UNIT 3: Professional Ethics and

Philosophy
1. Introduction to Entrepreneurship Ethics
2. Moral issues in Entrepreneurship Ethics
3. Moral dilemmas and decision-making
4. frameworks/processes
5. Leadership, Ethics and Entrepreneurship.

Lecturers: Dr I. Mutelo
Mr Chiweshe
Ms B. Matinhira
 Ethics: Definition

What is ethics?
What does being “ethical” or “moral” mean?
 The English word "ethics" is derived from the Ancient
Greek word ēthikós (ἠθικός), meaning "relating to one's
character",
 which itself comes from the root word êthos (ἦθος)
meaning "character, moral nature, custom, or habit”.
 The word ethics refers to a set of beliefs about right and
wrong behaviour.
 It refers to a set of moral principles that distinguish
what is right from what is wrong.
 Social behaviour: conforms to generally acceptable social
norms.
 Professor Deon Rossouw is often asked to define ethics, and
for him it is simple:
“Ethics is about the triangle of the self, the good and the
other”
 That means you are ethical when you don’t only think about
what is good for yourself, but also for others.’
 Another way of thinking about this is the golden rule of
doing unto others as you would have them do unto you.
 This model emphasizes the importance of balancing
personal interests, moral principles, and the impact on
others in ethical considerations.
 The word ethics refers to a set of beliefs or principles about right
(i.e., acceptable social norms) and wrong behaviour.
 Ethics also includes reflection and thinking based on the lived
experiences of the people.
 Human beings have the inner capacity to distinguish between good
and evil, between right and wrong.
 Ethics: a system of moral principles and a branch of philosophy
which defines what is good for individuals and society.
 Ethics is a system of moral principles: what is good for
individuals and society.
 Ethics affect how people make decisions and lead their lives
(how to live a good life and make morally justifiable or
well-informed decisions/choices).
 As a field of study, ethics covers the following dilemmas:
1) how to live a good life
2) our rights and responsibilities
3) the language of right and wrong
4) moral decisions - what is good and bad?
 Our concepts of ethics have been derived from religions,
philosophies and cultures.
 They infuse debates on topics like abortion, human rights
and professional conduct.
 Ethics should not be confused with i.e., behaving in line
with social conventions, religious beliefs and the law.
 The role of Ethics to entrepreneurial Decision-making

 An ethical entrepreneur = making ethical decisions/actions.

 Ethics helps entrepreneurs to:
 Distinguish between right and wrong,
 Ensure that their choices align with moral values/societal norms.
 Ethical decision-making in a global business environment is a
complex topic that requires careful consideration.

