“Ethical theories in relation to business “ ASSINGMENT-1 … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Numerous books and web-sites are devoted to topics such as Business Ethics, Computer Ethics, and Engineering Ethics. A Brief Definition of Business Ethics. Simply stated, this theory argues that what is right and wrong can be determine by utilizing a “cost-benefit” analysis. Ethical Egoism: The ethical egoism is a teleological theory that posits, an action is good if it produces or is likely to produce results that maximize the person’s self-interest as defined by him, even at the expense of others. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue … Broadly speaking, normative ethics can be divided into the sub-disciplines of moral theory and applied ethics. One of the most popular theories of normative ethics is utilitarianism. Consequential Ethics. All theories (whether scientific or ethical) are built upon basic assumptions. person or group that can affect or is affected by a business organization By focusing on the outcome of each action, utilitarianism demands that you decide on what course of action based on the benefits or harm of the actions without regard to the cost of the action. They include the stockholder theory, the stakeholder theory and the social-contract theory. 2: Using Case Study 11-1 (pp. 254-255) from your text answer discussion question 1 (p. 255). (Crane and Matten, 2010). The goal is some state of the world, or some state of human minds, that does not itself involve human actions. This section will explore various concepts and problems concerned with meta- and normative ethical theories. Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Many people engaged in business activity, including accountants andlawyers, are professionals. Hence, normative ethics is sometimes said to be prescriptive, rather than descriptive. The virtue theory puts people in boxes based on their reputations at one point in time. Claims that government intervention and regulation in business will promote ethics have become a common argument. Normative assumptions (of a theory) determine the hierarchy of goods/values and, in this way, specify the normative morality. We distinguish moral principle from moral value: Moral value consists in respecting the principle of morality by intentions and actions. The stakeholder theory, in contrast, is widely accepted, and the social contract theory appears to be gaining increasing adherents. Consequentialism splits normative ethics into two independent parts: a theory of the good, and a theory of right action. Normative ethical theories are philosophical theories based on reason that tell individuals how they ought to behave. You have a goal of ethical action, and the actions themselves that are means to that goal. The utilitarianism approach requires that you decide what course of action needs to be done and evaluate the outcomes of each action. Obligation- binding, contractual, duty to do certain things and avoid doing others Ideals- morally important goal Effects- consequences 1. 254-255) from your text answer discussion question 1 (p. 255). Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior. However, such government actions have consequences that provoke an equal, opposite negative reaction which negates any positive effects. Whilst ethical theories are the rules and principles that determine between right and wrong for any given situation, Normative ethical theories propose to prescribe the morally correct way of acting. The first one, consequential ethics, states that outcomes determine ethical decisions. Preliminaries. the idea that there are many theories about what is "right" and "wrong" (moral norms) which may be incompatible and/or incommensurable with your own personal moral norms. ©1998. Ethics of care, also called care ethics, feminist philosophical perspective that uses a relational and context-bound approach toward morality and decision making.The term ethics of care refers to ideas concerning both the nature of morality and normative ethical theory. 3.0 Business Ethics MGT503 MAIN THEORIES OF NORMATIVE ETHICS • Normative study • An investigation that attempts to reach conclusions about what things are good or bad or about what actions are right or wrong. Business ethics is a two-part notion. If you continue browsing the site, you agree to the use of cookies on this website. 19–42 THE NORMATIVE THEORIES OF BUSINESS ETHICS: A GUIDE FOR THE PERPLEXED 1 John Hasnas2 Abstract: The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the … Business owners and managers can use an ethics theory they deem most appropriate for use in their operations. In an effort to establish some ethical guidelines for business, three normative ethical theories have evolved in Western capitalist societies. Having a basic understanding of the major ethical theories will help us toward an ethical resolution learning how to articulate and justify the decision. 2 The present paper is only concerned with a narrow conception of normative ethics, and it does so only from an immanent, philosophical perspective, not from a religious, transcendent one. If ethics is widely regarded as the most accessible branch of philosophy, it is so because many of its presuppositions are self-evident or trivial truths: All human actions, for example, serve some end or purpose; whether they are right or wrong depends on an actor’s overall aims. Many firms also havedetailed codes of conduct, developed and enforced by teams of ethicsand compliance personnel. Business ethics typically follow a normative theory. pp. Utilitarianism is a moral theory that implements fair choices in an effort to ensure the least amount of harm is done to all parties involved. What determines the moral standards that underlie particular theories are their basic assumptions about ethics and ethical behavior. Business Ethics Wayne Norman “Business ethics” is a concise, but in many ways misleading, label for an interdis- ... normative analyses related to trade, wealth, or what we might anachronistically call ... theory of the right or the theory of the good has priority; and virtue ethicists reject Types of Teleological Ethical Theories. These basic assumptions, while themselves seldom proven, nevertheless provide the conceptual foundations that, through logical analysis, theories build their explanations upon. 5. When learning how to resolve ethical dilemmas, it is important to be able to articulate a justifiable rationale for why we believe one decision seems right and another seems wrong. ISSN 1052-150X. The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contract theory. Therefore, the result of a … 1. Normative Ethics The category of normative ethics involves creating or evaluating moral standards. The theories discussed in this book are normative. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Descriptive ethical theories are based on scientific evidence describing how people tend to behave in a particular context. Business Ethics Quarterly, Volume 8, Issue 1. Thus, it is an attempt to figure out what people should do or whether their current moral behavior is reasonable. Normative Theories of Ethics “A defensible moral judgment must be supportable by a sound moral principle”. 2: Using Case Study 11-1 (pp. These four theories fall into one of two categories. Traditional ethical normative theories - non-consequentialist vs. consequentialist ethics offer a certain rule or principle which one can apply to any given situation (See the Bioethics Center for an example of activities in the area Medical Ethics). Explain the value of the data, the responsibilities of the company, and how the normative theories of business ethics are applied. Business ethics is the written and unwritten principles and … In scientific theories these assumptions represen… Explain the value of the data, the responsibilities of the company, and how the normative theories of business ethics are applied. Normative ethics is a theoretical construct to explain the appropriateness of Colin Kaepernick’s decision to conduct a silent protest before NFL games. Normative ethics in a narrow sense, understood as moral philosophy, is part of a more comprehensive philosophy of ‘the good’ or of practical philosophy. However, on certain versions of the meta-ethical view called moral realism, moral facts are both descriptive and prescriptive at the same time. B Three normative ethic theories include stockholder, stakeholder, and social contract theories. This theory states that individuals and firms will follow ethical principles that are commonly found in society, hence the term normative, or standard, ethics. Normative leadership theories explain to leaders how to manage their different responsibilities, raise the moral performance inside the working group, address community needs, avoid manipulative operations and concentrate on the requirements of the followers. Part 2 adds in ethics—the set of moral principles that guide decisions about what is good for individuals and their society. As such, they are bound by codes ofconduct promulgated by professional societies. Normative- standard, guide: P 69—Read and note the guidelines for handling obligations, ideals, effects. Part 1 defines business—the combination of stakeholders organized to seek some objective. 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