The Ethical Primer
Definitions
Some decisions have no moral component. Others do
. Moral
decisions involve right and wrong. Studying moral decisions alone isn’t very helpful to
understanding WHY people decide as they do.
Ethics
is defined for purposes of this course as:
the standards, principles or rules that explain HOW
people make moral decisions. The study of morality
concerns WHAT actual
choices
we make about right and wrong. On the other hand, the study of
ethics
explains HOW we make moral choices. These principles, standards, and rules reflect the (internal) values behind the choices we make and
thus explain why or how we decide as we do, morally.
An
ethical dilemma
occurs when, in a situation, each alternative choice is undesirable because of potentially harmful consequences. There is no right
path. In other words, it's
hard to say what's right and wrong
in an ethical dilemma. Usually, there is a warning before one has a dilemma, in the form
of issues. Ethical issues are ethical problems, for which there IS a right path/choice.
Law
refers to what must
be done, whereas
ethics
refers to what ought
to be done. In other words, the law describes the proverbial behavior minimum
or floor whereas ethical behavior is somewhere above that floor.
Five Ethical Standards
Many companies recognize ethics is a powerful influence on behavior and use ethics (for example, with Codes of Ethics) as an internal form of
'regulation'. An argument in favour of this is that by ‘self-regulating’ conduct, the company avoids more expensive government regulation and at the
same time creates public trust through conduct above and beyond the legal minimum (Johnson & Johnson is a company known for its ethical
standards, reflected not only in its Code of Ethics, but also in its actual conduct toward employees and customers).
In the end, the argument
continues, businesses are defined as ‘profit-seeking entities and attention to ethics is profitable.
In making moral choices, companies (through managers enforcing a Code of Ethics and employees abiding by it, or not) make different choices
reflecting their different values. Five
common
standards can explain how managers and employees make choices:
1. The Universal Approach
2. The Utilitarian Approach
3. The Individual Approach
4. The Fundamental Rights Approach
5. The Justice Approach
Universalism
Focus is on the deed (the act, so to speak).
A good (morally right) decision is one that follows universal principles.
Universal principles may be defined by
religion
or
society
. The “Golden Rule
” is an example of a universal principle defined by many religions in
the world. An example of a secular (non-religious) universal principle is Kant’s “Categorical Imperative“:. Kant was a German philosopher who
framed a question that one should ask when deciding the morality of an act, "What will be the result if everyone should choose to engage in the
behavior?"
Utilitarianism
Focus is on the end result - not the action itself.
A good decision is one where the ends justify the means.
Jeremy Benthem explained this standard by framing the good decision as one which creates the “greatest good for the greatest number".
Business people tend to be utilitarian and business school teach the utilitarian standard (for example, “Cost-Benefit Analysis).
Individualism (Enlightened Egoism)
Focus is on who receives the benefits.
A good decision is one that maximizes the individual decision-maker's best long-term interests.
Egoism is
a typical theme underlying capitalism
, as described by Adam Smith in, "The Wealth of Nations". Self-direction is most important (as
distinct from society directing the economy). External regulation (laws or ethical standards set by society) that restrict self-direction should be very
limited.
In theory, Egoism produces Utilitarian results
- the greatest good for the greatest number is achieved economically because people learn to
accommodate each other in order to pursue their selfish long-term economic interests.
Some also argue
the Golden Rule also results
because self-
interest
leads to behavior
toward others
that is in line with the behaviors desired
toward oneself
.
Smith theorized
that the pursuit of self interest was
thus moderated by other values –values beneficial to society as a whole.
Fundamental Rights
Focus is on those affected by a decision.
A good decision is one that best maintains the rights of the people affected by a decision.
Traditionally, the fundamental rights that might be affected by a decision include the right of; choice, belief, privacy, speech, due process, and life.
Thus, the right of free speech supports whistle-blowing, and privacy rights imply that eaves-dropping on employees is 'wrong'.
Justice
Focus is on achieving justice.
A good decision is one that is based on standards of equity, fairness, and impartiality. Justice is achieved if the standards of equity, fairness, and
impartiality are followed when making choices. Though Justice an
ethical
standard explaining moral decisions, it reflects
law
in one sense: Justice
spells out the minimum of what a decision maker must do.
Three common elements of justice that should be achieved, are:
Distributive justice: Different treatment of people cannot be based on arbitrary standards.
Procedural justice: Any rules should be clear and impartially enforced.
Compensatory justice: People should be compensated for losses caused by others and in the reverse, people are not responsible
for things over which they have no control.
Application
Understanding each of the above is part the ethical equation. The other part is in knowing how each would be applied to a given situation.
Consider how you think each of the five ethical standards would support or discredit an organization's policy of firing those that make too much
money, if the effect of the policy is age discrimination.
Copyright D. Tevis Noelting 2003
