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then you must include on every digital page view the following attribution: Use the information below to generate a citation. Ethical relativism is really not a principle to be BUSG 210 Practice Final Exam. CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. In opposition to moral relativism, moral universalismalso called moral objectivismholds that there are objective right or wrong actions, independently of the (2) Is it right? are licensed under a, Ethical Principles and Responsible Decision-Making, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/5-3-ethical-principles-and-responsible-decision-making, Creative Commons Attribution 4.0 International License. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. ]yy+ CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. Altruism is also part of character-based virtue ethics. Can Martin Bubers notion of love play a role in business? 0000000696 00000 n 4, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. Web4.4 business ethics theories 4.4.4 Deontology or universalism theory The proponents of the deontology theory are Immanuel Kant who emphasises that the ends do not justify the means of an action; the right thing must always be done even if doing the wrong thing would do the most good for the most people (Weiss, 2009:107). List the four dimensions of a human being. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. When in Rome, do as the Romans do.. However, middle managers and employees often complain their ethics training consists of passing a computerized sexual harassment or fraud program once a year but that nothing is done to address issues in a substantive way or to change the culture of the organization, even those that have experienced problems.31 Society and Business Anthology by Various Authors is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . . (5) Do I/we want to assume responsibility for the consequences? In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act. Yet it remains controversial. Many people question the place of love in a business setting. It is an orientation that many use quite frequently. Corporations and their Social Responsibility. Should business ethics be grounded only on more concrete tenets? Creative Commons Attribution License Organizational ethical practices include how a How are they related? Some limitations when using this principle are (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are right, and (3) individuals can exaggerate certain entitlements at the expense of others. 8 1. This book uses the consent of Rice University. At the same time, each one has a logic. Transparency, whistleblower programs, ethics training, and modeling of appropriate behavior by upper management can create the conditions for employees to act ethically, but conscience is a personal phenomenon. > If there is anything to be learned from these scandals, it is that organizations will succumb to ethics crises if they do not pay attention to their organizational culture and foster their employees growth as moral beings. There are programs that do this, such as Giving Voice to Values at the Darden School of Business at the University of Virginia.35 What are major ethical principles that can be used by individuals and organizations? This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. 0000003514 00000 n Ethical relativism is really not a principle to be followed or modeled. The 2017 conviction for bribery and embezzlement of Lee Jae-yong, heir to the Samsung electronics empire, was part of a widespread corruption scandal that brought down the president of South Korea. Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. xref Countries and cultures that follow this orientation can result in dictatorships and absolutist regimes that practice different forms of slavery and abuse to large numbers of people. Discuss need of Value education. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Business <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> 1. 2023 Informa UK Limited, an Informa Group Company. are licensed under a. It is not only a method to make a decision; it is a way of incorporating a humane consideration of and for individuals and groups when deciding a course of action. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. Ethical universalism is the theory that there is a universal ethic that applies to all people, no matter the individuals history, preferences, traits orshow more content. WebWe believe that compliance and ethical behavior are everyones responsibility. 0000015844 00000 n This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. Ethical Principles and Responsible Decision-Making, 10. In the business world, various ethical theories and principles are used. Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. 0000002618 00000 n WebUniversal ethics refer to a moral system that applies to the entire humanity, transcending personal whims, and culture in the process. WebUniversalism: broadmindedness; wisdom; social justice; equality; a world at peace; a world of beauty; unity with nature; protecting the environment; inner harmony Benevolence: helpfulness; honesty; forgiveness; loyalty; responsibility; friendship Tradition: accepting one's portion in life; humility; devoutness; respect for tradition; moderation JVBL GRILL3BB. (4) Who has to pay for the consequences? Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. The Supreme Court upheld her and her staffs decision. Read the article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption for a detailed explanation. If not, and if ethical standards are relative, are they worth having? No matter our culture, geography, or time, could we identify some basic normative behaviors to govern business conduct in general? It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions.