Marketing Ethics: Selling Controversial Products, 17. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. Contributing to a Positive Work Atmosphere, 26. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. The Supreme Court upheld her and her staffs decision. Spheres of human value encompass morality, aesthetic preference, human traits, human endeavour, and social order.Whether universal values exist is an unproven conjecture of moral philosophy and cultural anthropology, though it is clear that certain values are Available at: In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act. Vol. Still, legal requirements are usually clear, as are the ways an organization can exceed them (as do, for example, companies such as Whole Foods, Zappos, and Starbucks). 8 b. Differentiate "ethics" and "values". Z. Zemlyak - Zen - Zoroastrianism - Zurvanism Ethical relativism is really not a principle to be followed or modeled. Becoming familiar with these principles, then, can help inform your moral decision process and help you observe the principles that a team, workgroup, or organization that you now participate in or will be joining may be using. WebMoral universalism (also called moral objectivism) is the meta-ethical position that some system of ethics, or a universal ethic, applies universally, that is, for "all similarly situated At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. WebThis document is designed as an introduction to making ethical decisions. Therefore, utilitarianism goes by the rule that an action is evaluated to be ethical based on a set of rules or principles that can bring the retreat usefulness to the greatest amount of people (Mill, 2006). The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. Let us look at how it is possible to align business with human rights in such a way that both profitability and responsibility are honored across the globe. 129 20 To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). Ch. Access to the full content is only available to members of institutions that have purchased access. This principle is grounded in both legal and moral rights. <>stream Before turning to organizational and systems levels of ethics, we discuss classical ethical principles that are very relevant now and on which decisions can be and are made by individuals, organizations, and other stakeholders who choose principled, responsible ways of acting toward others. 3 Howard Schultz, founder of Starbucks; co-founder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. (3) Who gets hurt? Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. 1. According to the Union Internationale des Avocats, an international, nongovernmental association of legal professionals, corruption corrodes the democratic principles of accountability, equality, and transparency. 2 x 7 = 14 a. This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. Webmoral relativism theory or more similar to the moral universalism theory and if there are any differences between the arguments. ;;rlH,.6\I)- ld P1|d`-0iA 6H3dxU0[0u0*3lar H"%LX001da0rJ`X` uq&%61d2g,e^|N Z@@: -l,3BNZ D H After all, free enterprise has the interests of the enterprise at heart. If you belong to such an institution, please log in or find out more about how to order. Universalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. This principle involves taking human beings, their needs, and their values seriously. Furthermore, most religions have high ethical standards but do not address many of the problems faced in business. JN9u4 0-FR1.ke4 nzG q57:6H*U*N5"T] t@L0fCf%gUc !` HpT!e0IyF'Xd)W8>dn>DR()p0^. Or it may be identified with various claims to identify a single fundamental universal principle, from which all other ethical principles and judgments derive. 34 terms. %%EOF For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. WebUbuntu - Universalism - Utilitarian bioethics - Utilitarianism. If not, and if ethical standards are relative, are they worth having? 141 0 obj On their list of values, corporate responsibility to the public is among the top ones. X. Xenofeminism. b. This is even more important in industries like banking that are more susceptible to unethical behavior because of the great sums of money that change hands. Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. Diversity and Inclusion in the Workforce, 28. Ethical systems, whether utilitarian, rights based, or based on natural law and virtue ethics, are attempts to translate absolute values like these into workable solutions for people. 0000002849 00000 n Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. 0000002618 00000 n | When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. Iss. WebAdherents of ethical universalism are likely to believe that Common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople. It is helpful to ask and if not clear, perhaps identify the principles, you most often use now and those you aspire to use more, and why. In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. One alternative is to put the humanities into business. Ultimately, the theory of universalism in business ethics helps to promote ethical behavior and responsibility in the business world, and can serve as a powerful tool 0000000016 00000 n A Framework for Making Ethical Decisions, 11. Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. Many leaders character and actions serve as examples of how character-based virtues work. The 2017 conviction for bribery and embezzlement of Lee Jae-yong, heir to the Samsung electronics empire, was part of a widespread corruption scandal that brought down the president of South Korea. An action is morally right if the net benefits over costs are greatest for all affected compared with the net benefits of all other possible choices. Other sets by this creator. But it becomes dangerous when people use it to blind themselves to the reality around them, reinforce hardened positions even in the face of contradictory evidence, and shirk their responsibility as moral beings. From a relativists perspective, moral values are only applicable within certain cultures and societies. JVBL Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. endstream The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. Human flourishing may not be the immediate concern of business, but managers and employees have a significant impact on business performance. 