1. Prescriptive Approaches to Ethics Geoffrey G. Bell, PhD, CA University of Minnesota Duluth October 2003

2. Sources for Lecture Our text Our text Kant, Foundations of the Metaphysics of Morals (many editions) Kant, Foundations of the Metaphysics of Morals (many editions) Mill, J.S., Utilitarianism (many editions) Mill, J.S., Utilitarianism (many editions) Rawls, J. (1971). A Theory of Justice, Belknap Press, Cambridge, MA. Rawls, J. (1971). A Theory of Justice, Belknap Press, Cambridge, MA. Cavanagh, G.F., D.J. Moberg, and M. Velasquez (1981). “The ethics of organizational politics,” Academy of Management Review, 6(3): 363- 374. Cavanagh, G.F., D.J. Moberg, and M. Velasquez (1981). “The ethics of organizational politics,” Academy of Management Review, 6(3): 363- 374.

3. Problems with Prescriptive Approaches People tend to be a “blend,” not “purely” Utilitarian or Kantian or whatever. People tend to be a “blend,” not “purely” Utilitarian or Kantian or whatever. Prescriptive approaches give conflicting advice, or no advice at all. Prescriptive approaches give conflicting advice, or no advice at all.

4. Who gets the heart transplant? Rejean is 55 years old, recently retired, and covered fully by health care. He is married, and his children are adults with children of their own. Historically, Rejean has been active, but with his recent heart attack, he has become bed-ridden. Without a transplant, he will die. Rejean is 55 years old, recently retired, and covered fully by health care. He is married, and his children are adults with children of their own. Historically, Rejean has been active, but with his recent heart attack, he has become bed-ridden. Without a transplant, he will die. Mary is 23 years old, and a single mother of one 2-year-old boy. She is on welfare, and has no health insurance. Her parents are retired, but “just barely making ends meet,” so cannot provide financial assistance for the operation. She needs a transplant to survive. Mary is 23 years old, and a single mother of one 2-year-old boy. She is on welfare, and has no health insurance. Her parents are retired, but “just barely making ends meet,” so cannot provide financial assistance for the operation. She needs a transplant to survive. Tom is a 35 year old, married, laborer; the father of a 15-year-old daughter and a 10-year-old son. His work provides partial health care, but he would need to take out a second mortgage on his house to pay much of the cost of a transplant operation. Without the transplant, Tom can expect to live probably 5 years before other vital organs fail. Tom is a 35 year old, married, laborer; the father of a 15-year-old daughter and a 10-year-old son. His work provides partial health care, but he would need to take out a second mortgage on his house to pay much of the cost of a transplant operation. Without the transplant, Tom can expect to live probably 5 years before other vital organs fail. Who should get the heart, assuming it’s a “fit” for all, and why? Who should get the heart, assuming it’s a “fit” for all, and why?

5. Consequentialist Theory Also called “teleological.” Also called “teleological.” Concerned with outcomes or consequences of action, and hence the name. Concerned with outcomes or consequences of action, and hence the name. Utilitarianism is well-known example. Utilitarianism is well-known example. Utilitarianism seeks to maximize welfare of all people concerned with decision. Utilitarianism seeks to maximize welfare of all people concerned with decision. Makes for very difficult calculus (information- processing demands very high). Makes for very difficult calculus (information- processing demands very high).

6. Deontological theory (Kantianism) Focused on ethics as duty (what ought to be done). Focused on ethics as duty (what ought to be done). “Pure” Kantianism has no regard for outcomes of decision. “Pure” Kantianism has no regard for outcomes of decision. Can the decision rule be turned into a universal rule? If not, then it’s unethical. Can the decision rule be turned into a universal rule? If not, then it’s unethical. (e.g., promise-breaking is wrong; lying is wrong) (e.g., promise-breaking is wrong; lying is wrong) Always treat people as ends and never as means to an end. Always treat people as ends and never as means to an end. Problem with “horrendous” outcomes. Problem with “horrendous” outcomes. E.g., axe murderer. E.g., axe murderer.

7. An Introduction to Justice Justice is often used to refer to what is fair. Justice is often used to refer to what is fair. Justice concerns giving people what they deserve. Justice concerns giving people what they deserve. Often arises in questions of distribution: Often arises in questions of distribution: If there are a fixed number of organs to be donated, what is a just way to allocate them? If there are a fixed number of organs to be donated, what is a just way to allocate them? If there is a shortfall of state revenue, what is a just way to allocate the cuts? If there is a shortfall of state revenue, what is a just way to allocate the cuts? If taxes must be raised, what is a just apportionment of the raises? If taxes must be raised, what is a just apportionment of the raises? Business is concerned with wealth allocation, so justice is a relevant concept. Business is concerned with wealth allocation, so justice is a relevant concept.

