1. Chapter One: The Nature of Morality
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2. Moral Issues in Business Chapter 1

3. Moral Issues in Business
Overview
Chapter One examines the following topics:
Business and organizational ethics
Moral versus nonmoral standards, etiquette and professional codes
Religion and business morality
Ethical relativism and the “game” of business
Moral principles, conscience, and self-interest
Personal values, integrity, and responsibility
Moral Reasoning, arguments, and judgments
Moral Issues in Business
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4. Introduction to Business Ethics
What is ethics? The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility.
What is business ethics? The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility – in the context of business.
Moral Issues in Business Chapter 1

5. Moral Versus Nonmoral Standards
Nonmoral standards: Standards about behavior or practices with no serious effects upon human well-being
Moral standards: Standards about behavior or practices with serious upon human well- being

6. Some Features of Moral Standards
Moral standards take priority over nonmoral standards.
The soundness or validity of moral standards depend on the quality of the arguments or the reasoning that support them.

7. Morality and Etiquette
Rules of etiquette are ordinarily nonmoral in character and are meant to serve as guidelines for socially acceptable behavior.
Violations of etiquette can sometimes have moral implications.
The strict observance of rules of etiquette can sometimes conceal serious moral issues.
Moral Issues in Business
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8. Moral Issues in Business
(1) Morality and Law
Statutes: Laws enacted by legislative bodies such as the U.S. Congress and state legislatures
Regulations: Laws enacted by special boards or agencies for various kinds of conduct
Common law: The body of judge-made laws developed in English-speaking countries over the course of many centuries
Constitutional law: Court rulings on the requirements of the U.S. Constitution and on the constitutionality of legislation
Moral Issues in Business
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9. Moral Issues in Business
(2) Morality and Law
The distinction between morality and legality:
An action can be illegal but morally right
An action can be legal but morally wrong
Professional codes: The rules that govern the conduct of the members of a given profession
Individuals have the responsibility to critically assess the rules of their professions
These rules are not always complete and reliable guides to adequate moral conduct
Moral Issues in Business
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10. “You come upon this scene—the car is smoking, and it is clear that an accident just took place. In most states, you are not legally obligated to stop and offer help to the victims.”

11. (1) The Sources of Morality
The justification of moral norms: Moral philosophers study mainly the justification, rather than the origin, of moral norms.
The claim that morality is based on religion:
Religion provides incentives to be moral
Religion provides moral guidance
Moral norms are in essence divine commands
Moral Issues in Business
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12. (2) The Sources of Morality
Ethical relativism: The view according to which moral norms derive their ultimate justification from the customs of the society in which they occur.
This means that moral norms are not universal, but are dependent upon a particular cultural or social context.
Moral Issues in Business
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13. (3) The Sources of Morality
Implications of relativism:
There is no independent standard by which to judge the rightness or wrongness of other societies.
The idea of ethical progress loses its significance.
It wouldn't make sense to criticize the moral code of one’s own society or culture.
Moral Issues in Business Chapter 1

14. (4) The Sources of Morality
Relativism and the “game” of business:
The idea that business is a just game captures the thesis of Albert Carr.
He argued that business professionals are expected to follow a code that has little or nothing to do with ethics in other contexts.
This view entails – incorrectly – that the practices of business professionals cannot (or should not) be evaluated from an ordinary moral standpoint.
Moral Issues in Business Chapter 1