“Entrepreneurs must navigate through ethical dilemmas, weighing

the interests of stakeholders, societal expectations, and legal
obligations” (Faster Capital 2024)
The Myth of Amoral Business: The Stockholder Approach
and Milton Friedman
 Amoral: lacking a moral sense; unconcerned with the
rightness or wrongness; neither moral nor immoral.
 Munyaradzi Mawere (2010) defines the myth of amoral
business: “’a belief that business and ethics do not mix’
they are mortal enemies”.
 The concept of amoral business = businesses operate in a
sphere separate from moral considerations, focusing solely
on profit maximization.
 Economist Milton Friedman: the primary responsibility of
business is to its shareholders (i.e., financial investors).
 This means that decisions should focus on increasing
profits, often sidelining ethical considerations.
 According to Friedman, the primary duty of a business is to
maximize shareholder value.
 Corporate executives’ responsibility is to act in the best interests
of the owners:
 i.e., prioritizing financial returns over social responsibilities.
 Based on this stockholder theory, shareholders are one of many
groups a corporation or organization must serve.
 Thus, according to this stockholder view, the primary ethical
responsibility (if any) is to maximise profits for shareholders.
The myth of amoral business, encapsulated in the stockholder
approach advocated by Milton Friedman, suggests that profit
should be the sole focus of business operations.
 Critics argue that this approach encourages a short-term focus
on profits at the expense of long-term sustainability.
 The stockholder approach often ignores the interests of other
stakeholders i.e., employees, customers, and the community.
 This can lead to negative social impacts, including job loss,
poor working conditions, and environmental degradation.
 Many argue that businesses have a broader ethical responsibility
beyond profit.
 This includes considering the social and environmental impacts
of their operations and contributing positively to society.
 Contemporary consumers and investors increasingly demand
that businesses demonstrate social responsibility.
The stakeholder response (Freeman)
 R. Edward Freeman’s stakeholder theory offers a
counterpoint to Milton Friedman's stockholder approach.
 Freeman argues that businesses have a responsibility to a
broader range of stakeholders, not just shareholders.
 This perspective emphasizes the interconnectedness of
various parties involved in or affected by business activities.
 Freeman suggests that a company's stakeholders are "those
groups without whose support the organization would cease
to exist."
 i.e., customers, employees, suppliers, political action groups,
environmental groups, local communities, the media,
financial institutions, governmental groups, etc.
 Key ethical frameworks/Ethical Theories
Ethical theories are formal (and ideally coherent and
justified) statements that explain a certain matter.
They are formal statements about what we ought to do,
when faced with an ethical dilemma.
Is it, for example, wrong to tell a lie, even if we thereby
avoid making somebody sad? Or what if we, by harming
one individual, can avoid ten people being harmed; should
we in such cases choose the lesser evil?
In trying to answer such questions, it becomes clear that one
of the central issues in ethics is whether we should focus on
the consequences or the nature of actions.
Should we, perhaps focus on our emotions? Personal views?
 (a) Consequentialism: right/wrong depend on the
consequences of an act i.e., the more good consequences are
produced, the better the act.
 The morally right action is the one with the best overall
consequences i.e., if telling a lie would help save a person’s
life, then it’s the right thing to do.
 Utilitarianism is an example of consequentialism – it
determines right from wrong by focusing on outcomes.
 Utilitarianism judges consequences by a “greatest good for the
greatest number” standard
 i.e., the most ethical or moral choice is the one that will
produce the greatest good for the greatest number.
 Hedonism (another form of consequentialism): pleasure/
absence of pain as the most important principle.
 i.e., the most ethical or moral choice is the one that will
produce the greatest good (i.e., happiness or pleasure) for
the greatest number.
 So, an action that brings about more benefit than harm is
good, while an action that causes more harm than benefit
is not.
 For example, what if we, by harming one individual, can
avoid ten people being harmed; should we in such cases
choose the lesser evil?
 Most utilitarians would say yes, if by harming one
individual we can prevent ten people from being harmed,
then its okay to harm one individual in this case.
 (b) Deontological ethics: (Greek: deon, meaning duty) uses rules
to distinguish right from wrong = duty-based ethics.
 It suggests that actions are good or bad according to a clear set of
rules - only actions that obey these rules are ethical!
 Deontology is simple to apply: follow the rules, do your duty.
 Immanuel Kant believed that ethical actions follow universal
moral laws, such as “Don’t lie. Don’t steal. Don’t cheat” – these
are absolutely prohibited, even in cases where the action would
bring about more happiness/better outcomes than the alternative.
“Act only on that maxim through which you can at the same time
will that it should become a universal law of nature” - Kant
 Divine Command Theory: morality is somehow dependent upon
God, and that moral obligation consists in obedience to God’s
commands - duty to follow God’s commands.
 So, although it is important to follow rules and do the right thing,
deontological ethics also acknowledges that actions and their
outcomes are independent things.
 Are there some things you have to do, even though you know they
are wrong, such as shooting an intruder to protect your family?
 There is a dilemma here: you know that killing is bad, but you also
have the duty to protect your family!
 Here, some deontologists might say that you should never kill no
matter what!
 Others will say that you have to focus on your duty by protecting
your family, and not the likely death it will mean for the intruder.
 Based on this, then, an act that is not good morally can lead to
something good i.e., for example, we can agree that killing is
wrong, but shooting the intruder to protect your family might seem
right since you have the duty to protect your family.
 Virtue Ethics

What is virtue ethics?

