Ethics Flashcards
Ubuntu ethics/collectivism/relational ethics
A person is a person through another person, or I Am because we are
Collectivism/Ubuntu emphasizes the interdependence among individuals and prioritizes community over individualism
It emphasizes the community and less on a person.
A culture of Good Corporate Governance in an organization will promote an entity that is
respectful and emphasizes the organization is run as a community.
An organization that operates based on what is right and promotes the welfare of humanity will encourage strong ethical practices and behavior from the governing body toward all stakeholders thus fostering a culture of Good Corporate Governance.
(consensus, tolerance, mutual respect and peaceful relations)
Divine Command Theory:
Claims that morality is ultimately based on the commands and character of God, and that the morally right action is the one that God commands or requires.
Utilitarianism
- whatever outcome will produce the greatest happiness for the greatest number of people is considered ethical.
- Strengths include the concern for the rest of society in all decisions, as well as short- and long-term consequences. However, it disregards the effect decisions may have on the minority. Thus violations of human rights, if in the interest of the majority, would be acceptable. It also does not address the possibility of having to deal with incommensurable types or amounts of happiness.
Consequentialism (ethics)
- an ethical theory that judges whether or not something is right by what its consequences are.
- Whether something is good or bad depends on its outcomes.
- An action which brings about more benefit than harm is good.
Stakeholder theory (ethics):
- based on the assumption that businesses can only be successful when they give value to most of their shareholders. Thus profit alone cannot be the only measure of business success.
Agency Theory (ethics):
- It is a principle that is used to explain and resolve issues in relationships between business principles and agents. Usually between shareholders (principle) and the executives (agents).
- Principals rely on agents to execute certain transactions, which results in a difference in
agreement on priorities and methods. - The difference in priori琀椀es and interests between agents and principals is known as the principal-agent problem.
- Resolving the differences in expectations is called “reducing agency loss.”
- Performance-based compensation is one way that is used to achieve a balance between
principal and agent.
Deontology (Kantianism)
- According to Kant’s categorical imperative, all persons must be judged against an objective
moral law. - The categorical imperative states that an action can be considered ethical only if one is
willing to allow other people to perform the same action. - In applying the categorical imperative one should be guided by the principles of
universalizability and reversibility. - The principle of universalizability demands that we should be willing to make the principle of our proposed action into a universal law that will be followed by all other people.
- The principle of reversibility demands that we should be willing to live in a world where
everyone else behaves in accordance with this universal law. - Kant provides an alternative formulation of the categorical imperative – that people should not be used as a means only.
- Deontological ethics – strengths include the recognition of others as ends, considering long-term consequences, and providing a general guide that can be applied in all circumstances by all people. Shortcomings include the disregard for actions done out of sympathy, or any other sentiment besides duty, thus making it individual-centered.
(consequences does not matter but intention does)
Virtue Ethics
Virtue ethics is person rather than action based: it looks at the virtue or moral character of the person carrying out an action, rather than at ethical duties and rules, or the
consequences of particular actions.
For example, a doctor is asked to sell an organ to a patient. The Doctors natural inclination
may be to accept the other due to the large sum he could potentially earn from performing the operations.
However, as a qualified medical doctor, he should have developed certain virtues as part of his professional training. These virtues should include considerations for the well-being of humanity and causing as least harm as possible. Given that the sale of organs and the trade in organs may cause harm to the people that are selling their organs and the families of these people, in line with his virtues, the Doctor should thus decline the other.
Virtue ethics emphasizes the role of one’s character in determining or evaluating ethical
behaviour. Virtue ethics were first contemplated by Aristotle. Aristotle argued that moral virtues was a mean between two corresponding vices - one of excess and one of deficiency – the midpoint being a desirable midpoint. Virtue ethics is focused on reaching this midpoint which results in “Eudemonia” – or commonly translated as a life well lived. As professionals and members of the board, the directors should have developed certain professional virtues which would guide their moral and ethical business decisions. They should also have considered the mean of the various courses of action available. It appears that a mean has not been found. The expansion into the village, with the many clear negative consequences, cannot be seen to adhere to the various professional virtues expected of the directors.
Virtue theory – strengths include the nature of cultivated virtues as a step beyond mere rule-following; creates an internal disposi琀椀on towards the ethical, so consider ethics as good to oneself; open to individual differences. The main weakness is that it is a developing process that takes a lifetime to fully cultivate. It also requires exemplary behavior from others which may be lacking.
Define corporate governance:
In terms of the King IV Code:
- the exercise of ethical and effective leadership
- by the governing body
- towards the achievement of the following governance outcomes:
ethical culture
good performance
effective control
legitimacy
What 4 things define being a responsible corporate citizen? (inter alia)
- climate change
- extinction of species
- social and economic inequality
- political and environmental instability
King Code Principles 1:3
Leadership, ethics and citizenship
Which King Code Principles tells us about leadership, ethics and citizenship?
Principles 1-3
King Code Principles 4-5
Strategy, Performance and reporting.
Strategy, performance and reporting (KC)?
Principles 4-5
King Code Principles 6-10
Governing Structures and Delegations
