Chapter 6 Individual Factors Moral Philosophies and Values

Chapter 6 Individual Factors: Moral Philosophies and Values Copyright © Houghton Mifflin Company. All rights reserved. 6 -1

Moral Philosophy Refers to principles or rules that people use to decide what is right or wrong Presents guidelines for determining how to settle conflicts in human interests Guides businesspeople in formulating strategies and resolving specific ethical issues No one moral philosophy accepted by everyone Copyright © Houghton Mifflin Company. All rights reserved. 2

Moral Philosophy Perspectives Teleology – Egoism personal benefits – Utilitarianism benefits for all Deontology : focuses on the presentation of individual rights and on the intentions associated with a particular behavior than on its consequences The Relativist Perspective evaluate thee thicalness on the individuals and group experiences Virtue Ethics assume what is moral in a given status is not conventional morality requires but also what the mature person with a good moral character wood deem (see) appropriate Justice Perspectives evaluate the ethicalness on the basis of fairness – Distributive – Procedural Copyright © Houghton Mifflin Company. reserved. All rights 3

Teleology Considers acts as morally right or acceptable if they produce some desired result such as pleasure, knowledge, career growth, the realization of a self interest, or utility Assesses moral worth by looking at the consequences for the individual Copyright © Houghton Mifflin Company. All rights reserved. 4

Categories of Teleology Egoism – Right or acceptable behavior defined in terms of consequences to the individual – Maximizes personal interests Utilitarianism – Concerned with consequences – Considers a cost/benefit analysis – Behavior based on principles of rules that promote the greatest utility rather than on an examination of each situation (greatest good for greatest number of people) Copyright © Houghton Mifflin Company. All rights reserved. 5

Deontology Focuses on the rights of the individual, not consequences (considers intentions) Believes in equal respect and views certain behaviors as inherently right Proposes that individuals have certain inherent freedoms – Freedoms: conscience, privacy, speech Rule deontologist – Conformity to general moral principles Act deontologists – Evaluate ethicalness based on 6 the act Copyright © Houghton Mifflin Company. All rights reserved.

The Relativist Perspective Defines ethical behavior subjectively from the experiences of individuals and groups – Relativists use themselves or those around them as their basis for defining ethical standards – A positive group consensus indicates that an action is considered ethical by the group Acknowledges that we live in a society in which people have different views – There are many different bases from which to justify a decision as right or wrong Copyright © Houghton Mifflin Company. All rights 7 reserved.

Virtues That Support Business Transactions Trust Self-control Empathy Fairness Truthfulness Copyright © Houghton Mifflin Company. All rights reserved. Learning Gratitude Civility Moral leadership 8

Virtue Ethics What is moral in a given situation is not only what conventional wisdom suggests, but also what a “moral” character would deem appropriate. Elements include truthfulness, trust, self control, empathy, and fairness. Attributes in contrast to virtue include lying, cheating, fraud, and corruption. Copyright © Houghton Mifflin Company. All rights reserved. 9

Three Types of Justice Distributive justice – An evaluation of the outcomes or results of a business relationship (evaluating benefits derived/equity in rewards) Procedural justice – Based on the processes and activities that produce the outcomes or results (evaluating decision making processes and level of access, openness and participation) Interactional justice – Based on an evaluation of the communication processes used in business relationships (evaluating accuracy of information and truthfulness, respect and courtesy in the process) Copyright © Houghton Mifflin Company. All rights 10 reserved.

Applying Moral Philosophy to Ethical Decision Making Evidence suggests that individuals use different moral philosophies depending on the context (personal versus work decisions). – Pressures at work are different from personal pressures. – Decision making is affected by the corporate culture at work (rules, work group, etc. ). Moral philosophies should be assessed on a continuum. Copyright © Houghton Mifflin Company. All rights reserved. 11

Cognitive Moral Development Kohlberg’s model consist of 6 stages: – Define the right as punishment and obedience – Define the right as individual instrumental purpose and exchange – Define the right as mutual interpersonal expectations, relationships, and conformity – Define the right as social system and conscience maintenance – Define the right as Prior rights, social contract or utility – Define the right as Universal ethical principles Copyright © Houghton Mifflin Company. All rights 12 reserved.

Importance of Kohlberg’s Theory Provides encouragement that individuals in a company can change or improve their moral development Supports management’s development of employees’ moral principles through applicable strategies Indicates that the best way to improve employees’ business ethics is to provide training for cognitive moral development Copyright © Houghton Mifflin Company. All rights reserved. 13

White-Collar Crime An individual or group committing an illegal act in relation to his/her employment Highly educated, in a position of power, trust, respectability, and responsibility Abuses the trust and authority normally associated with the position for personal and/or organizational gains Copyright © Houghton Mifflin Company. All rights reserved. 14