Class 1: Monday: 16th January 2012

y y y y y Theory of Ethics and Public Morality Psychological Egoism and Moral Egoism Why Business Ethics (From the state of nature to a civilized society). Prisoner s Dilemma Three objections to bringing Ethics into business.

Many people say that ethics has like nothing to do with business. Business ethics is oxymoron. Ethics is a branch of philosophy (Western Perspective). There are also religious ethics like Hindu Ethics, Muslim Ethics etc. But in western framework, it means as a branch of Philosophy. This course address should or to related questions. E.g, what should be done etc. 3 Fundamental Questions. 1) How to do (In other subjects we learned only how to do) 2) What to do (But we never discussed the point 2 and 3 in other subjects) 3) Why to do Ethics tells us that what is technology or marketing. Another question is what am I doing and why am I doing it. So in ethics we make hypothesis and then test them and rationalize them. First book is Republic written by Plato (Aflaton). Very Important In this book Plato ask how we ought to live. And like what is justice. John Rawls ka justice kuch or hai, Plato ka justice different hai. Imran khan ka justice koi or hai. And a fundamental question in Republic is How justice should be done Rawls book = American Philosopher, He wrote a theory on Justice. But what s justice to you, that maybe injustice to another. If there is no ethics in business, than there will be no Business itself. Amazon has 14000 books on business ethics. Psychological Egoism and Moral Egoism 2 stances that business should not have ethics. Psychological Egoism: You or human beings are egoist, they can only think about their own self interest. You are destined to be self interest, you cannot be loving, caring and sacrificing, if you are, even you do love, care even then you are self interested. 2 People: Sigmund Freud (Father of Psychology), Ayn Rand Book = The virtue of selfishness . Psychology ke birth 20th century main huwe. Virtues = Generocity or Bravery.

Socrates says that I know that I do not know, you don t know that you do not know. Example Points: Airport, Bag, Old Person and Departure. To solve the example we will apply Theory of Carl Popper Falsification. According to this theory, no theory can be true which does not tell us how it can be falsified. Only that theory is scientific only if it tells you how to get falsified. Like stimulus response theory or gravitational theory. These are falsifiable. So Ayn Rand theory is false. Moral Egoism Or Ethical Egoism (We should be self interested) Morality is a normative, it sets normative subjects, which means should related subjects. We should be self interested. But Freud say we are self interested. Should be self interested ka sub say bara champion Nietzsche hai (Germany). Nietzche says that insanon ke 2 categories hain. Masters or slaves. You can either be greater or instrument of great. Yeh kehta hai kay kisi ko bhe deceive karlo, kya masla hai, dosra jo deceive horaha hai who khud aqal mand nai hai. Aristotle says that Man is a social animal . But sir said that bunday ko itna hona chahiya hai kay na deceive karay na deceive ho. Why Business Ethics. Thoman Hobbes Framework. Hobbes gives us the idea of state of nature . It can be imagine that there was once time, when there was no laws, no government, no state, people were living in accordance with his nature. This is state of nature. This is the state of lawlessness. Not government etc. If we eliminate all norms where we will be in state of nature. We will be that all people will war against each other. If not all than atleast we can say that many people will. Because there is no Ethical consideration. What we see, eat, learn all these things are decided by corporations in our life. Now agar corporations main ethics nai hai, then hum par bura effect baray ga. You cannot be like not self interested. You can have enlightened or root self interest. You should have enlightened self interest. Prisoner s Dilemma (Another Concept) Example: Two people committed a bank robbery. And got arrested. An officer makes a scheme, Do ko alag room main jakar baat karta hai alag alag. And give them offers. 1) If you corporate with us, admit guilt, you will go free. Other person will be given the full punishment.

2) If both admit guilt both will be given 2 years sentenced. 3) Agar dono he nai mantay then 1 year sentenced. These prisoners are rational and also self interest. Aik prisoner yeh daikhay ga kay agar khud dosray ko pakaraiga, then agar who chuta then main gaya. So both will work together. It is a series, network of robbers. Batman Movie Example. Ethics to smugglers ke bhe hoti hai. But smuggling bhe unethical hai. We study how to apply ethics inside capitalism, but is capitalism itself is ethical. 3 Objections 1) When laws of demand and supply are there to control the market and to make decisions and there is a paradigm of perfect competition (Wealth of Nations). Consumers demand what they need, producers are making what they need, then what is the need of BE. Forces of Demand and Supply are working. But where (Its in mind). Like force of gravity is in earth. Brain = Hardware Mind = Software Demand = Desire = Mind Supply = Ufimism for force of temptation. Yani hamain temptations deta hai. Not only goods are manufactured, but needs are also produced by giving you temptations. Supply creates its own demand. If you are bombarded by supply with temptations. Examples. 1) Wall adds, Pappu. 2) Bonanza Add / Sweater, Guy Tshirt off. 3) Daag to achay hain, Pharmaceutical. 4) Fair & Lovery, Drum So Perfect Competition Jhoot hai, There is only monopoly. Pollution, Price fixing, Corruption and Monopolies, Only ethics address these issues. Objection 1 End End of Class 1