Ethical Principles, Quick Tests, And Decision-
Making Guidelines
Chapter Three
Ethical Dilemma
• An ethical dilemma (ethical paradox or moral
dilemma) is a problem in the decision-making
process between two possible options, neither of
which is absolutely acceptable from an ethical
perspective.
examples :
• Taking credit for others’ work
• Offering a client a worse product for your own profit
• Utilizing inside knowledge for your own profit
Moral Responsibility
Utilitarianism
• The basic utilitarian view holds that an action
is judged as right or good on the basis of its
consequences. (an action is morally right if it
produces the greatest good for the greatest
number of people).
• Utilitarianism says that the Result or the
Consequence of an Act is the real measure of
whether it is good or bad.
• Jeremy Bentham (1748–1832) and John Stuart
Mill (1806–1873)
Tenets (principle or belief)
1. An action is morally right if it produces the
greatest good for the greatest number of people.
2. An action is morally right if the net benefits over
costs are greatest for all affected compared with
the net benefits of all other possible choices.
3. An action is morally right if its benefits are greatest
for each individual and if these benefits outweigh
the costs and benefits of the alternatives.
Two Types of Utilitarianism
• Act: An Action is • Rule: An action is right if
right if and only if it and only if it conforms to
produces the a set of rules the general
greatest balance of acceptance of which
pleasure over pain would produce the
for the greatest greatest balance of
number. (Jeremy pleasure over pain for the
Bentham) greatest number. (John
Stuart Mill)
Utilitarianism and stakeholder analysis
• In a business perspective, utilitarianism generally
declares that an option concerning business perform
is proper if and only if that option generates the
biggest excellent for the biggest amount of people
• “Good” is usually described as the net advantages
that accumulate to those events suffering from the
option. Thus, most utilitarian’s hold the position that
ethical choices must be analyzed by determining the
net advantages of each available alternative activity.
Universalism
• Universalism, which is also called
“deontological ethics,”
• holds that the ends do not justify the means
of an action—
• the right thing must always be done, even if
doing the wrong thing would do the most
good for the most people.
• Nonconsequentialist
Universalism
• Universalism is a principle that considers the
welfare and risks of all parties when
considering policy decisions and outcomes.
• Also needs of individuals involved in a decision
are identified as well as the choices they have
and the information they need to protect their
welfare.
Two categorical imperative
• a person should choose to act if and only if
she or he would be willing to have every
person on earth, in that same situation, act
exactly that way.
• a person should act in a way that respects and
treats all others involved as ends as well as
means to an end.
Rights: A Moral and Legal Entitlement–Based Approach
• Legal rights
• entitlements that are limited to a particular
legal system and jurisdiction.
• for example, the right to life, liberty, and the
pursuit of happiness and the right to freedom
of speech.
• Moral rights Or human rights
• universal and based on norms in every society,
• for example, the right not to be enslaved and
the right to work.
• Moral and legal rights are linked to individuals,
and in some cases, groups
• Moral rights are also connected with duties,
i.e., my moral rights imply that others have a
duty toward me to not violate those rights, and
vice versa.
• contractual rights
– special rights and duties: mutually binding duties
that are based on a legal system
• positive rights
– equal educational opportunities
• negative rights
– if you have the right to freedom of speech, others
—including your employer—have the duty not to
interfere with that right
limitations
(1) it can be used to disguise and manipulate
selfish and unjust political interests,
(2) it is difficult to determine who deserves what
when both parties are “right,” and
(3) individuals can exaggerate certain
entitlements at the expense of others.
Justice: Procedures, Compensation, and Retribution
• The principle of justice deals with fairness and
equality.
• 1. Each person has an equal right to the most
extensive basic liberties that are compatible
with similar liberties for others. 2. Social and
economic inequalities are arranged so that
they are both (a) reasonably expected to be to
everyone’s advantage and (b) attached to
positions and offices open to all.
types of justice
1. Distributive justice: refers to the fair distribution of
benefits and burdens. justice is served when all
persons have equal opportunities and advantages
(through their positions and offices) to society’s
opportunities and burdens;
2. Procedural justice: fair decision practices, procedures,
and agreements among parties should be practiced; and
3. Compensatory justice: and compensation is given to
those for a past harm or injustice committed against
them.
4. Retributive justice: punishment is served to someone
who has inflicted harm on another,
Virtue Ethics: Character-Based Virtues
• People who are good will do the good and
right things, regardless of the circumstances,
they are at home or abroad,
• Weather they are trying to win new clients or
decision about what kind of images are
appropriate in front of public
• Character
• Virtue ethics is based on character traits such
as being truthful, practical wisdom, happiness,
flourishing, and well-being. It
social responsibility
• What social obligations do businesses and
their executives have toward their
stockholders and society? The traditional view
that the responsibility of corporate owners
and managers is to serve only, or primarily,
their stockholders’ interests has been
challenged and modified.
• stockholder model (the primary responsibility
of the corporation to its economic
stockholders) and the
• stakeholder model (the responsibility of the
corporation to its social stakeholders outside
the corporation).
• The two sets of motives underlying these two
orientations are “self-interest” and “moral
duty.”
