, Ethics And The Future Business
SESSION 1: MORAL AND ETHICS
Definitions:
• Morality is humans’ ability to distinguish between right and
wrong, and it is the foundation of law
• Ethics is the systematic study of morality and typically
examines right and wrong from the perspective of a
Sustainability Ethics
human being
Definition: Human welfare Definition: Systematic
• Business Ethics is the study of business situations, within ecological balance study of right and wrong
Level: Society Level: Individual
activities, and decisions where issues of right or
Foundation: Sustainability, Foundation: Philosophy,
wrong are addressed Political Science, Com- Psychology, (Behavioral)
plexity Economics, Leadership
• Ethical theories are principles and rules that deter-
mine right and wrong in different situations,
• Normative ethics is the study of how we ought to
behave
Responsibility
• Anthropocentric is the perspective of a human being
Definition: Integration of triple bottom
line into companies
Ethics Questions (Way of Thinking) Level: Organization
Foundation: Management
• Principal Perspective: What kind of moral principles
should guide our actions?
• Consequences Perspective: What kind of outcomes we aim for?
Ethical Egoism
• An action is morally right if the decision – maker freely decides in Principles • Ethics of Duties
order to pursue either their (short – term) desires or their (long – • Rights and Justice
term) interests – Adam Smith
• Ethical Egoism Issues: • Ethical Egoism
Actions
o Contradictory with our moral principles • Utilitarianism
o Enlightened egoism focuses on the meeting of long – term hu-
man interests
o Conflicting interests (for example killing)
o Not complemented by more developed theories
Outcomes
Utilitarianism
• Egoism in economics tends to function within a utilitarian social moral theory
• Act utilitarianism: Whether a single act is right or wrong depends of the amount of common good it produces
• Rule utilitarianism: Focus on creating rules that produce the most common good
• Problems of utilitarianism:
o Maximizing ≠ Balancing
o Common good is subjective
o Difficulties in distribution of wealth and basic rights
o Utilitarianism does not include the idea of reciprocity
Ethics of Duties
• Duties involve the human’s ability to de-
velop moral rules and moral laws – Kant
• Categorical imperatives: same rules does not apply to every single situation
o Universal applicability: Check that the principle is acceptable to every human being
, Consideration Key Question Theory
o Respect for persons: A
human being is a valuable
One’s own inter- Is this best for me/my organization in Egoism
autonomically being and
ests the long term?
not means to an end or a
tool. Social conse- Will my actions lead to better or worse Utilitarian-
quences overall outcomes? ism
• Problems:
o It is an abstract theory Duties to others Who do I have obligations to, and what Ethics of
o Heavy burden to bear if everyone acted like me? duty
o Too strictly to use in person Entitlements of Whose rights should I consider and re- Ethics of
o Undervalues outcomes others spect? rights
Rights and Justice Fairness Am I treating everyone fairly and ensur- Theories of
ing equal chances? justice
• Natural Human Rights: based
on human dignity, important, Moral character Am I acting with integrity like a decent Virtue ethics
person would?
support and protect them
• Main Natural Rights: life, free- Care for others How do my actions affect relationships Feminist
and others' well-being? ethics
dom, property, speech etc.
• Justice: fair treatment Resolving con- How can we reach a fair solution Discourse
• Key ideas: Procedural vs. Dis- flicts through dialogue? ethics
tributive fairness Moral impulse & Am I blindly following norms, or do I Postmodern
• Western political and ethical emotions deeply connect with my decision? ethics
though
• Problems:
o Rights are criticized as being too Western
Effective
(relatively arbitrary) Morality
Ethics
o Theory does not offer practical guidance in
Law
Ethical Foundation
extreme situations of Law
Alternative Perspective on Ethics (not important)
• Virtue ethics: Focuses on developing good character Good Leader
traits to lead a morally good life.
• Feminist ethics: Emphasizes care, empathy, and social relationships over abstract moral principles.
• Discourse ethics: Promotes ethical decision-making through democratic dialogue and norm generation.
• Postmodern ethics: Questions universal moral rules and highlights emotional moral impulses towards others.
Leadership Pluralism
• Moral luck: leaders does not control everything • Moderate view: not pick the best
• Dirty hands problem: sometimes there are only bad options but understand them
• Does perfection/ altruism needed (and in what level)? • Each ethical theory is seen to pro-
vide resources for decision making
• Strong values
• Balance and consensus needed
• Specific talents overvalued (as charismatic)
• A virtue ethical defence of leadership
SESSION 1: EVALUATING BUSINESS ETHICS – NORMATIVE ETHICAL THEORIES
• Professional ethics: Refers to the specialized ethical standards and principles that guide professionals, such
as lawyers and doctors, in making decisions with significant consequences.
• Normative ethics: Focuses on ethical theories that prescribe the morally correct way of acting and determine
how individuals ought to behave.
• Normative Ethical Theories: Rule, guidelines, principles and approaches that determine right and wrong
• Descriptive morality: Describes the moral codes and practices adopted by particular societies, religions, or
cultural groups without prescribing what is morally right or wrong.
