PROFESSIONALETHICS

Topic1:MoralReasoningandethicaltheory
1. Ethicalproblemsinmanagementarecomplexbecauseof:
a) Extendedconsequences
b) MultipleAlternatives
c) Mixedoutcomes
d) Uncertainoccurrencesand
e) Personalimplications

2. Ethics:
a) Principlesofmorallyacceptableconductofindividuals.
b) Anindividualspersonalbeliefsaboutrightandwrongbehaviors.
c) EthicsareIndividuallydefined:peoplehaveethics,whereasorganizationsdonot

3. ProfessionalEthics:
a) Moralvaluesthatagroupofsimilarlytrainedpeopledeveloptocontroltheirperformanceofataskor
theiruseofresources.

4. Anindividualsethicsisshapedbyacombinationoffactors:
a) Family
b) Peers,
c) Lifeexperiences,
d) Personalvaluesandmorals
e) Situationalfactors.
5. FourCommonViewsofEthics:
a) Utilitarian:
i. Amorallycorrectactionisonethatresultsinthegreatestgoodforthegreatestnumberof
people.
ii. Toapplythisview,weneedtoidentify:
1. Whoaredirectlyandindirectlyaffected;
2. Whatbenefitsandharmstheywouldexperience;and
3. Howlongtheseeffectswouldlast.
b) GoldenRule:Dountoothersasyouwouldhavethemdountoyou
c) KantianRights:
i. Therightoffreeconsent(Iuthiraaz)
ii. Rightofprivacy
iii. Rightoffreedomofconscience
iv. TherightofFreedom
v. Rightofdueprocess
d) EnlightenedSelfInterest:
i. Anactionismorallyrightifitgivestheindividualorstakeholdermaximumbenefitswithout
arbitrarilyhurtingothersand,whenpossible,minimizeanyharmtoothers.

6. NormativePhilosophy:
a) Thestudyofproperthoughtandconducts;thatis,howweshouldbehave.
b) Moralreasoningrequiresanunderstandingofnormativephilosophy.

7. EthicalRelativism:(oppositeofMoralAbsolutism)Moraltheoriesarguingthattherearenouniversalmoral
standardsforeveryoneinallcultures.

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 8. EthicalTheory:
a) EternalLaw(ThomisticNaturalLaw):AssociatedwithThomasAquinas&ThomasJefferson
i. TheEternalLawreferstomoralstandardsthatarerevealedinScriptureornaturetoreligious
leadersorhumanphilosophers.ThebeliefisthattheLawisunchangingandvalidforalltimes.
ii. Weakness:
1. NotwoNaturalLawtheoristsandveryfewreligiouswritershavebeenabletoagreeon
theexactprovisionsoftherevealedorreasonedtruth.
2. Cannotbeapplieduniversally.

b) Utilitarianism(ClassicalTeleologicalEthicalTheory):AssociatedwithJeremyBentham
i. Theoutcomeofadecisionoractionisofprimeimportance,andthatitistheresultsthattruly
matterinourtreatmentofotherpeople.Theprincipletobefollowedisthatofbeneficiency:a
decisionoractisright,properandgoodonlyifitgeneratesthegreatestamountofbenefitforthe
largestnumberofpeopleatthelowestcostorharmtoothers.
ii. Weakness:
1. Possibilityofexploitation:justifyingbenefitsforthegreatmajorityofthepopulationby
imposingsacrificesorpenaltiesonasmallminority.
2. Atsomepoint,greatestgoodandgreatestnumbercomeintoconflict,andthenwehave
nosinglemeansofdeterminingwhatistherightorbestorproperact.
3. Someactionsthataresimplywrong,despitegreatapparentnetbenefitsforahuge
majority.(Eg.Killingeveryoneinprisonsannually.)
4. Impossibletobalancethebenefitsofthemajorityagainstthesacrificesofaminority.

c) Universalism(ClassicalDeontologicalEthicalTheory):
i. Itistheintentbehindadecisionoractionthatisimportant,forwecanneveraccuratelyforesee
andevaluateallpossibleresults.Theprincipletobefollowedisthatofconsistency:adecisionor
actisright,properandgoodonlyifwecanconvinceeveryonefacingthesamesetof
circumstancestomakethesamedecisionorperformthesameact.
ii. Weakness:
1. Therearenoprioritiesornodegrees.
2. Difficulttotreatothersasendsandnotasmeansallthetime

d) DistributiveJusticeTheory:AssociatedwithJohnRawls
i. Baseduponthedominanceofasinglevalue(i.e.justice)ratherthanasingleprinciple.Beliefin
thedominanceofjusticewillleadustomakedecisionsandtakeactionsthatareexpectedto
resultincompensatingbenefitsforall,especiallytheleastadvantagedmembersofoursociety.
ii. Weakness:
1. Itisentirelydependentupontheacceptanceofthepropositionthatsocialcooperation
providesthebasisforalleconomicandsocialbenefits.
2. Individualeffortisdownplayed,ifnotignored.

e) PersonalLibertyTheory:AssociatedwithRobertNozick
i. Baseduponthedominanceofasinglevalue(i.e.liberty)ratherthanasingleprinciple.Beliefin
thedominanceoflibertywillleadustomakedecisionsandtakeactionsthatwillresultingreater
happinessandincreasedbenefitsforall.
ii. Weakness:
1. Itisbasedonaverynarrowdefinitionoflibertywhichislimitedtothenegativerightnot
tosufferinterferencefromothers.

