Lesson 5: Introduction to Managerial Ethics

• Ethics It sets standards as to what is good or bad in conduct and decision making.
• Ethics is the code of moral principles and values that governs the behavior of a person or group with respect to what is right or wrong.
• Ethical dilemma a situation that arises when all alternative choices or behaviors have been deemed undesirable because of potentially negative consequences, making it difficult to distinguish between right from wrong. 
• Utilitarian Approach the ethical concept that moral behaviors produce the greatest good for the greatest number.  (decision maker is expected to select one that optimizes the satisfaction for the greatest number of people.)
• Individualism Approach - the ethical concept that indicates that acts are moral when they promote the individual’s best long-term interest, which ultimately leads to the greater good.
• Moral-Rights Approach - the ethical concept that moral decisions are those that best maintain the rights of those people affected by them.
• The right of free consent - individuals are to be treated only as they knowingly and freely consent to be treated. 
• The right to privacy - individuals can choose to do as they please away from work and have control of information about their private life.
• The right of freedom and conscience individuals may refrain from carrying out any order that violates their moral or religious norms.
• The right of free speech - individuals may criticize truthfully the ethics or legality of actions of others.
• The right to due process - individuals have a right to an impartial hearing and fair treatment.
• The right to life and safety - individuals have a right to live without endangerment or violation of their health and safety
• Justice Approach - the ethical concept that moral decisions must be based on standards of equity, fairness, and impartiality.
• Distributive Justice - the concept that different treatment of people should not be based on arbitrary characteristics.
• Procedural Justice - the concept that rules should be clearly stated and consistently and impartially enforced.
• Compensatory Justice the concept that individuals should be compensated for the cost of their injuries by the party responsible and also that individuals should not be held responsible for matters over which they have no control.