Classical Philosophies

• Ethics


  Standards of behavior that tell us how human beings ought to act in the many situations in which they find themselves
• Morals


  Principles or habits with respect to right or wrong conduct
• Differences between Ethics and Morals

  • Ethics are from the social system (external), Morals are from the individual (internal)
  • Ethics are followed because society says it is the right thing to do, Morals are followed because we believe in something being right or wrong
  • Ethics are dependent on context and can vary, Morals are usually consistent
  • Ethics are governed by professional and legal guidelines, Morals transcend cultural norms
• Conflicts can arise between Ethics and Morals
• Socrates


  • Believed philosophy should achieve practical results for the greater good of society
  • Attempted to establish an ethical system based on human reason
  • Pointed out choices are motivated by the person's desire for happiness and ultimate wisdom comes from knowing oneself
  • Believed the best form of government is ruled by individuals with the greatest ability, knowledge, and virtue
• Many corporations commit evil actions knowingly, e.g. Enron executives
• Plato


  • Believed virtue and qualities can be taught through education
  • Outlined an ideal society with three classes: producers, auxiliaries, and guardians
  • Believed the philosopher-king should rule with knowledge
  • Founded The Academy in Athens to provide education for future leaders
• Aristotle

  • Believed knowledge comes from experience and interaction with objects
  • Developed the concept of ethics as the attempt to offer a rational response to how humans should best live
  • Emphasized the importance of developing excellent character traits (virtues) and putting them into action
  • Defined the ultimate goal as happiness or human flourishing (eudaimonia)
• Virtue ethics do not provide clear guidance on moral dilemmas and virtues may be relative to culture
• Confucius


  • Saw the moral decline in Chinese society and sought to reinforce societal values and compassion
  • Believed a leader must set a positive example, remain humble, and treat people with compassion
  • Emphasized the importance of self-discipline, integrity, diligence, and obedience
  • Considered harmony between relationships to be of the highest importance
• By the second century BC, the foundation of the Han Dynasty's state ideology was based on Confucian philosophies
• Organizational ethics

  Elaborations of pre-existing broader moral principles, designed to respond to the particular dilemmas presented by that context
• Moral judgment is connected with values and decision-making, not just a value-neutral intellectualizing
• Ethics


  Concerned with standards of conduct acceptable to a group, a profession, or members of an organization
• Morality


  Deals with principles of right and wrong conduct in general
• The level of moral reasoning is related to the choice of action that is advocated and is related to people's value positions and stands on controversial public issues</b>
• Moral judgment is not a value-neutral and purely cerebral style of intellectualizing but is connected with values and decision-making
• Companies should obey the same ethical rules whenever they operate
• Levels of analysis appropriate to business ethics

  • The system of free enterprise as such
  • The corporation
  • The individual within the corporation
• The starting point for business ethics is usually those basic ethical norms on which all or the overwhelming majority of people agree
• Virtue ethics


  Provides the organization with a set of desirable characteristics for each member to follow
• Ethical questions raised by classical philosophers

  • Am I behaving in a virtuous way?
  • How can we allow all members to develop the full potential for the good of the whole?
  • How can the organization provide an environment that is conducive to each employee's growth, and ultimately, happiness?
  • Does the distribution of monetary gain preserve the happiness of the community?
• Five sources of ethical standards

  • The Utilitarian Approach
  • The Rights Approach
  • The Fairness or Justice Approach
  • The Common Good Approach
  • The Virtue Approach
• The Utilitarian Approach


  Ethical action is the one that provides the most good or does the least harm, or, produces the greatest balance of good over harm
• The Rights Approach

  Ethical action is the one that best protects and respects the moral rights of those affected
• The Fairness or Justice Approach


  Ethical actions treat all human beings equally-or if unequally, then fairly based on some defensible standard
• The Common Good Approach

  Ethical reasoning should contribute to the interlocking relationships of society and respect and compassion for all others
• The Virtue Approach

  Ethical actions ought to be consistent with certain ideal virtues that provide for the full development of our humanity
• Framework for Ethical Decision Making

  1. Recognize an Ethical Issue

  2. Get the Facts

  3. Evaluate Alternative Actions

  4. Make a Decision and Test It

  5. Act and Reflect on the Outcome
• Ethics come from external influences and norms
• Morals are personal compass