Ethical Decision Making and Ethical Theory

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Ethical Decision Making and Ethical Theory

• MGMT 491
• Management Ethics in a Global Environment
• Jeffery D. Smith

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• Ethical Decision Making
• Applying general values and ethical principles in
• concrete circumstances in order to justify a
• particular decision or course of action.
• awareness
• judgment and deliberation

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Basic Ethical Values for Business?

• Trust
• Honesty
• Fairness
• Autonomy/Freedom
• Impartiality
• Integrity
• Beneficence
• Authority
• Property

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Sample Correlative Principles

• One ought to negotiate in good faith
• Honor your agreements
• Compensation should be based on merit
• Customer data should be kept private
• Provide sound advice to clients
• Respect your organizations mission statement
• Support local communities when downsizing
• Obey all environmental regulations
• Respect the trade secrets of competitors

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PARTICULAR JUDGMENT OR DECISION
ETHICAL PRINCIPLES
VALUES
ETHICAL THEORY
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• Ethical Decision Making is not algorithmic
• Ethical Decision Making often involves a use of
  principles that are not subjective
• Ethical Decision Making is characteristically not
  simply self-interested
• Ethical Decision Making often involves a use of
  principles that are not socially or culturally
  relative

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Principles and Priorities A 6 Step Procedure

• 1 Identify and Define the Problem
• 2 Analyze the Principles Relevant to the Problem
• 3 Analyze what Principles are the Most Decisive
• 4 Evaluate the Analysis in (1)-(3)
• 5 Make a Decision Expressing the Priorities
• 6 Assess the Consequences of Your Decision

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CONSEQUENTIALISM
actions are right insofar as they improve good
consequences wrong insofar as they produce bad
consequences
ethical egoism (goodsatisfaction of
self-interests)
Utilitarianism (goodhuman welfare)
hedonic (goodpleasure)
preference (goodpreference satisfaction)
eudaimonic (goodhappiness)
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Jeremy Bentham (1748-1832)
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• John S. Mill (1806-1873)

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Deontology

• deontological the logic or science of duty
• deonduty logoslogic (sometimes science)
• A deontological ethical theory is one which
  holds that some acts are ethically required
  independently of their consequences.
• Generally speaking, we are obliged to refrain
  from killing, stealing, lying, etc., regardless
  of whether refraining from these things promotes,
  for example, human happiness, welfare, or
  preference satisfaction.

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• Immanuel Kant
• (1724-1804)

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• Actions are ethically right in so far as they are
  motivated by a good will.
• A good will is a will that is moved by reason and
  not wishes, desires, and preferences
• Ethical principles are imperatives, or commands
  of reason

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• The 2 Formulas of Kant's Categorical Imperative
• Act only according to that maxim by which you
  can at the same time will that it should become a
  universal law. (universal law formula)
• Act so that you treat humanity, whether in your
  own person or in that of another, always as an
  end and never as a means only. (humanity formula)
  

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• Universal Law Formula
• 1. Form a maxim
• 2. Universalize the maxim
• 3. Determine rational acceptability

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• Humanity Formula
• Humans have inherent dignity and incomparable
  worth because they are rational creatures,
  capable of autonomy
• Never use the rational capacities of another
  human being to further your own interests.
• The inherent dignity and incomparable worth of
  humans demands basic rights or core entitlements.

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Virtue Ethics

• An emphasis on the traits, dispositions, and
  inclinations needed to lead a life of moderation
  that balances the ends of overlapping roles and
  relationships in a community.
• Aristotle (384-322 BC)
• Virtuearete (or excellence)
• Happinesseudaimonia
• Ethical judgmentphronesis

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TRUTHFULNESS SELF-CONTROL GENEROSITY TEMPERANCE SI
NCERITY COURAGETOLERANCE CIVILITY MODESTY TACTFUL
NESS JUSTICESolomon, R. (2002). Corporate
Roles, Personal Virtues An Aristotelean Approach
to Business Ethics. In Donaldson, T., Werhane, P.
and Cording M. (Eds.), Ethical Issues In
Business A Philospohical Approach (pp. 71-82).
Upper Saddle River Prentice Hall.