1
Q
Ancient Mesopotamia
A
Hammurabi’s code.
2
Q
Old Testament
A
- Law of Moses - Ten Commandments.
- Servants have a right for a sabbath (resting day).
3
Q
Roman Catholic Church
A
- Cannon Law in the Middle Ages – definint what is “right” and what is “wrong”–> often oriented towards defining fair prices and wage.
4
Q
Rise of Protestantism
A
- Questioning the doctrine of papal infallibility.
- Church was no longer intermediary between God and humanity.
5
Q
Rise of Capitalism
A
- Urbanization - migration from the countriside to the city.
- Victorian era & colonialism/imperialism.
6
Q
Morality (from latin moralitas - meaning “proper behaviour/character”)
A
- Norms, values & beliefs (embedded in social processes) which define
what is right and wrong for an individual or community. - Answers (beliefs based on practices or teaching) that people have
developed in ancient times in different cultural circles. - Examples: The Ten Commandments, The Golden Rule.
7
Q
Ethos (Greek expression for moralitas - meaning “character”)
A
- Sum of norms, values and principles as well as rites, confessions and
customs of a social system - Examples: economic (ethos), working (ethos
8
Q
Ethics
A
- Study of morality and the application of reason to elucidate specific rules and principles that determine morally acceptable behaviour.
- Ethical theories –> codifications of these rules and principles.
- Reflection on and checking of existing morality (proper behaviour, character) /
Ethos (character, custom, habit). - Ethics can be understood as an inquiry into the morality.
- Aim: Healthy, good, and humane living together in a community.
9
Q
Business ethics
A
- The study of business situations, activities, and decisions where issues of right and wrong are addressedimplies evaluating different ways of tackling ethical issues in business.
- Gray area: Ethical dilemma that cannot be resolved by simply applying ethical standards (e.g., these standards may conflict with the law, or there are no clearly applicable ethical guidelines).
- Ethical codes: corporate guidelines aimed at reducing gray areas.
10
Q
Reasons for the importance of business ethics
A
- Power and influence of business organizations in society
- Potential for business organizations to contribute better to
society. - Potential for business organizations to inflict harm on individuals, society and the environment.
- Increasing demands from stakeholders.
- Deficit of business ethics education or training.
- Employees face significant pressure to compromise ethical standards.
- Continued occurrence of ethical infractions, and trust deficit faced by business organizations.
- Business ethics is interesting and rewarding.
11
Q
Fraud is harmful for business
A
- Unfair competition – inefficiency of the markets, the economy, etc.
- Risks for not directly fraud-participating business partners.
- Worsened corporate reputation and image
12
Q
Reasons for ethics deficits
A
- Structural reasons.
- Missing values towards addressing injustice.
- “Grey zones”.
- Organizational culture mirrors society values – and their evolution.
13
Q
Sustainability
A
- Long-term maintenance of systems according to environmental, economic and social considerations.
Sustainability is the destination, an end-state, and sustainable development is a means of getting there
14
Q
Ethical theories are …
A
• … the rules and principles that determine right and
wrong for any given situation.
15
Q
Normative ethical theories …
A
• … propose to prescribe the morally correct way of
16
Q
Descriptive ethical theories
A
seek to describe how ethics decisions are actually
made in business ‘
17
Q
Normative ethical theories – US vs. Europe
A
• Notable differences between Anglo-American and European
approaches based on philosophical arguments.
• Individual vs. institutional morality:
- US-»more individualistic perspective on morality
- Europe-»focus on broader economic and governing institutions
• Accepting vs. questioning capitalism:
- US—>deeper acceptance of capitalist framework
- Europe—>more questioning of ethical justification of capitalism
• Justifying versus applying moral norms:
- US -»focus on application of morality (not questioning)
- Europe —> focus on justification and ethical legitimation of norms
- Europe —> stronger drift towards secularization
Non-Western ethical perspectives (especially Asian) – more based on religion
18
Q
Ethical absolutism
A
The are eternal, universally applicable moral principles.
