Chapter 2:Chapter 2:Moral Theories and Business Ethics
The Social Responsibility of Business
CHAPTER OBJECTIVES:
1. Describe ethical fundamentalism
2. Describe utilitarianism as a moral theory.
3. Describe Kantian ethics
4. Describe Rawl's social justice theory.
5. Describe ethical relativism,
6. Describe maximizing profits as a theory
of social responsibility.
7. Describe the moral minimum theory of
social responsibility.
8. Describe the stakeholder interest theory
of social responsibility.
9. Describe the corporate citizenship theory
of social responsibility.
10. Describe corporate social audits.
1. Much of our law is based upon moral principles
and moral values.
a. Thou shalt not kill = criminal homicide
statutes:
1st degree murder
2nd degree murder
voluntary manslaughter
involuntary manslaughter
vehicular manslaugher
b. Thou shalt not steal = criminal theft statutes:
robber
larceny
bad checks offenses
embezzlement
possession of stolen property
2. Not all moral principles or moral values have been
enacted as law. The law may permit something
that is ethically wrong. The law may also require
or demand conduct that may be ethically wrong.
3. In terms of ethical behavior, merely obeying the
law is the minimum level of expected conduct.
4. Ethics may be defined as a set or moral principles
or values that govern the conduct of an individual or a group.
B. MORAL THEORIES AND BUSINESS ETHICS
1. Ethical Fundamentalism outside source for ethical rules.
2. Utilitarianism Jeremy Bentham (1748-1832) AND John Stuart Mill (1806-1873).
3. Kantian Ethics duty ethics or deontology. Universal rules. Categorical imperative: "do unto others…"
Consistency all cases treated alike, no exceptions
Reversibility the person making the judgment must comply by the same rules used to judge others.
4. Rawl's Social Justice Theory. John Locke (1632-1704) and Jean Jacques Rousseau (1712-1778) proposed a social contract theory of morality. I will keep the rules if everyone else does. Distributive Justice Theory and the veil of ignorance.
5. Ethical Relativism each person decides for themselves.
C. THE SOCIAL RESPONSIBILITY OF BUSINESS
Social responsibility is the duty owed by businesses to act socially responsible in producing and selling goods and services.
1. Maximizing Profits for shareholders
2. Moral Minimum to make profit while avoiding harm to others.
3. Stakeholder Interests requires a corporation to take all stakeholders interests into consideration, not just shareholders.
4. Corporate Citizenship corporation should do good.