1. Moral Principles Paul L. Schumann, Ph.D.
© 2003 by Paul L. Schumann. All rights reserved.

2. Moral Principles
Main Issue: What moral principles should be used to make moral judgments in business?
We’ll use 5 moral principles
Why these 5 specific moral principles?
Complementary
Comprehensive
Commonly studied & used

3. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

4. 1. Utilitarianism
Utilitarian Principle: The morally correct action is the one that maximizes net social benefits, where net social benefits equals social benefits minus social costs.
Focus: the ends (results) of an action
Maximize net social benefits
Social benefits (good)
Social costs (harm)

5. Utilitarianism Most good & least harm for everyone
Consider all good & all harm
Everyone who is affected (not private benefits & costs, rather social benefits & costs)
Economic & non-economic
Example: loss of income (economic)
Example: pain & suffering (non-economic)
Present & future
Whether easily measured or not

6. Utilitarianism Concerns:
Some benefits & costs might be hard to measure in precise, non-controversial ways
Example: value of a human life
Utilitarianism might appear to justify unethical conduct: the ends justify the means
Example: sick uncle
Can we reconcile by finding other choices?

7. Utilitarianism
What’s wrong with this definition? Utilitarianism is the view that so long as an action provides me with more measurable economic benefits than costs, the action is morally right.

8. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

9. 2. Rights
Rights Principle: The morally correct action is the one that you have a moral right to do, that does not infringe on the moral rights of others, and that furthers the moral rights of others.

10. Rights Focus: the means (methods) Rights are entitlements
Example: Right to free speech
Example: Right to freedom of religion
Example: Right to an education

11. Rights, Duties, & Interests
Function of rights: to protect interests
Example: Free speech
Example: Freedom of religion
Example: Education
Rights create duties
Examples: free speech, freedom of religion, education

12. Rights Consider: But, what moral rights do people have?
Your own moral rights
Moral rights of others
Don’t infringe on moral rights of others
Further moral rights of others
But, what moral rights do people have?

13. What rights do individuals have?
Immanuel Kant (1724–1804) Categorical Imperative:
Reversibility
Universalizability
Respect / Free Consent
But, when rights are in conflict, how should we resolve those conflicts among rights?

14. Resolve Conflict Among Rights
Rights protect interests
Rights create duties
When rights conflict:
Examine competing interests
Decide which interest is more important
Give priority to right that protects more important interest

15. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

16. 3. Distributive Justice
Distributive Justice Principle: The morally correct action is the one that produces a fair distribution of benefits and costs, good and harm.

17. Distributive Justice (Fairness)
General Fairness Principles:
People who are similar in relevant respects should be treated similarly
People who differ in relevant respects should be treated differently
But what characteristics are relevant in deciding if people are similar?

18. How Define Justice (Fairness)?
Egalitarianism: equal
Capitalism: contributions
Socialism: abilities & needs
Libertarianism: free choice
John Rawls’s Principles:
Equal Liberty Principle
Equal Opportunity Principle
Difference Principle

19. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

20. Ethics of Care
Basic argument: ethical behavior is more than impersonal principles
Relationships matter
Example: love toward son or daughter versus toward a stranger
Care Principle: The morally correct action is the one that appropriately cares for the people with whom you have relationships.

21. Ethics of Care Care for your own needs
Care for the needs of people with whom you have relationships. Examples:
Family
Friends
Employees
Customers
Stockholders

22. Ethics of Care
What action helps those who are vulnerable and dependent on you?
What action nurtures the ability of those with whom you have relationships to make their own choices and live their own lives?
But no obligation to nurture relationships that are based on domination, oppression, exploitation, hatred, or disrespect.

23. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

24. Virtue Ethics
Virtue Principle: The morally correct action is the one that displays good moral virtues, and that does not display bad moral vices.

25. Virtue Ethics
Examples of virtues: compassion, conscientiousness, cooperativeness, courage, fairness, generosity, honesty, industriousness, loyalty, moderation, self-control, self-reliance, tolerance
Examples of vices: cowardice, deceit, dishonesty, laziness, neglect, selfishness

26. Five Moral Principles Utilitarianism Rights Distributive Justice
Ethics of Care
Virtue Ethics

27. Apply All 5 Moral Principles
If all 5 principles reach the same conclusion, then that’s the moral judgment
But if there appears to be conflict among the principles:
Examine the nature of the apparent conflict: can you think of a different course of action that would satisfy all 5 principles?
If not, set priorities among the principles.
Example: the ends never justify the means

28. Additional Justice Issues
Retributive Justice
Compensatory Justice

29. 1. Retributive Justice Issue: What punishment would be fair?
Guidelines:
Was there in fact a wrong?
Do we have the right person?
Is their moral responsibility reduced?
True ignorance of fact (not willful, not negligence)
True inability to do anything else
Is the punishment proportional to the wrong?
Is the punishment consistently applied?

30. 2. Compensatory Justice
Issue: What compensation to the victim of a wrong would be fair?
Guidelines:
Was there in fact a wrong that resulted in a loss?
Do we have the right person?
Is their moral responsibility reduced?
True ignorance of fact (not willful, not negligence)
True inability to do anything else
Is the compensation proportional to the loss suffered?
Is the compensation consistently applied?

31. Process
Apply the 5 moral principles to the situation to make a moral judgment:
Is the action in question ethical or unethical?
If the moral judgment is that the action is unethical, then analyze retributive justice and compensatory justice:
What punishment of the wrongdoer would be fair?
What compensation from the wrongdoer to the victim would be fair?