Z. Zemlyak - Zen - Zoroastrianism - Zurvanism 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. This means we must hold ourselvesand one anotheraccountable to our values and to creating an open and inclusive workplace. Marketing Ethics: Selling Controversial Products, 17. Iss. 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. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. 0000006541 00000 n The Journal of Values-Based Leadership: Vol. https://scholar.valpo.edu/jvbl/vol8/iss2/3, ValpoScholar Home Intellectual, emotional, and social biases affect all decision-making, including those of an ethical nature. As an Amazon Associate we earn from qualifying purchases. citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. The universalizability theory holds two significant views. Universality <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . Human flourishing may not be the immediate concern of business, but managers and employees have a significant impact on business performance. Business Ethics That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. 73 terms. After all, free enterprise has the interests of the enterprise at heart. This principle has at least four major components that are based on the tenets that (1) all individuals should be treated equally; (2) justice is served when all persons have equal opportunities and advantages (through their positions and offices) to societys opportunities and burdens; (3) fair decision practices, procedures, and agreements among parties should be practiced; and (4) punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. 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. Chapter 5 - The Universalist Approach and Kant in Business Ethics from Normative Approaches Published online by Cambridge University Press: 10 November At the same time, each one has a logic. 5.3 Ethical Principles and Responsible Decision-Making 0000017527 00000 n 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. In the business world, various ethical theories and principles are used. 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. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. It is helpful to ask and if not clear, perhaps identify the principles, you most often use now and those you aspire to use more, and why. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . Following 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) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. endobj 1999-2023, Rice University. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. FAQ Available at: Time: 3 Hours Total Marks: 100 Note: Attempt all Sections missinganyIf data;requ suitably choose SECTION A. Attemptall questions in brief. 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. In this model, organizations focus on employees as a vital part of the operation and support them in their professional training, health care, education, family responsibilities, and even spiritual concerns. 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. Ethical relativism is really not a principle to be followed or modeled. 0000003514 00000 n Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. 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. After all, we cannot make a commitment to serve customers, develop leaders, and improve life for all stakeholders unless there is freedom and moral agency, the necessary ingredients in establishing an attitude of concern, that is, respect for oneself and for others, including all appropriate stakeholders. WebUniversal ethics [ edit] There are several ethical standards that are considered to be self-evident, and seem to apply to all people throughout all of history, regardless of cultural, political, social, or economic context. 2. As the LIBOR (London Interbank Offered Rate) scandal, in which banks were manipulating rates to profit from trades, showed, ethical breakdowns often occur because systems fail or people make bad decisions, and sometimes both. It focuses on the type of person we ought to be, not on specific actions that should be taken. Business can mean an activity of exchange. A&P I Autonomic Bonus Activity. One entity (e.g., a person, a firm) does business with another when it exchanges a good or service for valuable consideration, i.e., a benefit such as money. 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. Ethical relativism is really not a principle to be followed or modeled. For those dedicated to the case method, novels, short stories, and plays offer an inexhaustible storehouse of riches, more detailed, subtle, and complete than most cases written up for courses.37, In DeGeorges humanities model, business ethics would not prepare students to do certain things, for which they likely will be trained by their employers, but to be certain persons. WebEthical universalism and ethical relativism are two types of meta-ethical views, meaning the two theories attempt to understand the reason behind ethical properties, attitudes, boundaries and judgements. 52 terms. List the four dimensions of a human being. If not, and if ethical standards are relative, are they worth having? Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. If require any missing data; then choose suitably. If there is anything to be learned from these scandals, it is that organizations will succumb to ethics crises if they do not pay attention to their organizational culture and foster their employees growth as moral beings. Immanuel Kant, a German philosopher, calls the 140 0 obj The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to are licensed under a. v a l p o . Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. The Volkswagen emissions scandal also began in 2015, when the Environmental Protection Agency cited the German automaker for violating the Clean Air Act by cheating on emissions tests. 132 0 obj 0000001486 00000 n Therefore, utilitarianism goes by the rule that an action is evaluated to be ethical based on a set of rules or principles that can bring the retreat usefulness to the greatest amount of people (Mill, 2006). GRILL3BB. endobj endstream Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. c. They understand the concept of stakeholders (those who have a stake in a decision because they are affected by it) and they always consider the business, financial and emotional consequences of their actions on all stakeholders. Business 148 Study Guide. (2015) The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. The claim that ethical standards or principles are universal is an ancient commonplace of many ethical traditions and of contemporary political life, particularly in appeals to universal human rights. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. 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 society, on the other hand, perceives business ethics as the right or wrongs that occur as a result of organizations operating in the community. In fact, John Mackey, the founder of Whole Foods, has said that love has been the basis of his success in business, which translates into care and concern for customers beyond profit and for workers beyond productivity (Figure 5.8).39, Recall the statement by IBM quoted earlier in the chapter: [IBM] remain[s] dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer, more diverse, more tolerant, more just.40. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. ;;rlH,.6\I)- ld P1|d`-0iA 6H3dxU0[0u0*3lar H"%LX001da0rJ`X` uq&%61d2g,e^|N Z@@: -l,3BNZ D H We recommend using a Finally, if normative business ethics is to recognize and, ultimately, be based on the individual, it must address another human trait: bias. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo To date, the fallout has cost the company nearly $30 billion in fines. Are there human values that apply everywhere despite differences in time, place, and culture (Figure 5.7)? 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. 2 Boeing Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. At the individual level, when corruption takes place, it is a matter of conscience. 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 focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). 