Let us look at how it is possible to align business with human rights in such a way that both profitability and responsibility are honored across the globe. 0000002159 00000 n grramire. Someones principle is a moral principle if he or she is willing to universalize it and if not it is then the other way round. This principle is related to universalism. WebMoral universalism (also called moral objectivism) is the meta-ethical position that some system of ethics, or a universal ethic, applies universally, that is, for "all similarly situated After all, literature that has stood the test of time can provide tremendous insight into human behavior, and Homer or Shakespeare may be more relevant to contemporary executive leadership than a business seminar on how to motivate employees. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. These different cohorts of normative theories are often termed as rival ethical President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. Marques, Joan A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? 1 / 35. Business ethics concerns. Z. Zemlyak - Zen - Zoroastrianism - Zurvanism However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. Based on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), and presents a SWOT analysis of both. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. Except where otherwise noted, textbooks on this site The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. In the ideal case, the organizations culture never allows the latter, because scandals not only damage reputations but they make companies and countries much less attractive to investors. The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. Is it possible to identify a set of universal values that is consistent across cultures and time? WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. According to Mel & Snchez-Runde (2013), Universal ethics can be perceived as a form of moral constitution which is expressed as a set of specific ethical b. Differentiate "ethics" and "values". It is not only a method to make a decision; it is a way of incorporating a humane consideration of and for individuals and groups when deciding a course of action. WebIt has these characteristics: (1) universality, because it applies to all acts of human behavior, even those that appear to be done from altruistic motives; (2) objectivity, meaning it operates beyond individual thought, desire, and perspective; (3) rationality, because it is not based in metaphysics or theology; and (4) quantifiability in its 130 0 obj Universal business ethic is an attempt to formulate common business ethic principles that are acceptable by all rational agents and applied to all countries beyond (2) Is it right? 133 0 obj grramire. Limitations here also show that using this principle may not always prove realistic or practical in all situations. It is either less clear what to do or harder to do it because of constant pressure to increase the organizations profitability and the perception that everybody else is doing it.29. Other names for this doctrine are universal restoration, universal The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. (2015) This principle is grounded in both legal and moral rights. 1. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. The Workplace Environment and Working Conditions, 23. Before turning to organizational and systems levels of ethics, we discuss classical ethical principles that are very relevant now and on which decisions can be and are made by individuals, organizations, and other stakeholders who choose principled, responsible ways of acting toward others. The search for a universally applied set of ethics always comes back to it. | We recommend using a Ultimately, the theory of universalism in business ethics helps to promote ethical behavior and responsibility in the business world, and can serve as a powerful tool Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. Spheres of human value encompass morality, aesthetic preference, human traits, human endeavour, and social order.Whether universal values exist is an unproven conjecture of moral philosophy and cultural anthropology, though it is clear that certain values are Universalism, belief in the salvation of all souls. A result was enflamed widespread public protests from American youth and others. If require any missing data; then choose suitably. WebFollowing a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) Although ethical practice has been directly influenced by religion, as noted, ethics is not religion and religious belief is not a prerequisite for a commitment to business ethics. Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism ]yy+ Basic ethical practices have been gleaned through research and practical study of how businesses function, and how they operate, both independently and with one another. One alternative is to put the humanities into business. endobj Practical wisdom, however, is often required to be virtuous. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. B. what ethical behaviors should be expected of company personnel in the course of doing their jobs. 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. The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. Page 1 of 1. After all, free enterprise has the interests of the enterprise at heart. What are some ethical guidelines individuals and organizations can use to make ethical choices? The influence of positive psychology is evident, and there is much to commend in this kinder approach to the job of management that makes an effort to establish sustainable human welfare.36 WebBusiness Ethics Final. In the United States, companies spend more than $70 billion annually on ethics training; worldwide, the figure is more than double that.30 For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. In the business world, various ethical theories and principles are used. Attempt all Sections. