UGB247: Week 10

MORE ASSIGNMENT ADVICE,

ETHICAL THEORY

AND

RESPONSIBLE TO SOCIETY

The Assignment - Task b)

Explain and rank what you deem to be the organisations

most responsible practices.

Your explanation should

include discussion of ethical theory.

Weighting 40%

WHAT ARE ETHICAL THEORIES?

Ethical Theories are the rules

and principles that determine

right and wrong for a given

situation.

Crane & Matten (2010)

CONSEQUENTIALISM versus
NON-CONSEQUENTIALISM 1

Key divide between ethical theories

CONSEQUENTIALISM morality of an action is judged through its resultNON-CONSEQUENTIALISM an action is good or bad in itself

*

CONSEQUENTIALISM v. NON-CONSEQUENTIALISM 2

Consequentialists and non-consequentialists

will agree that stealing by employees is wrong.

However, they will differ as to why?

Consequentialist its wrong because such stealing has socially disruptive effects

Non-consequentialist its wrong because taking someone elses property is intrinsically wrong

*

UTILITARIANISM 1

Consequentialist result oriented the greatest happiness for the greatest numberClassic exponent Jeremy Bentham

(19C English philosopher)

*

UTILITARIANISM 2

ADVANTAGES

Coherent single principleDemocratic considers interests of allPractical calculates effects of actionProspective compares alternatives

DISADVANTAGES

Practical how do you measure happiness?Philosophical dilemma of minoritiesSubjective assessment of pleasure reliant on subjective perspective of assessor

*

UTILITARIANISM 3

Problem of Subjectivity led to theory being refined, differentiating between 2 types of utilitarianism:

ACT UTILITARIANISM - concerns a single action and bases the moral judgement on the amounts of pleasure and/or pain this action causes.

RULE UTILITARIANISM concerns classes of action and asks whether underlying principles of an action produce more pleasure than pain for society long term.

*

DEONTOLOGY 1

Non-consequentialist principle-orientedFocus on intrinsically valid nature of moral principles. Concerned with DUTIES, OBLIGATIONS and RIGHTS Classic rationalist exponent Immanuel Kant (18C German philosopher). Focus on the

duty to act according to universal principles

*

DEONTOLOGY 2

Kants Categorical Imperative 3 rules or maxims

I ought never to act except in such a way that I can also will that my maxim should become a universal law.

NB Reflects CONSISTENCY

Act in such a way that you always treat humanity never simply as a means, but always at the same time as an end.

NB Reflects HUMAN DIGNITY

Act as though you were, through your maxims, a law making member of the kingdom of ends.

NB Reflects UNIVERSALITY

*

DEONTOLOGY 3

Another key classic exponent John Locke (17C English Philosopher). Focus on natural rights (unalienable entitlements) which should be respected & protected - rights to life, freedom and propertyOldest expression of deontology is THE GOLDEN RULE:

In everything do unto others as you would have them do to you, for this sums up the Law and the Prophets (Jesus Christ)

This is the sum of duty: do not do to others what would cause pain if done to you. (Hindu scriptures)

One word which sums up the basis of all good conduct loving kindness. Do not do to others what you do not want done to yourself. (Confucius)

*

VIRTUE THEORY 1

Importance of CONTEXT individuals operate in social settings which define their duties and role behaviourIn these settings people cultivate virtues facets of character which govern their behaviour. NB Strong emphasis on upbringing and education. Focus on cultivating good habits Classic exponent Aristotle (ancient Greek philosopher). He praised intellectual virtue and perceived contemplation as the highest fulfilment of human nature.

*

VIRTUE THEORY 2

Virtues are inherent capacities that all people haveThe criterion for judging the goodness of any action is whether or not the action is compatible with ones inherent human capacities. Actions that enhance human capacities are good; those that deter them are bad unless they are the best among generally negative alternatives. (Donaldson & Werhane)Bringing out the best in people!

*

VIRTUE THEORY 3

Business application firms exist within wider communities and are themselves communities where people need to interact6 dimensions of virtue ethics in business: community, EXCELLENCE, role identity, holism, judgement & INTEGRITY

The Aristotelean approach to business ethics rather begins with the idea that it is individual virtue and integrity that counts: good corporate and social policy

will follow Robert Solomon

*

Responsible to society

What does

this mean?

DOES IT MEAN BEING RESPONSIBLE TO

Local communities?National governments?NGOs & campaigning activists?People across the globe?Future generations?God?

No such thing as society according to

one UK Prime Minster quoted in 1987

HOW CAN BUSINESSES BE RESPONSIBLE TO SOCIETY?

POSITIVELY

Creating jobs (direct & indirect)Creating wealth (paying taxes)Enhancing knowledge (skills training, transferring technology)Improving quality of life (providing career opportunities, raising personal expectations)

NEGATIVELY (Being irresponsible!)

Polluting & destroying the natural environmentDepleting resourcesSupporting repressive political regimesEndangering local communities

IS THERE A PROBLEM?

YES - THE CASE AGAINST

Critics of business claim most major corporations manufacturers, retailers and so on are the enemy, and are responsible for greedily and inefficiently using up the planets resources.

Terry Leahy in Management in 10 Words

IS THERE A PROBLEM?

NO - THE CASE FOR

there are few pursuits more worthwhile and positive than business and industry. They are fundamentally ethical and offer both the privilege and the duty to share in the process of creation, the development of the earth and the nurturing of mankind and society.

Neville Cooper, Chair of the IBE in 1989

WHATS THIS ALL ABOUT?

LONG TERM or SHORT TERM?SUSTAINABILITY?BRAND REPUTATION?RISK AVOIDANCE from internet critics?

Business & Values

Strong values underpin successful businesses. They give managers a sheet anchor, something that keeps them from being smashed against the rocks when caught in a storm. Values govern how a business behaves, what it sees as important, what it does when faced with a problem.

Terry Leahy (former CE of Tesco)

SEMINAR ACTIVITY

Read the article about ethical reasoning BEFORE the seminar.

Consider the case of BASF in Beaufort County and how the 3 key ethical theories presented in the lecture can be applied to it.

How will you discuss ethical theory in your assignment? Can it help you to explain and rank your firms most responsible practices?

BASF In Beaufort County

the greatest happiness for the greatest number?

What duties, obligations and rights are involved here?

"Is this action consistent with my acting at my best?"

1 Build With Minimal Pollution Control2 Build with Maximum Pollution Control3 Do Not BuildUtilitarianismKantianDeontologyVirtue Theory

VIRTUAL ACTIVITY

Consider the tourism industry across the world as a case study of businesses being responsible to society

What are the positive and negative impacts of tourism for a Thai fishing village, a Mediterranean beach or a London monument?

Is responsible travel an oxymoron?

VIRTUAL ACTIVITY EXTRA

FURTHER READING

ABOUT ETHICAL THEORY

Download & read

A Framework for Thinking Ethically

www.scu.edu/ethics/practicing/decision/framework.html