1 Quiz Canvas. 0000017527 00000 n <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> grramire. In most professional disciplines, including business, the primary ethical frameworks used in the classroom draw on Universalist approaches. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. Only the individuals self-interest and values are relevant for judging his or her behavior. in the circumstance that telling the truth leads to death, objectivism could require we lie 148 0 obj For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. Immanuel Kant, a German philosopher, calls the Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. Limitations when using this principle involve the question of who decides who is right and wrong and who has been harmed in complex situations. Universalism (pronounced yu-ni-VER-sul-iz-um) is a doctrine that teaches all people will be saved. Why or why not? Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The justification for this rises from human nature, which is a shared vulnerability of suffering and demands universal reasoning. The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. Criticism of the Company and Whistleblowing, 27. Until that time, international firms doing business in South Africa were expected to abide by the apartheid policy and its underlying values. Subsequently, some common factors and discrepancies between the two theories will be discussed. 97 terms. 0000001486 00000 n Some of the strengths and weaknesses that will be discussed for Universalism are consistency, intension basis, and universalizability, while some of the discussed strengths and weaknesses for Utilitarianism are flexibility, outcome-basis, and lack of consistency. Until that time, international firms doing business in South Africa were expected to abide by the apartheid policy and its underlying values. Business ethics motivates managers to (1) meet legal and industry governing and reporting requirements and (2) shape corporate culture so that corrupt practices such as bribery, embezzlement, and fraud have no place in the organization. WebWe believe that compliance and ethical behavior are everyones responsibility. 134 0 obj However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. The society, on the other hand, perceives business ethics as the right or wrongs that occur as a result of organizations operating in the community. consent of Rice University. Ethical relativism is really not a principle to be followed or modeled. Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. <<77326D38A9B4B2110A000018C493FC7F>]/Prev 592216>> First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, In the United States, companies spend more than $70 billion annually on ethics training; worldwide, the figure is more than double that.30 What are major ethical principles that can be used by individuals and organizations? What would that look like? Countries and cultures that follow this orientation can result in dictatorships and absolutist regimes that practice different forms of slavery and abuse to large numbers of people. It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. Business can mean an activity of exchange. 0000001815 00000 n This principle is related to universalism. Abstaining from cheating customers, defrauding clients, lying, and murder are fairly objective ethical values; the reason for making any exceptions must be carefully laid out. Web4.4 business ethics theories 4.4.4 Deontology or universalism theory The proponents of the deontology theory are Immanuel Kant who emphasises that the ends do not justify the means of an action; the right thing must always be done even if doing the wrong thing would do the most good for the most people (Weiss, 2009:107). The social and natural sciences provide data to make better ethical choices, but science cannot tell people what they ought to do (nor should it). It is an orientation that many use quite frequently. > 0000001898 00000 n 2023 Informa UK Limited, an Informa Group Company. endobj (credit: Happiness Is a Piece of Cake Close Up Photography by Antonio Quagliata/Pexels, CC0), If there is anything that transcends time, place, and culture, it is love. Some limitations of this principle suggest that it does not consider individuals, and there is no agreement on the definition of good for all concerned. In addition, it is difficult to measure costs and benefits. This is one of the most widely used principles by corporations, institutions, nations, and individuals, given the limitations that accompany it. 138 0 obj Limitations when using this principle involve the question of who decides who is right and wrong and who has been harmed in complex situations. *$nMY9s:SZC;>M:yREn\rDk~iG']rDn>v]1m7@u,sI>wQZVmb^emU(W y Q)\u58y.? WebUniversalism means that everybody is treated as subject to the same rules. The result was a staggering $6 billion cumulative fine for the banks involved (i.e., Barclays, J.P. Morgan Chase, Citicorp, Royal Bank of Scotland, and Deutsche Bank).34. There are some limitations to this ethic. Using creativity is also important when examining difficult moral decisions when sometimes it may seem that there are two right ways to act in a situation or perhaps no way seems morally right, which may also signal that not taking an action at that time may be needed, unless taking no action produces worse results. Accommodating Different Abilities and Faiths, 29. This principle has at least four major components that are based on the tenets that (1) all individuals