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Topic2:MoralSocialResponsibility
1. ConditionsforMoralaccountabilityandliability:
a. Knowledgeandfreedom:Hemustbefullyawareofwhatheisdoing.Hemustactfreelywithoutany
physicalorpsychologicalcoercion.Whenknowledgeorfreedomisdiminished,accountabilityandliability
areproportionatelydiminished.
i. Ignorance:Ignoranceexcusessomeoneonlywhenitisnonculpable(notliable,notguilty,notresponsible
andunaccountable),thepersonactingdoesnotunderstandthenatureofwhatisbeingdoneorcannot
anticipateallthereasonablyforeseeableconsequencesoftheaction.
ii. Coercion:Whenapersonisforcedtodoanaction,accountabilityandliabilityforthatactionisdiminished
inproportion.Ifnotforcedhewillberesponsible.(Eg.Dumpingtoxicwastewhereitwillpollutecommunity
watersupply,theyareresponsibleastheyarenotforced)

2. TheNaturalLawSolution:Thenaturallawmoralistholdsthattotheextentanactisinvoluntary;theperson
performingitisproportionatelylessresponsibleforit.Thenaturallawmoralistallowsforcoerciononlyincases
wheregravefeardestroysapersonsfreedomtoconsenttoanaction.Thedistinctionbetweenmaterialand
formalcooperationinsomeoneelseswrongdoingisrecognised.
a. Formalcooperation:Apersoncommitsamorallywrongaction,intendsthemoralwrong,andjoins
his/heractionwiththemorallyevilactofanother.
b. Materialcooperation:Theactionapersonperformsismorallygoodinitselfbutsomeoneelseusesthe
actionforhis/herimmoralpurposes.

3. TheUtilitarianSolution:Arightmoraldecisionislikelyagoodbusinessdecision.Theutilitarianmoralistwould
holdthepeopleinvolvedaccountableforcalculatingthenetgoodandbadresultsoftheirproposedactions
andforperformingonlythatactionthatwillproducethemostgood.Coercionbyitselfdoesnotcarryanyspecial
weightinthecalculation.

4. TheCulturalRelativistsSolution:Helocatesliabilityandaccountabilitysolelyinasocietysmores
(customs,wayoflife).Coercionisexcusableonlyifthesocietyscustomarypracticesacknowledgeitassuch.

5. HistoricalViewsofSocialResponsibility:3TURNINGPOINTS
a. EntrepreneurialEra:Duringlate1800sinUS,bigbusiness
startedtoemergeandtheirexecutiveswieldedcontroland
influenceinanationallevel,andtheystartedtoabusetheir
powerformoreprofit,sothefederalgovernmenthadtomakelawstocontrolthesepeopleandmake
themacknowledgetherelationsbetweenbusinesses,governmentandthesociety.

b. DepressionEra:Early1900s.LargeorganizationsdominatedtheUSeconomyandpracticedimproper
financialpracticeswhichledtothestockmarketcrashof1929.ThegovernmentledbyFranklinRoosevelt
passedseverallawstoprotectinvestorsandsmallbusinesses.Asanoutgrowthoftheseandother
actions,thesocialresponsibilityoforganisationswasmoreclearlydefined

c. SocialEra:During1960s,thisperiodofAmericanhistorywascharacterisedbysocialunrest.Thecivil
rightsmovementandwidespreadoppositiontothewarinVietnamenergizedtheAmericanpublicto
examinethenationsvalues,prioritiesandgoals.Studentsandactivistsaccusedbigbusinessesoftrying
topromoteandextendtheVietnamWarinordertoincreaseprofits
i. FourBasicConsumerRightsbyJohnF.Kennedy:
1. Therighttosafeproducts,
2. Therighttobeinformedaboutallrelevantaspectsofaproduct,
3. Therighttobeheardintheeventofacomplaint,and
4. Therightofconsumerstochoosewhattheybuy.
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6. Socialresponsibility:Setofobligationsthatanorganisationhastoprotect.Organisationsmaybeconsidered
responsibletotheirconstituents,thenaturalenvironmentandthegeneralsocialwelfare.

