Melvin_-_CH_2

Melvin – Chapter 2 Ethics & Morals  Ethics: The set of moral principles or core values for deciding between right and wrong  Justice: The maintenance or administration of what is fair. o Just law and outcomes must balance competing interests to achieve a proportional outcome that is fair and balanced for the parties involved and those similarly situated.  Morals: Generally accepted standards of right and wrong in a given society or community Principles-Based Approach  Religion o Decisions that are made according to a set of established principles or standards such as religious tenets or codes (e.g., Koran, Old Testament)  Virtue (or Virtue ethics) o Principles-based approach and evaluates conduct based on whether it promotes good moral character.  Natural Law o Moral philosophy that certain rights and moral values are timeless, universal, and discoverable through human reason. o Humans have certain inherent moral rights and duties that spring from their ability to reason and choose freely what they do with their lives.  Categorical imperative o Kant’s idea, a moral test to help individuals decide right from wrong, is a central theme in his work. o “What if everybody took the same action?” – universalization test. Consequences-Based Approach  The utilitarian stream of moral philosophy which states that an action is ethically sounds if it produces positive results or the least harm for the most people.  The one that provides the greatest good (happiness) for the greatest number of people and has the least harmful consequences for most of the community. Contract-Based Approach  Rawls imagines a world in which people must negotiate their own ethical rules and principles for themselves.  Veil of ignorance / ignorance of these details about oneself will lead people to negotiate a set of ethical principles that are fair to all. The Narrow View “Greed Is Good” (Milton Friedman)  The only responsibility a business has is to maximize shareholder wealth.  This view emphasizes a corporation’s ethical duties to its shareholders. The Moderate View: Just Follow the Law (Government hand view)  It emphasizes the role that the government and regulatory agencies play in setting the outer limits of corporate social responsibility.  A business’s ethical responsibility is to comply with the law and pursue objectives that are legal. The Broad View: Good Corporate Citizenship and a Social License to Operate  To achieve commercial success in ways that honor ethical values and respect people, communities, and the natural environment in a sustainable manner while recognizing the interests of stakeholders.  The notion of “corporate citizenship” means a business should strive to promote economic, legal, ethical, and philanthropic social responsibilities.  The triple-bottom line emphasizes environmental, social, and economic value.