Chapter 1 PPP New [1]

Moral Issues in Business 6th Edition by William H. Shaw: 

1 Moral Issues in Business 6 th Edition by William H. Shaw Lecture Outlines

Part I: Moral Philosophy and Business : 

Part I: Moral Philosophy and Business Chapter 1: The Nature of Morality 2

Chapter One: The Nature of Morality : 

Chapter One: The Nature of Morality 3

Overview: 

Overview Chapter One examines the following topics : Business and organizational ethics. Moral versus nonmoral standards, etiquette and professional codes. Religion and business morality. Ethical relativism and the “game” of business. Moral principles, conscience, and self-interest. Personal values, integrity, and responsibility. Moral Reasoning, arguments, and judgments. Moral Issues in Business Chapter 1 4

Introduction to Business Ethics Page 5 - 6 : 

Introduction to Business Ethics Page 5 - 6 What is ethics? The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility. What is business ethics? The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility – in the context of business . 5

Moral Versus Nonmoral Standards Page 7 : 

Moral Versus Nonmoral Standards Page 7 Nonmoral standards : Standards about behavior or practices with no serious or immediate effects upon human well-being. Moral standards : Standards about behavior or practices with serious or immediate effects upon human well-being. 6

Some Features of Moral Standards: 

Some Features of Moral Standards Not all standards and rules in a society are moral ones. For example chewing with one’s mouth open violates etiquette laws not morality laws. Driving faster than allowed with a city without harming someone violates traffic laws not morality laws. On the other hand, breaking promises, stealing, telling lies are all moral violations. Characteristics of moral standards. 1. Violating moral standards may result in a serious threat to human welfare. It may hurt people but violating non-moral standards does not. Stealing, lying and killing deal with action can hurt people. The moral principal that human beings should be treated with dignity and respect strengthens the human personality. The standards that govern our conduct in these matters are moral standards. 7

Characteristics of moral standards. Cont.: 

Characteristics of moral standards. Cont. 2. Moral standards take priority over other standards including self-interest. For example, stealing from your neighbor’s home cannot be justified on the non-normal ground that it would be fun or it would make you rich. We take moral standards to be more important than other consideration in guiding our actions. 3. The strength or the validity of moral standards depends on the sufficiency of reasons that support or justify the standards. No authorities create moral standards, however, they can accept them or reject them based on the quality of arguments of the reasoning that supports them. Example: When law makers discussing a new law. 8

Morality and Etiquette Page 8: 

Morality and Etiquette Page 8 1. Morality refers to the rules and standards of what is right and what is wrong; what is good and what is bad in society. 2. Etiquette refers to the rules and standards of what is polite conduct and what is impolite conduct; what is correct conduct and what is incorrect conduct in society. Not all societies have the same etiquette standards. For example some people may consider “eating with one’s right hand” as an incorrect conduct; while others perceive it as correct and normal. Moral Issues in Business Chapter 1 9

(1) Morality and Law Page 8, 9 & 10 : 

(1) Morality and Law Page 8, 9 & 10 Statutes : Laws enacted by legislative bodies such as the U.S. Congress and state legislatures. Regulations : Laws enacted by special boards or agencies for various kinds of conduct. Common law : The body of judge-made laws developed in English-speaking countries over the course of many centuries. Constitutional law : Court rulings on the requirements of the U.S. Constitution and on the constitutionality of legislation . Moral Issues in Business Chapter 1 10

(2) Morality and Law: 

(2) Morality and Law The distinction between morality and legality : 1 . Actions can be legal but immoral : In the 19 th century, slaves were not different from any other property in America and the law supported that but we all know that it is immoral for people to own other people. In some countries, the law supports that women get lower wages than men for the same work and the same qualification. That is legal but immoral. 2 . Actions can be illegal but moral . It is illegal to drive faster than the stipulated speed limit but it is not immoral to do so when no one is hurt. Moral Issues in Business Chapter 1 11

Examples: 

Examples A.  What is (un)ethical is not necessarily (il)legal, and vice versa: EX:  Ethical and legal:  donating money to charity. EX:  Ethical and illegal:  hiding Jews in Germany during WWII. EX:  Unethical and legal:  slavery (years ago in America). EX:  Unethical and illegal:  first degree murder 12

Professional codes Page 11 :: 

Professional codes Page 11 : The rules that govern the conduct of the members of a given profession. Individuals have the responsibility to critically assess the rules of their professions. These rules are not always complete and reliable guides to adequate moral conduct. Examples: Code of conducts for doctors, teachers, lawyers and police officers 13

(1) The Sources of Morality Page 12,13&14: 

(1) The Sources of Morality Page 12,13&14 Some people argue that without religion people will have no incentive to be moral. Religion teaches us to be good so we should base morality on it. Six main religions of the world- Islam, Christianity, Judaism, Hinduism, Buddhism, and Confucianism all teach their adherents to do good “ Do unto others as you would have then o unto you”. Kruckberg (1996: 181-189) noted that religion heavily influences the people’s ethical judgments throughout the Middle East. (Sharia Law) 14

(1) The Sources of Morality Page 12,13&14: 

(1) The Sources of Morality Page 12,13&14 The justification of moral norms : Moral philosophers study mainly the justification, rather than the origin, of moral norms. The claim that morality is based on religion: Religion provides incentives to be moral. Religion provides moral guidance. Moral norms are in essence divine commands . Moral Issues in Business Chapter 1 15

How Might Religion And Morality Be Connected?: 

How Might Religion And Morality Be Connected? There is the view that religion is necessary for right action (Religious Moralists' view).  There are three arguments for this claim: 1. ARG1: Religion Is Necessary To Provide Motivation Through A Promise Of Rewards And A Threat Of Punishment .  E.g., Heaven and Hell, being reborn or reincarnated as a worm, etc.    There is one good objection to this view: a. OBJ1:  Religion is not necessary to provide motivation for right action :  E.g., it is possible to provide our own motivation for right action by any one of the following:  (1) Personal concerns:  What if I get caught?  What will others think if they find out?  Will I regret it?  (2) Our desire to fit in or belong to a group.  (3) Our background  (4) Our desire not to hurt others.  It seems pretty clear that people can act rightly and morally without needing religion; if this is true, then religion is not necessary for right action. 16

How Might Religion And Morality Be Connected? (2): 

How Might Religion And Morality Be Connected? (2) ARG2: People Will Not Know How To Do The Right Thing Without The Guidance Of Religion . a. OBJ1:  For this argument to work, we need to:  (1) Confirm that God exists; (2) Know what disclosure is exactly and its relevance to religion; (3) Know what religion is true, since there are many different beliefs from which to choose; and (4) Know what God wants us to do : 3. ARG3:  Divine Command Theory:  Without God and religion there could be no right or wrong .  There are 2 objections against the Divine Command Theory: a. OBJ1:  Is commanded by God and is morally required are not the same thing . b. OBJ2:  What if God commands us to torture innocent children? 17

The Sources of Morality Page 12,13&14: 

The Sources of Morality Page 12,13&14 Some philosophers believe that morality is not reducible to religion. Religion should not influence people’s ethical judgments- actions are ethical/unethical because they are so; not because religions disallow/allow such actions. They believe that none of the above mentioned beliefs is reasonable. These philosophers believe that religious leaders made and make moral violations. If their religions influenced their morality, these leaders would not make moral violations. 18

The Sources of Morality Page 12,13&14: 

The Sources of Morality Page 12,13&14 For example, the Church killed many theorists because they opposed its instructions. According to these philosophers, killing itself, as an action, is something immoral and people have the right and they are free to choose their beliefs. Killing requires a moral convincing justification that must be able to stand on its own philosophical feet, not a religious, appeal or justification. Another example, racial discrimination is a moral wrongdoing but religious leaders practice that in some countries. 19

Divine command theory : 

Divine command theory A theory advocated by some theologians that if something is wrong (such as killing an innocent person), then the only reason it is wrong is because God commands us not to do it. 20

(2) The Sources of Morality Page 15: 

(2) The Sources of Morality Page 15 Ethical relativism : The theory that what is right is determined by what a culture or society says is right. Therefore, what morality requires is relative to society. Example: Slavery This means that moral norms are not universal, but are dependent upon a particular cultural or social context. Moral Issues in Business Chapter 1 21

Relativism: 

Relativism Relativism can be divided into: Individual ethical Relativism and societal ethical Relativism. Individual Ethical Relativism : This type is also known as subjectivism. This is the ethical theory that each individual justifiably determines his/her own moral codes-away from professional codes of ethics, societal rules, religion, family etc. 22

Relativism: 

Relativism Societal Ethical Relativism is the view that every culture/society justifiably determines its own moral standards. This implies that ethics is not absolute or independent; it is relative/dependent. No ethical values can be applied universally; what is considered right in one society can be seen as wrong in another society with a different cultural experience. Thus a societal ethical relativist is the person who, when asked to judge, relates his/her moral judgments to his/her cultural, beliefs, principles, not to his/her own personal beliefs/principles . 23

(3) The Sources of Morality : 

(3) The Sources of Morality Implications of relativism : There is no independent standard by which to judge the rightness or wrongness of other societies. Example: Slavery 150 years ago. The idea of ethical progress loses its significance . Moralities may change, however, they can not get better or worse. It makes no sense to criticize the moral code of one’s own society or culture. Moral Issues in Business Chapter 1 24

