Individual Factors: Moral Philosophies and Values C H A P T E R 6 Individual Factors: Moral Philosophies and Values

Chapter Objectives To understand how moral philosophies and values influence individual and group ethical decision making in business To compare and contrast the teleological, deontological, virtue, and justice perspectives of moral philosophy To discuss the impact of philosophies on business ethics

Chapter Objectives (cont.) To recognize the stages of cognitive moral development and its shortcomings To introduce white-collar crime as it relates to moral philosophies, values, and corporate culture

Chapter Outline Moral Philosophy Defined Moral Philosophies Applying Moral Philosophy to Ethical Decision Making Cognitive Moral Development White-Collar Crime The Role of Individual Factors in Business Ethics

Moral Philosophy Principles or rules that people use to decide what is right or wrong No single moral philosophy is accepted by everyone Moral Philosophy Defined Economic value orientation Idealism Realism

Moral Philosophy Perspectives Teleology Deontology The Relativist Perspective Virtue Ethics Justice Perspectives

Goodness Theories Basic concepts Monists Pluralists Instrumentalists

Moral Philosophy and Ethical Decision Making Individuals use different moral philosophies depending on whether they are making a personal or making a work-related decision

Kohlberg’s Model of Cognitive Moral Development Consists of six stages: Punishment and obedience Individual instrumental purpose and exchange Mutual interpersonal expectations, relationships, and conformity Social system and conscience maintenance Prior rights, social contract or utility Universal ethical principles Kohlberg’s model suggests that people continue to change their decision-making priorities after their formative years, and as a result of time, education, and experience, they may change their values and ethical behavior. And an individual’s moral development can be influenced by corporate culture, especially ethics training

White Collar Crime “Crimes of the suite” do more damage in monetary and emotional loss in one year than the “crimes of the street” over several years combined The presence of technology has aided WCC

Individual Factors Most business managers do not embrace extreme philosophies A personal moral compass is not sufficient to prevent ethical misconduct in an organizational context The corporate culture and the rewards for meeting performance goals are the most important drivers of ethical decision making Equipping employees with skills that allow them to understand/resolve ethical dilemmas will help them make the right decisions