Ethics – Unit 1

Ethics

• set of guiding principles and standards that dictate behavior and decision-making in various
contexts
• Derived from the Greek word “ethos,” meaning character or conduct
• understanding what is morally right or wrong, just or unjust, and fair or unfair in different
situations
• framework for upholding integrity, fairness, and responsibility in individual and
organizational actions.
• a branch of philosophy
• explores morality
• seeks to answer questions about what constitutes goodness and how one should act morally
• not confined to abstract theory but extends to practical applications, addressing real-life
dilemmas across diverse fields.
• For example, in medicine, ethical considerations play a critical role in balancing patient
confidentiality with public health interests

Morality

• personal beliefs and values guiding individual behavior

Business Ethical Issues

• arise when actions or decisions conflict with the ethical principles of the organisation or
society
• involve both organizations and individuals
• Dealing with ethical conflicts can pose risks for organizations
• Even if there are no legal consequences, ethical issues can still lead to negative perceptions
from stakeholders
• Managing ethical issues effectively can be challenging, especially in situations where clear
guidelines are lacking
• promoting a culture of ethical behavior and providing support and resources, organizations
can navigate ethical challenges with integrity and accountability.

Types of Business Ethical Issues

• Discrimination –
o when employees are treated unfairly due to characteristics such as age, gender, race,
religion, or disability
o arise in hiring, promotion, compensation, or termination processes
o not only unethical but also illegal under various anti-discrimination statutes
o For instance, if a tech company consistently favours male employees over equally
qualified female counterparts in promotions, it could face allegations of
discrimination
• Harassment –
o unwelcome behavior, such as verbal abuse, sexual advances, racial slurs, or bullying
o creates a hostile or intimidating work environment
o lead to psychological distress, reduced productivity, and high turnover rates
o Employers have a legal obligation to prevent and address harassment in the
workplace
o Example: In a retail store, a manager regularly makes derogatory comments about an
employee’s race, creating a hostile work environment. Despite the employee’s
complaints, the manager takes no action to address the harassment, causing
psychological distress and reducing the employee’s productivity
• Unethical Accounting –
o manipulation of financial records to present a false or deceptive image of a
company’s financial health
o include inflating revenues, reducing expenses, or hiding debts
o not only deceives investors and stakeholders but also carries legal consequences and
damages the company’s reputation
o For instance, the Enron scandal involved fraudulent accounting practices that led to
the company’s collapse
• Health and Safety –
o moral and legal obligation to ensure the health and safety of their employees
o Cutting corners on safety measures, such as inadequate training or failing to provide
necessary protective equipment, can lead to workplace accidents, injuries, or even
fatalities
o address psychosocial risks, such as job insecurity or excessive workloads, which can
contribute to work-related stress and mental health issues
o Example: A construction company fails to provide proper safety equipment and
training to its workers, resulting in several workplace accidents and injuries. The
company’s negligence in ensuring the health and safety of its employees not only
violates legal regulations but also creates a dangerous work environment.
• Abuse of Leadership Authority –
o pressuring employees to bypass proper procedures, setting unreasonable
performance goals, or retaliating against whistleblowers
o creates a culture of fear and undermines trust within the organization
o Example: A CEO pressures employees to meet unrealistic performance goals by
threatening termination, creating a culture of fear and anxiety within the
organization. This abuse of power undermines employee morale and trust in
leadership, ultimately leading to high turnover rates and decreased productivity
• Nepotism and Favouritism –
o Nepotism - individuals are hired or advanced in their careers due to familial ties
rather than merit
o favouritism - granting preferential treatment to specific employees for personal
reasons
o resentment among other employees and erode morale and confidence
o For instance, a manager consistently prioritizing the promotion of family members or
close acquaintances over more qualified candidates
• Privacy –
o excessive intrusion into employees’ personal lives, such as monitoring social media
or reading private emails
o Example: An employer installs surveillance cameras in the workplace to monitor
employees’ activities without their knowledge or consent
• Corporate Espionage –
o stealing or misusing company data for personal gain or to benefit competitors
o leaking confidential information, stealing trade secrets, or sabotaging company
operations
o Example: An employee secretly copies sensitive company data and shares it with a
competitor for personal gain

