01 Ethical Decisions in Business
Figures and tables
Components of a problematic ethical
situation
(1)
Agent
(2)
Decision
(3)
Results
A person or organization implements a decision
that produces various consequences.
2
The "prism" of ethical theory
Virtue/vice considerations:
Is becoming Amy
avaricious?
Ethical Decision:
Should Amy
recommend offshore
production?
Rights considerations:
Offshore human rights?
Ethical
Theory
Fairness considerations:
Offshore vs. local pay?
Net benefit considerations:
Impact of job losses on
local community?
3
Amy, as Chief Ethics Officer (CEO), makes a decision
after hearing from all divisions of ethical theory
CEO =
Amy
VP
Virtue
Ethics
Conference
Table
VP
Feminism
VP
Justice
VP
Rights
VP
Egoism
VP
Utilitarianism
4
Weighing ethical reasons
Virtue
Feminism
YES
Rights
NO
Justice
Egoism
Utilitarianism
5
Shareholder view of moral standing
Owners
Decisionmaker
6
Stakeholder view of moral standing
(Corporate Social Responsibility)
Owners
Local
community
Employees
Decisionmaker
Customers
Suppliers
7
Comprehensive view of moral
standing
Owners
Self
Employees
Environment
Suppliers
Decisionmaker
Posterity
Customers
Global
community
Local
community
8
Moral standing
Moral
Agency?
Moral
Accountability?
Moral
Standing?
Agent
Decision
Results
9
Moral standing
Moral agent:
Amy
Is Amy morally
accountable?
Moral
standing:
Local
community
Amy
Move
Offshore
Job
losses
10
Identifying relevant ethical reasoning
Agent
Decision
Results
Identity-based
Principlebased
Consequencebased
11
Classifying ethical reasoning
Identitybased
Virtue ethics
Feminist
ethics of care
Duties
Ethical
Theories
Principlebased
Rights
Justice
Objective
Consequencebased
Utilitarian
Ethical egoism
12
Amy's decision whether to propose moving
production offshore (2)
A.
B.
C.
D.
E.
F.
G.
Amy realizes that if the company implements her proposal, then she will
receive a handsome year-end bonus.
Amy worries whether in putting forward the proposal, and thinking only
of her own gain, she is becoming greedy and avaricious.
Knowing that human rights abuses often occur in Special Economic
Zones, Amy worries that implementation of her proposal will fail to
respect the rights of overseas workers.
Amy knows that if her firm implements her proposal, then it will fire
many of its present employees.
Amy also knows that the overseas contractor will pay the women sewing
the clothing in a developing country much less that her company is
paying its present employees for doing the same work.
Amy should think of her duties to the owners of the firm. By taking on
her role as a manager, Amy acquired a fiduciary duty to benefit the
interests of the owners.
Amy should think of the firm's suppliers. Moving production offshore will
mean not renewing contracts with suppliers.
13
Amy's decision whether to propose moving
production offshore (3)
Self
Character-based
Virtue Ethics
Feminist Ethics
Principle-based
Duties
Rights
Justice
Consequence-based
Objective
Utilitarian
Ethical Egoism
Owners
Employees
Suppliers
Customers
Community
Globe
Environment
B
F
C
E
D
G
A
14