Ethical Philosophies Utilitarianism (Bentham & Mills) Ethics of consequences Deontology (Kant) Ethics of Duty (Ethical laws) Principles willed into Universal laws Treat people as ends (not means) Virtues (Aristotle) Ethics of Character
Philosophical Ethics Teleological Deontological Results oriented Actions have no intrinsic ethical character (acquire moral status from their consequences) or Deontological Act oriented Actions are inherently right or wrong (e.g., lying, cheating, stealing)
Philosophically Based Ethics (another perspective) Utilitarianism (Bentham & Mills) Ethics of consequences Deontology (Kant) Ethics of Duty (Ethical laws) Principles willed into Universal laws Treat people as ends (not means) Virtues (Aristotle) Ethics of Character
Bentham’s Hedonistic Calculus Bentham (not originally called Utilitarianism) Moral science (vs. ascetic religious) Quantifying pleasure Pleasure good, pain bad Hedonistic calculus (7 aspects) Intensity (Intrinsic strength of the pleasurable or painful feelings produced.) Duration (how long they last) Certainty / Uncertainty (likelihood of sensations being produced by given action. Propinquity / Remoteness (how soon they will be felt) Fecundity (whether actions lead to pleasure) Purity (whether actions lead to pain) Extent (number of people affected) Open, public, objective, fair Mill’s types of pleasure (quality vs. quantity)
Business Systems Economic systems (underlying ideologies) Market “normative” beliefs Motivation? Basic purpose(s)? Function of society Market Free-Market John Locke’s (rights) All are free and equal Rights of freedom, property, and protection Negative / positive rights? Rights versus justice? Individualistic assumption? Adam Smith’s (utilitarian) Market competition serves society better than government Unrealistic assumptions of perfect competition
Business Systems Keynesian Social Darwinism Free-Trade Free-markets alone are not enough Not the most efficient Social Darwinism Survival of the fittest Penalties for incompetence and ignorance Naturalistic fallacy Free-Trade Benefits of specialization and trade Comparative (rather than absolute) advantage Production costs are not constant Means of production is portable.
Business Systems Command Marx’s economic substructure / social superstructure Exploitation of workers “surplus” Separation (alienation) of workers from product Subordination of government to ruling class’ interests State control is victimized by individuals Mixed Economy Retains Market and Private Property system Relies on governmental policies
Business Ethics Cell X Cell 1 Legal Responsibility Ethical Economic Responsibility
Business Ethics Cell X Legal Ethical Responsibility Responsibility Profitable, Legal and Ethical Proceed with enthusiasm! Economic Responsibility
Business Ethics Cell 1 Cell 1 Legal Ethical Responsibility Legal and Ethical Not Profitable: Seek Profitable alternatives Cell 1 Legal Responsibility Ethical Responsibility Economic Responsibility
Business Ethics Legal Ethical Responsibility Responsibility Cell 2 Profitable and Legal Proceed cautiously Cell2 Economic Responsibility
Business Ethics Cell 3 Legal Ethical Responsibility Responsibility Profitable and ethical Likely, also legal; Proceed cautiously Legal Responsibility Ethical Responsibility Cell 3 Economic Responsibility
Bremer’s “big picture” perspective
Three Models of Managerial Ethics Moral Management Amoral Management Immoral Management Unintentional Intentional
Ethical Standards? Integrity Honesty Fidelity Charity Tolerance Possessing and adhering to high principles Honesty Fair, just, truthful and morally upright Fidelity Loyalty, allegiance, accuracy Charity Voluntarily helping those in need Tolerance Ability to endure hardship, accepting different views Responsibility Accountable, willing to take a stand Self-Discipline Ability to motivate or restrain oneself