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Some Different Views
About Business Ethics
David Long
Canterbury Christ Church University
IPW Helsinki Metropolia Business School, Finland
May 13 – 17 2013
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Aims of this Lecture
The aims of this lecture are to
introduce:



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The difference between ethics and the
law
The concepts of Moral Absolutism and
Moral Relativism
To contrast Consequentialism and NonConsequentialism
To understand a range of different views
about business ethics.
Good people do not need laws
to tell them what to do
Bad people will always find a
way round.
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Ethics and the Law
Ethics
grey
area
Law
Source: Crane & Matten (2010) p7
Ethics and the Law
Ideal state
true free
market
A
Legal
Ethical
B
Not Legal
Ethical
C
Legal
Unethical
D
Not legal
Unethical
Minimal compliance
with the law
5 © Long & Taylor, 2007
Difficult decisions
ethics influence
new laws
Worse case
scenario
If Laws are what you MUST do ...
Ethics are what you OUGHT to do
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Moral Absolutism vs Moral Relativism
Moral Absolutism
Universal notions of right and wrong
associated (often) with religious and humanist
schools of thought
Moral Relativism
Notions of right and wrong depend on the
circumstances (e.g. Culture, environment,
pressure etc.)
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Consequentialism vs Non-Consequentialism
Consequentialism
The result of an action determines what is right or
wrong. The means (action taken) are justified by the
ends achieved e.g. Utilitarianism
Non-Consequentialism
Right and wrong determined by motives, principles
or rules, not outcomes. There is a primary need to
respect persons e.g. Deontology/Kantianism
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Consequentialism:
Utilitarianism
According to Utilitarianism, an action is
morally right if it results in the greatest
amount of good for the greatest number of
people affected by the action
 Maximise benefits to society and minimise



harms
Net balance of good consequences over bad
Assumes all people are equal
Not a perfect picture, but to bring the greatest
pleasure to the greatest number of people, but
not all the people.
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Non-Consequentialism:
Deontology/Kantianism
•
•
•
Proposed by the Greek Philosopher Plato
Idealists regard moral values as unchanging
Immanuel Kant (German Philosopher 17241804) extended Plato’s ideas
– Categorical Imperatives of Consistency,
Dignity & Universality
– Primary Respect for Persons.
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Now some Post-Modernist Views
about Business Ethics ...
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“Business is Part of Society”
Richard De George
“Business is not just a matter of economic
exchange … it involves human interactions, is
basic to human society”
 Moral judgements sometimes differ from business
judgements
 Good ethical practice pays in the long term
- Difficulties with moral pluralism in the world
- Wealth arguments … who deserves profit?
- The importance of moral education and the
social impact of decisions.
(source: Chryssides & Kaler, 1993, original article 1978)
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“The Poker Game Analogy”
Albert Carr
“The ethics of business are not those of
society, but rather those of the poker game”
 Pressure to deceive in business
 Two sets of ethical standards:
- Home
- Office
 Duty to obey the laws, not to make them
 Self-regulation versus legislation
 The ‘game’ of business.
(source: Chryssides & Kaler, 1993, original article HBR 1968)
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“The Social Responsibility of Business
is to Increase its Profits”
Milton Friedman
 Only human beings have a moral responsibility for
their actions
 It is a manager’s responsibility to act solely in the
interests of shareholders
 Social issues and problems are the proper province
of the state rather than corporate managers.
(source: Chryssides & Kaler, 1993, original article NY Times 1970)
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“The Stakeholder Theory of the
Modern Corporation”
Edward Freeman
 Managers have a fiduciary responsibility to
stakeholders of a business
 This responsibility goes wider than shareholders, to
include employees, customers, the local
communities and governments
 Each stakeholder has the right not to be treated as
a ‘means to an end’.
(source: Chryssides & Kaler, 1993, pp 254-265)
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Different Views of Ethics:
Summary of Learning
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People hold different views about right
and wrong, both within and between
different national cultures
There appears to be no single right way
to resolve ethical issues
Frameworks exist to explain different
behaviour.
And Finally,
Ernest Hemingway Wrote About Ethics
I know only that ..
What is moral … you feel good after
What is immoral … you feel bad after
Ethics is what you do … hoping others
will feel good after!
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