Complete summary (lectures, readings, papers) for the first part (exam part) of the Ethics and the Future of Business course in the Business Administration master program of the UvA. Includes all lectures, papers and readings. Grade: 8.5
Ethics is an on-going discussion about morality (read: what is right and what is wrong) from
the perspective of a human being (anthropocentric) and relates to the following key
questions:
- What kind of moral principles should guide our actions?
- What kind of outcomes should we aim for?
Two types of ethical theories
1. Normative ethical theories: prescribe the morally correct way of acting and behaving
by codes that are adopted by all rational beings
2. Descriptive ethical theories: prescribe the morally correct way of acting and having
by codes that are adopted by a specific group of human beings (such as religion
guidelines)
The perspectives of the role of ethical theory
Next, there is also a spectrum holding two different perspectives on wright and wrong
1. Ethical absolutism: on one side there is a position that claims that there is objective,
universally applicable, moral principles that are rationally determined as right or
wrong
2. Ethical relativism: on the other side there is a position that claims that morality is
context-dependent and subjective, saying that there are no universal right and
wrongs that can be rationally determined (international business issues)
Additional mid-point spectrum view:
3. Ethical pluralism: In addition, there is also the position of ethical pluralism (moderate
view) that accepts that we recognize that different values can be equally legitimate
and tolerate them as such. So, pluralism puts neither all ethical perspectives on an
equal footing, nor favors one approach over others.
,Normative ethical studies: how should we behave?
In Western modern societies the ethical theories that are traditionally applicated within
business contexts are absolutist and normative in intention (see types above). Important to
note, however, is that there, within these normative and absolutive intentions of western
modern theories, is a distinct point as well.
1. the consequentialist theories: theories that base moral judgement on the outcomes
of a certain action and therefore are goal-oriented (teleological): (1) ethical egoism
and (2) utilitarianism
2. the principle-based theories: theories that base moral judgements on the derivation
of principles and the procedure by which they arrived and therefore are principle-
based (deontological): (3) ethics of duties and (4) rights and justice
These goal-oriented theories base moral judgement on the outcomes of a certain action. If
the outcomes of a certain action are desirable, then the action in question is morally right;
but if the outcomes are not desirable, the action is morally wrong. So, the moral judgement
in these theories is based on the aimed outcomes of a certain action. However, important to
note is that (1) ethical egoism and (2) utilitarianism address those outcomes in different
ways.
Egoism is focusing on self-interest as the motivation and explanation of the individual
decision-maker. So, according to the ethical egoism an action is morally right if a decision-
maker decides in such a way that the outcome is in their own short-term or long-term
interest.
Utilitarianism is focusing on the wider social interest and prescribes that a decision is moral
right if the outcome of the decision is the best outcome for everyone in terms of their
collective interest. So, a decision is morally right if the action results in the greatest amount
of good for everyone involved. In other words, utilitarism believed that being ethical meant
doing that which has good outcomes for all people in the society. This is a hedonist view on
maximizing pleasure and minimizing pain for everybody.
Cost/benefit analysis (pain/pleasure analysis)
Important to note is that, in practice, utillitarism often comes as an analysis of advantages
and disadvantages (cost/benefit analysis). These assessments take into consideration all of
the likely positive and negative impacts of a given project, including the impact on
employment, community development, and environmental quality.
Complications with utilitarian analysis:
- Subjectivity: outcomes that are collectively utilitarian good outcome (pleasure) or a
collectively bad outcome (pain) depends on the subjective perspective of the person
- Equal weighting: we must neither exclude nor prioritize ourselves and our desirable
outcomes as those nearest to us and the society
- Problems of quantification and calculation: it is difficult to assign costs and benefits
to every situation and everyone involved with the situation
- Distribution of utility: by assessing the greatest common good for the greatest
number and collective, the interests of minorities may be overlooked
- Basic rights: can be contractionary with the idea of respecting basic rights
- Reciprocity: does not include the idea of reciprocity, as we might also think about the
long and short term.
2. Principle-based theories (deontological)
As opposed to the consequentialist studies, the principle-based studies prioritize what is
moral right about the action itself, rather than what is desirable in terms of the
consequences.
2.1 Ethics of duties
This theory prescribes that morality is not based on the outcome but depends on the duty
and goodwill (principles) of rational persons. In other words, the (rational) principles, that
are coming from certain obligations that are dependent on the categorical imperative, guide
the morality of an individual
Complications with this Kantianism analysis:
- No outcomes: Kant does undervalue the outcomes of actions.
- Difficult: ethics of duties is a rather difficult and abstract theory
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