Critical Literature Review
— Ethics and Governance
Business Ethics – Normative Theory
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Learning overview
To perform Assignment 1
Engage with moral philosophy, moral agency and moral responsibility
Over two lectures, develop your ability to discuss normative ethical theories
Non-consequential/deontological vs consequential/teleological
Compare and contrast each of the normative ethical theories
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Kantian Ethics
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Moral Philosophy
Prescriptive i.e. tells us what we should/ought to do, how we should live our life and resolve ethical dilemmas.
Provides justifications that are applicable to all people (Hartman & Desjardins, 2008)
Is primarily concerned with the individual person, not social groups such as business organisations
unlike theological ethics.
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Moral Agency & Moral Responsibility
An agent in ethical theory:
is any entity that acts and is subject to ethical rules,
is a rational being, and
is not an agent for anyone or anything else (e.g. once an agent accepts an ethical theory, they will be self-governing in themselves and hence will act in their best interests and no one/anything will influence their actions).
A moral agent’s actions and acts can be evaluated in moral terms.
(De George, 1992)
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Moral Agency & Moral Responsibility
The central concept of moral agency is moral responsibility i.e. we can hold a moral agent morally accountable for his/her behaviour/actions
A moral agent needs to be rational (know what is right and wrong) and autonomous (have the right to choose an action).
Young children are not considered moral agents (the reason advertising to children is unethical).
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Immoral Management
devoid of ethical principles and active opposition to what is ethical.
Moral Management
high standards of ethical behavior.
Amoral Management
Intentional - does not consider ethical factors
Unintentional - casual or careless about ethical considerations in business
Moral, Immoral and Amoral Management
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Moral philosophy: Three Perspectives
Three perspectives, or classifications are meant to assist students think about the origins, and variations of morality and ethics.
Morality
Ethics
Normative Theories:
Helps reflect on the criteria of what is right and wrong.
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Normative vs Non-Normative
Normative (Prescriptive). Based on a set of moral principles, a person should choose a course of action because it is right.
Normative Example:
In RMIT, students must not engage contract writers because it is, morally, wrong.
Determining what should be done can sometimes be challenging. This is where we study ethics.
We wish to think about a systematic approach for deciding right and wrong.
For business students, while there may not always be one right choice, there will usually be a choice that is better than others.
Using ethics-informed processes and analyses can help determine which is better, and provide a basis for explaining our decisions to others.
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An approachable way to think about non-normative is to consider of yourself as an objective (passive) observer. No pre-ordained “right” or “wrong”.
Non-Normative (Observational) - how does a person choose a course of action?
Non-Normative
Non-Normative Example:
What course of events did students face and what decisions did students take, that led them to pay contract writers to do their work?
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Virtue ethics
Personal Ethics
Moral philosophy: Three Perspectives
RMIT University©2010
Deontological Ethics
Duty Based (Non-consequential)
Kantian ethics
Justice ethics
Teleological
Consequence Based
Utilitarianism
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Normative Ethics Theories
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Consequential (Teleology or End-based) vs. Non-consequential (Deontology or Duty-based) Theories
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School of Management
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Deontology - Duty Based Theories
An easy way to remember “deontology”: “duty”
The deontological (duty) theories view actions as either right or wrong independent of their consequences.
The moral status of an act, is judged not by its consequences but by the agent's intentions (Etzioni, 1996).
Morality involves a respect for each individual's rights by performing one's corresponding duties (Singer, 1997).
Generally, “deontology”, ethical imperatives, obedience to “duty” is also easily remembered as following moral “rules”.
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Deontology is a term used in ethics philosophy.
Deontology is a derivation:
“Deon”, Greek word which means duty.
“Logos: Related to action for knowing and persuasion - how we come to know.
In ethics, Deontology is the study of duty or how we come to know what is forbidden and what is permitted.
Deontology - Duty Based Theories
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School of Management
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Kantianism
Kantian Ethics refers to a deontological ethical theory
Kantian ethics refers to a Deontological ethical theory
Duty based ethics – agents are duty bound to follow a set of moral “principles”
Kant’s philosophy to duty based ethics – developed around Categorical Imperatives (Moral Absolutism)
decisions based upon abstract universal principles: honesty, promise keeping, fairness, justice, respect.
act only on that maxim through which you can at the same time will that it should become a universal law
doing what is 'right' rather than doing what will maximise societal welfare.
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Motive/intention of the act is important than outcome
If you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal guiding principle, then committing that act is ethical
Emphasizes moral rights, e.g. treat everyone with respect. Hence, slavery/child labour is wrong under Kantianism though it may be fine under egoism/utility.
Comes up with “categorical imperative” = universal principles such as honesty, integrity, dignity, kindness.
Kantianism: Moral Absolutism
Belief that there are absolute stands against which moral questions can be judged, and that certain actions are right or wrong. Morals are inherent.