Right and wrong are objective qualities that can be categorically determined
Typically – “traditional” ethical theories
19
Q
Ethical relativism
A
Morality is context-dependent and subjective.
No universal right and wrongs that can be rationally determined – they depend on the person making the decisions and surrounding culture
Typically – “contemporary” ethical theories
Descriptive relativism does NOT accept that different sets of beliefs can equality eight, but accepts that various cultures have different ethics (critical perspective, but avoiding “cultural supremacy I colonialism / imperialism)
20
Q
Ethical pluralism
A
• Middle ground between ethical absolutism and relativism
21
Q
Cognitivism
A
Claim to know “right from wrong”.
Objective moral truths which can be known
22
Q
Non-cognitivism
A
- Objective assessment of moral belief is not possible, as everything is subjective.
- Social nature of morality relevance of group attitudes.
- Cultural moral relativism.
23
Q
Non-consequentalism (deontological ethics)
A
Having rules or principles which are applies to decide how to act in any given situation (principles are what counts, no matter the consequences).
24
Q
Consequentialism
A
Assessing moral right or wrong in terms of the consequences of actions (consequences are what counts, no matter the principles).
25
Natural rights
* Certainbasic,important,unalienable entitlements that should be protected in every single action.
- Based on consensus about nature of human dignity.
- Strongly based on Western view of morality.
* Example: Universal Declaration of Human rights (1948).
26
Theories of justice
* The simultaneously fair treatment of individuals in a given situation, with the result that everybody gets what they deserve
- Fair procedures (procedural justice) (e.g.,“equal opportunities”)
- Fair outcomes (distributive justice) (e.g.,“minimum wage”)
* Example: John Rawls’s “Theory of Justice” (1971): [1921-2002]
- Concept of “veil of ignorance”
- Principle of equality of opportunity (procedural justice) - Difference principle (distributive justice)
27
Confucius and Aristotle
Key question: is it ethical to check every single action according to its outcome?
* Virtue ethics contends that morally correct actions are those undertaken by actors with virtuous characters.
* Therefore, the formation of a virtuous character is the first step towards morally correct behaviour
28
Acquired traits that define a virtuous character
* Intellectual virtues.
* Moral virtues
29
Managerial integritysynonym for virtue ethics in the business world
Wisdom, honestly, kindness, prudence, charity, mercy, humility.
30
Egoism theories
An action is morally right if the decision-maker freely decides to pursue their (short-term) desires or their (long-term) interests.
31
One of the oldest philosophical ideas - based on ideas of Plato
individuals have only limited insight into the consequences of their actions, therefore he/she should concentrate on their own desires and interests – “trying to please everybody is impossible”.
32
Adam Smith (1793)
– pursuit of individual interest morally acceptable through market’s “invisible hand” that benefits everybody.
33
Subjectivism
denies objective considerations regarding morals
34
“Enlightened egoism”
– conviction that persons who act to further the interests of others, ultimately serve their own self-interest.
35
Recent egoism-related controversies/debates
-Unrealistic assumptions of “free markets” – markets are imperfect!
- Anti-globalization movements – which are very global themselves.
- Sustainability challenges and debate.
36
Feminist ethics
Prioritizes empathy, harmonious and healthy social relationships, care for one another, and avoidance of harm, above abstract principles.
37
Consequentialism
Assessing moral right or wrong in terms of the consequences of actions (consequences are what counts, no matter the principles)
38
According to utilitarianism, an action
is morally right if it results in the greatest amount of good for the greatest amount of people affected by the action:
* Purpose of morality is to make the world a better place.
* Based on consequentialism.
* Emphasis on the overall good, so as to bring the biggest amount of benefit to all people.
* Bringing scientific certainty to ethics
39
Jeremy Bentham (1748-1832)
* Believed that we should try to increase the
overall amount of pleasure in the world
40
John Stuart Mill (1806-1873)
* Believed that happiness, not pleasure, should be the standard of utility.
