01 Ethical Decisions in Business

Figures and tables

2

Components of a problematic ethical situation

(1)

Agent

(2)

Decision

(3)

Results

A person or organization implements a decision that produces various consequences.

3

The "prism" of ethical theory

Ethical Decision: Should Amy

recommend offshore production?

Ethical Theory Fairness considerations:

Offshore vs. local pay?

Net benefit considerations: Impact of job losses on

local community?

Virtue/vice considerations:Is becoming Amy

avaricious?

Rights considerations:Offshore human

rights?

4

Amy, as Chief Ethics Officer (CEO), makes a decision after hearing from all divisions of ethical theory

EthicsConference

Table

CEO = Amy

VPVirtue

VPJustice

VPEgoism

VPFeminism

VPRights

VPUtilitarianism

5

Weighing ethical reasons

Virtue

Feminism

Rights

Justice

Egoism

Utilitarianism

YES

NO

6

Shareholder view of moral standing

Decision-maker

Owners

7

Stakeholder view of moral standing(Corporate Social Responsibility)

Decision-maker

Owners

Employees

SuppliersCustomers

Local community

Comprehensive view of moral standing

8

Decision-maker

Owners

Employees

Suppliers

Customers

Local communityGlobal community

Posterity

Environment

Self

9

Moral standing

Agent Decision Results

Moral Agency?

Moral Accountability?

Moral Standing?

10

Moral standing

Amy Move Offshore

Job losses

Moral agent: Amy

Is Amy morallyaccountable?

Moral standing:

Local community

11

Identifying relevant ethical reasoning

Agent Decision Results

Identity-based

Principle-based

Consequence-based

12

Classifying ethical reasoning

Ethical Theories

Identity-basedVirtue ethics

Feminist ethics of care

Principle-based

Duties

Rights

Justice

Consequence-based

Objective

Utilitarian

Ethical egoism

13

Amy's decision whether to propose moving production offshore (2)

A. Amy realizes that if the company implements her proposal, then she will receive a handsome year-end bonus.

B. Amy worries whether in putting forward the proposal, and thinking only of her own gain, she is becoming greedy and avaricious.

C. Knowing that human rights abuses often occur in Special Economic Zones, Amy worries that implementation of her proposal will fail to respect the rights of overseas workers.

D. Amy knows that if her firm implements her proposal, then it will fire many of its present employees.

E. Amy also knows that the overseas contractor will pay the women sewing the clothing in a developing country much less that her company is paying its present employees for doing the same work.

F. Amy should think of her duties to the owners of the firm. By taking on her role as a manager, Amy acquired a fiduciary duty to benefit the interests of the owners.

G. Amy should think of the firm's suppliers. Moving production offshore will mean not renewing contracts with suppliers.

14

Amy's decision whether to propose moving production offshore (3)

Self Owners Employees Suppliers Customers Community Globe EnvironmentCharacter-basedVirtue Ethics BFeminist EthicsPrinciple-basedDuties FRights CJustice EConsequence-basedObjectiveUtilitarian D GEthical Egoism A