1. Business Ethics Unit 6

2. UTILITARIANISM
Part One. Fundamental Tenets  of Utilitarianism

3. Utilitarianism: Problems
Maximizing happiness might require performing immoral actions.
E.g.. Could save three lives by taking one.
Utilitarianism does not explain why we should respect people’s “rights”.
Utilitarianism does not support keeping promises, unless it will support the general happiness.
Utilitarianism seems to be too demanding

4. Immanuel Kant ( ) 
Sought to establish all philosophy on a rational ground.
Believed that what is right and wrong could be determined by reason.
Reason dictates a basic, unconditional imperative, that applies to all rational beings. (Kant called this ‘the categorical imperative.’)

5. The Categorical Imperative Two formulations.
The Universal Law Formulation: Always act on those maxims that you could at the same time (rationally) will to become a universal law (of nature).
Application: You are thinking of cheating on your exam. Could you will a world in which everyone cheated? No. Because if everyone cheated, then the exams would not be taken seriously and you would not achieve what you are seeking in cheating.
Kant argued that it is never right to lie.
Basic idea: If you have a reason that makes it rational for you to do something, then that same reason would make it rational for any human being to do the same thing. If you could not rationally will for everyone to do it, then it must not really be rational for you to perform that action.

6. The Categorical Imperative Two formulations.
The End-in-themselves Formulation: Always treat rational beings (other persons) as ends-in-themselves, and never merely as a means.
Application: You are thinking of cheating on your exam. But to cheat on an exam is to manipulate your instructor into giving you a grade you do not deserve. You are simply using them to get a good grade.
Basic idea: Humans beings have inherent worth or dignity and should be treated with respect due to their status as rational beings. To be a rational being is to have the capacity to make autonomous, rational decisions. Lying, killing, cheating, injuring, manipulating, etc., others in order to achieve you own goals is to treat them as things to be used and to bypass their own freedom and right to set their own rational goals.

7. Business Ethics...
comprises principles and standards that guide behavior in the world of business
is right or wrong, acceptable or unacceptable behavior within the organization
is determined by key stakeholders

8. Social Responsibility...
is the obligation a business assumes toward society
is designed to maximize the positive influence & minimize the negative
includes economic, legal, ethical, and philanthropic dimensions

9. Why study business ethics & social issues?
in an Ethics Officer Assoc. Survey, 48% of employees indicated that they had done something unethical or illegal in the past year
annual cost of unethical or illegal acts by U.S. employees: $400 billion

10. Common Unethical Acts... lying to supervisors falsifying records
alcohol and drug abuse
conflict of interest
stealing
gift/entertainment receipt in violation of company policy
1997 Society for Human Resource Management/ Ethics Resource Center, Business Ethics Survey.

11. Key Causes of Unethical Behavior...
meeting overly aggressive financial or business objectives
meeting schedule pressures
helping the organization survive
rationalizing that others do it
resisting competitive threats
saving jobs
1997 Society for Human Resource Management/ Ethics Resource Center, Business Ethics Survey.

12. Key Influences On Ethical Behavior...
personal values
supervisor influence
senior management influence
internal drive to succeed
performance pressures
lack of punishment
friends/coworker influence
1997 Society for Human Resource Management/ Ethics Resource Center, Business Ethics Survey.

13. Why Misconduct Is Not Reported...
fear of not being considered a team player
did not think corrective action would be taken
fear of retribution (from management)
“no one else cares, why should I”
did not trust the organization to keep report confidential
1997 Society for Human Resource Management/ Ethics Resource Center, Business Ethics Survey.

14. Classification of Ethical Issues...
conflict of interest
honesty and fairness
communications
organizational relationships

15. Conflict of Interest...
exists when an individual must choose whether to advance his/her own interests, the organization’s, or others’
examples include bribes or personal payments, gifts, or special favors intended to influence decision making

16. Honesty & Fairness...
following applicable laws a regulations & not knowingly harming stakeholders
Is advertising prescription drugs on TV and in magazines fair?
Are long distance information ads that place the cost of the call in very small print at the bottom of the screen fair?