Why Ethical Problems Occur in Businesses

• Pressure to Achieve Results - When businesses prioritize profits or performance metrics over
ethical considerations, employees may feel compelled to cut corners or engage in unethical
behavior to meet targets
• Lack of Oversight or Accountability - Inadequate systems for monitoring and enforcing ethical
standards within organizations can create an environment where unethical conduct goes
unchecked
• Conflicting Interests - When the interests of different stakeholders—such as shareholders,
employees, customers, and the broader community—come into conflict, businesses may
face ethical dilemmas in reconciling these competing demands
• Complexity of Global Operations - As businesses expand globally, they encounter diverse
cultural norms, legal frameworks, and societal expectations, leading to ethical challenges in
navigating these multifaceted landscapes.

Ethical Dilemmas in Business

• Conflicts of Interest: When individuals or organizations have competing loyalties or interests

that may bias their decisions or actions
• Whistleblowing: Deciding whether to expose unethical behavior within one’s organization,
risking retaliation or career repercussions
• Fair Competition: Balancing the desire for market dominance with the ethical behaviour to
respect competition and avoid anti-competitive practices
• Environmental Impact: Choosing between maximizing profits and minimizing environmental
harm
• Treatment of Employees: Balancing the need for cost-cutting or efficiency with fair
treatment, job security, and employee well-being
• Corporate Social Responsibility: Allocating resources and efforts to social initiatives while
ensuring transparency and authenticity in corporate philanthropy or social responsibility
programs

Normative Theories

• frameworks within moral philosophy that guide individuals in navigating ethical dilemmas
and making moral decisions
• address fundamental questions about what constitutes right or wrong behavior
• provide principles or standards for ethical reasoning

Types of Normative Theories

• Utilitarianism –
o morality of an action is determined by its consequences, specifically the amount of
happiness it produces and the suffering it reduces
o guided by the principle of maximizing overall happiness, often summarized as “the
greatest good for the greatest number”
o For example, in a medical scenario where a doctor must choose between patients for
a life-saving organ transplant, utilitarianism advises prioritizing the patient whose
survival would result in the most happiness for society
• Ethical egoism –
o individuals should prioritize their own self-interests over those of others
o pursuing personal well-being ultimately benefits society
o While acknowledging the importance of self-interest, ethical egoism raises questions
about balancing individual needs with the welfare of others and the justification of
cooperation and altruism
o For instance, a business owner may prioritize profit maximization over
environmentally sustainable practices, as it aligns with the principles of ethical
egoism
• Deontological ethics or the ethics of duty –
o primarily associated with Immanuel Kant
o emphasizes the importance of moral duties inherent in actions, regardless of their
consequences
o prioritizes intention
o Key Concepts –
1. Moral Duties - universal, absolute principles that apply across all situations
2. Categorical Imperative - one should act only according to maxims that can be
universally applied as moral laws
3. Intentions - morality of an action depends on its intention rather than its
outcome. An action can be morally right if motivated by duty, even if the
consequences are negative
4. Universalizability - Moral rules must be consistent and applicable to
everyone, without contradiction.
o Critiques –
1. Rigid
2. not easily adaptable to complex ethical dilemmas
o Example: Imagine a person finds a lost wallet containing a large sum of money.
According to deontological ethics, the person has a moral duty to return the wallet
to its rightful owner, regardless of any potential benefit they might gain from keeping
the money
• The ethics of rights and justice –
o framework focused on respecting individual rights and ensuring fairness in society.
o Key Concepts –
1. Rights-based Ethics - Individuals possess inherent, inalienable rights such as
life, liberty, and equality. Moral actions are those that respect and protect
these rights
2. Justice-based Ethics - fairness in distributing benefits and burdens within
society. It focuses on treating people impartially and ensuring equitable
access to resources and opportunities
o Principles of Justice –
1. John Rawls’ Theory of Justice - proposed the idea of "justice as fairness,"
which includes:
➢ Equal basic liberties: Ensuring everyone enjoys the same
fundamental freedoms
➢ Difference principle: Addressing social and economic inequalities to
benefit the least advantaged
2. Equality vs. Equity: Equality involves treating everyone the same, while
equity considers individual differences and aims to distribute resources and
opportunities fairly
o Application - used to address issues like poverty, discrimination, and healthcare
reform by balancing rights and fairness
o Critiques - balancing competing rights and determining whose rights take
precedence can be challenging
o Example: Imagine a company has to decide how to allocate limited healthcare
benefits to its employees. A rights-based approach would ensure that every
employee has equal access to essential healthcare services, as this respects their
right to health. Meanwhile, a justice-based approach might focus on equity,
ensuring that employees with greater health needs receive more support to achieve
fairness
• Virtue ethics –
o emphasizes the development of moral character over rules or outcomes
o asks, "What kind of person should I be?"
o encourages cultivating virtues like courage, honesty, and compassion
o Key Concepts –
1. Virtuous Character - Moral excellence is achieved by nurturing virtuous traits
through consistent practice, such as honesty and integrity
2. Phronesis (Practical Wisdom) - ability to make wise and prudent decisions in
real-life situations, guided by an understanding of ethical principles
3. Eudaimonia (Flourishing) - ultimate goal of virtue ethics is eudaimonia, or
human flourishing, which is achieved by living a virtuous life in harmony with
one's rational nature
o Example: A student decides not to cheat on a test, not because of rules or
consequences, but to uphold honesty as a virtue
• The ethics of care –
o emphasizes the importance of relationships, empathy, and attending to others'
needs in moral decision-making
o Key Concepts –
1. Relationships of Care - Moral responsibilities arise from caregiving
relationships, such as those in families and communities, with caregiving
seen as a fundamental moral virtue
2. Contextual Morality - focuses on the specific needs and vulnerabilities of
individuals in particular situations, rather than applying universal rules
o Critique of Traditional Ethics - neglecting the importance of relationships and
interconnectedness in moral decision-making
o Example: A mother prioritizes caring for her sick child over other obligations,
focusing on the child's specific needs and well-being. Her decision is driven by the
relationship and responsibility of care, rather than abstract rules or principles