• Ethical Absolutism: Right and Wrong are objective qualities that can be rationally determined irrespective of
the circumstances
SESSION 1: MORAL AND ETHICS
Definitions:
• Morality is humans’ ability to distinguish between right and
wrong, and it is the foundation of law
• Ethics is the systematic study of morality and typically
examines right and wrong from the perspective of a
Sustainability Ethics
human being
Definition: Human welfare Definition: Systematic
• Business Ethics is the study of business situations, within ecological balance study of right and wrong
Level: Society Level: Individual
activities, and decisions where issues of right or
Foundation: Sustainability, Foundation: Philosophy,
wrong are addressed Political Science, Com- Psychology, (Behavioral)
plexity Economics, Leadership
• Ethical theories are principles and rules that deter-
mine right and wrong in different situations,
• Normative ethics is the study of how we ought to
behave
Responsibility
• Anthropocentric is the perspective of a human being
Definition: Integration of triple bottom
line into companies
Ethics Questions (Way of Thinking) Level: Organization
Foundation: Management
• Principal Perspective: What kind of moral principles
should guide our actions?
• Consequences Perspective: What kind of outcomes we aim for?
Ethical Egoism
• An action is morally right if the decision – maker freely decides in Principles • Ethics of Duties
order to pursue either their (short – term) desires or their (long – • Rights and Justice
term) interests – Adam Smith
• Ethical Egoism Issues: • Ethical Egoism
Actions
o Contradictory with our moral principles • Utilitarianism
o Enlightened egoism focuses on the meeting of long – term hu-
man interests
o Conflicting interests (for example killing)
o Not complemented by more developed theories
Outcomes
Utilitarianism
• Egoism in economics tends to function within a utilitarian social moral theory
• Act utilitarianism: Whether a single act is right or wrong depends of the amount of common good it produces
• Rule utilitarianism: Focus on creating rules that produce the most common good
• Problems of utilitarianism:
o Maximizing ≠ Balancing
o Common good is subjective
o Difficulties in distribution of wealth and basic rights
o Utilitarianism does not include the idea of reciprocity
Ethics of Duties
• Duties involve the human’s ability to de-
velop moral rules and moral laws – Kant
• Categorical imperatives: same rules does not apply to every single situation
o Universal applicability: Check that the principle is acceptable to every human being
, Consideration Key Question Theory
o Respect for persons: A
human being is a valuable
One’s own inter- Is this best for me/my organization in Egoism
autonomically being and
ests the long term?
not means to an end or a
tool. Social conse- Will my actions lead to better or worse Utilitarian-
quences overall outcomes? ism
• Problems:
o It is an abstract theory Duties to others Who do I have obligations to, and what Ethics of
o Heavy burden to bear if everyone acted like me? duty
o Too strictly to use in person Entitlements of Whose rights should I consider and re- Ethics of
o Undervalues outcomes others spect? rights
Rights and Justice Fairness Am I treating everyone fairly and ensur- Theories of
ing equal chances? justice
• Natural Human Rights: based
on human dignity, important, Moral character Am I acting with integrity like a decent Virtue ethics
person would?
support and protect them
• Main Natural Rights: life, free- Care for others How do my actions affect relationships Feminist
and others' well-being? ethics
dom, property, speech etc.
• Justice: fair treatment Resolving con- How can we reach a fair solution Discourse
• Key ideas: Procedural vs. Dis- flicts through dialogue? ethics
tributive fairness Moral impulse & Am I blindly following norms, or do I Postmodern
• Western political and ethical emotions deeply connect with my decision? ethics
though
• Problems:
o Rights are criticized as being too Western
Effective
(relatively arbitrary) Morality
Ethics
o Theory does not offer practical guidance in
Law
Ethical Foundation
extreme situations of Law
Alternative Perspective on Ethics (not important)
• Virtue ethics: Focuses on developing good character Good Leader
traits to lead a morally good life.
• Feminist ethics: Emphasizes care, empathy, and social relationships over abstract moral principles.
• Discourse ethics: Promotes ethical decision-making through democratic dialogue and norm generation.
• Postmodern ethics: Questions universal moral rules and highlights emotional moral impulses towards others.
Leadership Pluralism
• Moral luck: leaders does not control everything • Moderate view: not pick the best
• Dirty hands problem: sometimes there are only bad options but understand them
• Does perfection/ altruism needed (and in what level)? • Each ethical theory is seen to pro-
vide resources for decision making
• Strong values
• Balance and consensus needed
• Specific talents overvalued (as charismatic)
• A virtue ethical defence of leadership
SESSION 1: EVALUATING BUSINESS ETHICS – NORMATIVE ETHICAL THEORIES
• Professional ethics: Refers to the specialized ethical standards and principles that guide professionals, such
as lawyers and doctors, in making decisions with significant consequences.
• Normative ethics: Focuses on ethical theories that prescribe the morally correct way of acting and determine
how individuals ought to behave.
• Normative Ethical Theories: Rule, guidelines, principles and approaches that determine right and wrong
• Descriptive morality: Describes the moral codes and practices adopted by particular societies, religions, or
cultural groups without prescribing what is morally right or wrong.
• Ethical Absolutism: Right and Wrong are objective qualities that can be rationally determined irrespective of
the circumstances
