Business Law: Ethics

Deontology (Kantian Theory of Ethics)

Rule-based ethical theory that judges if an action is right or wrong based on moral duties and rules (not the consequences of the action)

Teleology

Idea that things exist, happen, or develop because of a purpose, goal, or final end rather than just a random cause

Categorical Imperative- Kant’s theory

Actions are evaluated in terms of what would happen if everyone else in the same situation acted the same way

• EX: someone hungry steals a piece of bread—>not ethical cuz if everyone steals bread, there would be none left in the world

**Humans should never be used as a means to an end—> when people are treated as objects, they are denied their basic humanity

Utilitarianism and Stakeholder theory

“The greatest good for the greatest number”

• creates the least amount of harm for stakeholders

• sacrifice the few to satisfy the greatest number overall

• Focus on CONSEQUENCE of the actions, not the INTENTIONS

Stakeholders

• Employees

• Business Partners

• The environment

• Customers

• The community

• Shareholders

Virtue Ethics

Focuses on active with virtue + a person’s moral character and intentions

Asks: What type of person should I be?

Courage, Honesty, generosity, Wisdom, Prudence, Justice, etc

Golden Mean (virtue ethics)

median between the two extremes

• Courage —> recklessness vs. cowardice

Ubuntu

“Your well-being an my well-being are all tied together”

“I am because we are”

• If one person hurts, we all do—> interdependence

Natural law

Certain moral truths, rights, and responsibilities are built into human nature

• moral law emerges from human nature

• good actions align with reason and promote well-being

• self evident moral rules

• people have an innate ability to make rational decisions

Ethical Theories + Stakeholder Interests

Utilitarianism: prioritize decisions that maximize happiness for overall stakeholders

Categorical Imperative: Treat all stakeholders with dignity and respect

Virtue Ethics: Encourage ethical leadership and decision making based on integrity and fairness

Ubuntu: Fosters a sense of interconnectedness