Critical Literature Review
— Ethics and Governance
Normative Theories – Utilitarian and Personal Ethics
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Lecture Aims
RMIT University©2010
Discuss the remaining perspectives – Utilitarian and Virtue Ethics
Continue to reflect on Utilitarianism, Teleology as well bounded theories.
Reflect on theories from previous classes, such as Kantianism, Deontology, into business education.
Discuss perspectives or classifications as a useful study tool.
Consider applying ethics theory singularly, or is ethics a process?
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Consequential (Teleology or End-based) vs. Non-consequential (Deontology or Duty-based) Theories
Moral philosophy: Three Perspectives
RMIT University©2010
Teleological
Consequence Based
Utilitarianism
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Normative Ethics Theories
You are here
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Consequential (Teleology or End-based) vs. Non-consequential (Deontology or Duty-based) Theories
Morality, Ethics and Society has changed over time
The aim is to provide alternative perspectives not achievable from a single theory
Likely to improve decision maker’s moral awareness and understanding of the ethical issues involved in the dilemma.
Moral philosophy: Why Perspectives?
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Recap: Deontology - Duty Based Theories
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”, or obedience to “Duty” is also easily remembered as following moral “rules”.
Remember
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Remember, deontology takes right action to be the primary evaluative notion.
A moral individual is duty bound to follow the right course of action, as they would will it to be universal. That course of action, is objective and a natural inclination if the action is moral.
Deontology does not take the outcome into consideration.
Are we saying we cannot predict the outcome of our actions or is ignoring the outcome amoral?
Recap: Deontology - Duty Based Theories
Is this too narrow?
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Teleology Ethics
Teleology, is also term used in ethics philosophy.
Teleology is a derivation of words:
“Telos”, which stands for purpose or result
“Logos” which means study or science.
Teleology is the study of end goals and results.
It is focused on the purpose (utility, or usefulness) instead of the originating moral imperatives.
This branch of ethics, manifests as “Outcome based”, or “Utilitarianism”, “Utility”, and assumes there is a broader consideration of “good” rather than just following rules.
This separates Teleology and Deontology
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Utilitarianism
Utilitarianism: concerned with making decisions that promote greatest overall amount of good in the world.
An ethical decision is one that maximises good consequences over bad consequences for the greatest number of people.
Consequences include happiness (pleasure, health and satisfaction) and pain (sadness, sickness and disappointment).
Best decision is one that yields greatest net benefit.
Utility concerns “greatest good for the greatest number”. The emphasis is “majority”.
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Jeremy Bentham,
Moral Philosopher (1748 - 1832)
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Cost-benefit analysis fits with business decision making
Provides an objective and attractive way of resolving conflicts of self-interest
Fits into people’s intuitive criteria for deciding moral problem
Making ethical decisions based on the greatest good for the greatest number of people seems to have a logical basis
Utilitarianism
How is utilitarianism used?
Rule utilitarianism – Examine the consequences of having everyone follow a particular rule and calculate the overall utility of accepting and rejecting the rule.
Act utilitarianism – Examine the consequences of each individual act and calculate the utility each time the act is performed.
Ferrell et al. (2005)
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Utilitarianism - Applying
Comparing Utilitarianism with Justice Ethics
Similar in defining costs (burdens)/benefits
But, utility is based on net gain which may not consider the issue of fairness.
Process
Define the problem.
Identify the stakeholders that affected by the problem.
List the alternative courses of action for resolving the problem.
Identify and calculate the short- and long-term costs and benefits for each alternative courses of action.
Select the one course of action that yields the greatest sum of benefits over costs for the greatest number of people.
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Utilitarianism - Limitations
Applying and Identifying
Too much focus on ethical ends can lead to ignoring moral consideration of the means.
The measurability of consequence: difficult to evaluate all consequences. For example, those who are affected in the future.
Stakeholder analysis: rights of some stakeholders are ignored
Fairness: workers who might be retrenched lack representation or voice in the decision
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Consequentialism
Consequentialism is a moral doctrine stating that the right act in any given situation is the one that will produce the best overall outcome, as judged from an impersonal standpoint giving equal weight to the interests of everyone
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Perhaps the most familiar form of consequentialism is classical hedonistic act utilitarianism, which claims, roughly, that an agent ought to perform that action, among the available alternatives, that produces the most net pleasure (pleasure, less pain) for everyone concerned.
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Virtue ethics
Personal Ethics
Three Perspectives: Virtue Ethics
RMIT University©2010
Normative Ethics Theories
You are here
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Consequential (Teleology or End-based) vs. Non-consequential (Deontology or Duty-based) Theories
Virtue Ethics
Defining what is “virtuous” in actors:
Ethics of individuals and the ethics of human character.
Displays of virtue/integrity as a decision maker.
Expressions and manifestations of ethical judgement that emphasises the “goodness” of character of the actor
the person who, reliably, acts in virtuous ways and the act is virtuous
Analytically the emphasis is shifted from rule-based decision-making (of deontological ethics) or of the consequences of an action (e.g. in utilitarianism) towards the ethics of individual and the ethics of human character.
a display of ideals, or desirable actions.
The opposite of virtues are vices, e.g. “how can that person live with themself”.
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Virtue Ethics
A display of desirable virtues such as being charitable or benevolent.
Virtues include
honesty,
courage,
friendship,
mercy,
loyalty,
modesty,
patience, and so on.
