Lecture Outlines

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Chapter 1: The Nature of Morality Chapter 2: Normative Theories of Ethics Chapter 3: Justice and Economic Distribution

This multimedia product and its contents are protected under copyright law. The following are prohibited by law: any public performance or display, including transmission of any image over a network; preparation of any derivative work, including the extraction, in whole or in part, of any images; any rental, lease, or lending of the program.

Overview
(1) (2) (3) (4) (5) (6) (7)

Chapter One examines the following topics: Business and organizational ethics. Moral versus nonmoral standards, etiquette and professional codes. Religion and business morality. Ethical relativism and the game of business. Moral principles, conscience, and self-interest. Personal values, integrity, and responsibility. Moral Reasoning, arguments, and judgments.
Business Ethics Chapter 1

Introduction to Business Ethics

What is ethics? The study of right and wrong, duty

and obligation, moral norms, individual character, and responsibility. What is business ethics? The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility in the context of business.

Moral Versus Nonmoral Standards

Nonmoral standards: Standards about behavior or

practices with no serious or immediate effects upon human well-being. Moral standards: Standards about behavior or practices with serious or immediate effects upon human well-being.

Some Features of Moral Standards

Moral standards take priority over nonmoral

standards. The soundness or validity of moral standards depend on the quality of the arguments or the reasoning that support them.

Morality and Etiquette

Rules of etiquette are nonmoral in character and

are meant to serve as guidelines for socially acceptable behavior. Violations of etiquette can sometimes have moral implications. The strict observance of rules of etiquette can sometimes conceal serious moral issues.

Business Ethics Chapter 1

(1) Morality and Law

Statutes: Laws enacted by legislative bodies such as

the U.S. Congress and state legislatures. Regulations: Laws enacted by special boards or agencies for various kinds of conduct. Common law: The body of judge-made laws developed in English-speaking countries over the course of many centuries. Constitutional law: Court rulings on the requirements of the U.S. Constitution and on the constitutionality of legislation.
Business Ethics Chapter 1

(2) Morality and Law

The distinction between morality and legality:
An action can be illegal but morally right. An action can be legal but morally wrong.

Professional codes: The rules that govern the

conduct of the members of a given profession.

Individuals have the responsibility to critically assess the

rules of their professions. These rules are not always complete and reliable guides to adequate moral conduct.
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(1) The Sources of Morality

The justification of moral norms: Moral

philosophers study mainly the justification, rather than the origin, of moral norms. The claim that morality is based on religion:
Religion provides incentives to be moral. Religion provides moral guidance. Moral norms are in essence divine commands.

Business Ethics Chapter 1

(2) The Sources of Morality

Ethical relativism: The view according to which

moral norms derive their ultimate justification from the customs of the society in which they occur. This means that moral norms are not universal, but are dependent upon a particular cultural or social context.

Business Ethics Chapter 1

(3) The Sources of Morality

Implications of relativism:
There is no independent standard by which to judge the

rightness or wrongness of other societies. The idea of ethical progress loses its significance. It makes no sense to criticize the moral code of ones own society or culture.

Business Ethics Chapter 1

(4) The Sources of Morality

Relativism and the game of business:
The idea that business is a just game captures the thesis

of Albert Carr. He argued that business professionals are expected to follow a code that has little or nothing to do with ethics. This view entails incorrectly that the practices of business professionals cannot (or should not) be evaluated from a moral standpoint.

Business Ethics Chapter 1

(1) The Importance of Moral Principles

What it means to have principles: Accepting moral

principles is not just a matter of intellectual recognition, but of profound individual commitment to a set of values. Conscience: The internalized set of moral principles taught to us by various authority figures parents and social institutions. Conscience and its limits: Conscience is not always a reliable guide because it can be (1) conflicted and (2) erroneous.
Business Ethics Chapter 1

(2) The Importance of Moral Principles

Moral principles and self-interest: The morality of

an action can run counter to our self-interest.

The moral point of view requires that we restrict our self-

interest to satisfy social co-existence. In situations of conflict between moral principles and selfinterest, it is important to appeal to shared principles of justification.

Business Ethics Chapter 1

Morality and Personal Values

Morality in the narrow sense: The moral principles

or rules that do, or should, govern the conduct of individuals in their relations with others. Morality in the broad sense: The values, ideals, and aspirations that influence the decisions and lifestyles of individuals and entire societies. Business ethics are mainly concerned with morality in the narrow sense. But values, ideals, and aspirations also affect the behavior and ethical choices of business professionals.
Business Ethics Chapter 1

(1) Individual Integrity and Moral Responsibility

Organizational norms: Employees of business

organizations (especially corporations) are:

Expected to further profit goals. Often pressured to compromise moral values and ignore

or violate rules of ethical conduct.

Conformity: Studies show that individuals are

more prone to act unethically when they are a part of an organization or a group.
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(2) Individual Integrity and Moral Responsibility

Groupthink: The pressure on group members to

conform to morally questionable policies or strategies, often resulting in unethical conduct. Diffusion of responsibility: The multiplicity, complexity, and distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions.

Business Ethics Chapter 1

(1) Moral Reasoning

Argument: A group of statements in which one (1) (2) (3)

statement (conclusion) is true and follows from the others (premises). Example: If Norman is bald, then Norman does not need a haircut. It is the case that Norman is bald. Therefore, Norman does not need a haircut.
Business Ethics Chapter 1

(2) Moral Reasoning

Requirements for a sound argument: If its

statements (premises and conclusion) are true and its form (or structure) is correct.
Validity: The correctness of an argument. Invalid arguments: Those with incorrect form (or

structure).

Determining whether an argument is valid or

invalid requires familiarity with the rules of logic.

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(3) Moral Reasoning

Moral arguments: Those conflicting theories and (1) (2) (3)

beliefs whose conclusions are moral judgments, based on the premise of moral standards and statements of fact. Example: If an action violates the law, it is morally wrong. Affirmative action on behalf of women and minorities in personnel matters violates the law. Therefore, affirmative action on behalf of women and minorities in personal matters violates the law.
Business Ethics Chapter 1

(4) Moral Reasoning

What makes a moral judgment defensible? If it is (1) (2) (3)

supported by a moral standard that can be defended as well as relevant facts. Evaluating moral arguments: Clarifying the terms of the premises. Examining the factual claims. Assessing the moral standard.
Business Ethics Chapter 1

(5) Moral Reasoning

Thus, an argument can be refuted by: (1) Uncovering ambiguity in the terms. (2) Questioning the factual claims. (3) Challenging the moral standards.

Business Ethics Chapter 1

(6) Moral Reasoning

Criteria for moral judgments: (1) Should be logical.
Embedded in valid arguments. Compatible with moral and nonmoral beliefs.

(1) Should be based on facts.

Using supportive, relevant, and true information.

(1) Should be based on acceptable moral principles.

Business Ethics Chapter 1