Unit 1 - Textbook Notes

• Ethics


  • Deals with individual character and the moral rules that govern and limit our actions
  • Right & Wrong
  • Fair & Unfair
• Business Ethics

  • The study of what constitutes as right and wrong, or good and bad, human conduct in a business context
• "MBA Oath"

  • Introduced by the Association to Advance Collegiate Schools of Business
  • A voluntary pledge to:

  1. Not advance any personal interests at the expense of the enterprise or society
  2. Refrain from corruption, unfair competition, or business practices harmful to society
  3. Protect the human rights and dignity of all people affected by the enterprise
• Cicerco

  • A Roman philosopher who debated the ethical dilemma of an honest merchant from Alexandria bringing wheat to Rhodes during a food shortage
  • He faced the decision to inform Rhodes that more wheat is on the way or sell at the best price

  1. Ancient Ethicists argued:

  • merchants must declare defects as required by law but as a vendor they're free

  2. Cicerco argued:

  • all facts must be revealed and buyers must be as fully informed as sellers
• Business

  • Any organization whose objective is to provide goods and services for profit
• Business People

  • Those who participate in planning, organizing or directing the work of business
• Organization

  • A group of people working together to achieve a common purpose
  • Such as:

  1. Business
  2. Healthcare
  3. Public Safety (ex: law enforcement)
  4. Education (ex: University)
• 4 Kinds of Laws

  1. Statues
  2. (Administrative) Regulations
  3. Common Law
  4. Constitutional Law
• Statues

  • Laws enacted by legislative bodies such as congress and state legislatures and make up a large part of the law
  • Ordinances - laws enacted by local governing bodies such as city councils
• (Administrative) Regulations

  • Boards or agencies established by legislators whose function is to issue delated regulations about certain kinds of conduct
• Common Law

  • The body of judge-made law developed centuries ago in the English speaking world
  • Courts wrote opinions explaining the bases of their decisions in specific cases which became precedents for later cases
• Constitutional Law

  • Court rulings on the requirements of the constitution and the constitutionality of legislation
  • The US constitution determines if laws are compatible with it
  • The Supreme Court holds the highest judiciary power in the U.S., influencing business ethics
• Laws

  • Codify a society's customs, ideals, norms, and moral values
  • Changes in law tend to reflect changes in societal values of what is considered "right or wrong" conduct
• What is the Important Issue for Philosophers Regarding our Moral Principles?

  • For philosophers, the important issue is NOT where our moral principles came from, but whether they can be justified
• Ethical Theories

  • Attempts to justify moral standards and ethical beliefs
• Religion, Morality and the "Golden Rule"

  • Religion encompasses formal worship and also social relationships exemplified by the "Golden Rule," a moral ideal found in all major religions worldwide
  • "Golden Rule" - "Do unto others as you would have them do unto you"
• Why Do People Believe that Morality is Based on Religion?

  • Because they believe that only religion can provide moral guidance
  • Therefore, they think that without religion, people would have no incentive to be moral
• Why Can't We base Morality on Religion?

  1. We often act morally out of habit or just because it's the kind of person we are or it's the right thing to do
  2. The moral instructions of major religions are general and imprecise, requiring moral reasoning
  3. Divine Command Theory - the view that an act is morally right because God commands that we perform it, and that an act is morally wrong because God commands that we refrain from performing it
• Dubious

  • The idea that a business has is own morality, separate from ordinary ideas of right and wrong
• What does Albert Carr argue in "Is Business Bluffing Ethical?"

  • He argues that business, both individual and corporate, is a game that requires a specific strategy and an understanding of its ethical standards
  • Business norms and rules DIFFER from societal norms which therefore according to Carr, means that some things that are considered WRONG are ALLOWED in a business context
  • Ex: misstatement and concealment of relevant facts in negotiation
  • Ex: Lying about your age on a resume
• What Kind of Ethical Relativism does Albert Carr Defend?

  • Business has its own moral standards, and business actions should be evaluated only by those standards
  • He suggests that business activities following their own rules are exempt from external moral evaluation, but this is generally unacceptable
• What does Albert Carr Misinterpret?

  • Carr misinterprets business and morality by stating that the everyday standards and rules of business activities are irrelevant having nothing to do with the standards and rules of ordinary morality
  • Diminishes the impact that morality has on our lives
  • By separating business from morality, Carr misinterprets both
• What's Involved in a Person Accepting a Moral Principle?

  • According to Richard Brandt, accepting a moral principle is not just intellectual acceptance but also a motivation to conform one's conduct to that principle
• What Determines What a Person will do when Morality and Self-Interest Collide?

  • Your choice will depend on the kind of person you are, which in part depends on how you were raised
• What does Morality do to Ensure Social Existence?

  • Morality encourages people to refrain from pursuing their self-interests so we can all live together
• Paradox of Hedonism

  • Individuals who only care about their own happiness will generally be LESS happy than those who care about others
• Morality in the NARROW Sense

  • Concerned with the principles that are supposed to regulate people's conduct and relations with others
• Morality in the BROAD Sense

  • Is not only concerned with the principles of conduct but also the values, ideals, and aspirations that shape our lives
• How is Excellence Achieved according to Aristotle?

  • Aristotle believed that human excellence can be achieved through developing our true human capacities as well as happiness
• How Can One Live a Morally Good Life According to Aristotle?

  • Achieving virtue or excellence in all aspects of life, not just in one's job or field
• Virtues

  • Traits or dispositions, such as courage, generosity, or kindness
• What is the Leading Cause of Unethical Business Conduct?

  • According to the American Management Association, it's the pressure to meet unrealistic business objectives and deadlines
• The 4 Organizational Commandments that Pressure Workers to Compromise their Integrity

  1. Performance
  2. Loyalty
  3. Don't Break the Law
  4. Don't Overinvest in Ethical Behaviour
• What Can Damage Individual Integrity and Responsibility?

  • Corporations

  1. Pressure to meet corporate objectives,
  2. Pressure to be a team player
  3. Conform to organizational norms
  4. Diffusion of responsibility can sometimes lead people to act unethically, damaging their integrity
• Solomon Asch Experiment

  • Studied the extent to which social pressure from majority, could affect a person to conform
• Argument

  • A series of claims, some of which (the premises) give us reasons, evidence, or justification in support of another claim (the conclusion)
• Contradiction

  • Holding two beliefs that can't be true at the same time
  • Accepting the premise but rejecting the conclusion in a VALID argument
• Valid Argument

  • When the premise is true, then the conclusion has to be true
• Sound Argument

  • A VALID argument whose premises are all true
• Moral Argument

  • An argument whose conclusion is a moral judgement