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Utilitarianism and UniversalismTwo Worlds Apart? It is not a coincidence that it appears in the American Declaration of Independence (1776), which was written by Thomas Jefferson and inspired by the British Enlightenment philosopher John Locke. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors. But what does love look like in a business setting? Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. 4, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. DeGeorge suggests that a course in the philosophy of business would enable students to think about the foundations of businessits values, ends, purpose, and justification . 0000000696 00000 n X [%:6Ou\Ng73Y The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo How are they related? Principles help inform and influence values. WebA value is a universal value if it has the same value or worth for all, or almost all, people. Are the Values Central to Business Ethics Universal? In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. ;;rlH,.6\I)- ld P1|d`-0iA 6H3dxU0[0u0*3lar H"%LX001da0rJ`X` uq&%61d2g,e^|N Z@@: -l,3BNZ D H Using creativity is also important when examining difficult moral decisions when sometimes it may seem that there are two right ways to act in a situation or perhaps no way seems morally right, which may also signal that not taking an action at that time may be needed, unless taking no action produces worse results. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. WebKeywords: universalism, utilitarianism, punctuated equilibrium 1. Philosopher and historian Martin Buber (18781965) taught that love is not a feeling but a responsibility of one person for another. The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. Ethical relativism holds that people set their own moral standards for judging their actions. Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices. The use of these tools is often backed by social science research in consumer behavior, behavioral finance, and cognitive studies. WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. 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. As some have asked, What is a human life worth?. <>/MediaBox[0 0 612 792]/Parent 125 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. Home By the end of this section, you will be able to: One of the perennial themes in business ethicsindeed, in ethics in generalis the difference between relative and absolute values. GRILL3BB. This book uses the The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. > Becoming familiar with these principles, then, can help inform your moral decision process and help you observe the principles that a team, workgroup, or organization that you now participate in or will be joining may be using. Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. xref Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . Many companies in the United States, Europe, and elsewhere were pressured in the 1980s and before by public interest groups whether or not to continue doing business or leave South Africa. are not subject to the Creative Commons license and may not be reproduced without the prior and express written | OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. But looking to the humanities to understand business is an opportunity to engage business in subjects and ideas that have a tremendous, if often overlooked, impact on people. Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. . grramire. Moreover, moral standards, according to this principle, vary from one culture to another. Available at: Also needs of individuals involved in a It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. Ethical universalism is the theory that there is a universal ethic that applies to all people, no matter the individuals history, preferences, traits orshow more content. Our mission is to improve educational access and learning for everyone. We might argue that it is not the business of business to form people in their conscience, but the result of not doing so has become expensive for everyone concerned.32. There are some limitations to this ethic. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). Ethical Relativism: A Self-Interest Approach. When seen from Bubers perspective, however, love is not an idyllic feeling but a driving force for justice and care. Still, legal requirements are usually clear, as are the ways an organization can exceed them (as do, for example, companies such as Whole Foods, Zappos, and Starbucks). The social and natural sciences provide data to make better ethical choices, but science cannot tell people what they ought to do (nor should it). 0000001815 00000 n Bribery was also at the heart of the FIFA (Fdration Internationale de Football Association) corruption scandal, in which soccer officials, marketing executives, and broadcasters were accused of racketeering, wire fraud, and money laundering by the U.S. Department of Justice in 2015. It is an orientation that many use quite frequently. The dilemma for the Washington Posts then CEO centered on her having to choose between exposing the truth based on freedom of speechwhich was the mission and foundation of the newspaperor staying silent and suppressing the classified information. (3) Who gets hurt? 8 Using creativity is also important when examining difficult moral decisions when sometimes it may seem that there are two right ways to act in a situation or perhaps no way seems morally right, which may also signal that not taking an action at that time may be needed, unless taking no action produces worse results. 2. 2 x 7 = 14 a. 141 0 obj Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior . A few different business ethics theories exist , such as the utilitarian , rights , justice , common good and virtue approach . 