Ethical Theories
Ethical Theories
Ethical Theories
Ethics:
Cotemporary Ethical Theories
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The role of ethical theory
Two extreme positions (De George 1999)
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Traditional ethical theories
Major normative theories in business
ethics
Egoism Utilitarianism Ethics of duties Rights and
justice
Concept of Man as an actor with Man is controlled by Man is a rational Man is a being that
human beings limited knowledge avoidance of pain moral actor is distinguished by
and objectives and gain of pleasure dignity
(“hedonist”)
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Utilitarianism (2)
Example of a utilitarian
analysis
Action 1 : doing the deal Action 2 : not doing the deal
Product Success; bonus Bad conscience Good conscience Loss of a good deal
manager
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Limits of Utilitarianism
Subjectivity
– Led to refinement of theory
Act utilitarianism
Rule utilitarianism
Problems with quantification
Distribution of utility
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Act- and Rule-
Utilitarianism
Act utilitarianism looks to single
actions and bases the moral
judgement on the amount of
pleasure and the amount of pain this
single action causes.
Rule utilitarianism looks at
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Ethics of rights and justice
Natural rights are certain basic,
important, inalienable entitlements that
should be respected and protected in
every single action.
– Strongly based in western view of
morality
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Contemporary ethical
theories
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Virtue ethics
Virtue ethicscontends that morally
correct actions are those undertaken
by actors with virtuous characters.
Therefore, the formation of a virtuous
character is the first step towards
morally correct behaviour
Acquired traits
– Intellectual virtues
– Moral virtues
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Feminist ethics
Feminist ethics is an approach
that prioritizes empathy,
harmonious and healthy social
relationships, care for one
another, and avoidance of harm
above abstract principles
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Feminist ethics
Contrasting gender-based views of
business ethics
View of human 2 H i g h e r E d u c a t i o n
Discourse ethics
– Discourse ethics aims to solve ethical
conflicts by providing a process of norm
generation through rational reflection on
the real-life experiences of all relevant
participants
Ultimate goal of ethical issues in
business should be the peaceful
settlement of conflicts (Steinmann
and Löhr, 1994)
Different parties in a conflict should sit
together and engage in a discourse
about the settlement of the conflict,
and ultimately provide a situation
that is acceptable to all
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– ‘ideal discourse’ criteria (Habermas
Postmodern perspectives on
business ethics
Postmodern ethicsis an approach that
locates morality beyond the sphere of
rationality in an emotional ‘moral
impulse’ towards others. It
encourages individual actors to
question everyday practices and
rules, and to listen to and follow their
emotions, inner convictions and ‘gut
feelings’ about what they think is right
and wrong in a particular incident of
decision-making.
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Postmodern business
ethics
Postmodern business ethics
emphasises (Gustafson, 2000:21)
– Holistic approach
– Examples rather than principles
– ‘Think local, act local’
– Preliminary character
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Summary
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The value of ethical theories in
solving ethical dilemmas in
business
Ethi Variety
dilemmcal
businea in „Prism“ of norma
tive
ss conside
of rat
ethical the in solvin ions
ories g
the ethic
al
dilemma
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Pluralism?
Crane and Matten (2004) argue that for the
practical purpose of making effective
decisions in business:
– Not suggest one theory or one approach
as the best or true view of a moral
dilemma
– Suggest that all these theoretical
approaches throw light from different
angles on one and same problem
Complementary rather than mutually
exclusive
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Advocate position of pluralism
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Considerations in making ethical
decisions: summary of key insights from
ethical theories
Consideratio
One’s own
interests 2 H i g h e r
Continued…
E d u c a t i o n
Considerations in making ethical
decisions: summary of key insights from
ethical theories (2)
Consideratio
Moral
character 2 H i g h e r E d u c a t i o n