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Transcript
Business Ethics
Chapter # 3
Ethical Principles, Quick Tests, and
Decision-Making Guidelines

The best kind of relationship in the world is the one in which a “Sorry”
& a “Smile” can make everything back to normal again…

These can be used in ethical reasoning for
choosing particular alternatives and justifying
difficult decisions and actions. The principles
are:
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Utilitarianism
Universalism
Relativism
Rights
Justice
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Jeremy Bentham and john Stuart mill are
acknowledged as founders of the concept of
utilitarianism.
The basic utilitarian view holds that an action
is judged right, good or wrong on the basis of
its consequences/results.
An action is morally right if it produces the
greatest good for the greatest number of
people affected by it.
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The rightness or wrongness of the actions
themselves are not judged, But rather their
consequences.
How are the costs and benefits of no
monetary stakes, such as health, safety, and
public welfare, measured?
Utilitarianism as a principle does not consider
the individual because their interests are not
valued in a decision.
The principle of justice and rights are ignored
in utilitarianism.
Because businesses use utilitarian principle
when conducting a stakeholder analysis, you,
as a decision maker, should:
1. Define how costs and benefits will measure
in selecting one course of action over
another.
2. Identify the procedures and policies you will
use to explain and justify you cost-benefit
analysis.
3. Ask yourself what moral obligations you
have towards each of your stakeholders ?
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Immanuel Kant (1724-1804) is considered one
of the leading founders of the principle of
universalism.
Universalism, which is also called
“deontological ethics,” holds that the means
justify the ends of an action, not the
consequences.
The term “deontology” is derived from the
Greek word Deon which mean duty.
 These principles have lack of practical
utility. It is difficult to think of all humanity
each time one must make a decision in
different situation.
 It is hard to resolve conflicts of interests
when using a criterion that states that all
individuals must be treated equally.


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Identify individual as well as groups and their
welfare and risks when considering policy
decisions and outcomes.
Identify the needs of individuals involved in a
decision.
Ask if the desired action or policy would be
acceptable to individuals involved . Under
what conditions would they accept the
decision?

Ethical relativism holds that no universal
standards or rules can be used to guide or
evaluate the morality of an act, i.e., what is
right for you may be wrong for me.

This view argues that people set their own
moral standards for judging their actions.

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Individuals who justify their morality only
from their personal beliefs without taking
into consideration other ethical principles
may use the logic of relativism as an excuse
for not having or developing moral standards.
This view contradicts everyday experience
because moral reasoning are developed from
conversation, interaction and arguments. For
example : What I believe as facts in a situation
may or may not be accurate.
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When considering the principles of relativism
in stakeholder analysis, ask the following
questions:
What are the major moral beliefs and
principles at issue for each stakeholder
affected by this decision?
What are my moral beliefs and principles in
this decision?
To what extent will my ethical principles clash
if a particular course of action is taken? Why?

Moral Rights: Moral rights are based on an
individual perspective. e.g: right to work,
safety, health, and happiness etc etc.

Legal Rights: Legal rights are limited to a
particular legal system and jurisdiction. e.g:
Every country’s Citizen is guaranteed, in the
Declaration of independence, the rights to
life, liberty and freedom to speech.
The entitlement justification of individual rights
can be used to disguise and manipulate selfish,
unjust political clams and interest.
 Protection of rights can exaggerate (make it
larger/better) certain entitlements in society at
the expense of others. Fairness and equity issues
maybe raised when rights of certain individuals
and groups take precedence over the rights of
others in similar situations.
 The limits of rights come into question. To what
extent should company and governmental
practices that may benefit the entire society but
threaten certain individual or group rights.

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Identify the individuals whose rights that may
be violated by a particular policy or course of
action

Determine the legal and moral bases of these
individuals rights does the decision violate
these rights on such bases?