Chapter 1 - Business Government and Society Models

Three Philosophical Questions of Ethics

Ontology (What is real?), Axiology (What has worth?), and Epistemology (How do we know?).

Ontology

The philosophical study of what is real, including the nature of a person, organization, or value.

Axiology

The philosophical study of what has worth; it helps rank competing goods when they pull in different directions (e.g., profit vs. dignity).

Epistemology

The philosophical study of how we know; it determines what counts as moral knowledge and justifies calling a decision 'right' or 'wrong'.

Four Dimensions of Ethical Analysis

Character, Relationships, Conduct, and Consequences.

Western Ethical Traditions

Frameworks that typically emphasize reason, moral standards, determining right from wrong, and individual virtue.

Non-Western Ethical Traditions

Frameworks that typically emphasize duty, social harmony, relationship, community, and non-harm (e.g., Ubuntu, Dharma).

Rational Choice Model

A framework where interactions between business and society are driven by reward and threat-based calculations (e.g., do this for money or fear of punishment).

Normative Choice Model

A framework where decisions are made based strictly on what is morally right or what ought to be done, regardless of immediate reward or punishment.

Values

Long-standing beliefs regarding which fundamental choices in life are correct or inherently good.

Ideology

A bundle of individual values that together form a person's or an organization's worldview.

Margaret Stout's "Competing Ontologies"

The concept that our differing assumptions about existence (e.g., individualistic vs. relational) fundamentally shape our theories of governance, public administration, and ethical responsibilities.

Deep Culture

Underlying, ingrained cultural elements (like concepts of self, time, fairness, and justice) that heavily influence our moral values and ethical decision-making.

Legal Compliance (Mandated Boundary)

Sets a mandatory minimum threshold for acceptable behavior by asking, "Is this legal?" Satisfying it only means an action isn't prohibited.

Ethical Conduct (Voluntary Boundary)

Explores voluntary standards by asking, "Is this right?" It assesses if an action is justifiable, responsible, and virtuous.

Business (Definition in societal context)

Any value-generating activity (whether profit or non-profit) designed to satisfy human needs.

Society

A complex network of relationships linking people, ideas, institutions, and material things together.

Government (Role in Business Ethics)

Authoritative structures that mandate the "rules of the game" (laws, rules, and policies) that businesses and society must follow.

Stakeholder Theory

The principle that a firm must be governed in relation to everyone who holds a substantial relationship with it, rather than prioritizing shareholders alone.

Ubuntu (Applied to Business)

An African tradition viewing relationships and community as the basis of personhood; tasks organizations with strengthening reciprocal well-being, mutuality, and dignity.

Confucianism (Applied to Business)

Emphasizes humaneness and harmony; dictates that leadership has a duty to cultivate trust, respect, and humane relationships with all stakeholders.

Maat (Applied to Business)

An ancient Egyptian tradition focusing on truth, justice, and balance; evaluates whether a business preserves social order and justice.

Dharma (Applied to Business)

A Vedic tradition emphasizing duty, righteousness, and proper order; focuses on responsibilities toward employees, customers, and society.

Śīla / Buddhism (Applied to Business)

Focuses on non-harm, compassion, and moral discipline; evaluates if a business avoids unnecessary harm and promotes well-being.

Consequences of Unethical Behavior

While unethical behavior may generate short-term profits, long-term violations of voluntary boundaries will inevitably lead to society and government cracking down.