Introducing

Business Ethics

What are Ethics ?

Derived from the Greek words ethos (way of living)
and ethikos (theory of living)
A branch of philosophy concerned with human
conduct:
- Specifically the behaviour of individuals in society

Examines the rational justification for our moral

judgments:
- What is morally right or wrong, just or unjust

What are Business

Ethics?
Business
Ethics:
Is the study of business
situations, activities, and
issues in which a good or
best decision needs to be
made

The Road of the Enigma,

Salvador Dali, 1981

Changes in Expectations
Carroll, 1989.
Business in
Society, SouthWestern
Publishing Co,
Ohio

Ethics and the Law

Ethics
Grey
area

Law

Definition: Morality, Ethics - Ethical theory

Morality is concerned with the norms, values and beliefs
embedded in social processes which define right and
wrong for an individual or a community
Ethics is concerned with the study of morality and the
application of reason to elucidate specific rules and
principles that determine right and wrong for any given
situation
These rules and principles are called ethical theories

The relationship between morality,

ethics and ethical theory
to
produce
ethical
theory

Ethics
rationalizes
morality

Morality

Ethics

that can
be applied
to issues

Ethical theory

Potential
solutions to
ethical
problems

Why are business ethics important?

Power and influence of business in society

Potential to provide major contribution to society
Potential to inflict harm
Increasing demands from stakeholders
Lack of business ethics education or training
Continued occurrence of ethical infractions
Evaluating different ways of managing business ethics
Interesting and rewarding

The Role of Ethical Theory

Ethical absolutism
claims there are eternal, universally
applicable moral principles
Right and wrong are objective
qualities that can be rationally
determined
Typically traditional ethical
theories

Ethical relativism
claims morality is context dependent
and subjective
No universal right and wrongs that
can be rationally determined
Depends on a person making the
decision and culture in which they
are located
Typically contemporary ethical
theories

Two Opposing Positions

TEST!

Pluralism?
For the practical purpose of making effective decisions
in business:
Not one theory or one approach is the best or true
view of a moral dilemma
All theoretical approaches throw light from different
angles on one and same problem
Complementary rather than mutually exclusive

Advocate position of pluralism

Middle ground between absolutism and relativism

Typical Perspective

Ethical
Dilemma
Single normative consideration
for solving the ethical dilemma
Lens of ethical theory

Pluralistic Perspective

Ethical
Dilemma
Prism of ethical theory

A variety of normative
considerations
for solving the ethical
dilemma

Next Class
Frameworks for Ethical Thinking