8. Rawls’ Theory of Justice Rawls asks people to imagine a situation in which free and equal self-interested persons attempt to arrive at unanimous agreement on principles that will serve as the basis for constructing the major institutions of society. Rawls asks people to imagine a situation in which free and equal self-interested persons attempt to arrive at unanimous agreement on principles that will serve as the basis for constructing the major institutions of society. Rawls pre-contractual situation (the “original position”) is one in which people act behind a veil of ignorance. Rawls pre-contractual situation (the “original position”) is one in which people act behind a veil of ignorance. They are asked to agree on the principles of justice without knowing about themselves and their position (sex, race, class, natural ability, intelligence, etc.). They are asked to agree on the principles of justice without knowing about themselves and their position (sex, race, class, natural ability, intelligence, etc.).

9. Rawls’ Principles of Justice 1. Each person is to have an equal right to the most extensive total system of basic liberties compatible with a similar system of liberty for all. 2. Social and economic inequalities are to be arranged so that they are both: A. to the greatest benefit of the least advantaged, and B. attached to offices and positions open to all under conditions of fair equality of opportunity.

10. Rawls’ First Principle Reasoning – an equal share of whatever is available is the most any person could reasonably expect, given his requirement of unanimous consent. Reasoning – an equal share of whatever is available is the most any person could reasonably expect, given his requirement of unanimous consent. No one would voluntarily take less than an equal share because to do so would make that person comparatively worse off. No one would voluntarily take less than an equal share because to do so would make that person comparatively worse off. Based on the idea that “he who cuts the cake gets the last piece.” Based on the idea that “he who cuts the cake gets the last piece.”

11. Rawls’ Difference Principle (2a) Persons in the original position would accept inequality when the least advantaged person is better off. Persons in the original position would accept inequality when the least advantaged person is better off. Assumes that there is a “worst off” person, although we don’t know who in advance. Assumes that there is a “worst off” person, although we don’t know who in advance. Situation II is preferred to I as the worst off is advantages, but III is not preferred to II. Situation II is preferred to I as the worst off is advantages, but III is not preferred to II. Based on a “maximin” strategy – a rational person will maximize the minimum outcome. Based on a “maximin” strategy – a rational person will maximize the minimum outcome. IIIIII A16A14A15 B9B11B12 C7C11C10 323637

12. Rawls’ Principle of Equal Opportunity (2b) Whether a person gets a certain job (or whatever) should be determined by competence rather than any irrelevant characteristic. Whether a person gets a certain job (or whatever) should be determined by competence rather than any irrelevant characteristic. In a just society, every attempt should be made to eliminate differences that result from accidents of birth and social condition. In a just society, every attempt should be made to eliminate differences that result from accidents of birth and social condition.

13. Putting it together: Cavanagh et al Figure 1 Does the decision maximize economic efficiency? Does the decision respect rights of all involved? Does the decision respect the canons of justice? Accept decision Yes Are there overwhelming factors justifying suboptimization? No Are there overwhelming factors justifying abrogation of rights? Are there overwhelming factors justifying violation of canons of justice? Yes No Reject decision No

14. Notes re: Cavanagh et al Argue you can start with any of the questions. Argue you can start with any of the questions. For any decision to be “ethical,” it must normally accord with all three major ethical frameworks (utilitarianism, rights, justice). For any decision to be “ethical,” it must normally accord with all three major ethical frameworks (utilitarianism, rights, justice). If any decision violates any of the three, there must be an “overwhelming reason” to make it “ethical.” If any decision violates any of the three, there must be an “overwhelming reason” to make it “ethical.”

15. Conclusions There are several prescriptive approaches to ethics. There are several prescriptive approaches to ethics. The problem with them is they often either provide no advice or provide conflicting advice to practicing managers. The problem with them is they often either provide no advice or provide conflicting advice to practicing managers. Cavanagh et al sought to overcome this problem by providing a flowchart to help assess the ethicality of a decision. Cavanagh et al sought to overcome this problem by providing a flowchart to help assess the ethicality of a decision.