41
George E. Moore (1873-1958)
* Suggested that we should strive to maximize ideal values such as freedom, knowledge, justice, and beauty
42
Kenneth Arrow (1921-2017)
* Argued that what has intrinsic value is preference satisfaction.
43
The utilitarian calculation
* Hedons (pleasure) – dolors (pain) = “Net” Utility (cost-benefit analysis)
44
Criticism of utiltaniarism
* Subjectivity: Consequences of pain? Who does the calculation?
* Problems of quantification: How do we measure “pleasure” and “pain”?
* Distribution of utility: Who is included? Who is excluded?
45
Act utilitaniarism ...
... looks to single actions and bases the moral judgement on the amount of pleasure and the amount of pain this single action causes.
46
Rule utilitaniarism ...
... looks at classes of actions, and asks whether the underlying principles of an action produce more pleasure than pain for society in the long run
47
Immanuel Kant (1724-1804)
Kant emphasized the way in which the
moral life is centred on duty (“good will”)
48
“Categorical Imperative” framework
* Principle 1 (Consistency): An action can only be regarded as right is the rule guiding that behaviour should be followed consistently by everyone in all cases, without contradiction.
* Principle 2 (Human Dignity-Respect): We should always act so that we treat other humans always as an end and never as a means only.
* Principle 3 (Universality): Our actions must be acceptable to every rational human being, not because they have been told to accept them, but because they are rationally acceptable [thus overcoming the subjectivity risk of utilitarianism] -> “New York Times Test”
“Act the way you want others to act”
49
Utilitaniarism
market conform
rules have to be observed
duty of making profit
profit prior moral
50
kantianism
moral prior profit
voluntary limits
companies have social duties
51
Discourse ethics
aims to solve ethical conflicts by providing a process of norm generation through rational reflection on the real-life experiences of all relevant participants.
Ultimate goal of ethical issues in business should be the peaceful settlement of conflicts.
Different parties in a conflict should sit together and engage in a discourse about the settlement of the conflict, and ultimately provide a situation that is acceptable to all.
52
Jürgen Habermas (born in 1929)
* Leading intellectual of the present day.
* Most often cited and quoted philosopher /
sociologist alive
53
Ideal discourse criteria (Habermas, 1983)
* All must have equal rights to use speech acts in such a way that discourse could be permanently open to questions and answers.
* All must have equal chances to present interpretations, explanations and corrections.
* All express equally their attitudes, feelings and wishes, and also are honest to each other.
* Participants have equal chances to order and resist orders, to promise and refuse, to be accountable for one’s
conduct and to demand accountability from others.
54
Postmodern
ethics is an approach that locates morality beyond the sphere of rationality in an emotional “moral impulse” towards others.
It encourages individual actors to question everyday practices and rules, and to listen to and follow their emotions, inner convictions and “gut feelings” about what they think is right and wrong in a particular incident of decision-making.
55
Examples of trends related to postmodern ethics:
* Holistic approach (focus on whole body health ... physical, emotional, social & spiritual wellbeing).
* Examples rather than principles.
* “Think local, act local” (deciding one thing after another).
56
capitalism
Economic system combining the private ownership of productive enterprises with competition between them in the pursuit of profit.
Ownership and ultimate control are vested in capital as distinct from labor.
* Currently dominant in the world – especially in Western economies.
