prescriptive approaches to ethical decision-making in business referencing chapter 4 trevino &...
TRANSCRIPT
PRESCRIPTIVE APPROACHES TO
ETHICAL DECISION-MAKING IN BUSINESSreferencing
Chapter 4Trevino & Nelson, Managing Business Ethics. NY: Wiley,
1999.
Objectives
Explain the “Prescriptive Approach” to ethical decision-making
Distinguish between “Teleological” and “Deontological” theories.
Identify a set of decision-making tools (ways of thinking about ethical choices).
Why do they call them Prescriptive Approaches?
• The term “prescribe” implies a recommended course of treatment to correct a condition (presumably, an ethical problem.)
• Just as a physician writes a prescription to cure an illness, processes for ethical decision-making are protocols for arriving at ethical solutions.
Two General Types of Prescriptive Approaches
“Teleological” ‘telos’ (goal)• Consequentialist• Focus on results of
decision or action; one’s target.
• Example: Utilitarianism
“Deontological” ‘deon’ (duty)
• Duty, Obligation, Principles, Rights
• Focus on what’s right in broad, abstract, universal principles.
• Example: Moral Rights, Justice
Four Models for Ethical Decision-Making
1. Utilitarianism
2. Moral Rights
3. Justice
4. Individualism
Utilitarianism
greatest good for the greatest number
optimizes satisfaction of greatest number
calculates harm/benefits to those affected
UTILITARIANISM: Ethical Standards
• ORGANIZATIONAL GOALS:ORGANIZATIONAL GOALS:– satisfy stakeholders
– maximizing profits
• EFFICIENCYEFFICIENCY– minimize inputs and external costs to society
– maximize outputs
• CONFLICTS OF INTERESTCONFLICTS OF INTEREST– corporate or collective interest is
superordinate compared to individual interest
UTILITARIANISM: Application
• MERIT PAY
• COMPETITIVE PRICING
• EFFICIENT MARKETS
• BANKRUPTCY
• DOWNSIZING
Moral Rights
maintains rights of people affected
fundamental rights cannot be taken away
rights include: free consent, privacy, life-health-safety, due process, free speech, conscience
Justiceequity, fairness and impartiality
Distributive Justice: differential allocation of rewards to people is based on objective rules and not arbitrary characteristics
Procedural Justice: rules are administered fairly, even-handedly
Compensatory Justice: compensate cost of injury by responsible party
Individualism (Virtue Ethics)
based on personal character, defined by one’s community
relativism promotes the individual’s long-term
interests self-interest is moderated by
reciprocity uses the “golden rule”; cheating -
provokes same behavior in others
Four Models for Ethical Decision-Making
APPROACH THE BEST or ETHICAL CHOICE . . . . .
Utilitarian greatest good for the greatest number optimizes satisfaction of greatest number calculates harm/benefits to those affected
Moral Rights maintains rights of people affected fundamental rights cannot be taken away free consent, privacy, life-health-safety, due process, free speech, conscience
Justice equity, fairness and impartiality Distributive Justice: differential allocation of rewards based on rules and not arbitrary characteristics Procedural Justice: rules are administered fairly Compensatory Justice: compensate cost of injury by responsible party
Individualism promotes the individual’s long-term interests self-interest is moderated by reciprocity \ (golden rule; cheating - provokes same behavior in others)
8 Steps to Sound Ethical Decision-Making
1) Gather the Facts of the Situation2) Define the Ethical Issues3) Identify the Affected Parties4) Identify the Consequences (Long v. Short,
Symbolic Consequences)5) Identify Your Obligations6) Consider Your Character and Integrity7) Think Creatively About Potential Actions8) Check Your Gut.