15. (1) The Importance of Moral Principles
What it means to have principles: Accepting moral principles is not just a matter of intellectual recognition, but of profound individual commitment to a set of values.
Conscience: The internalized set of moral principles taught to us by various authority figures – parents and social institutions.
Conscience and its limits: Conscience is not always a reliable guide because it can be (1) conflicted and (2) erroneous.
Moral Issues in Business
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16. (2) The Importance of Moral Principles
Moral principles and self-interest: The morality of an action can run counter to our self-interest
The moral point of view requires that we restrict our self-interest to satisfy social co- existence.
In situations of conflict between moral principles and self-interest, it is important to appeal to shared principles of justification.
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17. Morality and Personal Values
Morality in the narrow sense: The moral principles or rules that do, or should, govern the conduct of individuals in their relations with others
Morality in the broad sense: The values, ideals, and aspirations that influence the decisions and lifestyles of individuals and entire societies
Business ethics are mainly concerned with morality in the narrow sense.
But values, ideals, and aspirations also affect the behavior and ethical choices of business professionals.
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18. (1) Individual Integrity and Moral Responsibility
Organizational norms: Employees of business organizations (especially corporations) are:
Expected to further profit goals
Often pressured to compromise moral values and ignore or violate rules of ethical conduct
Conformity: Studies show that individuals are more prone to act unethically when they are a part of an organization or a group.
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19. Asch Conformity Experiment
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20. (2) Individual Integrity and Moral Responsibility
Groupthink: The pressure on group members to conform to morally questionable policies or strategies, often resulting in unethical conduct.
Diffusion of responsibility: The multiplicity, complexity, and distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions.
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21. Moral Issues in Business
(1) Moral Reasoning
Argument: A group of statements in which one statement (conclusion) is follows from the others (premises)
Example:
If Norman is bald, then Norman does not need a haircut.
It is the case that Norman is bald.
Therefore, Norman does not need a haircut.
Moral Issues in Business
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22. Moral Issues in Business
(2) Moral Reasoning
Requirements for a sound argument: If its statements (premises and conclusion) are true and its form (or structure) is valid
Validity: If the assumption that an argument's premises are true guarantee that the conclusion is true, then it's valid
Invalid arguments: If the assumption that an argument's premises are true do not guarantee that the conclusion is true, then it's invalid
Determining whether an argument is valid or invalid requires familiarity with the rules of logic.
Moral Issues in Business
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23. Moral Issues in Business
(3) Moral Reasoning
Moral arguments: Those conflicting theories and beliefs whose conclusions are moral judgments, based on the premise of moral standards and statements of fact
Example:
If an action violates the law, it is morally wrong.
Affirmative action on behalf of women and minorities in personnel matters violates the law.
Therefore, affirmative action on behalf of women and minorities in personal matters is morally wrong.
Moral Issues in Business
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24. Moral Issues in Business
(4) Moral Reasoning
What makes a moral judgment defensible? If it is supported by a defensible moral standard and relevant facts
Evaluating moral arguments:
Clarifying the terms of the premises
Examining the factual claims
Assessing the moral standard
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25. Moral Issues in Business
(5) Moral Reasoning
Thus, an argument can be challenged by:
Uncovering ambiguity in the terms
Questioning the factual claims
Challenging the moral standards
Moral Issues in Business
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26. Moral Issues in Business
(6) Moral Reasoning
Criteria for moral judgments:
Should be logical
Embedded in valid arguments
Compatible with moral and nonmoral beliefs
Should be based on facts
Should be based on acceptable moral principles
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27. Moral Issues in Business Chapter 1
Argument
An argument is a group of statements, one of which (called the conclusion) is claimed to follow from the others (called the premises).
Moral Issues in Business Chapter 1

28. Moral Issues in Business Chapter 1
Argument 1
If a person is a mother, the person is a female. Fran is a mother. Therefore, Fran is a female.
Moral Issues in Business Chapter 1

29. Valid vs. Invalid Argument
Valid argument Premises logically entail its conclusion. Example: Argument 1 Invalid argument Premises do not entail its conclusion. Example: Argument 2
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30. Moral Issues in Business Chapter 1
Argument 2
If a person is a mother, the person is a female. Fran is a female. Therefore, Fran is a mother.
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31. Moral Issues in Business Chapter 1
Counterexample
An example that is consistent with the premises but is inconsistent with the conclusion. Argument 2 Counterexample “Fran is a two-year-old” is consistent with premises but inconsistent with conclusion since could not be a mother.
Moral Issues in Business Chapter 1

32. Moral Issues in Business Chapter 1
Argument 3
If a person is a female, she must be a mother. Fran is a female. Therefore, Fran must be a mother.
Moral Issues in Business Chapter 1

33. Sound vs. Unsound Argument
Sound argument Have true premises and valid reasoning Example: Argument 1 Unsound argument Have at least one false premise, as in Argument 3, or invalid reasoning, as in Argument 2, or both.
Moral Issues in Business Chapter 1

34. Moral Issues in Business Chapter 1
Moral Arguments
Arguments whose conclusions are moral judgments. Moral Reasoning or argument typically moves from a moral standard, through one or more factual judgments about some person, action, or policy related to that standard, to a moral judgment about that person, action, or policy.
Moral Issues in Business Chapter 1

35. Moral Issues in Business Chapter 1
Argument 4
If an action violates the law, it is morally wrong. Affirmative action on behalf of women and minorities in personnel matters violates the law. Therefore, affirmative action on behalf of women and minorities in personnel matters is morally wrong.
Moral Issues in Business Chapter 1

36. Defensible Moral Judgments
If a moral judgment or conclusion is defensible, then it is must be supportable by a defensible moral standard, together with relevant facts.
Moral Issues in Business Chapter 1

37. Patterns of Defense and Challenge
1. Evaluating factual claims. 2. Challenging the moral standard. 3. Defending the moral standard. 4. Revising and modifying the argument.
Moral Issues in Business Chapter 1

38. Requirements for Moral Judgments
• Should be logical • Should be based on facts • Should be based on acceptable moral principles - Example: consistency with our considered moral beliefs
Moral Issues in Business Chapter 1

39. Moral Issues in Business Chapter 1
Cases
Case 1.1 Made in the U.S.A. – Dumped in Brazil, Africa, Iraq… Case 1.2 Just Drop off the Key, Lee Case 1.3 The A7D Affair
Moral Issues in Business Chapter 1

40. Moral Issues in Business Chapter 1

41. Moral Issues in Business Chapter 1
Readings
Reading 1.1 It’s Good Business Reading 1.2 Moral Responsibility in the Age of Bureaucracy
Moral Issues in Business Chapter 1