Ethical Decision Making and Ethical Theory

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Ethical Decision Making and Ethical Theory

• Mgmt 621
• Contemporary Ethical Issues in Management
• Jeffery D. Smith

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• Ethical Decision Making
• Applying ethical principles and values in
  concrete
• circumstances in order to justify a particular
• decision or course of action.
• awareness
• judgment and deliberation

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Basic Ethical Principles for Business

• One ought to act honestly.
• One ought to treat others fairly.
• Laws ought to be respected.
• It is impermissible to steal.
• Human beings have freedoms that should be
  protected.
• One ought to exercise impartiality in objectivity
  in professional judgment.
• When feasible, one ought to protect and care for
  the interests of other human beings.

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PARTICULAR JUDGMENT OR DECISION
ETHICAL PRINCIPLES
ETHICAL THEORY
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• Ethical Decision Making is not algorithmic
• Ethical Decision Making often involves a use of
  principles that are not subjective
• Ethical Decision Making is characteristically not
  simply self-interested
• Ethical Decision Making often involves a use of
  principles that are not socially or culturally
  relative
• Effective Ethical Decision Making is enabled
  through dialogue/discourse with others

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Ethics and Self-Interest

• Psychological Egoism
• The thesis that human action and behavior is
  always (ultimately) motivated by the satisfaction
  of self-interest
• An empirically verifiable psychological claim
• It may be common to think that human action and
  behavior is motivated by other-regarding motives
  but, according to Psychological Egoism, this is
  false

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Ethical Relativism

• Ethical Relativism Defined
• Ethical principles, values, decisions, or
  judgments are ultimately dependent upon, and
  relative to, ones culture, society, or personal
  feelings.
• X is rightX is approved of by culture C
• X is rightX is approved of by society S
• X is rightX is approved of by person P

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Ethical Relativism, contd

• Some Cautionary Remarks
• The fact that ethical matters are beyond
  absolute certainty and open to disagreement need
  not imply that ethical standards are merely
  expressions of cultural, societal, and personal
  preference.
• There is widespread commonality and agreement on
  core ethical values child abuse, torture,
  genocide, slavery, etc.

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Ethical Relativism, contd

• Some Consequences of Ethical Relativism
• It is possible for the same thing to be
  simultaneously ethically right and ethically
  wrong.
• Foreign cultural practices are not ethically
  inferior to one's home culture
• Ethical questions could be answered by merely
  consulting existing cultural, societal, or
  personal beliefs
• The notion of ethical "progress" loses its
  significance

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Principles and Priorities A 6 Step Procedure

• 1 Identify and Define the Problem
• 2 Analyze the Principles Relevant to the Problem
• 3 Analyze what Principles are the Most Decisive
• 4 Evaluate the Analysis in (1)-(3)
• 5 Make a Decision Expressing the Priorities
• 6 Assess the Consequences of Your Decision

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CONSEQUENTIALISM
actions are right insofar as they maximize good
or beneficial consequences
ethical egoism (self-interest)
Utilitarianism (welfareoverall good)
hedonic (pleasure)
preference (preference satisfaction)
eudaimonic (happiness)
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Jeremy Bentham (1748-1832)
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• John S. Mill (1806-1873)

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Deontology

• deontological the logic or science of duty
• deonduty logoslogic (sometimes science)
• A deontological ethical theory is one which
  holds that some acts are ethically required
  independently of their consequences.
• Generally speaking, we are obliged to refrain
  from killing, stealing, lying, etc., regardless
  of whether refraining from these things promotes,
  for example, human happiness, economic welfare,
  or preference satisfaction.

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• Immanuel Kant
• (1724-1804)

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• Actions are ethically right in so far as they are
  motivated by a good will.
• A good will is a will that is moved by reason and
  not wishes, desires, and preferences
• Ethical principles are imperatives, or commands
  of reason

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• The 2 Formulas of Kant's Categorical Imperative
• Act only according to that maxim by which you
  can at the same time will that it should become a
  universal law. (universal law formula)
• Act so that you treat humanity, whether in your
  own person or in that of another, always as an
  end and never as a means only. (humanity formula)
  

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• Universal Law Formula
• 1. Form a maxim
• 2. Universalize the maxim
• 3. Determine rational acceptability

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• Humanity Formula
• Humans have inherent dignity and incomparable
  worth because they are rational creatures,
  capable of autonomy
• Never use the rational capacities of another
  human being to further your own interests.

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Virtue Ethics

• An emphasis on the traits, dispositions, and
  inclinations needed to lead a life of moderation
  that balances the ends of overlapping roles and
  relationships in a community.
• Aristotle (384-322 BC)

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TRUST SELF-CONTROL GENEROSITY TEMPERANCE IMPAR
TIALITY FAIRNESSTRUTHFULNESSIan Maitland,
Virtuous Markets The Market as a School of
the Virtues, Business Ethics Quarterly, 1997, p.
97.