17. Communications...
refers to the transmission of information and the sharing of meaning
examples: deceptive advertising, product safety information, & product composition
Are vitamin and herbal supplements using ‘puffery’ in their advertising?
Note: roughly half of Americans take supplements

18. Organizational Relationships...
behavior of organizational members toward stakeholders
includes confidentiality, meeting obligations & deadlines, not pressuring others to behave unethically

19. Ethical Issues Can Relate to All Functional Areas...
accounting
finance
management
marketing

20. Discrimination define
to discriminate in employment is “to make an adverse / unfavorable decision regarding an employee or job applicant based on his or her membership in a certain group

21. Determining whether discrimination occurs in employment depends …..
3 basic facts:
a. whether the decision in some way harms or disadvantages the employee or job applicant;
b. whether the decision is based on an employee’s or job applicant’s membership in a certain group, rather than individual merit; and
c. whether the decision rests on prejudice, false stereotypes, or the assumption that the group is in some way inferior and thus deserving of unequal treatment.

22. On moral perspectives there are compelling moral arguments against job discrimination:
on racial or sexual grounds for 3 instances:
Utilitarian grounds:
The idea is that an action (or rule) is right only if there is no other act (or rule) that would produce a greater amount of whatever consequence that the utilitarian is focusing on (e.g., happiness, preferences, welfare).
Since acts (or rules) that do not discriminate result in less harm than those that do, it follows that discrimination is wrong.

23. 3 instances
b. Kantian grounds: If one attempted to universalize a maxim / saying advocating discrimination,
namely, that an action is right only if the agent would be willing to be so treated
Presumably, no one (who was rational) would be willing to be discriminated against on the basis of gender or race.

24. 3 instances
c. Moral rights: On the assumption that there are moral rights, then people have these rights not because of their gender or race, but simply in virtue of being human.
There seems to be a moral right to be treated fairly, and discrimination on the basis of gender or race is, by its very nature, unfair.
Thus, moral rights are violated by discrimination on the basis of gender or race.

25. Evidence of Discrimination
two kinds of evidence – (race and gender):
a. Statistical evidence
b. Attitudinal / Outlook (mind-set) evidence

26. Affirmative action:
an organisational program designed to give preference in hiring and promotion to women and minorities, including veterans, the aged, and the disabled.

27. 3 arguments for affirmative action,
Compensatory Justice demands affirmative action programs.
Here the key idea is that discrimination on the basis of race and sex has existed in the past.
We need to do something (compensate) to “help repair the wrongs of the past.”

28. 3 arguments for affirmative action,
Affirmative Action is necessary to permit fairer competition.
Here the key idea is that members of certain races and women have been raised in families that have been affected by discrimination.
they are treated unfairly by many of the institutions that exist in our society, therefore at a disadvantage, and so cannot compete fairly with white men in the job market.

29. 3 arguments for affirmative action,
Affirmative Action is necessary to break the cycle that keeps minorities and women locked into low-paying, low- prestige jobs.
Here the key idea is that members of certain races and women have been locked into low-paying, low-prestige jobs. ( has bad social consequences so there must be programs to break this pattern.)

30. 3 arguments against affirmative action.
Affirmative Action injures white men and violates their rights.
Affirmative Action itself violates the principle of equality (egalitarianism / fairness)
Nondiscrimination will achieve our social goals; stronger affirmative action is unnecessary.

31. Comparable Worth
the doctrine of comparable worth holds -that women and men should be paid on the same scale, not just for doing the same or equivalent jobs, but for doing different jobs involving equal skill, effort and responsibility.”

32. Advocates of comparable worth say…
that justice demands that women receive equal pay for doing work of comparable value.
Jobs should be objectively evaluated in terms of
education, skills, and experience required
Responsibilities & working conditions

33. Opponents of comparable worth insist that ..
women, desiring flexible schedules and less demanding jobs, have freely chosen lower-paying occupations and thus are not entitled to any redistribution in pay scales.

34. Sexual Harassment
Sexual harassment occurs as behaviour of a sexual nature that affects a person’s employment situation.
3 kinds of sexual harassment
Sexual threats
Sexual offer
hostile work environment

35. End