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L3 Making Ethical Decisions

This document discusses ethical decision making and normative ethical theories. It outlines three main normative theories: absolutism, relativism, and pluralism. Absolutism believes in one set of universal moral rules, relativism believes rules can change over time, and pluralism accepts different moral views but seeks consensus. The document also examines traditional theories like Kant's ethics of duty, rights-based ethics, utilitarianism, and egoism. It notes limitations of these theories and advocates pluralism and considering multiple perspectives to make effective business decisions.

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vivian
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11 views

L3 Making Ethical Decisions

This document discusses ethical decision making and normative ethical theories. It outlines three main normative theories: absolutism, relativism, and pluralism. Absolutism believes in one set of universal moral rules, relativism believes rules can change over time, and pluralism accepts different moral views but seeks consensus. The document also examines traditional theories like Kant's ethics of duty, rights-based ethics, utilitarianism, and egoism. It notes limitations of these theories and advocates pluralism and considering multiple perspectives to make effective business decisions.

Uploaded by

vivian
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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L3

Making Ethical Decisions


Learning Outcomes:
• Making ethical Decisions
• Role of normative theories
• Locate the role of ethical theory
• Provide critical overview of traditional normative ethical theories
• Application of theory to a Case study

How do we understand if a situation has a moral status?


• A decision is likely to have a significant effect on others
• There are alternative choices of action
• The decision is seen as ethically relevant to the other person/s in the situation

Actual ethical behaviour depends on:


- The individual
- The circumstances
- Moral intensity of the situation

The role of ethical theory

Theory 1 Absolutism (e.g. Kant’s theory of duties): -


- One set of moral values
- Rules common to everyone
- Rules unlikely to change over time
- Other factors or pressures do not change the situation
- Dogmatic (absolute truths exist)

Theory 2 Relativism (e.g. Bentham’s Utilitarian theory):-


- Many acceptable rules within society
- Rules can change over time
- Pragmatic

Theory 3 Pluralism (usually works in business decision-making):-


- Middle ground between absolutism and relativism
- Accepts different moral convictions, and backgrounds
- On the belief that there is a consensus-based on basic principles and rules
- Useful for making business decisions

Ethical theories:
• Different ethical theories are complementary resources or tools
• they help us make a practical, structured and systematic assessment of what is right
or wrong
• Help to clarify the situations
• Each theory highlights different aspect that needs consideration.
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Key Terms:
 Ethical theories are the rules and principles that determine right and wrong for
any given situation.
 normative ethical theories propose the morally correct way of acting
 descriptive ethical theories how ethics decisions are actually made in business

Normative Ethical Theories

theories generally offer a certain rule or principle which one can apply to any given
situation

These theories generally can be differentiated into two groups

Non-Consequential Non- Consequential Consequential theories


Theories: Theories (Kant’s Ethics • Outcome drives the moral decision
 Looks at the of Duties): • Moral right or wrong is dependent on
morals that drive 1. Maxim 1: the outcome
an action Consistency • The ends are more important than the
 Not the Action is right means
consequences of if the Examples:
action rule/principle 1. Utilitarianism Theory
 Means are more applied will be 2. Egoism
important than the followed by
everyone in all
cases
2. Maxim 2: Human Dignity
Act so that you treat people with dignity and respect, not use them for your ends
(profiting from them)
3. Maxim 3: Universality
The rules guiding our action should be acceptable to be every rational person.
(would others agree? Would you be happy to see your decision reported in the
press?)

Problems with Kant’s Ethics of Duties:


• Undervaluing outcomes - too little consideration for outcomes
• Complexity - difficult to apply the three principles
• Misplaced optimism? – in reality not all will self-impose duties – it is an ideal rather
than reality
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Non- Consequential Theory (Ethics of Rights):


• Natural rights are certain basic, important, unalienable entitlements that should be
respected and protected in every single action
• It is a duty of companies/individuals to respect these rights

Consequential Theory (Utilitarianism):


• Commonly accepted theory
• Focuses on wider social outcomes within a community
• Weighs good outcomes against bad ones
• According to utilitarianism, an action is morally right if it results in the greatest
amount of good for the greatest number of people affected by the action
• Also called the ‘greatest happiness principle’
• Based on cost-benefit analysis

Problems with Utilitarianism:


• Subjectivity – different views on assessing pleasure and pain
• Problems of quantification- all situations have equal utility value (is losing a contract
comparable to forcing children into labour?)
• Distribution of utility – in assessing greatest good for most people the interests of
minorities can be overlooked.

Consequential Theory (Egoism):


• Discussed by ancient Greeks
• Focus lies in self-interest (particularly selfishness) which is motivation that explains
human conduct.
• Thomas Hobbes (1588-1679) mentioned that systems and controls were needed
against egoistic behaviours

Problems with Egoism:


• Some decisions seem immoral from other perspectives
• Many academics do not view this theory as viable to make good decisions

Summary: (Major Normative Theory)

Limitations of traditional theories:


- Too abstract (theoretical, impractical,..)
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- Too reductionist (focuses on single aspects)


- Too objective and elitist
- Too impersonal (do not take into account relationships, bonds etc.)
- Too rational and codified
- Too imperialist

Postmodern business ethics:


Postmodern business ethics emphasises (Gustafson, 2000:21)
• Morality is a inner conviction (no separation between private and
professional realm)
• Experiences and practise help in making decision
• Ethical reasoning should be based on local rules
• Ethical reasoning is a constant learning process

Pluralism:
Crane and Matten (2010) 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
• Advocate position of pluralism
• Middle ground between absolutism and relativism

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