 The traditional list of cardinal virtues was:
 Prudence i.e., the ability to discern the appropriate course of
action to be taken in a given situation at the appropriate time.
 Justice i.e., fairness, righteousness.
 Fortitude i.e., courage: forbearance, endurance, and the ability
to confront fear, uncertainty, and intimidation.
 Temperance i.e., self-control, discretion, moderation.
 The modern theologian James F Keenan suggests:
 Justice: Justice requires us to treat all human beings equally
and impartially.
 Fidelity: Fidelity requires that we treat people closer to us
with special care.
 Self-care: We each have a unique responsibility to care for
ourselves, affectively, mentally, physically, and spiritually.
 Prudence: The prudent person must always consider Justice,
Fidelity and Self-care. The prudent person must always look
for opportunities to acquire more of the other three virtues.
 The origin of virtue ethics can be traced from early Greek
thinkers of ancient Greece: Socrates, Plato and Aristotle.
 Socrates (died 399 BC) was a Greek philosopher from Athens
who is credited as being one of the first moral thinker of the
Western ethical tradition of thought.
 Socrates first raises the question, “What is virtue?” Plato
states virtue is knowledge = virtue.
 Plato maintains a virtue-based eudaemonistic conception of
ethics: that is to say, happiness or well-being (eudaimonia) is
the highest aim of moral thought and conduct, and the virtues
(i.e., 'excellence') are the requisite skills and dispositions
needed to attain it.
 The word eu̯dai̯monía (Greek) is translated as “the good life"
or “life lived well" or “flourishing or “happiness.”
 Eudaemonism is an ethical theory claiming that the highest
ethical goal is happiness and personal well-being.
 Plato’s argument against the egoist [egoist: ethical egoism is
the normative ethical position that moral agents ought to act
in their own self-interest], that it is always better to be just
than unjust, is psychological in nature.
 Plato believed that when reason is in control, we are free to
pursue what reason desires and we in fact gain most of what
we desire.
 This means that reason is higher and more important than
emotions (i.e., anger) and appetites (i.e., cravings,
addictions).
 It is important for the three parts namely, mind (reasoning),
appetites, and emotions to be in a balance.
 When all three harmonize or aggregate together, each
flourishing in their respective domain with mind in control
over all, a well-ordered soul will emerge bearing the fruit of
four cardinal virtues: justice, courage, wisdom, & self -
control.
 But whenever the appetites (any addiction will do) or
emotions (e.g., anger) take over against the mind, one will
have a disordered personality.
 After Plato, came Aristotle – he was the student of Plato.
Aristotelianism is a tradition of thought (tradition of
philosophy) that takes its defining inspiration from the work
or works of Aristotle.
 Aristotle first used the term ‘ethics’ to name a field of study
developed by his predecessors Socrates and Plato.
 Aristotle contends virtue = habits of excellence. We become
what we repeatedly do.
 Intellectual virtues are taught and moral virtues are acquired
through habituation.
 He believed that we carefully cultivate moral goodness by rigorous
practice.
 But the ideal of virtue is doing the right thing because you want to
do the right thing; you desire to act virtuously.
 For Aristotle, Virtue Ethics is about character formation, becoming
a person of excellence; it works on your motivation, your desires,
& your intentions.
 You want to want to be a person of excellence!
 Aristotle emphasized the centrality of developing excellence
(virtue) of character, as the way to achieve what is finally more
important, excellent conduct.
 As Aristotle argues in Book II of the Nicomachean Ethics, the
person who possesses character excellence will tend to do the right
thing, at the right time, and in the right way.
 Advantages of Virtue Ethics
 It centers on the person and what it means to be human. It
includes the whole of a person's life.
 Motivates us to work on morality (unlike other theories, that
simply state what to do when in an ethical dilemma)
 Doesn't rely on a theory: self-improvement. Focuses on the
individual and building ourselves into better people, more
focus on individuality and aforementioned development of
moral reasoning.
 Allows you to learn from your mistakes and become a good
person over time.
 It is accommodated by both religious and secular morality.
 Disadvantages of Virtue Ethics
 It doesn't provide clear guidance on what to do in moral
dilemmas:
 although it does provide general guidance on how to be a
good person.
 presumably a totally virtuous person would know what to do
and we could consider them a suitable role model to guide us.
 There is no general agreement on what the virtues are:
 it may be that any list of virtues will be relative to the culture
in which it is being drawn up.
 No single and definitive answer to what the virtues are, they
are time-changing.
 Hard to tell what someone's motives are / some may not even
want to develop moral virtues?
 Doesn't concern right or wrong action - these virtues don't
distinguish between what the right course of action would be
when in an ethical dilemma, just describe what sort of
characteristics one ought to develop.
 Might not be any Telos (i.e., end, results). Where will these
virtues lead to? Is there a reason for the development of these
virtues?
 It does not give clear rules on how to act in particular situations.
There is also no guidance in situations where virtues conflict
and where we need rules to guide our actions
 It does not adress the problem of people doing bad things who
think they are acting virtuously.
 Ubuntuism
“Ubuntu ethics can be defined as a set of values provided an
opportunity for human beings to live according to certain
human and humane principles such as reciprocity, common
good, peaceful relations, emphasis on human dignity and the
value of human life, as well as consensus, tolerance, and
mutual respect” - Philip Ogochukwu Ujomudike (2016).
 Ubuntu is a classical African concept that embodies people's
allegiances and empowering relations with each other.
 Ubuntu is from African Bantu languages, its root being ntu,
which signifies primal being.
 For Ramose, the prefix “evokes the idea of be-ing in general”.
Ubu specifies a one-ness, while ntu specifies a wholeness.
Ubu- is oriented towards ntu as a ‘being becoming whole.’
 Ubuntu: Desmond Tutu’s Definition:
“…It is the essence of being human. It speaks of the fact that my
humanity is caught up and is inextricably bound up in yours. I am
human because I belong. It speaks about wholeness, it speaks
about compassion. A person with Ubuntu is welcoming, hospitable,
warm and generous, willing to share. Such people are open and
available to others, willing to be vulnerable, affirming of others, do
not feel threatened that others are able and good, for they have a
proper self-assurance that comes from knowing that they belong in
a greater whole. They know that they are diminished when others
are humiliated, diminished when others are oppressed, diminished
when others are treated as if they were less than who they are. The
quality of Ubuntu gives people resilience, enabling them to survive
and emerge still human despite all efforts to dehumanize them.”
(Tutu 2004. God Has A Dream: Published by Doubleday
 Nelson Mandela’s comments on Ubuntu:
"In the old days when we were young, a traveller through a
country would stop at a village, and he didn't have to ask for
food or for water: once he stops, the people give him food,
entertain him. That is one aspect of Ubuntu, but it will have
various aspects. Ubuntu does not mean that people should not
enrich themselves. The question therefore is, are you going to
do so in order to enable the community around you, and
enable it to improve? These are the important things in life.
And if one can do that, you have done something very
important which will be appreciated."
 Meaning of Ubuntu:
 open and available to others,
 affirming of others,
 does not feel threatened that others are able and good, for
he or she has a proper self-assurance that comes from
knowing that he or she belongs in a greater whole and is
diminished when others are humiliated or diminished,
when others are tortured or oppressed.
 Principles of the ubuntu philosophy:
 According to our African moral theory, actions are right
roughly insofar as they are a matter of living
harmoniously with others or honouring communal
relationships.