(4) The Sources of Morality Page 16-17 : 

(4) The Sources of Morality Page 16-17 Relativism and the “game” of business : The idea that business is a just game captures the thesis of Albert Carr. He argued that business professionals are expected to follow a code that has little or nothing to do with ethics. This view entails – incorrectly – that the practices of business professionals cannot (or should not) be evaluated from a moral standpoint. Mafia and Code of Ethics Moral Issues in Business Chapter 1 25

Relativism and the “game” of business: Page 16 : 

Relativism and the “game” of business : Page 16 Albert Carr believes that business is a game and that games demand special understanding of its special moral standards- he draws an analogy with poker (a card game). Carr adds that these special moral standards and rules (Business moral standards) differ from those of the rest of the society. Carr also believes that business actions should be evaluated only by those special standards and not by society standards. Thus a number of the things that we normally 26

Relativism and the “game” of business: : 

Relativism and the “game” of business : What you think is wrong is really permissible in business like: Conscious misstatement, concealment of pertinent facts in negotiations, automobile companies’ neglect of car safety, and lying about one’s age on a CV. William Shaw says Carr is defending some kind of ethical relativism and by divorcing business from morality, he misrepresents both business and morality. Shaw adds that Carr incorrectly treats standards and rules of everyday business activity as separate from rules of every day morality. 27

(1) The Importance of Moral Principles. Page 17-21 : 

(1) The Importance of Moral Principles. Page 17-21 What it means to have principles : Accepting moral principles is not just a matter of intellectual recognition, but of profound individual commitment to a set of values. Conscience : The internalized set of moral principles taught to us by various authority figures – parents and social institutions. Conscience and its limits : Conscience is not always a reliable guide because it can be (1) conflicted and (2) erroneous. (wrong-mistaken-not true ) Moral Issues in Business Chapter 1 28

(2) The Importance of Moral Principles : 

(2) The Importance of Moral Principles Moral principles and self-interest : The morality of an action can run counter to our self-interest. The moral point of view requires that we restrict our self-interest to satisfy social co-existence. Examples in page 20. In situations of conflict between moral principles and self-interest, it is important to appeal to shared principles of justification. Moral Issues in Business Chapter 1 29

Guidelines to Ethical Decision Making. : 

Guidelines to Ethical Decision Making. How do we use the information we have learnt so far about Ethics to make responsible ethical decisions? What process will ensure that we have weighed all ethical options before arriving at a decision that would be good for our business, our community, our society as a whole, and ourselves? We have the following guidelines: 30

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making 1. What facts impact my decision? Many decision makers enter the process already biased on option. Consequently, they look for options that would support their opinion. A good decision cannot be based on a partial basis All different facts that may influence your decision in an impartial way must be listed. For instance in the school exam cheating case: 31

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making The university firm policy on cheating. The students caught cheating is an A-student. The student’s father died a few days before exam. 2. What are the alternatives? A decision maker must list all alternatives. 3. What are the choices? For example in the case of the cheating student, apart from reporting the student, other choices: 32

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making 1.Failing the student and letting it go. 2. Keeping your discovery a secret. 3. Scolding the student. 4. Reporting the case to the administration. 4. Who are the Stakeholders? Stakeholders are those affected by your decision. May include shareholders, employees, suppliers, customers, society as a whole. 33

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making In a university; students, instructors, employers, investors or shareholders in a private university. 5. How do the alternatives impact society? Consider the example mentioned. If you do not report case to the administration, this may; 1. encourage other students to cheat; 2. impact education quality and erode credibility. 34

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making 6.How do the alternative impact my business? If you do not report the cheating case to the administration, this may encourage others to cheat. The reverse is true: this will help us to have a cheating-free university. 7. How do the alternatives impact me, as a decision maker? In our cheating example, if you do not report the case to the administration, some students may 35

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making 1. Consider you an unjust instructor 2 some may consider you a merciful instructor In both situations, this may impact your evaluation by students. 8. What are the ethics of each alternative? Should we consider the action itself (cheating) or the consequences of the action. How ethical or unethical would the following actions be: 36

Guidelines to Ethical Decision Making: 

Guidelines to Ethical Decision Making 1.Failing the student. 2. Keeping the discovery secret. 3. Scolding the student in front of his mates. 4. Advising him not to cheat again. 5. Reporting to the administrator. 9. What course of action should be taken? Ultimately, we have to stop our analysis and make a decision by choosing one of the alternatives discussed above. 37

Morality and Personal Values : 

