Video Case Study
12/28/2020 Print Preview
https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=5835051934529006900868413293&eISBN=9781337614467&id=1034289154&nbId… 1/3
6-2e Virtue Ethics
Virtue ethics (Argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a “good” moral character would deem appropriate in a given situation) argues that ethical behavior involves not only adhering to conventional moral standards but also considering what a mature person with a “good” moral character would deem appropriate in a given situation. A virtue represents an acquired disposition valued as a part of an individual’s character. As individuals develop socially, they come to behave in ways they consider to be moral. A person with the virtue of honesty will be disposed to tell the truth because it is considered to be the right approach in terms of human communication.
A virtue is considered praiseworthy because it is an achievement that an individual developed through practice and commitment. Proponents of virtue ethics often list basic goods as virtues that are presented as positive and useful mental habits or cultivated character traits. Aristotle named loyalty, courage, wit, community, and judgment as “excellences” society requires. While listing the most important virtues is a popular theoretical task, the philosopher John Dewey cautions that virtues should not be looked at separately, and points out that examining interactions between virtues actually provides the best idea of a person’s integrity of character.
The virtue ethics approach to business can be summarized as follows:
1. Good corporate ethics programs encourage individual virtue and integrity.
2. By the employee’s role in the community (organization), these virtues form a good person.
3. An individual’s ultimate purpose is to serve society’s demands and the public good and be rewarded in his or her career.
4. The well-being of the community goes hand in hand with individual excellence.
The difference between deontology, teleology, and virtue ethics is the first two are applied deductively to problems, whereas virtue ethics is applied inductively. Virtue ethics assumes societal moral rules form the foundation of virtue. Our political, social, and economic systems depend upon the presence of certain virtues among citizens in order to function successfully.
Indeed, virtue ethics could be thought of as a dynamic theory of how to conduct business activities. The virtue ethicist believes a successful market economy depends upon social institutions such as family, school, church, and community where virtues can be nurtured.
12/28/2020 Print Preview
https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=5835051934529006900868413293&eISBN=9781337614467&id=1034289154&nbId… 2/3
These virtues, including honesty, trust, tolerance, and restraint, create obligations that make cooperation possible. In a market economy based on virtues, individuals have powerful incentives to conform to prevailing standards of behavior. Some philosophers think social virtues may be eroded by the market, but virtue ethicists believe economic institutions are in balance with and support other social institutions. Some of the virtues that could be seen as driving a market economy are listed in Table 6-2. Although not comprehensive, the list provides examples of the types of virtues that support the conduct of business.
Table 6-2
Virtues That Support Business Transactions
Trust: The predisposition to place confidence in the behavior of others while taking the risk that the expected behavior will not be performed
Eliminates the need for and associated cost of monitoring compliance with agreements, contracts, and reciprocal agreements, as there is the expectation a promise or agreement can be relied on
Self-control: The disposition to pass up an immediate advantage or gratification; the ability to avoid exploiting a known opportunity for personal gain
Gives up short-term self-interest for long-term benefits
Empathy: The ability to share the feelings or emotions of others
Promotes civility because success in the market depends on the courteous treatment of people who have the option of going to competitors; the ability to anticipate needs and satisfy customers and employees contributes to a firm’s economic success
Fairness: The disposition to deal equitably with the perceived injustices of others
Often relates to doing the right thing with respect to small matters in order to cultivate a long-term business relationship
Truthfulness: The disposition to provide the facts or correct information as known to the individual
Involves avoiding deception and contributes to trust in business relationships
Learning: The disposition to constantly acquire knowledge internal and external to the firm, whether about an industry, corporate culture, or other societies
Gaining knowledge to make better, more informed decisions
12/28/2020 Print Preview
https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=5835051934529006900868413293&eISBN=9781337614467&id=1034289154&nbId… 3/3
Gratitude: A sign of maturity that is the foundation of civility and decency
The recognition that people do not succeed alone
Civility: The disposition or essence of courtesy, politeness, respect, and consideration for others
Relates to the process of doing business in a culturally correct way, thus decreasing communication errors and increasing trust
Moral leadership: Strength of character, peace of mind and heart, leading to happiness in life
A trait of leaders who follow a consistent pattern of behavior based on virtues
Source: Adapted from Ian Maitland, “Virtuous Markets: The Market as School of the Virtues,” Business
Ethics Quarterly (January 1997): 97 and Gordon B. Hinckley, Standing for Something: 10 Neglected
Virtues that Wiii Heai Our Hearts and Homes (New York: Three Rivers Press, 2001).
The elements of virtue most important to business transactions are trust, self-control, empathy, fairness, and truthfulness. Non-virtuous characteristics include lying, cheating, fraud, and corruption. In their broadest sense, concepts of virtue appear across all cultures. The problem of virtue ethics comes in its implementation within and between cultures. If a company tacitly approves of corruption, the employee who adheres to the virtues of trust and truthfulness would consider it wrong to sell unneeded repair parts despite the organizations approval of such acts. Other employees might view this truthful employee as highly ethical; however, in order to rationalize their own behavior, they may judge his or her ethics as going beyond what is required by the job or society. Critics of virtue ethics argue that true virtue is an unattainable goal, but to virtue ethicists, this relativistic argument is meaningless because they believe in the universality of the elements of virtue. One study found virtue ethics to be more effective than deontological and utilitarian ethical perspectives in helping to mitigate ethical risks.
If bolt salesperson Sam Colt was a virtue ethicist, he would consider the elements of virtue (such as honesty and trust) and tell the prospective customer about the defect rate and his concerns regarding the building of the bridge. Sam would not resort to puffery to explain the product or its risks, and might even suggest alternative products or companies that would lower the probability of the bridge collapsing.
© 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder.