Management Assignment

Exhibit IM-D

Four Methods of Ethical Reasoning

Method

Critical Determining

Factor

An Action is Ethical When…

Limitations to the Method

Virtues

Values and Character

It aligns with good character. An action is

moral if the actor or action demonstrates

good character.

Subjective or incomplete set of good

virtues and moral values. Whose/what

values are correct?

Utilitarian

Comparing Benefits

and Costs

Net benefits exceed net costs. These costs

can be economic, social or human. If the

net benefits exceed the net costs, then the

action is ethical.

Difficult to measure some human and

social costs. The majority may disregard

the rights of the minority. Intangible costs

may be ignored.

Rights

Respecting

Entitlements

Basic human rights are respected. Basic

human rights include life, safety, free

speech, freedom, privacy, property, and

due process.

Difficult to balance conflicting rights. For

example, when U.S. companies move jobs

overseas, whose job rights should be

respected?

Justice

Distributing Fair Shares

The action is fair and just. Benefits and

costs are fairly distributed according to

some accepted rule.

Difficult to measure benefits and costs;

lack of agreement on what is fair and just

for all. Fair doesn’t necessarily mean equal.

Source: Adapted from Lawrence & Weber (2011)