Morality and Personal Values Morality in the narrow sense : The moral principles or rules that do, or should, govern the conduct of individuals in their relations with others. Morality in the broad sense : The values, ideals, and aspirations that influence the decisions and lifestyles of individuals and entire societies. Business ethics are mainly concerned with morality in the narrow sense. But values, ideals, and aspirations also affect the behavior and ethical choices of business professionals. Moral Issues in Business Chapter 1 38

(1) Individual Integrity and Moral Responsibility : 

(1) Individual Integrity and Moral Responsibility Organizational norms : Employees of business organizations (especially corporations) are: Expected to further profit goals. Often pressured to compromise moral values and ignore or violate rules of ethical conduct. Conformity : Studies show that individuals are more prone to act unethically when they are a part of an organization or a group . Moral Issues in Business Chapter 1 39

(2) Individual Integrity and Moral Responsibility: 

(2) Individual Integrity and Moral Responsibility Groupthink : The demand of “ Conformity” can lead into Groupthink. Groupthink is the process by which the individual shapes his or her behavior to make it consistent with the norms of a group. In the other hand, it is the pressure on group members to conform to morally questionable policies or strategies, often resulting in unethical conduct. Diffusion of responsibility : The distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions. It can weaken people sense of moral responsibility inside any organization. Moral Issues in Business Chapter 1 40

Diffusion of responsibility: 

Diffusion of responsibility Diffusion of responsibility : It is when there is no one assigned to be responsible. It is the variety, and distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions. In business, it can weaken people sense of moral responsibility inside any organization. The bystander effect is when the group is waiting for a leader to step forward, but no one would ever be assigned because it isn't a premade group, it just happens to be a group of people. 41

(1) Moral Reasoning Page 27 - 30: 

(1) Moral Reasoning Page 27 - 30 Argument : A group of statements in which one statement (conclusion) is true and follows from the others (premises). Example : If Norman is bald, then Norman does not need a haircut. It is the case that Norman is bald. Therefore, Norman does not need a haircut. Moral Issues in Business Chapter 1 42

(2) Moral Reasoning: 

(2) Moral Reasoning Requirements for a sound argument : If its statements (premises and conclusion) are true and its form (or structure) is correct. Validity : The correctness of an argument. Invalid arguments : Those with incorrect form (or structure). Determining whether an argument is valid or invalid requires familiarity with the rules of logic. Moral Issues in Business Chapter 1 43

(3) Moral Reasoning: 

(3) Moral Reasoning Moral arguments : Those conflicting theories and beliefs whose conclusions are moral judgments, based on the premise of moral standards and statements of fact. Example : If an action violates the law, it is morally wrong. Affirmative action on behalf of women and minorities in personnel matters violates the law. Therefore, affirmative action on behalf of women and minorities in personal matters violates the law. Moral Issues in Business Chapter 1 44

(4) Moral Reasoning: 

(4) Moral Reasoning What makes a moral judgment defensible ? If it is supported by a moral standard that can be defended as well as relevant facts. Evaluating moral arguments : Clarifying the terms of the premises. Examining the factual claims. Assessing the moral standard. Moral Issues in Business Chapter 1 45

(5) Moral Reasoning: 

(5) Moral Reasoning Thus, an argument can be disputed by: Evaluating the Factual Claim: Claim must be accurate and has considerable supporting data. Challenging the moral standard: If moral argument is disputed, it can be challenged and unaccepted. Defending the moral standard: When the standard is criticized, then its advocate must be defend it. Revising and modifying the argument: In the case of criticizing an argument, the defendant must refrain and replace the original contested premise with a better one. Moral Issues in Business Chapter 1 46

(6) Moral Reasoning: 

(6) Moral Reasoning Criteria or Requirement for moral judgments : Should be logical. to have a logical moral judgment, it should be supported and based on evidence, rather than on emotion or personal preference. Further, to have a logical judgment, we should ensure that any particular moral judgment of ours is consistent with our other moral and non-moral beliefs. Moral Issues in Business Chapter 1 47

Criteria or Requirement for moral judgments: : 

Criteria or Requirement for moral judgments : 2- Moral judgments should be based on facts— the information/facts gathered for supporting our judgment should be relevant, complete, accurate and true. 48

Criteria or Requirement for moral judgments: : 

Criteria or Requirement for moral judgments : 3- Moral judgments should be based on acceptable moral principles— moral judgments should be based on sound moral principles—principles that can resist critical examination and rational criticism. What, precisely, makes a moral principle sound or acceptable is one of the most difficult questions in ethics. But one criterion is worth mentioning, what philosophers call our “considered moral beliefs.” According to Tom Regan, our “considered moral beliefs” are those moral beliefs 49