  apply it to several issues in both normative and empirical
research into morality.
 compare and contrast this African moral theory with
utilitarianism and Kantianism in the context of several
practical issues.
 There are three 'To be human’ maxims that shape the Ubuntu
philosophy:
 To be human is to affirm one's humanity by recognizing the
humanity of others and, on that basis, establish respectful human
relations with them.'
 ‘if and when one is faced with a decisive choice between
wealth and the preservation of the life of another human
being, then one should opt for the preservation of life'.
  Ubuntu as a 'principle deeply embedded in traditional
African political philosophy’ which says “that the king
owed his status, including all the powers associated with
it, to the will of the people under him” (Samkange
1980).
 African societies are collectivist societies, community-
focused with collectivist values:
 A popular African proverb comes to mind here to
express the African sense of community. It says: "Go the
way that many people go; if you go alone, you will have
reason to lament".
 The African idea of security and its value depends on
personal identification with and within the community.
 The Extended Family:
 The extended family is the most prevalent family system in
African countries/societies.
 Marriage is a relationship between two extended families
than just between a man and a woman.
 Loose Parental Possessiveness of Children:
 In African societies children do not belong to parents only,
but also belong to community of relatives.
 The kind of parental possessiveness towards children that
one finds in the Western world is very rare in African
countries/societies.
 Relationships:
 At the African grassroots, relationships take precedence
over all other things.
 There are several sex taboos which attempt to regulate
moral life in Africa.
 The sanctity of life makes it an abomination for anyone,
under any circumstances to take his own life.
 In traditional African societies, suicide was never
permitted. Punishment for it was such that the person
was not buried since his corpse was also believed to be
abominable to mother earth.
 Africans prize life above every other thing. The Igbo
saying/name for boys = Nduka (i.e., life is supreme/great)
express the African regard for life.
 Any form of materialism which ultimately leads to the
destruction of life is alien and destructive of the African
culture and concept of human life and should be avoided.
 Ubuntuism: African Moral Theory
 Key principle: “Umuntu ngumuntu ngabantu” (literally
means that a person is a person through other people).
 According to our African moral theory, actions are right roughly
insofar as they are a matter of living harmoniously with others
or honouring communal relationships.
 Thus, ubuntu ethics can be defined as a set of values which
provide an opportunity for human beings to live according to
certain human principles i.e., reciprocity, common good,
peaceful relations, human dignity and the value of human
life, as well as consensus, tolerance, and mutual respect.
 Ubuntuism, therefore, represents an African conception of
human beings and their relationship with the community that
embodies the ethics defining Africans.
 The notion of Ubuntu is against the following challenges some
African countries are experiencing:
1) Ongoing hatred and intolerance i.e., xenophobia in South Africa,
religious and ethnic conflicts, wars, etc.
2) Abuse of human rights and dehumanization i.e., unfair and politically-
motivated arrests of journalists, opposition political leaders, lack of
freedom of expression, etc.
3) Exploitation and authoritarianism i.e., the rich getting richer,
government officials enriching themselves, natural resources benefiting
a few elite, nepotism and favoritism, etc.
4) Poverty and oppression: the poor getting poorer, economic policies
favoring the rich and elite, lack of proper medical facilities, etc.
"Lord have mercy, mercy, mercy; hospitals no medication, dem loot; ghetto
youths no jobs, dem loot; no water to drink in townships, dem loot” – Song
lyrics by journalist Hopewell Chin'ono.
 In your view, what is Ubuntu ethics?
Do you think the values and principles upheld by
Ubuntu are important to contemporary African
societies?
2. Moral issues in Entrepreneurship Ethics

