WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Business ethics exists on three levels: the individual, the organizational, and the societal. According to Mel & Snchez-Runde (2013), Universal ethics can be perceived as a form of moral constitution which is expressed as a set of specific ethical . 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. The focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. WebWe believe that compliance and ethical behavior are everyones responsibility. The same action may be morally right in one society but be morally wrong in another. It focuses on the type of person we ought to be, not on specific actions that should be taken. At the same time, each one has a logic. universal Ethical relativism holds that people set their own moral standards for judging their actions. However, middle managers and employees often complain their ethics training consists of passing a computerized sexual harassment or fraud program once a year but that nothing is done to address issues in a substantive way or to change the culture of the organization, even those that have experienced problems.31 Business Ethics Next: A Framework for Making Ethical Decisions, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Exchange is fundamental to business. startxref Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. 5.3 Ethical Principles and Responsible Decision-Making <>/Border[0 0 0]/Contents()/Rect[72.0 607.0547 200.4551 619.9453]/StructParent 3/Subtype/Link/Type/Annot>> Utilitarianism Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. 1. Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior . A few different business ethics theories exist , such as the utilitarian , rights , justice , common good and virtue approach . Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. The Supreme Court upheld her and her staffs decision. 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. Attempt all Sections. Corporations and their Social Responsibility. If you are redistributing all or part of this book in a print format, 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. <> Philosopher and historian Martin Buber (18781965) taught that love is not a feeling but a responsibility of one person for another. Utilitarianism Theory and Business Ethics Utilitarianism, Universal Ethics, Golden Rule, and Virtue Ethics Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. 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. Are the Values Central to Business Ethics Universal? Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. org/10.4135/9781473910034 More information Summary Contents JN9u4 0-FR1.ke4 nzG q57:6H*U*N5"T] t@L0fCf%gUc !` HpT!e0IyF'Xd)W8>dn>DR()p0^. 137 0 obj 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 for building trust and confidence in the operations of organizations around the world. Webmoral relativism theory or more similar to the moral universalism theory and if there are any differences between the arguments. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. endobj This book uses the WebUniversalism in Ethics. 0000003899 00000 n 132 0 obj Some limitations when using this principle are (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are right, and (3) individuals can exaggerate certain entitlements at the expense of others. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. In the business world, various ethical theories and principles are used. Can business ethics provide one? 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. 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. How are they related? 129 0 obj Except where otherwise noted, textbooks on this site WebUniversalism means that everybody is treated as subject to the same rules. The first view uses universality to distinguish the moral from non-moral. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. 6. trailer MGMT OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. Read the article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption for a detailed explanation. Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. A belief in one fundamental truth is another important tenet in JVBL By definition, ethics in a business setup are norms that a given business organization has to adhere to in its daily business transactions. In this model, organizations focus on employees as a vital part of the operation and support them in their professional training, health care, education, family responsibilities, and even spiritual concerns. Web(SEM III) THEORY EXAMINATION 2021-UNIVERSAL HUMAN VALUES & PROFESSIONAL ETHICS. 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. In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. Corporate Governance and Sarbanes-Oxley Act and Other Recent Reforms, 8. These different cohorts of normative theories are often termed as rival ethical At the same time, each one has a logic. 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. Business can mean an activity of exchange. Richard DeGeorge (1933) of the University of Kansas describes what adding the humanities to business education entails: Students do not need psychosociological jargon in their business interactions. MGMT 325 Quiz 2.2. > 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). On their list of values, corporate responsibility to the public is among the top ones. Utilitarianism: Ethical Theories and Business. Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. Many people question the place of love in a business setting. However, the nature of human happiness is subjective. It poses an extremely high cost to the citizenry, it saps the credibility of government and it places companies under an unbearable economic burden.26 Universalism 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. Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. 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. 52 terms. endobj At the organizational and societal levels, laws, regulations, and oversight can go a long way 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. Cultural Diversity and Universal Ethics in a Global World The influence of positive psychology is evident, and there is much to commend in this kinder approach to the job of management that makes an effort to establish sustainable human welfare.36 0000006541 00000 n So, although the work of national, regional, and international organizations can limit corruption through enforcement and the prosecution of cases (as was the case with the revelation of the so-called Panama Papers), corruption will not be reduced in any significant way unless efforts have been made to form individual conscience and teach practical ways to act on it. v a l p o . 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. 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?. If require any missing data; then choose suitably. in the circumstance that telling the truth leads to death, objectivism could require we lie Compliance is important, but business managers must attempt to go above and beyond to clearly model and enforce the highest standards of ethical behavior. 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. At the core of Toms' model exists the idea of charity. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. doi. An example of bias occurs when employees engage in unethical activity because it has been sanctioned by higher-ups. They abdicate personal responsibility by assigning blame elsewhere. Corporations and Politics: After Citizens United, 14. If you belong to such an institution, please log in or find out more about how to order. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. 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. The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. 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. then you must include on every digital page view the following attribution: Use the information below to generate a citation. 0000000016 00000 n Recent Governance Reforms: An Executive Summary, 13. The use of these tools is often backed by social science research in consumer behavior, behavioral finance, and cognitive studies. 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/).
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