1. PRESCRIPTIVE APPROACHES TO ETHICAL DECISION-MAKING IN BUSINESS
referencing
Chapter 4
Trevino & Nelson, Managing Business Ethics. NY: Wiley, 1999.

2. Objectives
Explain the “Prescriptive Approach” to ethical decision-making
Distinguish between “Teleological” and “Deontological” theories.
Identify a set of decision-making tools (ways of thinking about ethical choices).

4. Why do they call them Prescriptive Approaches?
The term “prescribe” implies a recommended course of treatment to correct a condition (presumably, an ethical problem.)
Just as a physician writes a prescription to cure an illness, processes for ethical decision-making are protocols for arriving at ethical solutions.

5. Two General Types of Prescriptive Approaches
“Teleological”
‘telos’ (goal)
Consequentialist
Focus on results of decision or action; one’s target.
Example: Utilitarianism
“Deontological” ‘deon’ (duty)
Duty, Obligation, Principles, Rights
Focus on what’s right in broad, abstract, universal principles.
Example: Moral Rights, Justice

6. Four Models for Ethical Decision-Making
Utilitarianism
Moral Rights
Justice
Individualism

7. Utilitarianism  greatest good for the greatest number
 optimizes satisfaction of greatest number
 calculates harm/benefits to those affected

8. UTILITARIANISM: Ethical Standards
ORGANIZATIONAL GOALS:
satisfy stakeholders
maximizing profits
EFFICIENCY
minimize inputs and external costs to society
maximize outputs
CONFLICTS OF INTEREST
corporate or collective interest is superordinate compared to individual interest

9. UTILITARIANISM: Application
MERIT PAY
COMPETITIVE PRICING
EFFICIENT MARKETS
BANKRUPTCY
DOWNSIZING

10. Moral Rights  maintains rights of people affected
 fundamental rights cannot be taken away
 rights include: free consent, privacy, life-health-safety, due process, free speech, conscience

11. Justice equity, fairness and impartiality
Distributive Justice: differential allocation of rewards to people is based on objective rules and not arbitrary characteristics
 Procedural Justice: rules are administered fairly, even-handedly
 Compensatory Justice: compensate cost of injury by responsible party

12. Individualism (Virtue Ethics)
based on personal character, defined by one’s community
relativism
promotes the individual’s long-term interests
self-interest is moderated by reciprocity
uses the “golden rule”; cheating - provokes same behavior in others

13. Four Models for Ethical Decision-Making

14. 8 Steps to Sound Ethical Decision-Making
Gather the Facts of the Situation
Define the Ethical Issues
Identify the Affected Parties
Identify the Consequences (Long v. Short, Symbolic Consequences)
Identify Your Obligations
Consider Your Character and Integrity
Think Creatively About Potential Actions
Check Your Gut.