3.Ethical Concepts

8/12/2019 3.Ethical Concepts

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LECTURE 3

Business Ethics


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ETHICAL CONCEPTS

Ethical Subjectivism

Ethical relativism

Consequnetialism Ethics of virtue


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ETHICAL SUBJECTIVISM

It argues that what is ethically right or wrong

for an individual depends on the ethical

principles he or she has chosen

In other words for people who subscribe to

ethical subjectivism, what is ethically right or

wrong is entirely a personal matter


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ETHICAL RELATIVISM

People who support the concept of ethical

relativism argue that there is no universal set

of principles by which to judge morality

Each society has its rules and it is

inappropriate to compare the ethical rules of

one society with that of another


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CONSEQUENTIALISM*

Whether an act is good or not depends only onthe results of the act. The more good an actproduces, the better or more right that act

A person should choose the action thatmaximizes good consequences

Different forms of consequentialism:

Utilitarianismmaximize human welfare

Hedonism

maximize human pleasure* Source: bbc.co.ukethics guide


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ETHICS OF VIRTUE

Virtue is a quality considered morally good or

desirable in a person (Source: Oxford

Dictionary)

A person acts virtuously if they possess and

live the virtues*

The way to build a good society to help its

members to be good people*

* Source: bbc.co.ukEthics Guide


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ETHICS OF VIRTUE

This concept emphasizes the role of individual

traits. It explores those traits that would help

individuals lead a better life from an ethical point

of view Virtuous acts are done willfully and not by

chance

Also virtuous acts are not done out of self-interest or because they maximize pleasure

A right act is an action a virtuous person would

do in the same circumstances


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THREE APPROACHES TO ETHICS

The field of ethics, also called moral

philosophy, involves systematizing,

defending, and recommending concepts of

right and wrong behavior. Philosophers todaytakethree main approaches to ethics -

Normative Ethics, Descriptive Ethics and

Meta-Ethics


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DESCRIPTIVE ETHICS

Also called comparative ethics

Empirical/observational study (source:Encyclopedia Britannica)

Description of the moral code prevailing indifferent societies.

There is no judgment or verdict on if the

existing morals are right or wrong


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META ETHICS

Meta ethics is the most abstract area of

moral philosophy.

It doesnt ask what acts or what kind of acts

are good or bad, right or wrong; rather, it

asks about the nature of goodness and

badness, what it is to be morally right or

wrong.


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3 APPROACHES TO ETHICS

For example:

Descriptive Ethics askwhat do people think

is right?

Normative Ethics askhow should people

behave?

Meta Ethics askwhat does right even

mean?


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"Business ethics," the old joke goes, "Isn't

that a contradiction in terms?"


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BUSINESS ETHICS

Businesscan be defined as a primary

economic institution through which people in

modern societies carry on the task of

producing and distributing goods andservices

Business ethics refers to the application of

ethical judgments to business activities


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BUSINESS ETHICS

The concept of Business Ethics has come to

mean various things to various people, but

generally it's coming to know what it right or

wrong in the workplace and doing what'sright


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RELATIONSHIP BETWEEN BUSINESS AND

ETHICS

Different economists like Milton Friedman

and Talcott Parsons expressed different

views about the relationship between ethics

and business. The result was:

Unitarian view of ethics

Separatist view of ethics

Integration view of ethics


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DIFFERENT VIEWS OF ETHICS

The Unitarian View-Business is a part of

moral structure and moral ethics . If business

wants to exist flourish and survive in the long

run, morality and ethics cannot be separatedfrom the operation of the business. Business

has to concentrate in the society and usher

in society welfare.


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The Separatist View of Ethics Classical Economistslike Adam Smith and Milton Friedman held theseparatist view.

These economists were of the opinion that business

should concentrate on profit maximization. Businessis a distinct entity and does not contain ethics andmorality.

Milton maintained that business should concentrate

on production and distribution of goods and services.This view lays emphasis on business concerns likereducing production costs, optimizing labor etc


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The Integration view of Ethics- TalcottParsons (1902-1979) professor of sociology

at Harvard proposed a view called the Integrationview.

He was of the opinion that ethical behavior andbusiness should be integrated or combined in a newarea called Business Ethics.

He argued that Business being economic entity hasthe right to make profits, but at the same time itshould discharge the social obligations.

According to this view , business and morality areinterrelated and are guided by external factors likegovernment, market system, law and society

3.Ethical Concepts

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