Evaluating business ethics Flashcards

1
Q

Define ethical theories

A

The rules and principles that determine right and wrong for a given situation

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2
Q

Outline the two extreme positions of ethical theories?

A
  1. Ethical absolutism (traditional western modernist( there are eternal, universal, applicable moral principles. right and wrong are objective qualities that can be rationally determined.
  2. Ethical relativism (contemporary): Morality is context-dependent and subjective. there are no universal right or wrong that can be rationally determined. depends on person and local culture.
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3
Q

Distinguish between normative and descriptive ethical theories?

A
  1. Normative ethical theories: are those that propose to prescribe the morally correct way of acting
  2. Descriptive ethical theories: seek to describe how ethics decisions are actually made in business
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4
Q

What two groups can normative theories be divided into?

A
  1. Consequentialist ethics: address right and wrong based on the outcomes of the decision
  2. Non-Consequentialist ethics: concerned with the actions not the consequences of them
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5
Q

What are the consequentialist theories?

A
  1. Egoism: founded on the principle of self-interest as the basis of morality.
    - humans limited insight into consequences of our actions.
    - Adam smith argues this to be acceptable. pursuit of self interest works in an economic system=invisible hand.
    - two approaches: desire vs selfishness.
  2. Utilitarianism(utility): focuses on wider social outcomes, an action is morally right if the total net benefit of the action exceeds the total net of any other action.
    - greatest happiness principle
    - focus solely on the consequences of an action
    - compare good outcomes against bad outcomes, and collective welfare
    - two types: Act(single) and Rule(classes) utility
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6
Q

What are the main limitations and problems of utility? (3 things)

A
  1. Subjectivity: classifying each consequence of an action as pleasure or pain is subjective
  2. Problems of quantification: difficulty in assigning cost and benefits to each situation
  3. Distribution of utility: the interest of the minority are neglected, if greatest good is assessed for the greatest number.
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7
Q

What are the non-consequentialist theories?

A
  1. Ethics of duties: concerned with what people do, not with the consequences of their actions.
    - Immanuel Kant (1724-1804)
    - based on rules of right and wrong set by humans who are moral actors
    3 principles:
  2. Consistency: action is right if rules governing it are followed by everyone.
  3. Human dignity: treat humans with respect
  4. Universality: the rules of actions should be acceptable by others (New York times test)
  5. Ethics of rights and justice: mainly concerned with human rights
    Rights: persons entitlement, focus on persons actions or actions of others towards person. two types:
  6. Legal rights: system of laws
  7. Moral rights: ethical standards from individual perspective
    Justice: balance of benefits and costs distributed among members of a group or society. Everyone gets what they deserve human rights.
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8
Q

What are the problems of ethics of duties?

A
  1. Undervaluing outcomes: less consideration of the outcomes of ones actions
  2. Complexity: the theory itself is simple , however can be complex to apply
  3. Misplaced optimism: humans are rational beings, very idealistic than a reality.
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9
Q

What are the problems of ethics of rights and justice?

A
  • how can a company pay shareholders, executives, office workers etc so that everyone gets a fair compensation for their input into the corporation.
  • basics: how can a company act so that everyone gets an exact fair share of the benefits?
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10
Q

What are some alternative perspectives on ethical theory?

A
  • Approach based on character and integrity:
    1. Virtue ethics: formation of virtuous character is first step towards morally correct behaviour.
    2. Acquired traits: intellectual virtues, moral virtues.
    3. Feminist ethics: prioritises empathy, harmonious and healthy socio relationships, care for others and avoids hard. (key elements relationships, responsibility, experience)
  • Approaches based on procedures of norm generation:
    4. Discourse ethics: solve ethical conflicts by providing a process of norm generation through rational reflection on the real-life experiences of all relevant participants
  • Approaches based on empathy and moral impulse:
    Postmodern ethics: questions link between rationality and morality
  • morality is a moral impulse towards others
  • question everyday practices and rules by following emotions, inner conviction and gut feeling
  • no ethical rules and principles of what is right and wrong
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11
Q

What is the typical and pluralistic perspective?

A

Typical perspective:
ethical dilemma-> lens of ethical theory-> single normative consideration for solving the ethical dilemma

Pluralistic perspective: Suggest that all these theoretical approaches throw light from different angles on one and same problem
Complementary rather than mutually exclusive

ethical dilemma-> prism of ethical theories-> variety of normative considerations in solving the ethical dilemma

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