What are the major moral

issues in Entrepreneurship
Ethics?
 Competition, advertising and fair business practices
 Although most companies have a legitimate code of conduct, ethical issues
still pose challenges.
 Answers may depend on business conditions, circumstances, and moral
positions. What one person considers unethical may be regarded as
standard practice by another.
 For instance:
 If your company is holding a sales contest, do you reschedule orders or try
to convince clients to order more than they need to increase your chances
of winning?
 Do you go a step further and suggest a price increase soon to achieve your
goal?
Some may consider such behavior unethical, while others may see it as
part of the “game” and within their usual remit as salespeople and
“winners.” Individual and business ethics are, of course, difficult to
 In business, advertising is important because it:
 Encourages businesses to develop new products and improve
services.
 Enhances consumer choice i.e., ore companies in a market
increase options for consumers.
 Encourages lower prices i.e., competition can lead to better
pricing strategies for consumers.
 Communicates the value of offerings to potential customers.
 Establishes brand identity and recognition in the marketplace.
 Provides essential information about product features and
benefits.
 Clearly, advertising is important!
 Based on fair business practices, the following are important:
 Truthfulness in advertising i.e., claims must be accurate and
not misleading.
 Fair competition i.e., competing based on merit rather than
unethical practices.
 Respect for consumer rights i.e., upholding consumer rights
and providing quality products/services.
 Challenges in competition and advertising include:
 Misleading advertising i.e., false claims can lead to consumer
distrust and legal consequences.
 Ethical dilemmas i.e., balancing profit motives with ethical
responsibilities to consumers.
 Based on fair business practices, the following are important:
 Truthfulness in advertising i.e., claims must be accurate and
not misleading.
 Fair competition i.e., competing based on merit rather than
unethical practices.
 Respect for consumer rights i.e., upholding consumer rights
and providing quality products/services.
 Challenges in competition and advertising include:
 Misleading advertising i.e., false claims can lead to consumer
distrust and legal consequences.
 Ethical dilemmas i.e., balancing profit motives with ethical
responsibilities to consumers.
Customer relations and marketing
 In marketing/advertising, customer relations are vital.
 According to Santa Clara University (2024):
“Customer relationship marketing (CRM) focuses on building long-
term relationships with customers to increase Customer Lifetime
Value (CLV), engagement, loyalty, and customer alignment while
reducing costs for bigger ROI. Compared to traditional marketing,
which is focused primarily on immediate sales, CRM focuses on
creating a customer profile, understanding customer needs and
wants, and providing a superior level of customer service that
delivers value to the customer on an ongoing basis. The goal of
customer retention isn't just to have people engage with your
business or brand once. Instead, it’s to create relationships you keep
and can continue to capitalize on, over and over. Reflecting this,
your CRR rate should be as high as possible. Healthy businesses
tend to aim for a CRR that exceeds 85%”
 Customer relations refers to the practice of managing
interactions with current and potential customers.
 Its benefits:
 Strong relationships lead to repeat business.
 Satisfied customers promote brand advocacy.
 Engaged customers provide valuable insights for improvement.
 To build strong customer relationships, it is important to:
 Tailor experiences based on customer preferences and
behavior.
 Keep customers informed and engaged through various
channels.
 Provide timely and helpful assistance to enhance satisfaction.
 Employee relationships and the workplace.
 Employee relationships refer to the dynamic interactions and
connections between employees and their employers, as well as
among employees themselves, within a workplace setting.
 These relationships are essential for fostering a positive work
environment, enhancing employee satisfaction, and promoting
organizational effectiveness.
 The key components include:
 Maintaining open and transparent communication channels
between management and employees.
 Building mutual trust and respect is crucial for strong employee
relationships.
 Addressing and resolving conflicts constructively to maintain
a harmonious workplace.
 i.e., Implementing policies and procedures to manage disputes
effectively.
 Involving employees in decision-making processes and
seeking their input.
 Fostering teamwork and collaboration among employees to
achieve common goals.
 i.e., Encouraging diversity and inclusion to enrich workplace
relationships.
 Supporting employees in maintaining a healthy work-life
balance.
 Sustainability and social impact (Corporate Social
Responsibility)
Sustainability refers to the ability to meet present needs without
compromising the ability of future generations to meet their own
needs.
It encompasses environmental stewardship, social equity, and
economic viability.
Social impact relates to the measurable effects that an
organization’s actions have on society and the environment.
Implementing eco-friendly practices such as reducing waste,
conserving energy, and using sustainable materials.
Ethical business practices i.e., commitment to integrity,
transparency, and fairness in all business dealings.
 According to Investopedia:
“Corporate social responsibility is a business model by which
companies make a concerted effort to operate in ways that
enhance rather than degrade society and the environment.”
 Corporate social responsibility can help improve society and
promote a positive brand image for companies.
 Corporate social responsibility includes four categories:
 Ethical responsibility i.e., moral/fair to others & environment
 Legal responsibility i.e., obey laws and regulations
 philanthropic endeavors i.e., donates profit to charities, etc.
 and financial responsibilities i.e., financial investments in
programs, etc.
 3. Moral dilemmas and decision-making
frameworks/processes

What is a Moral dilemma?

