UNIT 4
Normative ethical
theories
ETHICAL THEORIES
Traditional ethical theories
Consequentialist theories
• Egoism
• Utilitarianism
Non-consequentialist theories
• Rights View of Ethics (Deontology View)
• Theory of Justice View of Ethics
Contemporary ethical theories
• Virtue ethics
ETHICAL THEORIES
• Ethical egoism: Ethical egoists are the ultimate in
selfishness. They have no concern but achieving outcomes
that benefit them.
• That which benefits them is what is “moral,” although most
observers would consider their behavior “immoral.”Our only
duty is our duty to ourselves
ARGUMENTS FOR ETHICAL EGOISM
• Psychological egoism is true; we all are selfish, therefore we
all should act selfishly
• Since everyone else will be selfish you should be too or you
will lose out
• Everyone will be better off if we each look after our own
interests
Arguments against Ethical Egoism
• The theory is not sound
• Egoism is not a moral theory at all
• Some things seem just plain wrong
• Other people matter, morally
• UTILITARIANISM
• The moral theory that we should act in in ways that
produce the most pleasure or happiness for the
greatest number of people affected by our actions.
(GGGN)
• Many business people hold that the best way to
evaluate the ethical propriety of a business decision
or any other is by relying on utilitarian cost benefit
analysis
• The cost or benefits are measured in economic, social
or emotional terms
• CASE: UTILITARIANISM
You are the plant manager in one of ABC Company’s five
plants. You have worked for the company for 15 years
working your way up from the factory floor after the
company sent you to college. Your boss tells you in
complete confidence that the company will have to lay off
200 workers luckily your job will not be affected. But a
rumor is circulating in the plant and one of your workers an
old friend who now works for you asks a questions ‘ Is the
company laying off workers?, am I going to lose my job?, I
have a kid in college, I need to know’ what will you tell to
him
ARGUMENTS FOR UTILITARIANISM
•In general terms, it’s easy to understand the idea that
we should all act to increase the general welfare.
•The idea of bringing the greatest good to the greatest
number coheres with common and popular ideas
about what ethical guidance is supposed to provide.
•Provides a clear and straightforward standard for
formulating and testing policies.
•Offers an objective way for resolving conflicts of
self-interest
CRITICISMS OF UTILITARIANISM
• Subjectivity
• Problems of quantifying, measuring, compare
consequences
• Distribution of utility
• It does not consider either justice or law
• It is difficult to obtain the information required to
evaluate all the consequences for all individuals
who may be affected directly/ indirectly by the
decision
DEONTOLOGY
•Deontology is the philosophical practice of defining and
adhering to an absolute set of standards by which ethical
behavior can be measured.
• It tries to define universal duties that serve as moral
guides to decision making.
•When a moral dilemma arises, a person can apply these
universal standards to determine a course of action that is
good.
•If our duty is to treat every person with respect, then we
can argue that each person has a right to be treated in a
respectful fashion.
A DRUG STUDY
A number of physicians are recruited to participate in a large-scale, multi-
center study to investigate the survival rates of breast cancer victims who
are being treated with a new drug. Strict rules are developed regarding
inclusion of patients in the study. Only those who have had surgery within
the last three months can be included. Dr. Kudo has a patient who hears
about the study and wants very much to participate. Because Dr. Kudo
thinks the drug could really help this patient, he agrees to include her even
though her surgery took place six months ago. He changes the dates on her
charts to conform with the study requirements and reasons that this one
STRENGTHS OF DEONTOLOGY
•The theory facilitates democratic societies because the definition of the rights can
be integrated into the laws of the society and, thereby, become universally
understood.
WEAKNESSES OF DEONTOLOGY
•Can present obstacles to high productivity and efficiency
•Which duty, obligation, right or principle takes precedence in case of a clash of
interest
•Another difficulty for arguing for rule or principle that if followed in a particular
manner it will have devastating consequences
Theory of Justice View of Ethics
• Concerned with perceived fairness of action.
• A just or ethical action is one that treats all fairly and
consistently in accordance with the ethical or legal standards.
• It protects interest of stakeholders who may be under
represented or lack power. According to Bowie et al (1997)
theories of justice typically see fairness in two main ways:
Theory of Justice View of Ethics
Fair procedure – fairness is determined according to
whether everyone has had an equal opportunity to achieve a
just reward for his or her efforts. This is commonly referred
to as procedural justice
Fair outcomes – is determined according to whether the
consequences are distributed in a just manner. This is
commonly referred to as distributive justice
VIRTUE ETHICS
Virtue ethics contends that morally correct actions are those undertaken by
actors with virtuous characters.
Moral virtues comprise a long list of possible characteristics such as
honesty, courage, friendship, mercy, loyalty modesty, patience etc.
The view suggests that managers need to look at existing ethical norms in
industry and organizations in order to determine what constitutes right and
wrong decisions of actions.
THE BURNING BUILDING
Assume you approach a burning building and hear voices coming
from both ends, each seeking help. Assume the fire is burning so
rapidly you only have time to go to one or the other end of the
building. Initially, you hear multiple voices at one end and a sole
voice at the other end. Which way do you go? Why? Now include
some additional information. The sole voice is that of your daughter
(father, mother, etc.). Do you still choose to go to the end with
multiple voices (to do the greatest good for society)? If not, why
not? What has changed? What will the different approaches advise?
