| Our mission is to improve educational access and learning for everyone. Creative Commons Attribution License A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. 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. No matter our culture, geography, or time, could we identify some basic normative behaviors to govern business conduct in general? <<77326D38A9B4B2110A000018C493FC7F>]/Prev 592216>> Again, the UN Universal Declaration of Human Rights is a useful starting point for the way business can conduct itself. 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. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. 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. If you belong to such an institution, please log in or find out more about how to order. 8 WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism Can Martin Bubers notion of love play a role in business? For those dedicated to the case method, novels, short stories, and plays offer an inexhaustible storehouse of riches, more detailed, subtle, and complete than most cases written up for courses.37, In DeGeorges humanities model, business ethics would not prepare students to do certain things, for which they likely will be trained by their employers, but to be certain persons. 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. 136 0 obj <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . 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. 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. For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. 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. 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. 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 5. It is not only a method to make a decision; it is a way of incorporating a humane consideration of and for individuals and groups when deciding a course of action. Page 1 of 1. Following 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) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Ethical Relativism: A Self-Interest Approach. endobj 1999-2023, Rice University. 0000001815 00000 n 0000017527 00000 n Additionally, the study investigates if the Responsibility to Protect (RtoP) adoption can be interpreted and derived from the moral theories by focusing on one of the three RtoP pillars, prevention. Want to cite, share, or modify this book? The Journal of Values-Based Leadership: Vol. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . | She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. 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. b. Differentiate "ethics" and "values". Utilitarianism and UniversalismTwo Worlds Apart? A common description of utilitarianism is seeking the greatest good for the greatest number this is paraphrased from Jeremy Bentham, who developed Act Compliance can be an immense task for industries like aerospace, pharmaceuticals, banking, and food production, due to the large number of employees involved, the certification of them that sometimes is necessary, and the requisite record keeping. startxref endobj Particularism, on the contrary, means that some people are more equal than others. 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. There are programs that do this, such as Giving Voice to Values at the Darden School of Business at the University of Virginia.35 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. If you are redistributing all or part of this book in a print format, A. developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations. (4) Who has to pay for the consequences? Z. Zemlyak - Zen - Zoroastrianism - Zurvanism Corporations and Politics: After Citizens United, 14. X. Xenofeminism. Universalism vs. Relativism Marketing Ethics: Selling Controversial Products, 17. grramire. 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) Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. 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. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. Practical wisdom, however, is often required to be virtuous. 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. endobj Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. The Workplace Environment and Working Conditions, 23. Recent Governance Reforms: An Executive Summary, 13. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors. Corporations and their Social Responsibility. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, 0 These guidelines also are designed to help organizations with compliance and reporting, and they introduce seven steps toward that end: (1) create a Code of Ethics, (2) introduce high-level oversight, (3) place ethical people in positions of authority, (4) communicate ethics standards, (5) facilitate employee reporting of misconduct, (6) react and respond to instances of misconduct, and (7) take preventive steps. 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. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. This book uses the WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Yet it remains controversial. It is an orientation that many use quite frequently. After all, we cannot make a commitment to serve customers, develop leaders, and improve life for all stakeholders unless there is freedom and moral agency, the necessary ingredients in establishing an attitude of concern, that is, respect for oneself and for others, including all appropriate stakeholders. In this model, organizations focus on employees as a vital part of the operation and support them in their professional training, health care, education, family responsibilities, and even spiritual concerns. grramire. For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. 148 0 obj endobj X [%:6Ou\Ng73Y (3) Who gets hurt? We might argue that it is not the business of business to form people in their conscience, but the result of not doing so has become expensive for everyone concerned.32. Get FREE shipping on Universality, Ethics and International Relations by Veronique Pin-Fat, from wordery.com. 0000001898 00000 n How are they related? grramire. At the same time, each one has a logic. DeGeorge suggests that a course in the philosophy of business would enable students to think about the foundations of businessits values, ends, purpose, and justification . In the business world, various ethical theories and principles are used. We recommend using a Principles help inform and influence values. Spheres of human value encompass morality, aesthetic preference, human traits, human endeavour, and social order.Whether universal values exist is an unproven conjecture of moral philosophy and cultural anthropology, though it is clear that certain values are It focuses on the type of person we ought to be, not on specific actions that should be taken. 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. WebUniversalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. 0000015844 00000 n The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. This principle involves taking human beings, their needs, and their values seriously. Corruption appears to exist everywhere, so it would seem to require a persistent and consistent answer everywhere. Some of the strengths and weaknesses that will be discussed for Universalism are consistency, intension basis, and universalizability, while some of the discussed strengths and weaknesses for Utilitarianism are flexibility, outcome-basis, and lack of consistency. 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. Content: formal principles or uniform requirements? List the four dimensions of a human being. 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.19 Howard Schultz, founder of Starbucks; cofounder 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. 97 terms. doi. 0000016028 00000 n For example, everyone must eat to survive, but not everyone would agree that eating chocolate-raspberry cake brings happiness. Can being aware of the actual values you use to guide your actions make a difference in your choices? %%EOF 133 0 obj Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many.20, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. 0000003514 00000 n The same action may be morally right in one society but be morally wrong in another. . She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. But what does love look like in a business setting? 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? That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. The focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. A result was enflamed widespread public protests from American youth and others. Attempt all Sections. Business can mean an activity of exchange. 0000000016 00000 n (5) Do I/we want to assume responsibility for the consequences? org/10.4135/9781473910034 More information Summary Contents Sexual Identification and Orientation, 31. > How can businesses do this? An action is morally right if the net benefits over costs are greatest for all affected compared with the net benefits of all other possible choices. Altruism is also part of character-based virtue ethics. Compliance is important, but business managers must attempt to go above and beyond to clearly model and enforce the highest standards of ethical behavior. WebUniversalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. WebA value is a universal value if it has the same value or worth for all, or almost all, people. Vol. (credit: Love Is All You Need Signage by Jacqueline Smith/Pexels, CC0), article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption, article on the LIBOR scandal and the consequences, https://openstax.org/books/business-ethics/pages/1-introduction, https://openstax.org/books/business-ethics/pages/5-4-are-the-values-central-to-business-ethics-universal, Creative Commons Attribution 4.0 International License, Explain the difference between relative and absolute ethical values, Discuss the degree to which compliance is linked with organizational responsibility and personal values, Identify the criteria for a system of normative business ethics. If you are redistributing all or part of this book in a print format, "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," 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. <>/Border[0 0 0]/Contents()/Rect[72.0 607.0547 200.4551 619.9453]/StructParent 3/Subtype/Link/Type/Annot>>