Ethics 02

• Socrates


  First person to give a practical and political focus to philosophy and ethics
• Socrates


  • Believed the most applicable questions philosophy had to deal with are related to how people should live mutually in communities and states
  • Equated knowledge with virtue, which eventually leads to ethical conduct
  • Believed the only life worth living was one that was carefully examined
  • Looked for principles and actions worth living by, creating an ethical base upon which decisions should be made
  • Believed knowledge of the good was almost similar to an enlightened state
  • Believed no person could willingly decide to do something damaging or harmful if they were completely aware of the value of life
• Application to business


  • Managers should not sleepwalk or simply go along with the crowd
  • Managers should be responsible for their actions and must be prepared to be fired or demoted rather than go against their conscience
  • A good manager is someone with a functionally relevant set of virtues to view personal success and moral excellence
  • An organization must encourage independent thinkers and their employees to follow their conscience
  • Employees must provide critical feedback to managers to create opportunities for good people to "blow the whistle" in cases of bad behaviors
• Plato


  • Believed only those who possessed scholarly and ethical qualities should be trusted with the control to rule above others
  • Believed personal development and personal insight is the only means to reveal the gifts that God has given everyone
  • Believed the physical world is the lesser world, and the greater world is not clear
  • Believed each social class must happily perform the function for which it is suited
• Application in business


  • It is always important to know everyone's strengths and weaknesses in the organization
  • There should be continuous communication among the members of the organization
  • The company should solicit inputs from everyone in the company on the direction of tasks and how well they think they are going
  • It is best to hire the right people, and selection should be done carefully to fit the exact natural talents of qualified applicants with the job requirements and expectations
• Aristotle


  • The leader's ethical role is in the establishment of the conditions under which followers can attain their full potential and enhance their own power
  • Claimed people are by nature virtuous, rational, social, and happiness-seeking
  • Governments and organizations have to build the best systems to allow humans to carry out their natural drives
• Application to business


  • The organization must provide an environment that is conducive to human growth and fulfillment
  • Employees will be inspired to work if they know their contributions to the company are significant and morally valuable
  • Employees must be rewarded proportionately to their contributions based on ethical principles
• Immanuel Kant: Duty-Based Ethics

  • Deontological ethical systems maintain that an action can be morally right even if an alternative action in a given situation would have better overall consequences
  • Acts such as lying, discrimination, stealing, bribery, and exploitation are morally wrong in themselves without a need to evaluate whether they have overall good or bad consequences
• Application to Business


  • A store owner who does not deceive his customers by overpricing, but arranges a uniform price for all customers
  • Kant distinguishes between actions done in conformity with moral duty but motivated by selfish interest, and actions done from moral duty itself which have true moral worth
• Categorical imperative


  Principles that are universally binding, uncompromising, and not based on conditions
• Hypothetical imperative


  Propositions where the truth of one part is dependent on the truth of the other part
• Jeremy Bentham and John Stuart Mill: Utilitarianism

  • Evaluates actions based upon their consequences, particularly the overall happiness created for everyone affected
  • Bentham held a hedonistic account of both motivation and value, according to which what is fundamentally valuable and what ultimately motivates us is pleasure and pain
  • Mill profoundly influenced the shape of nineteenth-century British thought and political discourse
• Application in Business


  • The right decision is one that produces the best consequences in terms of promoting human well-being: happiness, health, dignity, integrity, freedom, and respect of all the people affected
  • A decision that promotes the greatest amount of these values for the greatest number of people is the most reasonable decision from an ethical point of view
• Types of utilitarianism


  • Rule utilitarianism - Put in place to benefit the most people by using the fairest methods possible
  • Act utilitarianism - Makes the most ethical actions possible for the benefit of the people
• Judaism, Christianity, Islam, Hinduism, Buddhism, Confucianism, Taoism, and Shintoism are the world's eight (8) major religions
• Religious ethics


  • Provides a set of consistent and reasonable statements regarding business
  • A different approach that provides new horizons for thinking
• Judaism


  • Sees nothing immoral with business and making a profit as long as the firm realizes it has other responsibilities
  • Any organization must practice loving, kindness, justice, and righteousness as stressed and demanded by God
  • The very first question an individual is asked in the next world at the final judgment is "were you honest in your business dealings?"
  • Biblical law mandates the establishment of precise weights and measures to ensure fairness in business transactions
• Religious ethics provides a set of consistent and reasonable statements regarding business. It's a different approach that provides new horizons for thinking.
• In our global world, business means dealing with people of different religions, and ignoring or misinterpreting religious, ethical approaches can cause serious problems.
• Judaism sees business and making a profit as moral


  As long as the firm realizes it has other responsibilities like practicing loving, kindness, justice, and righteousness as stressed and demanded by God
• The first question asked of an individual in the next world at the final judgment is "were you honest in your business dealings?"
• Biblical law mandates


  1. Establishment of precise weights and measures

  2. Periodic self-inspection

  3. Appointment of an independent inspector

  4. Prohibition of false or deceptive packaging and labeling

  5. Prohibition of other deceptive practices
• Sale of an item at a very high or low price relative to its fair market price


  Considered oppression, and under many circumstances, the sale could be canceled out by the wronged party
• Jewish civil law


  Accepts the authority of the government and requires Jewish citizens to pay taxes fairly and honestly
• Jewish ethics advises the application of general ethical principles in one's business affairs as in every other aspect of one's life
• Jewish ethics pushes the individual to go further than what the law says in determining one's obligations to others in the monetary sphere
• Integrity (in Christian business)


  Christ-centered living, doing what is right rather than what is convenient, making business decisions based on the standards and principles of God
• Commitment to excellence (in Christian business)


  Glorifying God through commitment to excellence in service and product, always honouring God and being aware of role and mission in the world
• Commitment to people (in Christian business)


  Fair compensation, performance recognition, providing growth opportunities, both professionally and personally
• Employees must obey their earthly masters in everything with sincerity of heart and reverence for the Lord, and employers must treat their employees fairly as they have someone to report to who is their Master in heaven
• Contracts in Islamic business


  Should be fair to all parties, with partnership preferred over hierarchical claims
• Speculation and interest


  Prohibited in Islamic business, investment in Islamic mutual funds encouraged except for gambling industry
• Compassion in Islamic business


  Required when a business is in trouble, no pressure can be placed on them
• Power in Muslim world


  • Largely ascribed, people can reach high places by virtue of birth and social position
  • A person's title or level of influence may seem incongruous with their accomplishments or experiences
• Community in Muslim societies


  • Obligation to the community, "we" societies where group takes precedence, affects performance management as seen as unfair to reward one person
• Rules in Muslim business


  • The written rules governing any scenario are the final authority, existing business practices and trusted guides are normally used
• Communication in Muslim business


  • Verbal communication is not direct, people get points across in long, winding stories, being straightforward is seen as impolite, patience and reading between the lines is important
• Islamic finance


  Takes the concept of fairness very sincerely, charging interest is regarded as unfair, speculative finance is also considered unprincipled
• Hinduism business practices


  • Handshake called namaste as part of etiquette
  • Names speak volumes about background
  • Appropriate formal titles must be used
  • Business cards exchanged at first meeting and received/given with right hand
  • Building relationships is essential, demonstrating business sharpness and positive personal traits
  • Meetings arranged well in advance, avoiding national holidays, between October and March
  • Punctuality expected but flexibility vital, family responsibilities take priority
  • Greet elder figure first in meetings, start with conversation, avoid criticisms and high-pressure tactics
  • Celebration dinner for successful negotiations and relationship building
• Buddhist business practice and maxims can be beneficial to the decision-making process in the workplace