WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. Utilitarian ethics says, in general, that the most ethical course of action is the one that provides the greatest benefit to the most people. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors. In this model, organizations focus on employees as a vital part of the operation and support them in their professional training, health care, education, family responsibilities, and even spiritual concerns. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. Feelings may come and go, but the solidarity that people have with each other and the care they take with one another define them as human beings (Figure 5.8). In the ideal case, the organizations culture never allows the latter, because scandals not only damage reputations but they make companies and countries much less attractive to investors. 0000001815 00000 n It is either less clear what to do or harder to do it because of constant pressure to increase the organizations profitability and the perception that everybody else is doing it.29. It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. 0000001304 00000 n hb```b``c`a`bb@ !6 daA@@-6WO pg5,eP=ycF62P,ZSK[xtV`g? 134 0 obj Universal business ethic is an attempt to formulate common business ethic principles that are acceptable by all rational agents and applied to all countries beyond Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. 4, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). This book uses the Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. What would that look like? then you must include on every digital page view the following attribution: Use the information below to generate a citation. But employees are human beings first, which means any attempt to improve their welfare must begin by thinking of them as human beings rather than as employees. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. Ethical relativism holds that people set their own moral standards for judging their actions. Intellectual, emotional, and social biases affect all decision-making, including those of an ethical nature. The Supreme Court upheld her and her staffs decision. They abdicate personal responsibility by assigning blame elsewhere. However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. b. Practical wisdom, however, is often required to be virtuous. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. 1999-2023, Rice University. Why or why not? Ethical executives are caring, compassionate, benevolent and kind. It is helpful to ask and if not clear, perhaps identify the principles, you most often use now and those you aspire to use more, and why. In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. Diversity and Inclusion in the Workforce, 28. This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. This does not deny the need for profit and financial success. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. These programs are effective for their ability to help individuals act on their principles. A belief in one fundamental truth is another important tenet in 1. 0000001898 00000 n then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, b. Differentiate "ethics" and "values". endobj So, although the work of national, regional, and international organizations can limit corruption through enforcement and the prosecution of cases (as was the case with the revelation of the so-called Panama Papers), corruption will not be reduced in any significant way unless efforts have been made to form individual conscience and teach practical ways to act on it. 139 0 obj Vol. A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. Exchange is fundamental to business. B. what ethical behaviors should be expected of company personnel in the course of doing their jobs. It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. However, middle managers and employees often complain their ethics training consists of passing a computerized sexual harassment or fraud program once a year but that nothing is done to address issues in a substantive way or to change the culture of the organization, even those that have experienced problems.31 If there is anything to be learned from these scandals, it is that organizations will succumb to ethics crises if they do not pay attention to their organizational culture and foster their employees growth as moral beings. Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. Limitations here also show that using this principle may not always prove realistic or practical in all situations. Leaders create positive relationships with stakeholders, including their employees, to cultivate investor goodwill and because they believe in the underlying values of trust and authenticity. This principle has at least four major components that are based on the tenets that (1) all individuals should be treated equally; (2) justice is served when all persons have equal opportunities and advantages (through their positions and offices) to societys opportunities and burdens; (3) fair decision practices, procedures, and agreements among parties should be practiced; and (4) punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. Business, too, is about relationships. Business 148 Study Guide. Want to cite, share, or modify this book? And although a good system of law incorporates ethical standards, the law can and sometimes does deviate from what is ethical. Copyright. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. | These guidelines also are designed to help organizations with compliance and reporting, and they introduce seven steps toward that end: (1) create a Code of Ethics, (2) introduce high-level oversight, (3) place ethical people in positions of authority, (4) communicate ethics standards, (5) facilitate employee reporting of misconduct, (6) react and respond to instances of misconduct, and (7) take preventive steps. Can business ethics provide one? 0 (2) Is it right? endobj WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. are licensed under a. This principle involves taking human beings, their needs, and their values seriously. The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. Universalism, belief in the salvation of all souls. This principle is grounded in both legal and moral rights. Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. Some of the strengths and weaknesses that will be discussed for Universalism are consistency, intension basis, and universalizability, while some of the discussed strengths and weaknesses for Utilitarianism are flexibility, outcome-basis, and lack of consistency. 0000003899 00000 n Absolute values do exist. Some limitations when using this principle are (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are right, and (3) individuals can exaggerate certain entitlements at the expense of others. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. A result was enflamed widespread public protests from American youth and others. FAQ The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. Corporate Governance and Sarbanes-Oxley Act and Other Recent Reforms, 8. For example, although what constitutes ethical behavior in Islamic society is strongly linked to religious values, secular philosophers can endorse a highly developed commitment to commercial ethics, too. In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act. WebUniversalism means that everybody is treated as subject to the same rules. Dec 12, 2022 OpenStax. and you must attribute OpenStax. <> . (2) Is it right? WebUniversalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. beckyschroeder. For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. Access to the full content is only available to members of institutions that have purchased access. ]yy+ This book uses the Can being aware of the actual values you use to guide your actions make a difference in your choices? endobj It is not a coincidence that it appears in the American Declaration of Independence (1776), which was written by Thomas Jefferson and inspired by the British Enlightenment philosopher John Locke. xXn8+Y)@Jo2( 3u;v-jeRoRlj~:Xb6eXGCADLQLb*~cY8[|Rr6/6+7_, b(L>ncEl "&-$\y}8-nfk3\Z .E+;KcIEm,D;TO~SB$A*;XTH$Ixi\nCQBtd!tyy^6a v+0 #qy 7s"!g"0ms> ^D8D ,Jac7e cHa#OoU(e;MQEAtz}QdQg'n-J%z-%_"J} [`{L|8\~pi!JzL, Moral theories remain a topic of interest, not just to moral philosophers, but increasingly in business circles as well, thanks to a tainted reputation that urges more awareness in this regard. Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. Accommodating Different Abilities and Faiths, 29. The Volkswagen emissions scandal also began in 2015, when the Environmental Protection Agency cited the German automaker for violating the Clean Air Act by cheating on emissions tests. Get FREE shipping on Universality, Ethics and International Relations by Veronique Pin-Fat, from wordery.com. The problem is that if anything flourishes in this model, it is often the business rather than the employees. Business In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. Based on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), and presents a SWOT analysis of both. Content: formal principles or uniform requirements? It focuses on the type of person we ought to be, not on specific actions that should be taken. From a relativists perspective, moral values are only applicable within certain cultures and societies. For example, everyone must eat to survive, but not everyone would agree that eating chocolate-raspberry cake brings happiness. Iss. grramire. The first view uses universality to distinguish the moral from non-moral. A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. At the core of Toms' model exists the idea of charity. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. grramire. endobj This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. : This principle is related to universalism. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. <>stream This book explores the reasons why grappling with universality and ethics In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. The same action may be morally right in one society but be morally wrong in another. Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. Many leaders character and actions serve as examples of how character-based virtues work. To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). Federal Sentencing Guidelines for felonies and serious misdemeanors now carry mandatory prison time for individual executives who are convicted. If you need friends or relationships in the government bureaucracy in order to get your imports cleared or your license extended, then that means particularism. Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. e]__3EwcaXLpMu\6ki3=3A{aji_*i/NQwio+OKZM$>w3@-$CH^~d), q)>x1t4N8S8JrRG?;*6Q^LZE j;@+l8PPi-(v=XFM7%-Ag}VuPfa{+_gU ?hv Z&*~TVF:F78%dDZ N|#*q6]d/PQ{ox S@twnir@/ohoWDw^p Qd~`JyBAAFH Abstaining from cheating customers, defrauding clients, lying, and murder are fairly objective ethical values; the reason for making any exceptions must be carefully laid out. 16 terms. Unfortunately, in the United States, much of this money is spent on merely meeting the minimum requirements of compliance, so that if there is ever a problem with the Department of Justice or the Securities and Exchange Commission, the organization is insulated from criticism or liability because its employees have engaged in the recommended training. Human flourishing may not be the immediate concern of business, but managers and employees have a significant impact on business performance. Also needs of individuals involved in a This principle is related to universalism. <>/Border[0 0 0]/Contents()/Rect[72.0 618.0547 118.127 630.9453]/StructParent 2/Subtype/Link/Type/Annot>> After all, we cannot make a commitment to serve customers, develop leaders, and improve life for all stakeholders unless there is freedom and moral agency, the necessary ingredients in establishing an attitude of concern, that is, respect for oneself and for others, including all appropriate stakeholders. Many people question the place of love in a business setting. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. When seen from Bubers perspective, however, love is not an idyllic feeling but a driving force for justice and care. As effective as they may be, however, they beg the larger question not of how someone can act on what their conscience tells them but how to determine what their conscience is telling them in the first place. Time: 3 Hours Total Marks: 100 Note: Attempt all Sections missinganyIf data;requ suitably choose SECTION A. Attemptall questions in brief. A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? e d u / j v b l / v o l 8 / i s s 2 / 3)/Rect[128.1963 131.7406 312.7275 143.4594]/StructParent 7/Subtype/Link/Type/Annot>> Dec 12, 2022 OpenStax. citation tool such as, Authors: Stephen M. Byars, Kurt Stanberry. Theories of Business Ethics. Are the Values Central to Business Ethics Universal? For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. v a l p o . WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism Organizational ethical practices include how a WebThis document is designed as an introduction to making ethical decisions. A common description of utilitarianism is seeking the greatest good for the greatest number this is paraphrased from Jeremy Bentham, who developed Act c. (5) Do I/we want to assume responsibility for the consequences? <>stream trailer For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. endobj are not subject to the Creative Commons license and may not be reproduced without the prior and express written As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. org/10.4135/9781473910034 More information Summary Contents grramire. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. philosophy could add a critical element to business education, an element that would keep business education always alive and prevent it from becoming an accepted, orthodox ideology.38. My Account Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. Robotics, Artificial Intelligence, and the Workplace of the Future, 32. At the same time, each one has a logic. How can businesses do this? A Framework for Making Ethical Decisions, 11. What is universal ethics theory? If you belong to such an institution, please log in or find out more about how to order. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). 0000017527 00000 n Many companies in the United States, Europe, and elsewhere were pressured in the 1980s and before by public interest groups whether or not to continue doing business or leave South Africa. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format,
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