Individual Factors: Moral

Philosophies and Values

 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 business people in formulating strategies and resolving
specific ethical issues

No one moral philosophy is accepted by everyone

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MORAL PHILOSOPHIES PERSPECTIVE

 Teleology

 Deontology

 The Relativist Perspective

 Virtue Ethics

 Justice Perspectives

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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
Teleological Philosopies
• Egoism - personal benefits
• Utilitarianism - benefits for all
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 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)
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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

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 DEONTOLOGY

 Rule deontologist
• Conformity to general moral principles

 Act deontologists
• Evaluate ethicalness based on the act

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 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

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 THE RELATIVIST PERSPECTIVE

 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

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 VIRTUES THAT SUPPORT BUSINESS
TRANSACTIONS
 Trust  Learning
 Self - control  Gratitude
 Empathy  Civility
 Fairness  Moral Leadership
 Truthfulness

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 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.

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THREE TYPES OF JUSTICE

Distributive Justice
1 An evaluation of the outcomes or results of a business relationship
(evaluating benefits derived/equity in rewards)

Procedural Justice
2 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
3 Based on an evaluation of the communication processes used in
business relationships (evaluating accuracy of information and
truthfulness, respect and courtesy in the process)
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 APPLYING MORAL PHILOSOPHY TO
ETHICAL DECISION MAKING
 Evidence suggests that individuals use different moral
philosophes depending on the context (personal versus work
decisions)..

 Moral philosophies should be assessed on a continuum

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 1. Define the right as
punishment and obedience
COGNITIVE MORAL *Right as literal obedience as
DEVELOPMENT to rules and authority
2. Define the right as individual
Kohlberg’s model instrumental purpose and
consists of 6 exchange
stages *Right as that which serves his or
her own needs.
3. Define the right as mutual
interpersonal expectations,
relationships, and conformity
*Emphasizes others rather
than itself
4. Define the right as social
system and conscience
maintenance

5. Define the right as prior rights,

social contract or utility

6. Define the right as

universal ethical principles
IMPORTANCE OF KOHLBERG’S THEORY

Provides encouragement that individuals in a company

1 can
change or improve their moral development
Supports management’s development of employees’
2 moral principles through applicable strategies

Indicates that the best way to improve employees’

3 business ethics is to provide training for cognitive moral
development
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 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

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THANK YOU!
Any Questions?