Comprehensive Business Ethics and Moral Decision-Making Principles

Ethics

The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility.

Business ethics

Ethics (right/wrong, duty/obligation) applied specifically to the context of business.

Nonmoral standards

Standards about behavior or practices with no serious effects on human well-being.

Moral standards

Standards about behavior or practices with serious effects on human well-being.

Moral standards take priority

Moral standards override nonmoral standards when they conflict.

Etiquette

Rules meant to guide socially acceptable behavior; usually nonmoral but can sometimes have moral implications.

Statutes

Laws passed by legislative bodies such as Congress or state legislatures.

Regulations

Laws created by special boards or government agencies for certain conduct.

Common law

Judge-made law developed through court decisions over time.

Constitutional law

Court rulings about the Constitution and whether laws are constitutional.

Illegal but morally right

An action can break the law but still be morally right.

Legal but morally wrong

An action can follow the law but still be morally wrong.

Professional codes

Rules that guide conduct within a profession.

Critical assessment of professional rules

Professionals have responsibility to judge their rules because codes may be incomplete or unreliable.

Morality based on religion (claim)

The idea that moral norms come from divine commands and religion provides moral guidance/incentives.

Ethical relativism

The view that moral norms are justified by the customs of the society in which they occur (not universal).

Relativism implication: no independent standard

If relativism is true, there is no independent standard to judge other societies' morality.

Relativism implication: no ethical progress

The idea of ethical progress loses significance if morality depends entirely on culture.

Relativism implication: can't criticize own culture

Relativism makes it difficult to criticize the moral code of your own society.

"Game" of business (Albert Carr)

The view that business is like a game with different rules from ordinary morality (often criticized).

Having principles

Accepting moral principles requires deep commitment, not just knowing them intellectually.

Conscience

Internalized moral principles taught by parents and social institutions.

Limits of conscience

Conscience isn't always reliable because it can be conflicted or mistaken.

Moral principles vs self-interest

Moral actions can go against self-interest; morality often requires limiting selfishness for coexistence.

Morality (narrow sense)

Rules that govern how individuals should treat others.

Morality (broad sense)

Values and ideals that influence decisions and lifestyles of individuals and societies.

Organizational norms

Employees may be pressured to prioritize profit goals and compromise ethical values.

Conformity

People are more likely to act unethically when part of a group/organization.

Groupthink

Pressure to conform to questionable group decisions, leading to unethical actions.

Diffusion of responsibility

When tasks are spread among many people, individuals feel less responsible/accountable.

Argument

A set of statements where a conclusion is claimed to follow from premises.

Premises

Statements that provide reasons or support for the conclusion.

Conclusion

The main claim that the premises are supposed to support.

Valid argument

If the premises being true guarantees the conclusion is true, the argument is valid.

Invalid argument

If the premises being true does not guarantee the conclusion is true, the argument is invalid.

Sound argument

A valid argument that also has true premises.

Unsound argument

An argument that has at least one false premise or invalid reasoning (or both).

Moral arguments

Arguments that end in moral judgments, based on moral standards plus factual claims.

Defensible moral judgment

A moral judgment supported by a defensible moral standard and relevant facts.

Challenge an argument ways

You can challenge by finding ambiguity, questioning facts, or challenging the moral standard.

Requirements for moral judgments

Moral judgments should be logical, based on facts, and based on acceptable moral principles.

Ethical dilemma

A situation where ethical principles or priorities conflict.

Consequentialist theories

The moral rightness/wrongness of an action depends on its consequences/results.

Nonconsequentialist (deontological) theories

The morality of an action is not judged only by consequences (focus on duty/rights).

Egoism

Morality is about promoting one's own (or one's organization's) long-term self-interest.

Egoists

People who judge actions as right if they promote self-interest and wrong if they undermine it.

Personal egoists

Follow egoism for themselves but don't claim everyone must do it.

Impersonal egoists

Believe everyone should pursue their own self-interest.

Psychological egoism

The claim that humans are motivated only by self-interest (even 'selfless' acts).

Objection: psychological egoism false

Not all human actions are selfish; people can be truly altruistic.

Objection: egoism not really moral

Egoism misses the goal of morality, which is restraining selfishness for peaceful coexistence.

Objection: egoism ignores wrongs

Actions become 'neutral' unless they harm self-interest, ignoring obvious moral wrongs.

Utilitarianism

We should act to create the most happiness/least suffering for the greatest number of people affected.

Jeremy Bentham

One major philosopher associated with utilitarianism (1748-1832).

John Stuart Mill

One major philosopher associated with utilitarianism (1806-1873).

Principle of utility

Actions are right if they promote greatest human welfare and wrong if they do not.

Equal consideration (utilitarianism)

All individual preferences should count equally in the moral calculation.

Long-run happiness

Utilitarianism focuses on maximizing happiness in both the short and long term.

Rules of thumb (utilitarianism)

Used to avoid bias and mistakes, especially when personal interests are involved.

Utilitarianism: org benefit

Gives clear standard for policies, resolves self-interest conflicts, and is flexible/results-based.

Criticism: hard to apply

Calculating all consequences can be difficult in real situations.

Criticism: intrinsically wrong acts

Some actions seem wrong even if they increase happiness.

Criticism: justice distribution

It focuses on total happiness, not fairness in how it's distributed.

Adam Smith view

Society can flourish if businesses freely pursue self-interest (classical capitalism).

Kant's ethics

A nonconsequentialist theory where moral worth depends on good will and acting from duty.

Good will (Kant)

The capacity to act from rational moral principles and 'out of duty.'

Categorical imperative (Kant)

A maxim is moral only if it can be willed as a universal law without contradiction.

Maxim

A subjective principle or rule guiding someone's action.

Perfect duties

Duties that must never be violated; universalizing the maxim creates contradiction.

Imperfect duties

Duties that matter but allow flexibility; universalizing doesn't create contradiction.

Kant: ends not means

People must be treated as having inherent worth, never only as tools.

Criticism: Kant too extreme

Kant can be too strict by excluding emotion and making duty most important.

W.D. Ross

A theorist who argued morality is complex and not reducible to one single rule.

Prima facie obligation

A duty that normally applies but can be overridden by a stronger duty in some situations.

Ross duties (list)

Fidelity, reparation, gratitude, justice, beneficence, self-improvement, and not injuring others.

Moral right

An entitlement to act or to be treated in a certain way.

Human rights

Universal moral rights that apply to everyone regardless of roles or circumstances.

Human rights features

Universal, equally applied, inalienable, and natural (not dependent on institutions).

Negative rights

Rights to be free from interference (speech, religion, assembly, etc.).

Positive rights

Rights to receive benefits/services (education, medical care, equal opportunity).

Nonconsequentialism focus

Stronger duty to avoid violating rights than to promote happiness.

Rule utilitarianism

Applies utilitarianism to moral codes/rules instead of each individual action.

Optimal moral code

A moral code judged best by overall consequences and practicality for society.

Rule utilitarian reason 1

People make mistakes trying to calculate every action's consequences.

Rule utilitarian reason 2

Important rules would weaken if everyone acted like act utilitarians.

Rule utilitarian reason 3

It's too demanding to always maximize total well-being.

Criticism: rule utilitarianism

May overvalue rules and still stays focused on consequences.

Moral decision making goal

Reach agreement by sharing facts, identifying moral principles, and finding common ground.

Ruggiero two-step approach

Identify obligations/ideals/effects, then decide which deserves most weight.

Guideline: conflicting obligations

Choose the stronger obligation.

Guideline: conflicting ideals

Honor the more important ideal.

Guideline: conflicting effects

Choose the action with greater good or lesser harm.