a very western focus.
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x Social justice: fair treatment of individuals

with the result that everyone gets what they
deserve.
x What do we mean by fair? Procedural and
distributive justice (outcomes).
x Egalitarian and non-egalitarian approaches
to economic justice.
x Rawls µtheory of justice¶ (mid-way).



 

x Too abstract
x Too reductionist
x Too objectivist and elitist
x Too impersonal
x Too rational and codified
 


x åirtue ethics: morally correct actions are

those undertaken by people with virtuous
characters (intellectual and moral virtues
lead to a µholistic¶ good life)
x èeminist ethics: prioritises empathy,
harmonious and healthy social relationships,
care for another and avoidance of harm
above abstract principles.
 


x üiscourse ethics: solve ethical conflicts by providing

a process of norm generation through rational
reflection on the real life experience of all actors
involved
x Post-modern ethics: morality beyond the sphere of
rationality in an emotional µmoral impulse¶ towards
others ± question everyday practices and follow gut
feelings about what is right and wrong.
x Holistic, examples over principles, think/act local