Can you share any decision-making
frameworks/processes you know?
A moral dilemma is a situation in which a person faces a choice
between two or more conflicting moral principles/ethical
obligations.
 These dilemmas often involve difficult choices where adhering
to one moral principle may lead to violating another.
Examples:
 Deciding whether to pull a lever to divert a runaway trolley onto
a track where it will kill one person instead of five.
 A therapist may face a dilemma between maintaining a client's
confidentiality and reporting a threat to someone's safety.
 Analyzing moral dilemmas in business (in general):
 Step 1: Clarify the Dilemma
 Clearly articulate the conflicting choices.
 Example: “Should I report a colleague for unethical behavior,
knowing it could harm their career?”
 Step 2: Identify Stakeholders
 Who will be affected by the decision?
 Analyze how each stakeholder might view the dilemma.
 Step 3: Evaluate the Options
 List all potential courses of action.
 Assess the outcomes of each option for all stakeholders.
 Step 4: Apply Ethical Frameworks
 i.e., Utilitarianism: Which option maximizes overall happiness?
 i.e., Deontological Ethics: Which option aligns with moral duties
or rules?
 Step 5: Make a Decision
 Based on your analysis, select the most ethically sound choice.
 Justify your choice/explain your reasoning.
 Step 6: Reflect on the Outcome
 After making a decision, consider how it will be carried out.
 After the situation unfolds, reflect on the decision’s impact and
what you learned.
 Examples of business situations where ethical frameworks can be
applied to resolve moral dilemmas:
 1. Outsourcing Jobs
 Situation: A company considers outsourcing its production to reduce
costs.
 Ethical Considerations:
 Deontology: Is it a violation of the company's duty to its employees to
outsource jobs?
 Utilitarianism: Will the cost savings benefit the majority of
stakeholders, or will the job losses have a greater negative impact?
 Ubuntu: How does this decision affect the community and relationships
with employees?
 Virtue Ethics: Is this decision aligned with the company’s values of
 2. Product Safety
 Situation: A manufacturer discovers that a product has a safety
defect but considers delaying a recall to avoid financial loss.
 Ethical Considerations:
 Deontology: The duty to ensure consumer safety must take
precedence over profit.
 Utilitarianism: A recall may incur costs, but preventing harm to
consumers maximizes overall well-being.
 Ubuntu: The decision should consider the welfare of all
stakeholders, including customers and employees.
 Virtue Ethics: A responsible and honest company would prioritize
customer safety over financial gain.
 3. Marketing Practices
 Situation: A company is tempted to exaggerate the benefits of a
product in its advertising.
 Ethical Considerations:
 Deontology: Truthfulness in advertising is a moral obligation.
 Utilitarianism: Misleading marketing could lead to short-term
profits but long-term damage to customer trust.
 Ubuntu: Respect for customers means providing honest
information about products.
 Virtue Ethics: Integrity and honesty are essential virtues that
should guide marketing practices.
 4. Environmental Responsibility
 Situation: A company has the option to dispose of waste in an
environmentally harmful way to save costs.
 Ethical Considerations:
 Deontology: There is a moral duty to protect the environment and
follow regulations.
 Utilitarianism: Consider the long-term consequences of harming
the environment versus short-term savings.
 Ubuntu: The company has a responsibility to the community and
future generations.
 Virtue Ethics: Acting as a responsible steward of the environment
reflects the virtue of sustainability.
 4. Leadership, Ethics and Entrepreneurship.

What is the
link between
ethics and
leadership?
-----
What is
ethical
leadership?
 According to Harvard Business School (2024):
“Ethical leadership is the practice of making decisions that
balance stakeholders’ best interests with your company’s
financial health, and empowering others to do the same. As a
leader, you have ethical responsibilities to four stakeholder
groups—customers, employees, investors, and society—which
Leadership, Ethics, and Corporate Accountability breaks down.”
 Responsibilities to customers and employees:
 Well-being: What’s ultimately good for the person
 Rights: Entitlement to receive certain treatment
 Duties: A moral obligation to behave in a specific way
 Best practices: Aspirational standards not required by law or
cultural norms
 In addition to creating value for your business, you’re responsible
for making a positive, or at least neutral, impact on society and the
environment.
 One framework to conceptualize this is the triple bottom line, also
called the “three P’s”:
 Profit: Your business’s responsibility to make a profit.
 People: Your business’s responsibility to positively impact society
by creating jobs, supporting charities, or promoting well-being
initiatives.
 The planet: Your business’s responsibility to positively impact the
natural environment, or at least not damage it.
 The above framework is known as Triple bottom line theory
 According to the Universities of Wisconsin (2024):
“Triple bottom line theory expands conventional business success
metrics to include an organization's contributions to social well-
being, environmental health, and a just economy. These bottom
line categories are often referred to as the three “P's”: people,
planet, and prosperity.”
 It evaluates decisions based on social, environmental, and
economic impacts:
1) Step 1: Assess the social impact (people).
2) Step 2: Evaluate the environmental impact (planet).
3) Step 3: Consider the economic impact (profit).
4) Step 4: Make a decision that balances these three dimensions.
 “Ethical Leadership is when business leaders demonstrate
appropriate conduct - in accordance with recognized principles
and values - both inside and outside of the office. Through their
words and actions, ethical leadership is about demonstrating
strong moral principles that will point out wrongdoings (even
when it may not benefit their business) and showing what’s right
at the core of being an ethical leader. Ethical leaders set the
example for the rest of the company and expect their actions and
words to be respected and followed with the same convictions
from their staff” (Thomas 2024)