Business Ethics 2-1

Universalizing A tool to decide if an action is ethical Picture everyone in the world doing the action. -Would that make the world better or worse?

2 Ways to look at Ethical Decisions Consequence based reasoning Rule based reasoning

Consequence Based Reasoning Rightness or wrongness is based only on the outcome of the action. An act that produces good consequence is ethical, an act that produces bad consequences is unethical. Recognizes that lying USUALLY produces bad consequences and is unethical.

Rule Based Reasoning Based on ethical rules Acts are either right or wrong Example: telling the truth is always right, lying is always wrong. Good consequences do not justify wrong or bad actions.

The two methods OFTEN result in the same outcome of an ethical decision. Example: Lying is always wrong vs. lying produces bad outcomes.

Consequence Based First looks for alternative ways to alter the current situation. Then it attempts to forecast the consequences that will arise from each alternative. Finally, it evaluates those possible outcomes to select the alternative that will generate the greatest good. 1. Select the standard for judging consequences as right or wrong. 2. Counting the people affected - greatest good for greatest number of people.

Rule Based The acts themselves are judged as right or wrong. Standard for judging usually comes from one of two sources 1. A recognized authority - law or religious text 2. Human reasoning - use the universalizing test

What’s Your Verdict? John inherited his grandparents’ home. He built a garage for his car in the yard between his house and his neighbor’s property line. Later, when he decided to build a fence on the border, he discovered that the garage was too close to the property line. So, he built the fence one foot onto the neighbors’ property. John lived alone and three people lived on the neighbor’s property.

Rule Based Reasoning Was the action wrong?

Consequence Based Reasoning What are the possible actions? Does the action create the greatest good for the greatest number of people? Which alternative is best?