business ethics chapter 6
TRANSCRIPT
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2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,except for use as permitted in a license distributed with a certain product or serv ice or otherwise on a password- protected website for classroom use. 1
Part ThreeThe Decision-
MakingProcess
Chapter 6:
Individual Factors:Moral Philosophiesand Values
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The specific principles or values peopleuse to decide right from wrong
Person-specific Guidelines for determining how to settle
conflicts and optimize mutual benefit
Provide direction in formulating strategies
and resolving ethical issues
No single moral philosophy is accepted byeveryone
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Adam Smith
The father of free market capitalism
Developed the idea of the invisible hand
Milton Friedman Markets reward or punish for unethical conduct
without the need for government regulation
Currently the dominant form of capitalism
The U.S. is exporting the idea of freemarket capitalism to other countries
Free markets may not solve all problems
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Economic systems allocate resources/products
Influenced by, and directly influence
Individuals actions and beliefs (morals)
Society (laws) as a whole
Depend on individuals coming together and
sharing philosophies Creates values, trust and expectations, allowing the
system to work
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Economic value orientation: Values thatcan be quantified by monetary means
If an act produces value, accept it as ethical
Idealism: Places special value on ideas andideals as products of the mind
Positive correlation to ethical decision-making
Realism: The view that an external worldexists independent of our perceptions
Everyone is guided by self-interest
Negative correlation to ethical decision-making
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Monists believe that only one thing isintrinsically good
Hedonism: Pleasure is the ultimate good
Qualitative hedonism Quantitative hedonism
Pluralists believe that no one thing isintrinsically good
Instrumentalists reject the ideas that Ends can be separated from the means
Ends, purposes, or outcomes are intrinsically goodin and of themselves
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Goodness theories: Focus on the end resultof actions and the goodness or happiness
created by them Obligation theories: Emphasize the means
and motives by which actions are justified
Divided into two categories Teleology
Deontology
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Considers acts as morally right oracceptable if they produce a desired result
Pleasure, knowledge, career growth, realization ofself interest, utility, wealth or even fame
Theological philosophies assess the moral
worth of a behavior by looking at theconsequences, so these theories are oftenreferred to as Consequentialism
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Two important teleological philosophies areegoism and utilitarianism
Egoism defines right or acceptable behaviorin terms of consequences to the individual
Maximizes personal interests
Enlightened egoists: Take a long-term
perspective and allow for the well-being ofothers though their own self-interests remainparamount
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Utilitarianism seeks the greatest good
for the greatest number of people Rule utilitarians: Determine behavior
based on principles designed to promote thegreatest utility
Act utilitarians: Examine a specific actionitself; not the rules governing it
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Moral philosophies focusing on the rightsof individuals and on the intentionsassociated with a particular behavior
Believe individuals have certain absolute rights
Believe compliance with stable moral principles
defines ethicalness Sometimes referred to as nonconsequentialism,
a system of ethics based on respect for persons
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Contemporary deontology
Categorical Imperative Immanuel Kant Ethical acts can be viewed by everyone and the
rationale behind the act is suitable as a universalprinciple
Rule deontologists: Conformity to generalmoral principles determines ethicalness
Act deontologists: Actions are the properbasis on which to judge morality
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Individuals and groups derive definitionsof ethical behavior subjectively fromexperience
Descriptive relativism: Relates toobservations of other cultures
Metaethical relativism: Proposes peoplesee situations from their own perspectives
No objective way of resolving ethical disputesbetween different value systems and individuals
Normative relativism: Assumes onepersons opinion is as good as anothers
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Ethical behavior follows conventionalmoral standards and compares behavioragainst a standard good moral character
Can be summarized as Good corporate ethics programs encourage
individual virtue and integrity
The virtues associated with appropriate conduct
form a good person The ultimate purpose is to serve the public good
The well-being of the community goes togetherwith individual excellence
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Fair treatment and due reward inaccordance with ethical or legal standards
Distributive justice: An evaluation of theresults of a business relationship
Procedural justice: Considers the processesand activities that produce desired outcomes
Interactional justice: Based on relationshipsbetween organizational members, includingemployees and managers
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Individuals use different moralphilosophies for personal decisions thanthey use for work-related decisions
Two things may explain this behavior
Pressures for workplace success differ from thegoals and pressures in outside life
Morale character may change to becomecompatible with the work environment
Moral philosophies must be assessed ona continuum
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Consists of six stages
1. Punishment and obedience
2. Individual instrumental purpose andexchange
3. Mutual interpersonal expectations,relationships, and conformity
4. Social system and conscience maintenance5. Prior rights, social contract, or utility
6. Universal ethical principles
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Reduced to three levels of ethical concern
1. Concern with immediate interests andrewards and punishments
2. Concern with right as expected by the largersociety or some significant reference group
3. Seeing beyond norms, laws, and theauthority of groups or individuals
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Shows that individuals can change their valuesthrough moral development
Supports managements development ofemployees moral principles
However, the three hit theory says
Kohlberg used questionable research methods
His theory contradicts basic moral philosophy
His theory, while reliable, may not be valid
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Illegal acts committed for personal and/ororganizational gain by abusing the trust andauthority associated with a given position
White collar criminals are educated people inpositions of power and respectability
The financial sector has a high level of WCCs
WCCs are increasing steadily
Technology allows WCCs to be committed at alllevels, not just the top levels of management
Resulting in increased government efforts todetect and punish WCCs
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Patterns of activities become institutionalizedand may encourage unethical behaviors
Undecided employees go along with themajority, whether ethical or unethical
WCCs increase after economic recessions
Some businesspeople may have inherentlycriminal personalities, corporate psychopaths
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Top InternetFraud Complaints
2015 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part,except for use as permitted in a license distributed with a certain product or serv ice or otherwise on a password- protected website for classroom use.
Source: IC 3 , Internet Complaint Center 2011 Internet Crime Report ,http://www.ic3.gov/media/annualreport/2011_ic3report.pdf (accessed April 25, 2013).
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Common Justifications forWhite Collar Crimes
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Source: Adapted from Daniel J. Curran and Claire M. Renzetti, Theories of Crime (Needham Heights, MA: Allyn & Bacon, 1994).
1. Denial of responsibility. (Everyone can, with varying degrees ofplausibility, point the finger at someone else.)
2. Denial of injury. (White-collar criminals often never meet or interact with thosewho are harmed by their actions.)
3. Denial of the victim. (The offender is playing tit-for-tat and claims to beresponding to a prior offense inflicted by the supposed victim.)
4. Condemnation of the condemners. (Executives dispute the legitimacy of the lawsunder which they are charged, or impugn the motives of the prosecutors who enforcethem.)
5. Appeal to a higher authority. (I did it for my family remains a popular excuse.)
6. Everyone else is doing it. (Because of the highly competitive marketplace, certainpressures exist to perform that may drive people to break the law.)
7. Entitlement. (Criminals simply deny the authority of the laws they have broken.)
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C L i All i ht d M t b i d d d li t d i h l i t
Most unethical behavior is not for personalgain, but to meet performance goals
Rewards for performance goals and corporateculture in general are the most importantdrivers of ethical decision making
Equipping employees with skills that allow themto understand and resolve ethical dilemmas willhelp them make good decisions