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Overview of Ethics

Two different ways of thinking about ethics and business ethics

Absolutism

Relativism

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Two Perspectives or Philosophical Paradigms

Relativism

There are universal moral and ethical standards

Absolutism

No moral standards exist universally

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Examples

Absolutism: Stealing is wrong.

Relativism: Stealing to avoid starvation is acceptable, moral and ethical.

Rationale: There are levels of morality. In short, a family starving says that perhaps society is flawed and that a little stealing is fair and justified in this dire situation.

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Cold Blooded Murder is wrong.

Cheating on scientific studies to prove a drug is safe is very wrong.

Telling a “white” lie may be lying but if the intent is to spare someone’s feelings from harm, well relative ethics might say it’s a little more right than wrong.

EXAMPLE

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Free will versus Determinism (better known as fate):

If everything works out based on a universal plan of unchanging physical laws (determinism/fate/ it was meant to be), how can we say that humans have free will?

Without free will, how can humans be responsible for actions?

The rub!

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Our choices matter

An individual’s free will interacts with others and there are outcomes with consequences

Our free will may bring the right or it may turn out to be in the wrong or just screwed up.

Possessing free will means that we have responsibility for our choices and some portion of the outcomes

Free Will

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Utilitarianism – John Stuart Mill

Viewpoint: Do the Greatest good for the greatest Number

Orientation: Economics

Ethical Basics: Were the actions beneficial? Consequences are the measure of right or wrong (wise and unwise)

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Consider the trend in gift giving: The utility of a gift card is remarkable. The gift giver is spared the time of selecting an appropriate gift. The “gift” transfers purchasing power to the gift card receiver to now have what they want to purchase. Economically speaking this is a good transaction.

The ethical question is does this view of gift giving meet the expectations of friendship?

Utility is an Economically oriented construct

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Generate the most benefits as compared to disadvantages

Benefit the largest number of people; sometimes interpreted as MY people

Example – To cut costs, lay off 49% of your workforce. 51% are happy they have a job and the company stays in business.

Utilitarianism looks at short and long term consequences

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Unforeseen consequences develop

Humans tend to downplay long term risks in favor of immediate rewards (Make this financial year quarter look good)

Humans tend to favor ourselves and then friends over others. MY PEOPLE versus the more philosophical US.

Utilitarianism suffers from serious human frailties

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Viewpoint: There is Right and Wrong and we know the difference

Orientation: Moral Absolutism

Ethical Basics:

Do What’s Right No Matter What the Consequences

What is right for one is right for all

Example – Working the books to deceive investors and inflate a stock price is cheating.

Kant’s Categorical Imperative

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Some actions are always wrong.

Killing

Cheating / lying

Stealing

According to Emmanuel Kant

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Viewpoint: Everyman is an end in himself, not the means to the ends of others.

Orientation: Individualism

Ethical Basics: The pursuit of one’s own rational self-interest and of one’s own happiness is the highest moral purpose of one’s life.

Example: Pure Capitalism (laissez-faire) is a system where men deal with one another, not as victims and executioners, nor as masters and slaves, but as traders, by voluntary exchange to mutual benefit.

Objectivism – Ayn Rand

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Viewpoint: Society should strive to maintain a balance between Freedom and Equality

Orientation: Striving for freedom and equality means purposely seeking a balance. Each person has an equal right to the same basic liberties and opportunities. However, people also need individual liberty to achieve or excel.

Ethical basis: Justice is the foundation of an ethical society. Justice maintains equilibrium between Freedom (individual liberty) and Equality (we all have rights.)

Social and economic inequalities may change

Offices and positions open to all under conditions of fairness

greatest benefit given to the least advantaged members of society (this is an activist view)

Rawls’s Justice as fairness John Rawls – A Theory of Justice

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Individual liberty and community rights may come into conflict. Rawl’s submits that justice

is the mediation or balancing mechanism between the two.

Here is an example: In the 1980’s many people smoked as is true today. However, in the 80’s and before people smoked where every they wanted except perhaps a hay barn.

John Rawl’s Justice as Fairness

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In the 80’s and 90’s science increasingly found links (cause and effect) and correlation between smoking tobacco and an individuals health.

What is the right thing to do? So from a LIBERTY stand point should you be able to smoke even if there is a good chance it will kill you?

Example continued

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Is blowing smoke into the air where others can breath in it’s toxins ethical?

Smoking decisions as ethical decisions (continued for using Rawl’s perspective.

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Viewpoint: Shift from individual rights to communal responsibilities.

Human dignity is intertwined with the health of the community “Fair policies help all boats rise!”

Democratic society depends upon building shared values, practices and habits

Communal values are developed by the group but are subject to universal standards

Institutions of a civil society are charged with reinforcing moral values

Communitarianism: Promoting Shared Moral Values

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Citizens should reject selfishness and care for the material and social well – being of others

Community members have a responsibility to stay active in political and civil matters

Orientation: Community values over individualism

Ethical basis: Quality of life includes the “other” or other peoples lives.

Communitarianism con’t

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Theories, philosophy, ethics and political policy attempt to explain and accommodate human nature.

Some Fundamentals:

1. Perhaps the most fundamental human drive is survival.

2. Another fundamental element of human nature is community, becoming a tribe a society. Let’s just call this socializing.

Human Nature

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Surviving versus Socializing

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Life Surviving Socializing 0.5 0.5