Слайд 1BUSI 211: ETHICS
CHAPTER 1
Morality, Ethics, Business Ethics:
Basic Definitions and Aspects
Слайд 2Major Issues
What is Morality? What is Ethics?
Who sets them?
Business Ethics: Three
Levels
Responsibility
Moral Development
Global Standards
Technology and Business Ethics
Слайд 3Merck Case: River Blindness
Why did Merck (CEO) finally decide to produce
the ‘river blindness’ medicine?
What would you have done as Merck’s CEO? Discuss Pro’s and Con’s for the development of the drug and make a final proposal.
Should corporations be required to act as Merck did?
Слайд 4Merck and River Blindness
Victims as potential Customers
Business and implications
Cost benefits :
Profitability
For-profit organization
Shareholders
Long-term strategy
Marketing and Economic infrastructure (Africa, Latin America)
Technology risk/ Legal infrastructure/ Property rights
Слайд 5Merck Case: Lessons
Ethical business behavior might be…. very
expensive and unprofitable for a company in the short-term….but it can be very profitable and beneficial for a company in the long-term…and it takes sometimes a lot of guts to behave ethically
Слайд 6What is Morality?
Standards about what is ‘right or wrong’ or what
is ‘good or evil’
Standards are set by
Individuals (take care of family)
Social Groups (Neighborhood, Sports clubs)
Professional Groups (Hippocratic Oath)
Religions (making money out of interest)
Societies
Слайд 7Characteristics of Moral Standards
Not established or changed by authoritative bodies
Preferred to
other values including self-interest
Based on impartial considerations
Слайд 8What is Ethics?
Ethics the study of morality
Ethics refers to the process
of describing, analyzing moral standards and moral dilemmas
Ethics can be a descriptive and/ or normative discipline
Слайд 9Business Ethics: Three Levels
Moral standards that apply to:
Countries/ Societies: Systemic
Corporate and
Business policies: Corporate
Top Managers, Employees, Owners, Shareholders: Individuals
Слайд 10Business Ethics: Three Levels
Corporate
Systemic
Individual
Слайд 11Corporate and Business Level: Examples
Competition (Price fixing, Anti-trust)
Accounting Information (Insider trading,
Compensation, Bribery)
Human Resource Management (Discrimination)
Ethics of Sales and Marketing (Children, Immoral)
Production (Addictive: Drugs, Glue; Pollution)
Intellectual Property (ownership, industrial espionage)
Слайд 12Case: Gun Manufacturers
Are manufacturers/ dealers ever morally responsible for deaths caused
by the use of their products? Why or why not?
Слайд 13Moral Standards:
Corporations or Individuals?
Are corporations to be treated like human
beings?
Can corporations be said to be ‘responsible’ and what does it mean in a practical sense?
Yes: to the extent that corps. have objectives, they are morally responsible and have moral duties
No: Corps. have no ‘moral duties’, therefore may not be said to be “morally responsible”
Compromise: Corps. are not human beings but individuals are the primary ‘carriers’ of moral responsibility so they ‘partially’ have moral duties
Слайд 14Moral Responsibility and Blame
Whether someone is to blame for an act.
Depends upon:
Whether the person freely and knowingly committed the act although it was morally wrong
Whether the person freely and knowingly failed to prevent the act although it was morally wrong to fail to do so
Ignorance and inability are excusing conditions
Except when ignorance is willful
Minimal involvement (a softening factor)
Subordinate carrying out unethical order ( ‘loyal agent’)
Слайд 15Whistleblowers
When should an employee who learns of something that seems illegal
and/or immoral at his/her place of employment expose it to the government or media?
Are whistleblowers courageous? What might happen to their careers?
Are they disloyal?
Ex: Iraq War, Mattel, Ford
Слайд 16Stages of Moral Development
(Kohlberg 1976)
Pre-Conventional Stages: Responding to Rules
Conventional Stages:
Meeting Social Expectations
Post-Conventional Stages: Autonomous Development of Principles
Слайд 17Moral Development ONE
Pre- Conventional Stages: Responding to RULES
Stage 1: Punishment
/ Obedience Orientation
Physical consequences (for ex. stealing)
Stage 2: Instrument / Relativity Orientation
Instruments for satisfaction/ rewards (sweets)
Слайд 18Moral Development TWO
Conventional Stages: Meeting social expectations
Stage 3: Interpersonal Concordance
Orientation
Living to the expectations of those to whom one is closely attached, loyal (affection, good performer)
Stage 4: Law and Order Orientation
Loyalty social systems (groups, societies, country); sometimes in contrast to own motives
Слайд 19Moral Development THREE
Post-Conventional: Autonomous, Critical Stages
Stage 5: Social Contract Orientation
Effort
to be impartial, critical, rational, fair approach toward consensus (everything is relative, everything to be tolerated)
Stage 6: Universal Ethical Principles Orientation
Right action is now defined in terms of logical comprehensiveness, consistency, universality, and reason
Слайд 20Kohlberg vs. Gilligan
Gilligan (1982): Kohlberg’s theory applies to males, not females
Male
approach impersonal, impartial, abstract
Female approach caring, being responsible, sustaining relationships
Females follow different stages of moral development: caring for oneself only, caring for others, achieving a balance
Слайд 21Business Ethics:
Global Standards and Approach
Standards have to be applied
everywhere the same
Legal infrastructure (business laws: corruption, collusion etc.)
Economic infrastructure (labor laws: hiring-firing; labor costs: minimum wage/ health insurance)
Political infrastructure (regulation, de-regulation)
Слайд 22Divergent Societies/Business Cultures:
Ethical Relativists or ‘Local Approach’
Different countries/ societies and different
codes
No absolute standards about ‘right or wrong’
Accept all rules from different societies (‘Do as the Romans do’)
Слайд 23Global Society with local Business Cultures: ‘Glocal’ Approach
Set of major
standards have to be applied everywhere the same….but
…specific standards to be decided and applied locally
Слайд 24Technology and Business Ethics
Risks of new technologies (nuclear power)
Costs / Benefits
(hip operation)
Social costs (basic jobs done by computers)
Privacy (consumer data)
Property (computer software and codes)
Genetic Engineering (animal testing/ testing with human beings, new plants/ animals)