There are moral principles that are moral or immoral, independent of what others may believe, think or feel, or even aware of.
Moral Imperatives
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If there is Moral Absolutism, then How do you Know?
Duties and obligations derive from categorical imperatives (ultimate commandment of reason)
moral system, based on the demands of the categorical imperative
Rationally, moral law must be obeyed.
Two formulations of the categorical imperative
“Always act in such a way that the maxim of your action can be willed as a universal law of humanity” … consistency, homogeneity
“Always treat humanity (subjective), whether in yourself or in other people, as an end in itself and never as a mere means”
Categorical imperative would be one which represented an action as objectively necessary in itself, without reference to any other purpose
Objective, rational, necessity
Kantianism
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Categorical Imperative
The word “imperative” implies we are duty bound to act in a way that, i.e. it would the only logical action.
The explanation, principle, motive/intention of the act is more important than outcome
The explanation, principle, motive/intention of the act would be similarly shared by similarly rational individuals, and therefore, moral.
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If you feel comfortable allowing everyone in the world to see you commit an act and if your rationale for acting in a particular manner is suitable to become a universal guiding principle, then committing that act is moral
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Categorical Imperatives are “Universal”
How Does Kantianism Work?
The maxim of a moral person’s action can be willed as a universal law
The word “imperative” implies we are duty bound to act in a way that, i.e. it would the only logical action.
It would the only logical action, because another moral individual would do the same.
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How Kantianism Determines “Morality”
“Universal” Categorical Imperatives
Of moral principles (axioms).
Standard for Morality:
Our motive/intention is to be moral (logical)
doing what is 'right comes in alignment: we rejoice in our moral being.
“Two things fill the mind with ever new and increasing admiration and awe, the more often and steadily we reflect upon them: the starry heavens above me and the moral law within me.”
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Advantages & Limitations
Produces universal moral guidelines, e.g. honesty
Motive (which if moral) is always taken to be more important than outcome. At times, this is debatable.
It is often argued that Kantianism should be considered in conjunction with utilitarianism thinking.
People can have strong emotional attachments to ‘doing the right’ thing.
Difficult to determine which rule, principle, right to follow/takes precedence. E.g. Kantianism may indicate that free speech is “right”; but privacy of others is also “right”.
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Kantianism
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Ethical Dilemmas
Can ethical imperatives, duties, or values, all be satisfied?
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Categorical Imperatives are “Universal”
Does Kantianism Work?
The maxim of a moral person’s action can be willed as a universal law
The word “imperative” implies soldiers are duty bound to act in a way that, it would the only logical action, e.g. protect sovereignty.
It would the only logical action, because another moral individual would do the same.
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Justice Ethics
Virtue ethics
Personal Ethics
Deontological Ethics
Duty Based (Non-consequential)
Kantian ethics
Justice ethics
Teleological
Consequence Based
Utilitarianism
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Normative Ethics Theories
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Justice Ethics
The principle of justice could be described as the moral obligation to act on the basis of fair adjudication between competing claims.
Justice – fair treatment and due reward in accordance with legal standards (hopefully also ethical).
Protects the interests of stakeholders who may be under-represented or lack power.
Protects those who lack voice/influence
The basic moral question for arbitration: How fair is the action or consideration?
Managers adopting this theory will reward employees on merit rather than favouritism.
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Justice Ethics
Arbitrative – based on processes or activities that produce the outcome or results.
Restorative or corrective justice seeks to make whole (restore) those who have suffered unfairly.
Retributive justice seeks to punish wrongdoers, objectively, and proportionately. And procedural justice refers to implementing legal decisions in accordance with fair and unbiased processes.
Distributive – based on evaluation of outcomes or results.
Benefits are derived (formulated) to achieve equity in rewards (and punishment).
Equity in level of representation, access, openness and participation.
Interaction – based on evaluation of each party’s perception of whether they are treated fairly.
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Jerald Greenberg and Tom R. Tyler, 1987, Why Procedural Justice in Organizations?, Social Justice Research, Vol.1, No 2, pp. 128-142
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Justice Ethics - Application
A judgement is made to determine whether the benefits and burdens are distributed fairly:
Benefits and burdens are identified
Benefits and burdens are assigned to stakeholders
Determination based on fairness, including procedural fairness.
Justice Ethics Example:
The integrity of an assignment is paramount. It has been found that exam questions were leaked prior to the exam. It cannot be reliably determined how many students saw the leaked exam questions. All exam questions have to be re-set and all students have to sit for the exam another day.
Students are given the opportunity to appeal if they feel they have been unfairly treated. A process of arbitration is established.
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Benefits/burdens can be hard to define/quantify
The rights of some may have to be sacrificed in order to ensure a more equitable distribution of benefits
Need to be highly trained (i.e. Judges etc.)
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Justice Ethics - Limitations
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Applying Theory
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