4. Ethics and Ethical Reasoning

Ethics

A concept of right and wrong conduct that tells us whether behaviour is moral or immoral.

Ethical Principles

Guidelines that help determine moral behaviour.

Business Ethics

The application of general ethical ideas and principles to business behaviour and decision-making.

Sources of Ethics

The influences that shape a person's understanding of right and wrong.

Religious Beliefs

A source of ethics based on spiritual or religious teachings.

Family Background

A source of ethics derived from values learned within the family.

Education

A source of ethics developed through formal learning and training.

Community and Neighbourhood

A source of ethics shaped by local social norms and expectations.

Media Influences

A source of ethics shaped by information and messages received through media.

Morals

Personal standards of right and wrong that guide behaviour during ethical dilemmas.

Ethical Relativism

The belief that ethical behaviour depends on time, place, circumstances, traditions, or personal opinions.

Ethical Relativism Principle

The idea that there are no universal ethical standards accepted by everyone.

Law

Formal written rules established by society that define acceptable and unacceptable conduct.

Ethics versus Law

Ethical principles are broader and more complex than legal requirements.

Business Stakeholders

Groups that expect businesses to demonstrate ethical behaviour and social responsibility.

Ethical Dilemma

A situation in which individuals must choose between competing ethical alternatives.

Reasons Businesses Should Be Ethical

The main justifications for maintaining ethical behaviour in business.

Stakeholder Demands

The expectation that organisations maintain high ethical and social responsibility standards.

Enhanced Business Performance

The improvement in financial and organisational outcomes associated with ethical behaviour.

Positive Business Alliances

The stronger relationships created when business partners trust one another's ethical conduct.

Do No Harm Principle

The idea that businesses should avoid causing harm to people, society, or the environment.

Personal Morality

The desire of employees and managers to work in an ethical environment and do what is right.

Psychological Security

The sense of confidence and well-being that comes from working in an ethical organisation.

Legal Compliance

The requirement that businesses obey laws and regulations promoting ethical conduct.

Ethical Business Climate

A workplace environment that encourages responsible and ethical behaviour.

Unethical Behaviour

Actions that violate accepted ethical standards.

Misconduct at Work

Unethical actions occurring in the workplace.

Lying to Stakeholders

Providing false or misleading information to employees or external stakeholders.

Conflict of Interest

A situation where personal interests interfere with professional responsibilities.

Abusive Behaviour

Actions that harm or mistreat others in the workplace.

Internet Abuse

Inappropriate or unethical use of company technology or internet resources.

Health Violations

Actions that disregard workplace health and safety standards.

Personal Gain and Self-Interest

A major cause of ethical problems in which individuals prioritise their own interests over others.

Competitive Pressure on Profits

A cause of ethical problems resulting from pressure to maximise profits at all costs.

Conflicts of Interest

Ethical problems arising from competing loyalties or obligations.

Cross-Cultural Contradictions

Ethical problems resulting from differences in cultural values and beliefs.

Egotistical Mentality

The attitude of pursuing personal benefit regardless of others' interests.

Bottom-Line Mentality

The attitude that winning or increasing profits is more important than ethical considerations.

Favoritism Mentality

The attitude of helping oneself or close associates at the expense of fairness.

Ethnocentric Mentality

The belief that one's own culture is superior when judging ethical issues.

Managers' Values

The personal values held by managers that influence ethical decisions and serve as examples for employees.

Spirituality

A personal belief in a supreme being, religion, or life-guiding force that influences ethical behaviour.

Moral Development

The process through which individuals develop increasingly sophisticated ethical reasoning.

Stage 1 Moral Development

The punishment avoidance stage focused on avoiding harm and obeying authority.

Stage 2 Moral Development

The reward-seeking stage focused on self-interest and reciprocity.

Stage 3 Moral Development

The group-centred stage focused on the expectations of family, friends, and coworkers.

Stage 4 Moral Development

The law-and-society stage focused on customs, traditions, and legal obligations.

Stage 5 Moral Development

The principle-centred stage based on human rights, social contracts, and moral beliefs beyond laws.

Stage 6 Moral Development

The highest stage based on universal principles such as justice, fairness, and human rights.

Ethical Reasoning

A structured approach used to analyse ethical dilemmas and determine ethical actions.

Virtue Method

A method of ethical reasoning that evaluates actions based on values and character.

Virtue Reasoning Principle

An action is ethical when it aligns with good character and moral values.

Utilitarian Method

A method of ethical reasoning that compares benefits and costs.

Utilitarian Reasoning Principle

An action is ethical when its overall benefits exceed its overall costs.

Rights Method

A method of ethical reasoning based on respecting fundamental human rights and entitlements.

Rights Reasoning Principle

An action is ethical when basic human rights are respected.

Justice Method

A method of ethical reasoning based on the fair distribution of benefits and burdens.

Justice Reasoning Principle

An action is ethical when benefits and costs are distributed fairly.

Virtue Limitation

The difficulty of agreeing on a complete and objective set of virtues.

Utilitarian Limitation

The difficulty of measuring social and human costs and protecting minority rights.

Rights Limitation

The difficulty of balancing competing rights.

Justice Limitation

The difficulty of agreeing on what constitutes a fair distribution.

Combined Ethical Reasoning

The recommended approach of applying virtues, utilitarianism, rights, and justice together when analysing ethical dilemmas.

Ethical Decision Test

A decision is considered ethical when all four ethical reasoning approaches lead to the same conclusion.

Moral Intensity

A concept used to determine the ethical significance of a situation and how strongly it influences decision-making.

Magnitude of Consequences

The total amount of harm or benefit caused by an action.

Proximity

The feeling of social, psychological, or physical closeness to those affected by an action.

Social Consensus

The degree of agreement among society that an action is good or bad.

Probability of Effect

The likelihood that an action will occur and produce the expected consequences.

Temporal Immediacy

The length of time between an action and the appearance of its consequences.