B A 300 Final Exam

Utilitarianism: Decision Rule

Decision Rule - Consequential Analysis, Most benefit from the least cost situation

Ethical. Maximizes common good
Only consequences matter → obligations and means are ignored.

Utilitarianism Pro&Con

Pros:

• Introduced rational, scientific decision-making into ethics.

• Limits arbitrary rule by authority (kings, lords, church).

• Considers overall societal welfare (not just the firm).

• Familiarity: similar to cost-benefit analysis in business.

Cons:

• The means don’t matter → slavery, harm to individuals can be justified if majority benefits.

• Critics argue it violates common sense morality (e.g., sacrificing one for many).

• Example - "The ones that wanted to walk away"

Objectivism (Ayn Rand)

Decision Rule:

1. Be rational – Use reason, not intuition/emotion/revelation, as the only valid source of knowledge.

2. Be all you can be – Strive to develop yourself into the best possible human being.

Objectivism Pro&Con

Pros

• Reinforces personal responsibility.

• Encourages self-reliance & productivity.

• Supports capitalism & free markets.

• Virtue: High achievers may help others who also strive, but it’s not required.

Cons

• Individualistic – critics say it’s too self-centered, not community-oriented.

• Judgmental – quick to criticize those who don’t “pull their weight”; less compassionate to the less fortunate.

Objectivism Example

Motive Communications (Texas): company built explicitly on Rand’s principles.

• Wanted competitive, independent employees.

• No “warm & fuzzies,” daycare, or excessive hand-holding.

• Results: very low turnover (~4%), highly productive & profitable, but not attractive to everyone.

Integrative Social Contracts Theory (ISCT)

Developers: Donaldson & Dunfee.
Purpose: Tailored for global business ethics.

Decision Rule:

1. Check against global hypernorms (universal standards):

   • Respect dignity of all human beings.

   • Respect human rights.

   • If an action violates either → NO GO.

2. Then check local norms:

   • Ethical if consistent with local authentic norms.

   • Criteria:

     • People in that culture approve if you do it.

     • They would disapprove if you don’t do it.

     • Almost everyone does it.

Integrative Social Contracts Theory Pro&Con

Pros

• Adaptability → respects cultural differences.

• Avoids “ugly American” ethnocentrism.

• Balances global principles with local customs.

Cons

• Hard to identify local norms (especially as an outsider).

• May conflict with personal beliefs or home-country norms.

• Vague – requires careful interpretation.

Integrative Social Contracts Theory Example

Example

• Levi Strauss in Bangladesh:

  • Found underage workers (<15).

  • U.S. activists: unethical. Local culture: acceptable.

  • Solution: Removed kids from factories, paid for schooling, rehired them at legal age → win–win compromise.

  • Shows ISCT balancing hypernorms & local norms.

Ethics of Care

Decision Rule: Focus on relationships and responsibilities.

• Origins:

  • Contrast to Objectivism (opposite approach).

  • Reaction to Kohlberg’s moral development theory (where women were underrepresented at higher stages).

  • Feminist scholars suggested another developmental path: focus on relationships, not just autonomy.

Ethics of Care Core Ideas

• Morality = caring for and nurturing relationships (family, co-workers, suppliers, customers, communities).

• Ethical actions: maintain responsibilities in these relationships.

• Example: Supplier (Sam) delayed due to personal issues → you show flexibility/support rather than drop them.

Ethics of Care Pro&Con

• Pros:

  • Protects the weak & dependent (employees with family issues, children, vulnerable people).

  • Encourages compassion and humanization in business (seeing people as individuals, not abstractions).

  • Builds trust and loyalty.

• Cons:

  • May deny justice: too lenient, enables irresponsible behavior, lacks punishment for wrongdoing.

  • Risk of being “too soft” in workplace contexts.

Nozicks Rights Theory

Decision Rule: Freedom from force and fraud.

• Means matter more than consequences.

• Based on negative rights (freedom to act, to be left alone).

• Rejects positive rights (right to resources/services from others).

Key Concepts:

• Force: physical coercion/threats.

• Fraud:

  • Giving false information.

  • Withholding critical information (that affects decisions).

Doesn’t like government interference.

Nozicks Rights Pro&Con

Pros:

• Strong protection of individual freedom.

• Minimal government interference.

• Markets regulate exchange if no force/fraud is present.

Cons:

• No duty to help others (ignores undeserved inequalities).

• Assumes individuals aren’t responsible for others’ welfare.

Nozicks Rights Example

Payday loans: lenders claim ethics if they disclose terms and avoid fraud/force. Critics argue they exploit vulnerable people.

Rawl’s Theory of Justice

Decision Rule: Greatest benefit to the least advantaged.

• Rooted in the veil of ignorance thought experiment:

  • Imagine designing society without knowing your position in it.

  • Leads to risk-averse, fairness-focused choices.

Rawl’s Theory of Justice Pro&Con

Pros:

• Neutral, unbiased approach to social justice.

• Prioritizes fairness and protection of the disadvantaged.

• Influential across business, politics, and philosophy.

Cons:

• Denies meritocracy/free will: success is mostly due to luck (genes, upbringing, environment).

• Suggests people don’t truly “deserve” their advantages.

Rawl’s Theory of Justice Example

Example:

• Ben & Jerry’s pay ratio policy: top executives couldn’t earn >7× the lowest-paid worker.

  • Embodied Rawls’ fairness principle.

  • Later abandoned due to difficulty attracting executives.