The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. WebFollowing 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) This book uses the 0000000016 00000 n In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. endstream Marques, Joan The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. Many leaders character and actions serve as examples of how character-based virtues work. Moreover, moral standards, according to this principle, vary from one culture to another. (2015) Are there human values that apply everywhere despite differences in time, place, and culture (Figure 5.7)? At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Utilitarian ethics says, in general, that the most ethical course of action is the one that provides the greatest benefit to the most people. Our mission is to improve educational access and learning for everyone. 139 0 obj Is it possible to identify a set of universal values that is consistent across cultures and time? 16 terms. A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. Although ethical practice has been directly influenced by religion, as noted, ethics is not religion and religious belief is not a prerequisite for a commitment to business ethics. There are some limitations to this ethic. 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. A&P I Autonomic Bonus Activity. (5) Do I/we want to assume responsibility for the consequences? The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. 0000003514 00000 n 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. Home 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. WebWe believe that compliance and ethical behavior are everyones responsibility. The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. 0000001486 00000 n Webmoral relativism theory or more similar to the moral universalism theory and if there are any differences between the arguments. They do need to understand people and their motives, to know how to read and judge character, and to have the ability to imagine themselves in anothers shoes, be they those of a competitor, a boss, or a subordinate. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo What is universal ethics theory? 1999-2023, Rice University. Countries and cultures that follow this orientation can result in dictatorships and absolutist regimes that practice different forms of slavery and abuse to large numbers of people. <>/Border[0 0 0]/Contents()/Rect[72.0 618.0547 118.127 630.9453]/StructParent 2/Subtype/Link/Type/Annot>> WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. JN9u4 0-FR1.ke4 nzG q57:6H*U*N5"T] t@L0fCf%gUc !` HpT!e0IyF'Xd)W8>dn>DR()p0^. Universalism (pronounced yu-ni-VER-sul-iz-um) is a doctrine that teaches all people will be saved. endobj Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. 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. My Account 0000017527 00000 n It simply emphasizes the other side of the twofold purpose of business (profit and responsibility). 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 President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. 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. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. However, the nature of human happiness is subjective. hb```b``c`a`bb@ !6 daA@@-6WO pg5,eP=ycF62P,ZSK[xtV`g? Mar 18, 2019 OpenStax. Available at: So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. Only the individuals self-interest and values are relevant for judging his or her behavior. A Framework for Making Ethical Decisions, 11. Can being aware of the actual values you use to guide your actions make a difference in your choices? 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.17. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. 0000016028 00000 n . Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. When in Rome, do as the Romans do.. It focuses on the type of person we ought to be, not on specific actions that should be taken. A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? Universal business ethic is an attempt to formulate common business ethic principles that are acceptable by all rational agents and applied to all countries beyond <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> Basic ethical practices have been gleaned through research and practical study of how businesses function, and how they operate, both independently and with one another. Businesses currently rely heavily on data analytics, algorithms, and statistical analyses to drive decision-making. According to the Union Internationale des Avocats, an international, nongovernmental association of legal professionals, corruption corrodes the democratic principles of accountability, equality, and transparency. A common description of utilitarianism is seeking the greatest good for the greatest number this is paraphrased from Jeremy Bentham, who developed Act Ethical Principles and Responsible Decision-Making, 10. Philosopher and historian Martin Buber (18781965) taught that love is not a feeling but a responsibility of one person for another. Other names for this doctrine are universal restoration, universal e d u / j v b l / v o l 8 / i s s 2 / 3)/Rect[128.1963 131.7406 312.7275 143.4594]/StructParent 7/Subtype/Link/Type/Annot>> %PDF-1.7 % 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. Corporations and Politics: After Citizens United, 14. Particularism, on the contrary, means that some people are more equal than others. The Workplace Environment and Working Conditions, 23. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. 97 terms. endobj citation tool such as, Authors: Stephen M. Byars, Kurt Stanberry. 8 Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . 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. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. Download for free at http://cnx.org/contents/aa9071d5-2ea4-4db3-b476-be94bb9d5ef9@5. What would that look like? 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. The Journal of Values-Based Leadership: Vol. The same action may be morally right in one society but be morally wrong in another. 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. Business grramire. Principles help inform and influence values. How are they related? WebMoral universalism (also called moral objectivism) is the meta-ethical position that some system of ethics, or a universal ethic, applies universally, that is, for "all similarly situated OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. There are many sources of controversy. Creative Commons Attribution License That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). Although Universalism has appeared at various times in Christian history, most notably in the works of Origen of However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. Legal rights are entitlements that are limited to a particular legal system and jurisdiction. As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. Ethical Relativism: A Self-Interest Approach. Based 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. These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. 8 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. The 2017 conviction for bribery and embezzlement of Lee Jae-yong, heir to the Samsung electronics empire, was part of a widespread corruption scandal that brought down the president of South Korea. are licensed under a, Ethical Principles and Responsible Decision-Making, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/5-3-ethical-principles-and-responsible-decision-making, Creative Commons Attribution 4.0 International License. Limitations here also show that using this principle may not always prove realistic or practical in all situations. WebUniversalism: broadmindedness; wisdom; social justice; equality; a world at peace; a world of beauty; unity with nature; protecting the environment; inner harmony Benevolence: helpfulness; honesty; forgiveness; loyalty; responsibility; friendship Tradition: accepting one's portion in life; humility; devoutness; respect for tradition; moderation 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. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. WebBusiness Ethics Final. 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. 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. It is an orientation that many use quite frequently. 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. 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 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 Iss. philosophy could add a critical element to business education, an element that would keep business education always alive and prevent it from becoming an accepted, orthodox ideology.38. For example, although what constitutes ethical behavior in Islamic society is strongly linked to religious values, secular philosophers can endorse a highly developed commitment to commercial ethics, too. 141 0 obj 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). 1 / 35. Business ethics concerns. xref Subsequently, some common factors and discrepancies between the two theories will be discussed. In opposition to moral relativism, moral universalismalso called moral objectivismholds that there are objective right or wrong actions, independently of the 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 Becoming familiar with these principles, then, can help inform your moral decision process and help you observe the principles that a team, work-group, or organization that you now participate in or will be joining may be using. endobj This means we must hold ourselvesand one anotheraccountable to our values and to creating an open and inclusive workplace. Corruption appears to exist everywhere, so it would seem to require a persistent and consistent answer everywhere. 135 0 obj (4) Who has to pay for the consequences? For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. 0000001815 00000 n Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. According to Mel & Snchez-Runde (2013), Universal ethics can be perceived as a form of moral constitution which is expressed as a set of specific ethical 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. At the same time, each one has a logic. President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. Diversity and Inclusion in the Workforce, 28. The universalizability theory holds two significant views. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. 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. > The Supreme Court upheld her and her staffs decision. 0 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 2023 Informa UK Limited, an Informa Group Company. 0000000696 00000 n 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. At the individual level, when corruption takes place, it is a matter of conscience. WebAdherents of ethical universalism are likely to believe that Common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople. Z. Zemlyak - Zen - Zoroastrianism - Zurvanism Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior . A few different business ethics theories exist , such as the utilitarian , rights , justice , common good and virtue approach . At the same time, each one has a logic. 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. Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. <>stream 52 terms. If you need friends or relationships in the government bureaucracy in order to get your imports cleared or your license extended, then that means particularism. The social and natural sciences provide data to make better ethical choices, but science cannot tell people what they ought to do (nor should it). What, then, is missing from humanistic business? , Article 3. About Bias also rewards those who support and nurture the best elements of a culture, whether corporate, social, or political. Discuss need of Value education. It is an orientation that many use quite frequently. Legal rights are entitlements that are limited to a particular legal system and jurisdiction. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. 133 0 obj At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. WebThis document is designed as an introduction to making ethical decisions. "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," Why or why not? Practical wisdom, however, is often required to be virtuous. This is even more important in industries like banking that are more susceptible to unethical behavior because of the great sums of money that change hands. Want to cite, share, or modify this book? > The use of these tools is often backed by social science research in consumer behavior, behavioral finance, and cognitive studies. 1999-2023, Rice University. The search for a universally applied set of ethics always comes back to it. Corruption is expensive: According to the World Economic Forum, no less than $2 trillion is lost each year worldwide as a result of corruption, a staggering waste not just of resources but of credibility for business in general.28. are licensed under a. Utilitarianism: Ethical Theories and Business. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. Alani_Parra. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. e]__3EwcaXLpMu\6ki3=3A{aji_*i/NQwio+OKZM$>w3@-$CH^~d), q)>x1t4N8S8JrRG?;*6Q^LZE j;@+l8PPi-(v=XFM7%-Ag}VuPfa{+_gU ?hv Z&*~TVF:F78%dDZ N|#*q6]d/PQ{ox S@twnir@/ohoWDw^p Qd~`JyBAAFH <>/Border[0 0 0]/Contents(scholar@valpo.edu)/Rect[350.833 72.3516 427.21 82.8984]/StructParent 8/Subtype/Link/Type/Annot>> b. A belief in one fundamental truth is another important tenet in What are major ethical principles that can be used by individuals and organizations? Human flourishing may not be the immediate concern of business, but managers and employees have a significant impact on business performance. %%EOF WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Ethical relativism is really not a principle to be followed or modeled. 2 In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. Leaders create positive relationships with stakeholders, including their employees, to cultivate investor goodwill and because they believe in the underlying values of trust and authenticity. org/10.4135/9781473910034 More information Summary Contents 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. 0000009193 00000 n That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). These principles can be, and are, used in combination; different principles are also used in different situations. One alternative is to put the humanities into business. 131 0 obj <>/Metadata 127 0 R/Outlines 88 0 R/Pages 124 0 R/StructTreeRoot 93 0 R/Type/Catalog/ViewerPreferences<>>> Altruism is also part of character-based virtue ethics. Organizational ethical practices include how a As effective as they may be, however, they beg the larger question not of how someone can act on what their conscience tells them but how to determine what their conscience is telling them in the first place. So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. Ex 2 Post Lab A. 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. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. 5 terms. endobj For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. In the case of LIBOR, the United Kingdoms Serious Fraud Office determined there were inadequate systems of oversight in the setting of rates and that individual executives encouraged rate fixing, which led to the conviction of several traders, at least one of whom still maintains his innocence.33 Next: A Framework for Making Ethical Decisions, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. 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