139 0 obj 134 0 obj 129 20 WebUniversalism: broadmindedness; wisdom; social justice; equality; a world at peace; a world of beauty; unity with nature; protecting the environment; inner harmony Benevolence: helpfulness; honesty; forgiveness; loyalty; responsibility; friendship Tradition: accepting one's portion in life; humility; devoutness; respect for tradition; moderation Many leaders character and actions serve as examples of how character-based virtues work. Society and Business Anthology by Various Authors is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Ethical systems, whether utilitarian, rights based, or based on natural law and virtue ethics, are attempts to translate absolute values like these into workable solutions for people. These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. 8 Why or why not? What, then, is missing from humanistic business? In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. org/10.4135/9781473910034 More information Summary Contents Moreover, moral standards, according to this principle, vary from one culture to another. Want to cite, share, or modify this book? endobj Where could we go from there? President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. Business 148 Study Guide. It focuses on the type of person we ought to be, not on specific actions that should be taken. Ch. are licensed under a, Ethical Principles and Responsible Decision-Making, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/5-3-ethical-principles-and-responsible-decision-making, Creative Commons Attribution 4.0 International License. And such agency needs to be at the heart of business ethics. Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. Transparency, whistleblower programs, ethics training, and modeling of appropriate behavior by upper management can create the conditions for employees to act ethically, but conscience is a personal phenomenon. In most professional disciplines, including business, the primary ethical frameworks used in the classroom draw on Universalist approaches. It focuses on the type of person we ought to be, not on specific actions that should be taken. (2) Is it right? This book uses the Thus, love, as responsibility, depends on relationships based on good faith and concern. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. 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. One model of ethical behavior, sometimes called the humanistic business model, may provide the answer for businesses that wish to achieve the dual goal of human flourishing and responsible profits. One distinctive understanding of universalism in ethics is that ethical principles are principles for everybody. As effective as they may be, however, they beg the larger question not of how someone can act on what their conscience tells them but how to determine what their conscience is telling them in the first place. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices.19 Howard Schultz, founder of Starbucks; cofounder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. If not, and if ethical standards are relative, are they worth having? Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. 4.8 (4 reviews) Term. (4) Who has to pay for the consequences? then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, The result was a staggering $6 billion cumulative fine for the banks involved (i.e., Barclays, J.P. Morgan Chase, Citicorp, Royal Bank of Scotland, and Deutsche Bank).34. An example of bias occurs when employees engage in unethical activity because it has been sanctioned by higher-ups. 0000006541 00000 n Only the individuals self-interest and values are relevant for judging his or her behavior. Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. > Utilitarian ethics says, in general, that the most ethical course of action is the one that provides the greatest benefit to the most people. xXn8+Y)@Jo2( 3u;v-jeRoRlj~:Xb6eXGCADLQLb*~cY8[|Rr6/6+7_, b(L>ncEl "&-$\y}8-nfk3\Z .E+;KcIEm,D;TO~SB$A*;XTH$Ixi\nCQBtd!tyy^6a v+0 #qy 7s"!g"0ms> ^D8D ,Jac7e cHa#OoU(e;MQEAtz}QdQg'n-J%z-%_"J} [`{L|8\~pi!JzL, To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). Ethical Principles and Responsible Decision-Making, 10. CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. 0000000016 00000 n Read the article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption for a detailed explanation. If you need friends or relationships in the government bureaucracy in order to get your imports cleared or your license extended, then that means particularism. Scandals. Only the individuals self-interest and values are relevant for judging his or her behavior. This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. What would that look like? Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. The same action may be morally right in one society but be morally wrong in another. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). Universalism vs. Relativism 73 terms. %PDF-1.7 % It also involves religion mandates and existing moral codes. startxref For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. <> There are some limitations to this ethic. (credit: Happiness Is a Piece of Cake Close Up Photography by Antonio Quagliata/Pexels, CC0), If there is anything that transcends time, place, and culture, it is love. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. Unfortunately, in the United States, much of this money is spent on merely meeting the minimum requirements of compliance, so that if there is ever a problem with the Department of Justice or the Securities and Exchange Commission, the organization is insulated from criticism or liability because its employees have engaged in the recommended training. | Criticism of the Company and Whistleblowing, 27. When in Rome, do as the Romans do.. This principle involves taking human beings, their needs, and their values seriously. Want to cite, share, or modify this book? Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many.20, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account.
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