* Most of the means of production are privately owned and production is
guided and income distributed largely through the operation of markets
57
Characteristics of free markets
* Freedom from coercion (e.g., actors can use their money as they wish)
* Freedom from external control (e.g., minimize regulations on functioning)
* Freedom of choice (e.g., availability of options for actors)
58
John Locke (1632-1704) –
Father of liberalism
Major works:
* “Two Treatises of Government” (1689) * “An Essay Concerning Human Understanding” (1689)
Ideas:
* Humans have “Natural Rights“ * Liberty and Private Property * “Laissez faire” advocate
Criticism:
* Are liberty/property rights the only rights? * Slavery
Locke’s Influence:
* UN Declaration on Human Rights
* US Constitution (“life, liberty, and the pursuit of happiness”)
59
Adam Smith (1723-1790)
Father of classical economics
Major works:
* “The Theory of Moral Sentiments” (1759)
* “An Inquiry into the Nature and Causes of the Wealth of Nations” (1776)
Ideas:
* Capitalism is reason for economic power
* Against mercantilism (protectionist economic nationalism) * Capitalism is ethical
* Most often misinterpreted philosopher (Smith was against limited liability and flat taxation)
Criticism:
* “Free market’” just considers benefits for the seller and buyer
Smith’s influence:
* Libertarian movements
(Source: An Introduction to Business Ethics, Chryssides & Kaler, 1993)
60
Karl Marx (1818-1883) –
Father of socialism (i)
Major works:
* “The Communist Manifesto“ (1848) * “Das Kapital“ (1867) (Capital: A Critique of Political Economy)
Ideas:
* In the context of Civic Revolutions (1789 & 1848), and 19th century
industrialization: “Why did Civic Revolutions not improve the fate of the common people?”
* Capitalism continues feudal exploitative order
* Feudalism (aristocracy vs. serfs) -> aristocracy owns the land - this way they exploit serfs
* Capitalism (capitalists vs. workers) -> capitalists own the capital - this way they exploit workers
61
Ideas of Karl Marx
Ideas:
* The motor of history is the “class struggle” – major changes
come through changing “modes of production” (primitive, slavery, feudalism, capitalism, socialism).
* Workers in a capitalist society may be free and equal in a legal sense, but economically they are enslaved.
* “Surplus value” = price of good - raw material - price of labour (return for the capital).
*Why do the workers accept this?
* Capitalist division of labour “alienates” (“estranges”) the worker from the final product.
* In the long run workers will reject this exploitation.
* A Communist Revolution will lead to a classless society.
62
criticism of Karl marx
Criticism:
* Not effective in generating and redistributing wealth and income (Frederik Hayek, 1899-1992, defender of classical liberalism).
* Capitalism reinvents itself.
* Antisemitic approach?
* Why did the Proletarian Revolution happen in under developed Russia, but not Italy? (Antonio Gramsci, 1891-1937, Marxist).
* Scientifically not correct (John Maynard Keynes, 1883-1946). * Marx is the method – but not the answer.
63
Marx’s influence:
*Most of the socialist/communist ideologies existing claim to apply the works of Marx.
*Significant impact on the intellectual discussion on capitalism shortcomings.
64
Herbert Spencer
Father of social darwinism
Major work:
* “The Synthetic Philosophy”(1896). Ideas:
* Applied the work of Darwin - “survival of the fittest” idea on society development.
*Free competition ensures efficiency. *Strong “laissez faire” advocate.
Criticism:
* “Freemarket’”justconsidersbenefitsforthesellerandbuyer
* Hisideasresultedinlegitimizationofgenocides,abortionand forced sterilization
Weber’s influence:
* One of most controversial and discussed thinkers of Victorian age
65
MAX WEBER
Father of modern sociology
Major work:
* “The Protestant Ethic and the Spirit of Capitalism” (1905)
Ideas:
* Capitalism = secular version of Protestantism. * Provides link of Luther, Calvin and Capitalism. * Principle of predestination. * Rationalization of work,reinvestment, and hard work as a
measure of goodness.
Criticism:
* Capitalism is a doctrine driven and created by manufacturers.
Weber’s influence:
* Basis for “methodological individualism” and “McDonaldization”
66
Work hard in your calling
MAX WEBER
67
A nation which fosters its good-for- nothings will end becoming a good- for-nothing nation
spencer
68
Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win. Workingmen of all countries, unite!”
KARL MARX
69
In bourgeois society capital is independent and has individuality, while the living person is dependent and has no individuality.”
MARX
70
No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.
SMITH
71
All mankind... beingallequal and independent, no one ought to harm another in his life, health, liberty or possessions
JOHN LOCKE
72
My theory does not imply a rationalist utopian society! I do not regard the fully transparent society as an ideal, nor do I wish to suggest any other ideal
habermas
bes
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Decks in class (4)
# Cards
