(4th) Ethics

CODES OF RIGHT CONDUCT
Learning Objective:
• Distinguish between good policies/practices and morally unacceptable

policies/practices.
Operating with integrity and with reference to codes of right conduct is playing an
increasingly significant role for sustainable business today.
Every organization must have a code of right conduct.
➢ A code has value just like an integral guideline and an external statement of
corporate values and commitments.
➢ The code expresses the values the organization desires to promote in leaders and
employees.
A code is a fundamental guide and reference for employees to support everyday decision
making.
Utilitarianism
Principle of utility affirms that actions or behaviors are right if they encourage happiness
or pleasure, wrong if they generate unhappiness or pain.
Utilitarianism is complex because this single principle has to reflect on three things
namely what is good, whose well-being and the actual consequences.
1. What is good?
Jeremy Bentham equated utilitarianism to a view called hedonism.
What is HEDONISM?
- Means the only thing that is good in itself is pleasure or happiness.
2. Whose well-being
- Utilitarian logic can be used both for moral reasoning and rational decision
making.
- It can also be used for discussions on the interests of different persons and
groups.
a. Individual self-interest
▪ Individuals consider only their own utility when deciding what to do.
b. Groups
▪ People also need to judge what is best for groups, like friends, families,
religious groups, one’s country and even the world.
c. Everyone affected.
▪ Peter Singer emphasized that utilitarian moral theory requires that
moral judgments which he framed as the “equal consideration of
interests”.
3. Actual consequences or foreseeable consequences
- Utilitarianism opposed the idea that judgments of right and wrong should be based on
the actual consequences of actions or their foreseeable consequences.
NON-CONSEQUENTIALIST
▪ Principle that an action is good based on the principle people follow and
regardless of the results of the action.
▪ Deontological approach is an example of this theory.
Deontologist
- Is an approach that focuses on the rightness or wrongness of actions
themselves.
Other types of Deontology
1. Divine command theory

- This is a form of deontological theory which means an action is right if
God has declared that is right, and that act is obligatory if it is
commanded by God.
2. Natural rights theory
- This theory holds that humans have absolute natural rights.
- A NATURAL RIGHT is based on a political theory that every person has
basic rights that the government cannot deny.
3. Contractarian Ethics
- Contractariasnism refers to both the theory in political philosophy on
the legitimacy of political authority, and the ethical theory concerning
the origin, or legitimate content, of moral norms.
4. Pluralistic deontology
- It is a description of the deontological ethics advocated by W.D Ross.
- He argues that there are seven prime duties that should be
considered when deciding which duty should be acted upon:
A. Duty of beneficence – to help other people to improve their
conditions like increase their pleasure, improve their
character.
B. Duty of nonmaleficence – to avoid harming others
C. Duty of justice – to ensure people get what they deserve
D. Duty of self improvement - to improve oneself
E. Duty of reparation – to recompense someone if one has acted
wrongly towards them.
F. Duty of gratitude – to return favors that others have done.
G. Duty of fidelity – to keep promises both explicit and implicit
promises, including the implicit promise to tell the truth.
On Writing Codes of Right Conduct
Organizations both businesses and non-profit ones have definite expectations of

how their staff should behave.
A written code of conduct is essential since it provides obvious instructions about
what staff can and cannot do.
Externally, a code serves several important purposes:
1. Compliance – Legislation mandates individuals serving on boards and
organization leaders of public offices to implement codes or clearly explain
why they have not.
2. Marketing – A code serves as a public statement of what the company
promised to stand for and its commitment to high standards and right
conduct
3. Risk Mitigation – Organizations with codes of ethics can trim down the
financial risks connected with government fines for ethical wrong doing by
signifying they have made a “good faith effort” to avoid unlawful acts.
Guidelines for writing an ETHICS CODE

1. Be plain about the objectives that the code is planned to achieve.
2. Obtain support and ideas for the code from all levels of the organization.
3. Be conscious of the most recent developments in the laws and regulations that
concern the industry where the organization belongs.
4. Write as plainly and undoubtedly as possible. Keep away from legal
terminology and clear generalities.
5. Act in response to real-life questions and situations
6. Supply resources for additional information and guidance.
7. In all its forms, make it user-friendly since ultimately a code is a failure if it is
not applied.
The most common sections to include in a code of right conduct are:

1. Ethical principles – workplace behavior respect for all people
2. Values – an honest, unbiased and prejudiced work environment
3. Accountability – taking responsibility for own actions, ensuring
appropriate use of information, exercising diligence and duty of care
obligations & avoiding conflicts of interests.
4. Standard of conduct – complying with the job description,
commitment to the organization and proper computer, internet and
email usage.
5. Standard of practice – current policies and procedures and business
operational manual
6. Disciplinary actions – complaints handling and specific penalties for
any violation of the code.

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CODES OF RIGHT CONDUCT

• Distinguish between good policies/practices and morally unacceptable

3. Actual consequences or foreseeable consequences

▪ Deontological approach is an example of this theory.

Other types of Deontology

1. Divine command theory

On Writing Codes of Right Conduct

Organizations both businesses and non-profit ones have definite expectations of

Guidelines for writing an ETHICS CODE

The most common sections to include in a code of right conduct are:

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