1. Individual Factors: Moral Philosophies and Values
University of Bahrain
College of Business Administration
MGT 437 Business Ethics
Chapter 6
Individual Factors: Moral Philosophies and Values
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

2. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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. MGT437

3. Moral Philosophy Perspectives
Teleology
Egoism
Utilitarianism
Deontology
The Relativist Perspective
Virtue Ethics
Justice Perspectives
Distributive
Procedural
Interactional
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

4. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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. MGT437

5. Categories of Teleology
Egoism
Right or acceptable behavior defined in terms of consequences to the individual
Maximizes personal interests
Enlightened egoists take a longer term perspective and allow for the well being of others.
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. MGT437

6. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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, consent, privacy, speech and due process
Rule deontologist
Conformity to general moral principles
Act deontologists
Evaluate ethicalness based on the act
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

7. 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 reserved. MGT437

8. Virtues That Support Business Transactions
Trust
Self-control
Empathy
Fairness
Truthfulness
Learning
Gratitude
Civility
Moral leadership
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

9. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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. MGT437

10. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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 reserved. MGT437

11. 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. MGT437

12. Cognitive Moral Development
Kohlberg’s model consist of 6 stages:
Punishment and obedience
Individual instrumental purpose and exchange
Mutual interpersonal expectations, relationships, and conformity
Social system and conscience maintenance
Prior rights, social contract or utility
Universal ethical principles
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

13. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
Kohlberg’s Model
Kohlberg’s 6 stages can be reduced to 3 different levels of ethical concern:
Concern with immediate interests and with rewards and punishments
Concern with “right” as expected by the larger society or some significant reference group
Seeing beyond norms, laws, and the authority of groups or individuals
Copyright © Houghton Mifflin Company. All rights reserved. MGT437

14. 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. MGT437

15. Copyright © Houghton Mifflin Company. All rights reserved. MGT437
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. MGT437

16. Individual Victimization Trends (Lifetime Consumer Experiences)
Copyright © Houghton Mifflin Company. All rights reserved. MGT437