7. ArgumentsforandagainstSocialResponsibility:
For Against
Helpproblematicbusiness Profitisoneoftheobjectivesofbusiness
Corporationsarealsocitizens Involvementinsocialprogrammesgivesbusiness
Businessresourcesoftenhelptosolveproblems toomuchpower
Socialresponsibilitycanenhanceprofits Apossibilityofconflictofinterest
Inadequatebusinessexpertisetomanagesocial
programmes


1. Theapproachthatanorganisationadoptstowardsocialresponsibilityfalls
alongacontinuumrangingfromsocialobstruction,socialobligationand
socialresponse,tosocialcontribution.

2. GovernmentinfluencesOrganisationsintwoways:
a. DirectRegulation:Introducingandenforcinglawsandregulationsfor
organisationstoobey.Toimplementtheseregulationsthegovernment
createsspecialagenciestomonitorandcontrolcertainaspectsofactivity.
b. IndirectRegulation:Governmentindirectlyinfluencesorganisationsinmattersrelatedtohoworganisations
shouldspendtheirmoney.Theinfluencecomesthroughtaxation,eitherintheformofincentivesor
subsidies.

3. OrganizationsinfluenceGovernmentby:
a. Personalcontact:Personalcontactsandnetworksofferonemethodofinfluence.
b. Lobbying:Itisanattempttoinfluencelegislationbyindividualsorgroups.
c. PoliticalActionCommittee:Organisationscreatedtosolicitandthendistributethemoneytopolitical
candidatesfortheircampaign.
d. Favours:Dependonfavourstogainsupport.

4. SomeEthicalProblemsinManagement:
a. PricingLevel:Fluctuationinpricelevelispurelyaneconomicproblem,buthassomeimpactonsociety.
b. AdvertisingMessages:Varyingdegreesoftruthfulnessanddeceptioninadvertisingshouldbeanalysedin
ordertoremoveanydoubtinthemindsofthepublic.
c. ProductPromotions:Thesearepartofadvertisingagenda.Thepublicshouldnotbenegativelyinfluenced
bythepromotionalmessageofanyadvertisement.
d. WorkingConditions:Workingenvironmentshouldbeconducivetoemployeesintheirworkplace.
e. CustomerService:Customersshouldbegivenpriorityinanybusinesstransaction.

5. FormalMethodsOrganisationsusetoManageSocialResponsibility:
a. Legalcompliance:Organisationsshouldcomplywithfederal,state,localoreveninternationallaws.
b. Ethicalcompliance:Membersoftheorganisationshouldfollowbasicethicalstandardsofbehaviour
acceptedbythesociety.
c. Philanthropicgiving:Awardingordonatingfundstocharitableprogrammesaspartoftheorganisations
contributiontothepublic.

6. LeadershipandallowingforWhistleblowingareinformalmeansofmanagingsocialresponsibility.

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Topic3:NatureofEthicsinModernBusiness
1. Ethicalproblemsaremanagerialproblemsbecausetheyrepresentaconflictbetweenanorganisations
economicperformanceanditssocialperformance.

2. CharacteristicsofEthicalProblemsinManagement:
a. ExtendedConsequences:Theresultsofmanagerial
decisions/actionsextendthroughoutthesociety.For
example,unsafeproductsaffectindividuallives.
b. MultipleAlternatives:Multiplealternativeshavetobe
developedinmakingethicaldecisionsorchoices.
c. MixedOutcomes:Socialbenefitsandcostsaswellas
financialrevenuesandexpensesareassociatedwithalmostallthealternativesinethicalchoices.
d. UncertainConsequences:Itisnotalwaysclearwhatconsequenceswillfollowfrommostethicaldecisionsor
choices.
e. PersonalImplications:Individualbenefitsandcostsaswellasfinancialandsocialbenefitsandcostsare
associatedwithmostofthealternativesinethicaldecisions.

3. AnalysisofEthicalProblemsinManagement:
a. EconomicAnalysis:Microeconomics/
macroeconomicstheorieswhichrelyonanopen
marketoperationandsupplyanddemandforces
shouldbeable,toacertainextent,tohelpsolve
someethicalproblems.
b. LegalAnalysis:Shouldethicalproblemsbecomemajorproblems,alawcanbepassedtodealwiththe
situation.
c. EthicalAnalysis:Underthenormativephilosophy,ifeverybodyisrationalinasocietyandactsonthesame
principles,membersofthatsocietywouldbetreatedasfairlyaspossible.

4. TheholisticapproachofIslamisevidentinitsthreecoretenets:
a. TheunityinGod,
b. Theunityofhumankind
c. Theunityofreligion.

5. Thesyariah(shareea),orthelawofIslam,isbasedontheQuran.Probablythemostencompassingandmost
universalethicalprescriptionofthesyariahiscontainedinaverseoftheQuranwhichrequiresaMuslim,atall
timesandinallcircumstances,toactinwhatcanbetranslatedfromArabicasadecentandbenevolentway,and
torefrainfromwrongdoing.

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