Business Frame Work and Ethics
Business Frame Work and Ethics
Yuvaraj Nithyanandam
Jozzalo Micah Culabat
Jonalyn Pawig
Ethics :
moral principles that govern a person's behavior or the
conducting of an activity.
Normative Ethics :
The field of ethics or moral philosophy
involves systemizing, defending and
recommending concepts of right and wrong
behavior The Different Normative Ethical
Theories
Kohlberg’s Stages of Moral Development
Machiavellian Principles
Utilitarianism
Kantian Ethics
John Rawl’s Principles of Justice
The Moral Positivism of Hobbes
Divine Command Ethics
Ethical Egoism of Ayn Rand
Kohlberg’s Stages Of Moral Development
Stage 2. Individualism and Exchange. At this stage, children recognize that there is
not just one right view that is handed down by the authorities. Different individuals have
different viewpoints.
Level 2 – Conventional Morality
Stage 3. Good Interpersonal Relationships. The child/individual is good in order
to be seen as being a good person by others. Therefore, answers relate to the approval of
others.
Stage 4. Maintaining the Social Order. The child/individual becomes aware of the
wider rules of society, so judgments concern obeying the rules to uphold the law and
avoid guilt.
Level 3 – Postconventional Morality
Stage 5. Social Contract and Individual Rights. The child/individual becomes aware
that while rules/laws might exist for the good of the greatest number, there are times when
they will work against the interest of particular individuals. The issues are not always
clear-cut. For example, in Heinz’s dilemma, the protection of life is more important than
breaking the law against stealing.
Stage 6. Universal Principles. People at this stage have developed their own set of
moral guidelines, which may or may not fit the law. The principles apply to everyone .E.g.,
human rights, justice, and equality. The person will be prepared to act to defend these
principles even if it means going against the rest of society in the process and having to pay
the consequences of disapproval and or imprisonment.
Application :
parents guide their children as they develop their moral character. younger children might work
on rule obeyance, and older children about social expectations.
Criticism:
Moral reasoning does not equal moral behavior:
Machiavellianism :
Characterized by manipulation and exploitation of others, A
cynical Disregard for morality, lack of emotion and focus of
self interest
3) Manipulative behavior
The Machiavellian Guiding principles
1) Never show humility 2) Arrogance far more better effective when dealing with others
3) Powerful people feel free to Lie , 4) It is much better to be feared than love
cheat others when it suits to them
Utilitarianism:
Utilitarianism is a theory of morality that advocates actions that foster
happiness or pleasure and oppose actions that cause unhappiness or harm.
Actions are right if they promote happiness, and wrong if they promote
unhappiness.
Everyone's happiness counts equally. some lives and some people's happiness were
simply more important and valuable than others.
Utilitarianism:
Quantitative utilitarianism argues that mental pleasures and pains differ from
physical ones only in terms of quantity - “it is the greatest happiness of the
greatest number that is the measure of right and wrong”.
The Limitations of Utilitarianism
In the workplace, though, utilitarian ethics are difficult to achieve. These ethics also
can be challenging to maintain in our business culture, where a capitalistic economy
often teaches people to focus on themselves at the expense of others. Similarly,
monopolistic competition teaches one business to flourish at the expense of others.
A limitation of utilitarianism is that it tends to create a black-and-white construct of
morality. In utilitarian ethics, there are no shades of gray—either something is wrong
or it is right.
Utilitarianism also cannot predict with certainty whether the consequences of our
actions will be good or bad—the results of our actions happen in the future.
Utilitarianism also has trouble accounting for values like justice and individual rights.
For example, say a hospital has four people whose lives depend upon receiving organ
transplants: a heart, lungs, a kidney, and a liver. If a healthy person wanders into the
hospital, his organs could be harvested to save four lives at the expense of his one
life. This would arguably produce the greatest good for the greatest number. But few
would consider it an acceptable course of action, let alone an ethical one.
So, although utilitarianism is surely a reason-based approach to determining right and
wrong, it has obvious limitations.
Kantian Ethics
John Rawl's Principles of Justice
The Moral Positivism of Hobbes
- Divine Command Ethics -
Business leaders, along with society in general, rely on ethical frameworks to
guide daily decision-making processes and logically confirm gut feelings.
Prominent ethical frameworks such as deontology, utilitarianism and virtue ethics
are popular tools employed in this process.
All the components of Divine Command Theory and Business ethics are same
- help in building up good relations among the employees of the company
- businessmen are able to set their companies policies and rules easily
- becomes easy for the management to manage daily operations according
to set rules and division of work also becomes easy
Divine command theory and business ethics rules and guidance are similar such as
being truthful to get a better reward
- brand loyalty and customer satisfaction same thing is suggested
- it helps in setting up the environment of an organization if used properly
- Ethical Egoism of Ayn Rand -
Rand's view is that the exact opposite is true: Self-interest, properly understood, is the standard
of morality and selflessness is the deepest immorality. Self-interest rightly understood,
according to Rand, is to see oneself as an end in oneself.
- the moral legitimacy of self-interest implies that individuals have rights to their
lives, their liberties, their property, and the pursuit of their own happiness, and that
the purpose of government is to protect those rights
-Economically, leaving individuals free to pursue their own interests implies in turn
that only a capitalist or free market economic system is moral
Divine Command Ethics
Business leaders, along with society in general, rely on ethical frameworks to guide daily
decision-making processes and logically confirm gut feelings. Prominent ethical frameworks
such as deontology, utilitarianism and virtue ethics are popular tools employed in this
process.
Divine command theory can also be used in business because all the components of Divine
Command Theory and Business ethics are same. So if any business uses divine command
theory regardless of religion, it also coincides with utilitarianism, Kantianism and Natural
rights theories so if this theory isused in business it will help in building up good relations
among the employees of the company.Being truthful and faithful helps business to grow
because every person is known to the problems of anybusiness and they can take steps
immediately to control their losses.By using this theory, many businessmen are able to set
their companies policies and rules easily andthese rules help the business to grow. By using
Divine Command theory it becomes easy for themanagement to manage daily operations
according to set rules and division of work also becomes easy. Divine command theory and
business ethics rules and guidance are similar such as being truthful to get a better reward
now if a business is truthful with its employees and customers as a reward they will get
higher sales, brand loyalty and customer satisfaction same thing is suggested by divine
Command theory. It is very important to synergize any business with Divine Command
theory to run a business efficiently and that also helps to remove small hassles in the
businesses. It helps in setting up the environment ofan organization if used properly.
Ethical Egoism of Ayn Rand
Rand's view is that the exact opposite is true: Self-interest, properly understood, is the
standard of morality and selflessness is the deepest immorality. Self-interest rightly
understood, according to Rand, is to see oneself as an end in oneself.
Self-interest rightly understood, according to Rand, is to see oneself as an end in oneself. That
is to say that one’s own life and happiness are one’s highest values, and that one does not
exist as a servant or slave to the interests of others. Nor do others exist as servants or slaves to
one’s own interests. Each person’s own life and happiness are their ultimate ends. Self-
interest rightly understood also entails self-responsibility: One’s life is one’s own, and so is
the responsibility for sustaining and enhancing it. It is up to each of us to determine what
values our lives require, how best to achieve those values, and to act to achieve those values.