EVALUATING BUSINESS

ETHICS

ROLE OF ETHICAL THEORIES

Ethical Absolutism
Ethical Relativism

TRADITIONAL ETHICAL THEORIES

CONSEQUENTIALIST THEORIES

Egoism
Utilitarianism

EGOISM ADAM SMITH

An action is morally right if
the decision maker freely
decides in order to pursue
either his (short term) desires
or his (long term) interests.

UTILITARIANISM
An action is morally right if
it results in greatest amount
of good for the greatest
amount of people affected by
the action.

UTILITARIANISM AND
COST BENEFIT ANALYSIS

PROBLEMS WITH
UTILITARIANISM

SUBJECTIVITY

PROBLEMS OF
QUANTIFICATION OR
MEASUREMENT

DISTRIBUTION OF UTILITY

RULE UTILITARIANISM
Two Principles

I.An action is right from an ethical point of

view if and only if action would be required
by those moral rules that are correct.

II. A moral rule is correct if and only if the

sum total of utilities if everyone were to
follow that rule is greater than the sum
total utilities produced if everyone were to
follow some alternative rule.

NON CONSEQUENTIALIST
THEORIES

THE CONCEPT OF RIGHT

In general a right is an
Individuals
entitlement
of something.

NEGATIVE AND POSITIVE

RIGHTS

RIGHTS AND DUTIES

BASIS OF MORAL RIGHTS

Emmanuel Kant (1724 1804)

KANTS CATEGORICAL
IMPERATIVE
First Formulation
An action is morally right for a
person in a certain situation if
and only if, the persons reasons
for carrying out the action is a
reason that he or she would be
willing to have every person act
on, in any similar situation.

SECOND FORMULATION
An Action is morally right for a
person
if
and
only
if
in
performing the action the person
does not use others merely as a
means for advancing his or her
own interests, but also both
respects and develops capacity to
choose freely for themselves.

JUSTICE AND FREEDOM

DISTRIBUTIVE JUSTICE

JUSTICE AS EQUALITY
EGALITARIANISM

JUSTICE BASED ON
CONTRIBUTION

Capitalist Justice

JUSTICE BASED ON
NEEDS AND ABILITIES SOCIALISM

JUSTICE AS FREEDOM LIBERTIANISM

RETRIBUTIVE JUSTICE

COMPENSATORY JUSTICE

CONTEMPORARY
ETHICAL THEORIES

FEMINIST ETHIC OR ETHICS

OF CARE
An approach that priorities empathy, harmonious and
healthy social relationships, care for one another and
avoidance of harm above abstract principles
Ethics of care emphasizes two moral demands.
1. we each exist in a web of relationships we have with
specific persons.
2. We each should exercise special care for those with whom
we are concretely related by attending to their particular
needs, values, desires and concrete well being as seen from
their own personal perspective and by responding
positively to those needs, values, desires, and concrete well
being particularly of those who are vulnerable and
dependent on our care.

VIRTUE ETHICS
Morally correct actions are those
undertaken by actors with virtuous
characters. Therefore, the formation
of virtuous character is the first step
towards morally correct behavior

Intellectual virtues wisdom

Moral virtues Honesty, Courage
friendship, merely loyally, patience