1. Ethical Decision Making and Ethical Theory MGMT 491 Management Ethics in a Global Environment Jeffery D. Smith

2. Ethical Decision Making Applying general values and ethical principles in concrete circumstances in order to justify a particular decision or course of action. awareness judgment and deliberation

3. Basic Ethical Values for Business? Trust Honesty Fairness Autonomy/Freedom Impartiality Integrity Beneficence Authority Property

4. Sample Correlative Principles One ought to negotiate in good faith Honor your agreements Compensation should be based on merit Customer data should be kept private Provide sound advice to clients Respect your organization’s mission statement Support local communities when downsizing Obey all environmental regulations Respect the trade secrets of competitors

5. PARTICULAR JUDGMENT OR DECISION ETHICAL PRINCIPLES VALUES ETHICAL THEORY

6. Ethical Decision Making is not algorithmic Ethical Decision Making often involves a use of principles that are not subjective Ethical Decision Making is characteristically not simply self-interested Ethical Decision Making often involves a use of principles that are not socially or culturally relative

7. “Principles and Priorities”: A 6 Step Procedure 1: Identify and Define the Problem 2: Analyze the Principles Relevant to the Problem 3: Analyze what Principles are the Most Decisive 4: Evaluate the Analysis in (1)-(3) 5: Make a Decision Expressing the Priorities 6: Assess the Consequences of Your Decision

8. CONSEQUENTIALISM actions are right insofar as they improve good consequences; wrong insofar as they produce bad consequences ethical egoism (good=satisfaction of self-interests) Utilitarianism (good=human welfare) hedonic (good=pleasure) preference (good=preference satisfaction) eudaimonic (good=happiness)

9. Jeremy Bentham (1748-1832)

10. John S. Mill (1806-1873)

11. Deontology deontological: the logic or science of duty deon=duty logos=logic (sometimes science) A deontological ethical theory is one which holds that some acts are ethically required independently of their consequences. Generally speaking, we are obliged to refrain from killing, stealing, lying, etc., regardless of whether refraining from these things promotes, for example, human happiness, welfare, or preference satisfaction.

12. Immanuel Kant (1724-1804)

13. Actions are ethically right in so far as they are motivated by a good will. A good will is a will that is moved by reason and not wishes, desires, and preferences Ethical principles are imperatives, or commands of reason

14. The 2 Formulas of Kant's Categorical Imperative Act only according to that maxim by which you can at the same time will that it should become a universal law. (universal law formula) Act so that you treat humanity, whether in your own person or in that of another, always as an end and never as a means only. (humanity formula)

15. Universal Law Formula 1. Form a maxim 2. Universalize the maxim 3. Determine rational acceptability

16. Humanity Formula Humans have inherent dignity and incomparable worth because they are rational creatures, capable of autonomy Never use the rational capacities of another human being to further your own interests. The inherent dignity and incomparable worth of humans demands basic rights or core entitlements.

17. Virtue Ethics An emphasis on the traits, dispositions, and inclinations needed to lead a life of moderation that balances the ends of overlapping roles and relationships in a community. Aristotle (384-322 BC) Virtue=arete (or excellence) Happiness=eudaimonia Ethical judgment=phronesis

18. TRUTHFULNESS SELF-CONTROL GENEROSITY TEMPERANCE SINCERITY COURAGE TOLERANCE CIVILITY MODESTY TACTFULNESS JUSTICE Solomon, R. (2002). Corporate Roles, Personal Virtues: An Aristotelean Approach to Business Ethics. In Donaldson, T., Werhane, P. and Cording M. (Eds.), Ethical Issues In Business: A Philospohical Approach (pp. 71-82). Upper Saddle River: Prentice Hall.