should be treated equally; (2) justice is served when all persons have equal opportunities and advantages (through their positions and offices) to societys opportunities and burdens; (3) fair decision practices, procedures, and agreements among parties should be practiced; and (4) punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. In fact, John Mackey, the founder of Whole Foods, has said that love has been the basis of his success in business, which translates into care and concern for customers beyond profit and for workers beyond productivity (Figure 5.8).39, Recall the statement by IBM quoted earlier in the chapter: [IBM] remain[s] dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer, more diverse, more tolerant, more just.40. <>/Border[0 0 0]/Contents()/Rect[72.0 618.0547 118.127 630.9453]/StructParent 2/Subtype/Link/Type/Annot>> WebCHAPTER 2 MORAL RELATIVISM - Objectivism: there is only one universal moral standard (based on objective moral facts and consists of moral values and principles that hold universal for people and societies) - Can adjust to circumstances is not morally rigid - Ex. Basic ethical practices have been gleaned through research and practical study of how businesses function, and how they operate, both independently and with one another. Absolute values do exist. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. trailer The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. However, the nature of human happiness is subjective. <>/Border[0 0 0]/Contents(scholar@valpo.edu)/Rect[350.833 72.3516 427.21 82.8984]/StructParent 8/Subtype/Link/Type/Annot>> The same action may be morally right in one society but be morally wrong in another. The 10th edition reflects the current, multidisciplinary nature of the field by explicitly embracing a variety of perspectives on business ethics, including philosophy, management, and legal studies. Copyright. endobj Exchange is fundamental to business. What are major ethical principles that can be used by individuals and organizations? endobj W. Wahdat-ul-Wujood - Wahdat-ul-Shuhud - War, philosophy of - Western philosophy - Wu wei. We might argue that it is not the business of business to form people in their conscience, but the result of not doing so has become expensive for everyone concerned.32. 5. This does not deny the need for profit and financial success. 1999-2023, Rice University. Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. It has often been an intellectual norm for researchers and authors to classically characterise ethics into two divisions of normative notions. BUSG 210 Practice Final Exam. The search for a universally applied set of ethics always comes back to it. Utilitarianism: Ethical Theories and Business. If you are redistributing all or part of this book in a print format, WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Attempt all Sections. What responsibilities do companies have regarding justice and care? 137 0 obj 0 , Article 3. Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? It is helpful to ask and if not clear, perhaps identify the principles, you most often use now and those you aspire to use more, and why. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. How are they related? For example, although what constitutes ethical behavior in Islamic society is strongly linked to religious values, secular philosophers can endorse a highly developed commitment to commercial ethics, too. Feelings may come and go, but the solidarity that people have with each other and the care they take with one another define them as human beings (Figure 5.8). At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. doi. Chapter 5 - The Universalist Approach and Kant in Business Ethics from Normative Approaches Published online by Cambridge University Press: 10 November <>/MediaBox[0 0 612 792]/Parent 125 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> and you must attribute OpenStax. (4) Who has to pay for the consequences? Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices.19 Howard Schultz, founder of Starbucks; cofounder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. The Volkswagen emissions scandal also began in 2015, when the Environmental Protection Agency cited the German automaker for violating the Clean Air Act by cheating on emissions tests. <>/Border[0 0 0]/Contents( T h e J o u r n a l o f V a l u e s - B a s e d \n L e a d e r s h i p)/Rect[72.0 650.625 358.3672 669.375]/StructParent 1/Subtype/Link/Type/Annot>> 135 0 obj They do need to understand people and their motives, to know how to read and judge character, and to have the ability to imagine themselves in anothers shoes, be they those of a competitor, a boss, or a subordinate. An example of bias occurs when employees engage in unethical activity because it has been sanctioned by higher-ups. Many companies in the United States, Europe, and elsewhere were pressured in the 1980s and before by public interest groups whether or not to continue doing business or leave South Africa. And such agency needs to be at the heart of business ethics. endobj ]yy+ 140 0 obj What, then, is missing from humanistic business? are licensed under a, Ethical Principles and Responsible Decision-Making, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/5-3-ethical-principles-and-responsible-decision-making, Creative Commons Attribution 4.0 International License. But what does love look like in a business setting? In the ideal case, the organizations culture never allows the latter, because scandals not only damage reputations but they make companies and countries much less attractive to investors. . The claim that ethical standards or principles are universal is an ancient commonplace of many ethical traditions and of contemporary political life, particularly in appeals to universal human rights. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. c. Marques, Joan Except where otherwise noted, textbooks on this site