Gandhian ethics or Gandhism

• moral and philosophical framework based on Mahatma Gandhi's teachings

• emphasizes nonviolence (ahimsa), truthfulness (satya), self-discipline (tapas), selfless service
(seva), and the pursuit of social justice and equality.
• Key Principles –
o Nonviolence (Ahimsa) - resolving conflicts through peaceful means and avoiding
harm to others
o Truthfulness (Satya) - Honesty and transparency are essential for moral integrity and
social justice
o Self-discipline (Tapas) - mastering one’s desires through self-control to lead a
purposeful life
o Selfless Service (Seva) - Compassion and service to others without expecting
anything in return
o Social Justice and Equality - Gandhi fought for the rights of the marginalized and
envisioned a society based on equality and fraternity
o Spiritual Dimension - ethics should be deeply spiritual, influenced by multiple
religious traditions, seeing the struggle for justice as a spiritual quest

Relationship of Gandhian Ethics with Normative Theories

• Utilitarianism –
o Relation - Both Gandhian ethics and utilitarianism aim for the greater good
o Difference - Utilitarianism focuses on maximizing happiness through outcomes, while
Gandhian ethics prioritizes principles like nonviolence and truthfulness, even if they
don't yield maximum utility
• Deontology –
o Relation - Gandhian ethics shares deontology’s emphasis on moral duties inherent in
actions, irrespective of consequences
o Connection - Both stress adherence to moral principles, but Gandhi also considered
the long-term transformative impact of nonviolent action, blending deontological
and consequentialist elements.
• Virtue Ethics –
o Relation - Gandhian ethics aligns with virtue ethics in its emphasis on cultivating
virtues such as nonviolence, honesty, and self-discipline for moral excellence and
personal transformation
o Connection - Gandhi’s focus on personal growth and social justice mirrors virtue
ethics’ pursuit of human flourishing (eudaimonia)
• Ethics of Care - compassion and empathy as described in Gandhian ethics resonate with the
ethics of care, focusing on relationships and helping the marginalized