0000003514 00000 n The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. 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. 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. These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. 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. 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. Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. 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 model of ethical behavior, sometimes called the humanistic business model, may provide the answer for businesses that wish to achieve the dual goal of human flourishing and responsible profits. Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. c. In fact, we could argue that anything that makes an impact on people should legitimately be within the scope of business. <>/MediaBox[0 0 612 792]/Parent 125 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> This principle is related to universalism. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. 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. Principles help inform and influence values. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. 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. 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/). 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 Again, the UN Universal Declaration of Human Rights is a useful starting point for the way business can conduct itself. Iss. "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," Chapter 5 - The Universalist Approach and Kant in Business Ethics from Normative Approaches Published online by Cambridge University Press: 10 November 0000005814 00000 n And although a good system of law incorporates ethical standards, the law can and sometimes does deviate from what is ethical. Altruism is also part of character-based virtue ethics. Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. About endobj Corruption appears to exist everywhere, so it would seem to require a persistent and consistent answer everywhere. Read this article on the LIBOR scandal and the consequences for an in-depth overview. Corporations and their Social Responsibility. CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), and presents a SWOT analysis of both. , Article 3. 2. Universalism and particularism: principles and judgment, Fundamental principles: Kantian universalizability. 141 0 obj So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. 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. Organizational ethical practices include how a Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> It also involves religion mandates and existing moral codes. However, the nature of human happiness is subjective. Universalism vs. Relativism Recent Governance Reforms: An Executive Summary, 13. Attempt all questions in brief. Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. (3) Who gets hurt? The same action may be morally right in one society but be morally wrong in another. Ethical executives are caring, compassionate, benevolent and kind. 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. Can business ethics provide one? WebUniversalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. Many leaders character and actions serve as examples of how character-based virtues work. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo 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. However, happy employees are one thing; the human flourishing identified by Aristotle and John Stuart Mill is quite another. WebA value is a universal value if it has the same value or worth for all, or almost all, people. 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. 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. Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. 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. 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. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. 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. Arguments Against Business Ethics In a free market economy, the pursuit of profit will ensure maximum social benefit so business ethics is not needed. A managers most important obligation is loyalty to the company regardless of ethics. So long as companies obey the law they will do all that ethics requires. Webundergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), in the circumstance that telling the truth leads to death, objectivism could require we lie If there is anything to be learned from these scandals, it is that organizations will succumb to ethics crises if they do not pay attention to their organizational culture and foster their employees growth as moral beings. WebBusiness Ethics Final. Except where otherwise noted, textbooks on this site If not, and if ethical standards are relative, are they worth having? 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, X [%:6Ou\Ng73Y 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. Are the Values Central to Business Ethics Universal? Additionally, the study investigates if the Responsibility to Protect (RtoP) adoption can be interpreted and derived from the moral theories by focusing on one of the three RtoP pillars, prevention. 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. citation tool such as, Authors: Stephen M. Byars, Kurt Stanberry. Why or why not? The main principles of business ethics are based in academia and on academic writings on proper business operations. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). How can businesses do this? V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. 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?. Altruism is also part of character-based virtue ethics. Corporations and Politics: After Citizens United, 14. Ethical relativism is really not a principle to be followed or modeled. Thus, love, as responsibility, depends on relationships based on good faith and concern. 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. 0000002849 00000 n A Framework for Making Ethical Decisions, 11. At the individual level, when corruption takes place, it is a matter of conscience. 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. W. Wahdat-ul-Wujood - Wahdat-ul-Shuhud - War, philosophy of - Western philosophy - Wu wei. 0000002618 00000 n (4) Who has to pay for the consequences? > 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. Multiple Versus Single Ethical Standards, 9. ]yy+ JVBL Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. Web(SEM III) THEORY EXAMINATION 2021-UNIVERSAL HUMAN VALUES & PROFESSIONAL ETHICS. Normative business ethics should address systemic issues such as oversight and transparency as well as the character of individuals who make up the organization. We recommend using a This principle involves taking human beings, their needs, and their values seriously. Can Martin Bubers notion of love play a role in business? Business Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. Can being aware of the actual values you use to guide your actions make a difference in your choices? WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. The focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. 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. WebUniversalism means that everybody is treated as subject to the same rules. 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. Contributing to a Positive Work Atmosphere, 26. 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. Legal rights are entitlements that are limited to a particular legal system and jurisdiction. 0000017527 00000 n 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. GRILL3BB. 2 x 7 = 14 a. 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 . WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. Want to cite, share, or modify this book? She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. 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. WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to Alani_Parra. Finally, if normative business ethics is to recognize and, ultimately, be based on the individual, it must address another human trait: bias. WebChapter 9. 94 terms. 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. 0000001486 00000 n 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 But 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). org/10.4135/9781473910034 More information Summary Contents At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance.
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