Shakesphere: Merchant of Venice
“The quality of mercy is not strained, It droppeth as the gentle rain from heaven/Upon the place beneath”
“Confucianism, which was significantly practiced in China, filial piety is an essential element of Chinese culture”
“Respect for ones parents is the highest duty of civil life”
Virtue of respect for one's parents, elders and ancestors
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RMIT University©2010
School of Management
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Virtue ethics
A moral virtue is an acquired disposition that is valued as a part of an individual’s character (Ferrell et al. 2005)
Focuses on the integrity of the moral actor rather than the act
Teleological?
Trevino, LK, & Nelson, KA 2006, Managing business ethics: Straight talk about how to do it right, 4 edn, John Wiley & Sons, New York.
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Virtue & Moral Agency
A good human being possesses two core virtues:
Integrity – to have educated oneself so that one is unable to be one kind of person in one social context, while quite another in other contexts.
Constancy, faithful, dependable – to pursue the same (objective) through extended periods of time (does not change).
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(MacIntyre, 1999)
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Virtue Ethics: Confucian Ethics
Main principles:
Humanity to others and have esteem for yourself
Proper action and social harmony
Sense of right
Respect to/for elders
Emphasizes making profits with human virtue.
Strengths: Considers actor's character, motivations & intentions.
Limitations: Character defined by one's community. May be limited agreement about standards & Community views may be questionable
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Are Virtue Ethics Open to Exploitation?
Quotation from the Confucian Analects “While father and mother are alive, a good son does not wander far afield; or if he does so, goes only where he has said he was going”
Should Virtue Ethics – e.g. filial piety be used to prevent migration of its citizens as the “brain drain”?
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Virtue Ethics: Relative and Socially Determined
Has globalisation, migration, devalued filial piety?
A moral virtue is an acquired disposition that is valued as a part of an individual’s character (Ferrell et al. 2005)
Culture? Belonging?
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Filial Piety and Education
The concept underlying the principle of filial piety for education
Parents gave life to children … food and clothes, an education ….
“For all the things that children received from parents, children have an eternal obligation towards them. They have a debt towards their parents, a debt that can never be fully repaid. The only thing that children can do in order to repay at least a small part of this debt, is to take care of their parents in their old age, to make them proud and happy, to obey and serve them”.
A student’s ethical dilemma:
Should a student use a contract writer to pass their university?
What would the “moral action be”?
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Singapore Debate – Scholar Bond-breaking
Ministerial Statement on Scholars and Scholarship Bonds By DPM Lee At Parliament on 11 Mar 98
Moral Responsibility to Serve
“… when a scholar breaks a bond, it is not just a matter of contracts and liquidated damages. It involves deeper issues of right and wrong, moral integrity, a sense of shame at breaking a solemn personal undertaking. It is not just a legal, but also a moral obligation. There is a qualitative difference between the two. Without the moral sense of duty to family, friends and society, no society can thrive. No army can win battles if every soldier only does his minimum duty. It is the altruism and heroism of outstanding leaders and soldiers, from the commander in chief down to the private soldier, which differentiates the victors from the vanquished”.
Situation:
Following a trend of increasing numbers of holders of government tertiary education scholarships terminating their bonds before serving (or completing their service) with government agencies, two statutory boards, the EDB and the NCB, on 26 February 1998 released to the media the names of three "scholars" who had broken their bonds.
http://sg-comment.blogspot.com/2004/08/bond-breakers-shame-no-more.html
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Moral Responsibility
Morally responsible when:
knowingly & freely performed the act
knowingly & freely failed to prevent the act
NOT morally responsible if:-
did not possess all relevant information
were unable to prevent the act
Relativism – actions relative to culture
Just a corporate justification/excuse?
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“Outdated Ethics Theories” or Process?
Are Ethics Theories Outdated and Impenetrable?
We have discussed the different ethical perspectives as well bounded theories.
In reading business literature, you cannot escape Kantianism, Deontology, Utilitarianism, Teleology.
The perspectives or classification is a useful study tool.
However, do you apply singularly, or is ethics a process?
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What Have You Learnt?
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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Looking ahead to Assignment 2
Most people in most situations tend to use different approaches.
Would you as future managers (influences of organisational culture) place a greater concern on utility (outcomes) than rights/justice?
Reflecting on Your Future Assignments
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Concluding Advice
An ethical organisation requires ethical people – people look up and around
A code of ethics is a guideline. For it to have meaning within an organisation it has to be part of the culture.
Reflect on the different types of ethics theories.
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References
De George, RT 1992, 'Agency theory and the ethics of agency', in NE Bowie & ER Freeman (eds), Ethics and agency theory: An introduction, 3 edn, Oxford University Press, New York, pp. 59-74.
Etzioni, A 1996, 'A moderate communitarian proposal', Political Theory, v. 24, n. 2, pp. 155-71.
Ferrell, OC, Fraedrich, J & Ferrell, L 2005, Business ethics: Ethical decision making and cases, Houghton Mifflin, Boston.
Hartman, LP & Desjardins, J 2008, Business ethics: Decision making for personal integrity & social responsibility, McGraw-Hill irwin, Boston.
MacIntyre, A 1999, 'Social structures and their threat to moral agency', Philosophy, v. 74, pp. 311-29.
Singer, M 1997, Ethics and justice in organisations, Avebury, Aldershot.
Trevino, LK, & Nelson, KA 2006, Managing business ethics: Straight talk about how to do it right, 4 edn, John Wiley & Sons, New York.
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