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. Accessibility Statement, Privacy 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. Ethical Relativism: A Self-Interest Approach. trailer The result was a staggering $6 billion cumulative fine for the banks involved (i.e., Barclays, J.P. Morgan Chase, Citicorp, Royal Bank of Scotland, and Deutsche Bank).34. endobj Scandals. endobj Moral theories remain a topic of interest, not just to moral philosophers, but increasingly in business circles as well, thanks to a tainted reputation that urges more awareness in this regard. . WebUbuntu - Universalism - Utilitarian bioethics - Utilitarianism. BUSG 210 - Practice Midterm II xXn8+Y)@Jo2( 3u;v-jeRoRlj~:Xb6eXGCADLQLb*~cY8[|Rr6/6+7_, b(L>ncEl "&-$\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, It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. Content: formal principles or uniform requirements? 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. Universalism 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. 8 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. Creative Commons Attribution License 0000001304 00000 n B. what ethical behaviors should be expected of company personnel in the course of doing their jobs. endobj President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. Some limitations of this principle suggest that it does not consider individuals, and there is no agreement on the definition of good for all concerned. In addition, it is difficult to measure costs and benefits. This is one of the most widely used principles by corporations, institutions, nations, and individuals, given the limitations that accompany it. 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 What, then, is missing from humanistic business? 0000001815 00000 n However, middle managers and employees often complain their ethics training consists of passing a computerized sexual harassment or fraud program once a year but that nothing is done to address issues in a substantive way or to change the culture of the organization, even those that have experienced problems.31 But employees are human beings first, which means any attempt to improve their welfare must begin by thinking of them as human beings rather than as employees. 0000000016 00000 n 141 0 obj Sexual Identification and Orientation, 31. universal This principle is grounded in both legal and moral rights. <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> Case Study of Ethical Aspect in Nestle Company Dec 12, 2022 OpenStax. Diversity and Inclusion in the Workforce, 28. In opposition to moral relativism, moral universalismalso called moral objectivismholds that there are objective right or wrong actions, independently of the 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 She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. List of philosophies Universalism For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. It has often been an intellectual norm for researchers and authors to classically characterise ethics into two divisions of normative notions. This principle has at least four major components that are based on the tenets that (1) all individuals should be treated equally; (2) justice is served when all persons have equal opportunities and advantages (through their positions and offices) to societys opportunities and burdens; (3) fair decision practices, procedures, and agreements among parties should be practiced; and (4) punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. A Framework for Making Ethical Decisions, 11. 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. Ethical Issues in the Provision of Health Care, 18. <>/Border[0 0 0]/Contents(Business Commons)/Rect[137.2383 212.4906 226.2812 224.2094]/StructParent 6/Subtype/Link/Type/Annot>> W. Wahdat-ul-Wujood - Wahdat-ul-Shuhud - War, philosophy of - Western philosophy - Wu wei. It poses an extremely high cost to the citizenry, it saps the credibility of government and it places companies under an unbearable economic burden.26 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 for building trust and confidence in the operations of organizations around the world. What are major ethical principles that can be used by individuals and organizations? Limitations here also show that using this principle may not always prove realistic or practical in all situations. Types of Business EthicsPersonal responsibility. Each person who works for a business, whether on the executive level or the entry-level, will be expected to show personal responsibility.Corporate responsibility. Businesses have responsibilities to their employees, their clients or customers, and, in some cases, to their board of directors.Loyalty. Respect. Trustworthiness. More items Want to cite, share, or modify this book? endobj This book uses the Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. Other names for this doctrine are universal restoration, universal 3 Howard Schultz, founder of Starbucks; co-founder 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. endobj 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. My Account 0000005814 00000 n then you must include on every digital page view the following attribution: Use the information below to generate a citation. 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. Ethical Principles and Responsible Decision-Making, 10. Universalism - Wikipedia From these systems has emerged a basic set of ethical norms for the business world. Moreover, moral standards, according to this principle, vary from one culture to another. Theories Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. universal Attempt all Sections. citation tool such as, Authors: Stephen M. Byars, Kurt Stanberry. 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. The Supreme Court upheld her and her staffs decision. WebBased 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. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo There are programs that do this, such as Giving Voice to Values at the Darden School of Business at the University of Virginia.35 The same action may be morally right in one society but be morally wrong in another. The Journal of Values-Based Leadership - Valparaiso At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. Loyalty to the Brand and to Customers, 24. The second major meaning behind > These different cohorts of normative theories are often termed as rival ethical 5.4 Are the Values Central to Business Ethics Universal? 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. Utilitarianism and UniversalismTwo Worlds Apart? Legal rights are entitlements that are limited to a particular legal system and jurisdiction. Principles help inform and influence values. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. 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. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . 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 Moral universalism - Wikipedia V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. 2 x 7 = 14 a. and you must attribute OpenStax. X [%:6Ou\Ng73Y > SECTION A 1. 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. Many leaders character and actions serve as examples of how character-based virtues work. 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. e d u / j v b l)/Rect[230.8867 233.3227 360.5693 245.0414]/StructParent 5/Subtype/Link/Type/Annot>> , Article 3. The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. 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. <>stream Universalism and particularism: principles and judgment, Fundamental principles: Kantian universalizability. A. developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations. There are some limitations to this ethic. Ex 2 Post Lab A. As an Amazon Associate we earn from qualifying purchases. Moreover, moral standards, according to this principle, vary from one culture to another. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. But it becomes dangerous when people use it to blind themselves to the reality around them, reinforce hardened positions even in the face of contradictory evidence, and shirk their responsibility as moral beings. Read this article on the LIBOR scandal and the consequences for an in-depth overview. Feelings may come and go, but the solidarity that people have with each other and the care they take with one another define them as human beings (Figure 5.8). As some have asked, What is a human life worth?.
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