Business Ethics
Lecture 02:
Chapter one:
Introduction to Business Ethics
Sources: Velasquez
Shaw
Definition of Ethics
➢The Principles of conduct governing an individual or a
group.
➢Ethics is the study of morality.
➢Ethics is a kind of investigation which includes both
the activity of investigating as well as the results of that
investigation. (Investigation in accordance with the
reference of morality).
Definition of Ethics
➢The discipline that examines one’s moral standards or the
moral standards of a society.
➢Ethics (also known as moral philosophy) is a branch of
philosophy that addresses questions about morality—that
is, concepts such as good and bad, noble and ignoble, right
and wrong, justice, and virtue.
Morality
The Standards that an individual or a group has
about what is right and wrong or good and evil.
Morality is mere thought (positive or negative)
about a certain phenomena.
Moral Standards
Moral standards include the norm we have about the
kinds of action we believe are morally right or wrong as
well as the values we place on the kinds of objects we
believe are morally good and morally bad.
Action__ It is wrong to take the assets of the poor.
Object__ Honesty is a great virtue. (Abstract)
Moral Standards
Sources:
Church, School, Television, Magazine, Music, association
(Group), Culture, Early upbringing, Experience & Critical
reflection on those experiences.
Further experience, learning, intellectual development may
also assist to mould or modify prior moral standards.
Non-moral Standards
It includes the standards of etiquette by which we judge
manners as good or bad.
➢By Standards of Law, we judge lawful right and
wrong
➢By language standards, we judge whether a particular
writing is grammatically right or wrong.
Morality in all sorts of decision making
Whenever we make judgments about the right or wrong way to
do things (Literally any thing) , or judgments about what
things are good or bad; our judgments are based on standards
on some kind (Moral or Non-moral).
Irony of fate__ We sometimes choose non-moral standards over
our moral standards.
Morality in all sorts of decision making
Example: A recession is going on in the economy and the
company is going through constant loss. In this situation, the
CEO follows the company by-laws and lay off some of the
employees. Here he doesn’t consider the impact of this lay off
on the employee and on his family. Rather he chose the non-
moral standard of by-laws over the moral standard of looking
out for the negative consequences of his act on the employees.
5 Characteristics of moral standards by which we can distinguish
between moral and non-moral standards:
1. Moral standards deal with matters that we think can
seriously injure or seriously benefit human being.
Example: Theft, enslavement, Charity, Donation, murder,
child abuse, assault, slander, fraud etc. (Moral)
Grammatical mistake on a report (Non-moral)
2. Moral standards are not established or changed by the
decision of particular authorities/bodies.
Example: Law of a country is made or modified by a
particular body or authority; whereas morality is self
made by an individual or a particular group.
3. Moral standards should be preferred over other values
including self interest.
Example: If someone has to make a particular decision
by which his self interest would be harmed but welfare
would be done, then welfare should be chosen over self-
interest.
4. Moral standards are based on impartial consideration. Moral
standards are based on moral point of view which goes beyond
the personal interest to a “universal” standpoint in where
everyone’s interest are impartially counted as equal.
Example: when we are in an ethical dilemma to make a
mutually exclusive decision, where me and mass are related; then
we should choose the decision which would not hamper the
interest of mass or would benefit them.
Exception :
sometimes being partial is morally supported!! In case of family
members.
Example: Suppose in a war scene me and my family have to
escape from a particular area. We need to pass a river to do so.
On the boat, only 6 people can be accommodated. My family
member consists of 4 male and 2 female. I have another 3
person from my neighborhood. In this context, if I take only my
family members and leave those neighbors; it is morally
supported.
5. Moral standards are associated with special emotions and a
special vocabulary.
Example: If I act contrary to a moral standards I would
normally feel guilty. I would experience a loss of self
esteem.
If I take the assets of a poor or do something which has
negative impact on the society, my self valuation (self-
esteem) would be downward sloppy.
In a nutshell__
Moral Standards:
➢ Deal with matters of serious consequences,
➢ Are based on good reasons and are not based on
authority,
➢ Override self-interest,
➢ Are based on impartial consideration,
➢ Are associated with feelings of guilt and shame and
with a special moral vocabulary,
Morality and Law
Law:
➢ Strict (Can’t be altered)
➢ Made by a Particular Authority
➢ Focus is very specific
➢ Floor level of decision making reference
Morality and Law
Morality:
➢ Changes according to values, culture,
tradition & custom of a society ,
➢ Judged and made by a particular
individual or community,
➢ Focus is very broad,
➢ Ceiling of decision making.
Morality and Law
➢ An action can be illegal but morally right
➢ An action can be legal but morally wrong
The law generally prohibits egregious affronts to a
society’s moral standards and in that sense is the
“FLOOR” of moral conduct; but breaches of moral
conduct can slip through cracks in that floor!!
Morality and Law
➢ An action can be illegal but morally right.
Example: In the second world war the German
government made a law to kill the Jew whenever found
and also compelled the Germans to help capturing them.
In this context, if a German family hides a Jew family; it
is illegal but morally right.
Morality and Law
➢ An action can be legal but morally wrong.
Example: Consider that last example. If the
German family help the German Military to capture
a Jew family; it would be legal but not morally
right.
Morality and Religion
Religion is one of the most important vibrator in the
formulation of a particular community’s belief/
believes; but religion is not the “morality” itself.
This point can be clarified with the next three
upcoming arguments in the next slide.
Morality and Religion
1. Although a desire to avoid hell and go to heaven may
prompt some of us to act morally, this is not the only sole or
common reason for which people behave morally.
We are often motivated to do what is morally right out of
concern for others or just because it is right.
Atheists generally live life as moral and upright as those of
believers.
Morality and Religion
2. The moral instructions of the world’s great religions are
general and can be interpreted in different ways in different
contexts.
3. The “Divine Command Theory” postulates that if something
is wrong then the only reason for which this is wrong that
“God commands us not to do it.” (Continued to next slide)
Morality and Religion
God forbids us to steal from others. It doesn’t mean it is
forbidden for just it is a God Almighty’s command; rather
it is forbidden because it (to steal) by itself a bad human
behavior which can hurt other human.
Morality and Religion
Most religion holds that human religion is capable of
understanding what is right and wrong. So it is human
reason to which you will have to appeal in order to support
your ethical principle.
