AAE200

• Define Theory


  Is a system of Ideas intended to explain something
• Theory


  A system of ideas intended to explain something (US). Principle on which the practice of something is based (SAPS). Theories are constructed using scientific methods. They bring together many facts, ideas and hypothesis. (Research, Social closure)
• Classical Ethical Theories

  • Virtue theory
  • Deontological theory
  • Utilitarian ethics
• Virtue Theory


  • Pioneered by Aristotle
  • Assumes that ethics are vital and necessary
  • You cannot have dignity (human) if you are not ethical
  • Being ethical is not an option
  • Unethical people have no value and have not reached their potential
• Telos


  Everything in life has a specific goal. Goal of humans is eudaimonia (happiness, have a life well lived, achieve your potential)
• The Self


  Being moral starts with "self". Being moral hinges on the character of a person. What is important is the development of oneself. Only people with good character can be moral. Unless you love yourself and are willing to invest in your self realization, moral development cannot occur. Self love is a pre-condition for morality and not the opposite.
• Virtues


  • Character traits that assist us in achieving telos (eudaimonia)
  • Consist of rational dimension (natural inclinations/dispositions) and irrational dimension (sex, appetite, breathing etc.)
  • Virtues are an activity of the soul implying rational dimensions
  • Natural dispositions should be controlled by rational thinking (thinking based on reasons) to become virtues
  • Moral virtues refer to natural dispositions that are permanently controlled by rational thinking
• The Mean


  Indicates what is implied by rationally controlled dispositions. Natural dispositions err in one of two directions (too much vs too little). The mean represents the "ideally natural disposition".
• Pleasure


  Attitude towards pleasure is a precondition for achieving the mean. Pleasure can be detrimental and beneficial towards achieving our mean. We must take rational control of pleasure by finding pleasure in achieving our mean, not be guided by natural inclinations.
• Virtuous Person


  • Abandons acting with natural instincts of pleasure and finds pleasure in achieving the mean
  • Education is key for this
  • Virtue is practiced over time and becomes part of a person's conduct
  • The virtuous man is a perfect example of a person who controlled his natural inclination through rational thinking
• Deontological Theory


  • Our moral compass cannot be dictated by practical experience (Hume's Law)
  • Morality of actions will be judged differently in different countries, times, situations, value systems etc.
  • Need to develop a moral equation that is not bound by time, place, situation, race, gender, population etc. (a universal law of morality)
  • Humans are both natural and rational beings. The only reliable source of moral judgement is rationality outside of or prior to practical experience (pure reason)
• Good Will


  Represents our intentions. What we want to do. You have to do the right thing because it is the right thing to do (sense of moral duty). Not influenced by some benefits, they are secondary to your choices.
• Categorical Imperative


  Represents a command on what to do. Always applicable. Demands universalisability (maxim of actions can become universal law) and reversibility (willing to live in a world where everyone behaves in accordance with the universal law).
• Practical Imperatives


  • Maxim of your actions should be able to be moral law
  • Do not treat humanity as a mere means to achieve your goals (reasonable consent vs deception)
  • We can use pure reason to find out what is right and wrong
• Utilitarian theory judges moral action by their consequences (consequential theory). Actions are moral when they contribute towards fulfilling the ultimate goal of society, which is happiness.
• Happiness


  Happiness is the ultimate goal of society. There are many routes to happiness, the ultimate goal should be the happiness of society not individuals.
• Criticisms of Utilitarian Theory

  • The theory is degrading to humans
  • Happiness cannot be the rational purpose of life
  • Utilitarian promotes selfishness
  • Utilitarian cannot be attained
  • Utilitarian is self serving
  • The theory is time consuming
• Utilitarian should be applied the same way religion is applied. We already know what is morally acceptable before each decision is made.
• Business and professional ethics


  Key concepts to define and understand
• Demonstrate an understanding of key concepts of business and professional ethics

  • Demonstrate knowledge of the ethical dimensions of business in the context of cultural diversity
  • Analyse the interrelationships between key concepts of business and professional ethics
  • Evaluate the impact of different value systems implicit in, amount others, religion, culture, social standing, economic status and personal experiences
  • Use the definition of ethics to interpret key stakeholder roles and responsibilities
  • Use the "philosophy of Ubuntu" to interpret key stakeholder roles and responsibilities
  • Know, understand and apply the ethical myths
• If we question witchcraft, are we questioning religion and reality?
• Ethics


  • Concerned with what is good for oneself and others
  • A balance between the interest of oneself and others
  • Represent unselfish behaviour
  • If behaviour is good for oneself but bad for others, it is considered unethical
• Ethics


  • Originates from the Greek term "ethikos"
  • Later translated into Latin as "moralis"
  • The two words have been used interchangeably
  • In its original meaning, ethics/ morals described the character of a person (SELF) and how the person interacts with others (OTHERS)
  • The quality of the interaction was very important (GOOD)
• What we believe to be good is influenced by our background. Example? Religion, race, gender, age, nationality etc.
• Values


  Convictions about what is considered good or desirable by individuals (humans and organisations)
• Different types of values

  • Strategic values: Convictions about organizational objectives
  • Work values: Conviction regarding principles that workers must embody in the work environment
  • Ethical values: Convictions regarding principles that should inform ethical business practices and decisions
• Integrity


  • The ethical character of an individual or an organisation
  • Individuals and organisations that are committed to ethics are seen as having integrity
• Dilemma occurs when there is no clarity regarding what is ethically right or wrong
• Dilemma


  When faced with a dilemma, an individual or an organisation has to choose between two or more options that are, to some extent, ethically wrong
• Types of dilemmas

  • Personal/ interpersonal dilemma: individual has to choose between two or more options that are, to some extent, ethically wrong
  • Social/ intrapersonal dilemma: a group has to choose between two or more options that are, to some extent, ethically wrong
• Ethics


  • Strives for what is good
  • Serves as an internal force to do good
  • Enforcement of what is good occurs through a moral obligation
  • What is good is determined through values
• Law

  • Strives for what is good
  • Serves as an external force to do good
  • Enforces what is considered good through the power of the state
  • Laws determines what is good through a political and public process
• Ethical behaviour


  Accurate financial reporting
• Unethical behaviour


  Manufacturing weapons
• Legal behaviour


  Speeding while rushing someone to hospital
• Illegal behaviour


  Pay a bribe to get a drivers license
• Relationship between ethical and legal behaviour

  • Good Apples: Ethical organisation and employees = ethical organisation / employees
  • Bad Apples: Unethical employees + ethical organisations = ethical or unethical organisation / ethical or unethical employees
  • Bad Barrel: Ethical employees + unethical organisations = ethical or unethical organisations / ethical or unethical employees
  • Unethical employees and unethical organisations = unethical organisations and unethical employees
• Professional ethics


  Standards set by professional organizations for the behavior and values of people working within a specific field
• Professional virtues


  • Character traits that predisposes oneself to doing the right thing
  • For accountants, the most important professional virtues are: integrity, objectivity and competence
• Business ethics


  • Evaluate what is good and right in economic activity
  • Economic activity occurs on three levels/ dimensions: Macro-Economics, CSR/ Meso Economic, Intra-Org/ Micro econ