universalism theory in business ethics

Loyalty to the Brand and to Customers, 24. Access to the full content is only available to members of institutions that have purchased access. Additionally, the study investigates if the Responsibility to Protect (RtoP) adoption can be interpreted and derived from the moral theories by focusing on one of the three RtoP pillars, prevention. Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. The Journal of Values-Based Leadership: Vol. The UN Convention Against Corruption has called corruption an insidious plague that exists everywhere and hurts the poor disproportionately by diverting funds intended for development, undermining a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment.27 e d u / j v b l)/Rect[230.8867 233.3227 360.5693 245.0414]/StructParent 5/Subtype/Link/Type/Annot>> The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. 134 0 obj These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. Practical wisdom, however, is often required to be virtuous. Altruism is also part of character-based virtue ethics. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. | An action is morally right if the net benefits over costs are greatest for all affected compared with the net benefits of all other possible choices. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. 0000001815 00000 n Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. By definition, ethics in a business setup are norms that a given business organization has to adhere to in its daily business transactions. 5 terms. This means we must hold ourselvesand one anotheraccountable to our values and to creating an open and inclusive workplace. (4) Who has to pay for the consequences? A belief in one fundamental truth is another important tenet in philosophy could add a critical element to business education, an element that would keep business education always alive and prevent it from becoming an accepted, orthodox ideology.38. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. hb```b``c`a`bb@ !6 daA@@-6WO pg5,eP=ycF62P,ZSK[xtV`g? On their list of values, corporate responsibility to the public is among the top ones. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. According to Mel & Snchez-Runde (2013), Universal ethics can be perceived as a form of moral constitution which is expressed as a set of specific ethical Corruption appears to exist everywhere, so it would seem to require a persistent and consistent answer everywhere. endobj Corporations and Politics: After Citizens United, 14. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Only the individuals self-interest and values are relevant for judging his or her behavior. WebFollowing a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. doi. Only the individuals self-interest and values are relevant for judging his or her behavior. About Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. and you must attribute OpenStax. Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. Ethical Principles and Responsible Decision-Making, 10. Or it may be identified with various claims to identify a single fundamental universal principle, from which all other ethical principles and judgments derive. The 10th edition reflects the current, multidisciplinary nature of the field by explicitly embracing a variety of perspectives on business ethics, including philosophy, management, and legal studies. 132 0 obj Universalism vs. Relativism Read this article on the LIBOR scandal and the consequences for an in-depth overview. Other sets by this creator. Ch. 141 0 obj After all, free enterprise has the interests of the enterprise at heart. DeGeorge suggests that a course in the philosophy of business would enable students to think about the foundations of businessits values, ends, purpose, and justification . Is it possible to identify a set of universal values that is consistent across cultures and time? (2) Is it right? WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to According to the Union Internationale des Avocats, an international, nongovernmental association of legal professionals, corruption corrodes the democratic principles of accountability, equality, and transparency. They prescribe obligations for everybody, define Universalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," As some have asked, What is a human life worth?. One distinctive understanding of universalism in ethics is that ethical principles are principles for everybody. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. endobj 138 0 obj Why or why not? e]__3EwcaXLpMu\6ki3=3A{aji_*i/NQwio+OKZM$>w3@-$CH^~d), q)>x1t4N8S8JrRG?;*6Q^LZE j;@+l8PPi-(v=XFM7%-Ag}VuPfa{+_gU ?hv Z&*~TVF:F78%dDZ N|#*q6]d/PQ{ox S@twnir@/ohoWDw^p Qd~`JyBAAFH > Ethical relativism holds that people set their own moral standards for judging their actions. They understand the concept of stakeholders (those who have a stake in a decision because they are affected by it) and they always consider the business, financial and emotional consequences of their actions on all stakeholders. 52 terms. Utilitarian ethics says, in general, that the most ethical course of action is the one that provides the greatest benefit to the most people. Attempt all questions in brief. BUSG 210 Practice Final Exam. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. The dilemma for the Washington Posts then CEO centered on her having to choose between exposing the truth based on freedom of speechwhich was the mission and foundation of the newspaperor staying silent and suppressing the classified information. To put this question another way, is there a set of universal values that all can endorse? Based on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), and presents a SWOT analysis of both. endstream When in Rome, do as the Romans do.. Home Images. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . (credit: Love Is All You Need Signage by Jacqueline Smith/Pexels, CC0), 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, article on the LIBOR scandal and the consequences, https://openstax.org/books/business-ethics/pages/1-introduction, https://openstax.org/books/business-ethics/pages/5-4-are-the-values-central-to-business-ethics-universal, Creative Commons Attribution 4.0 International License, Explain the difference between relative and absolute ethical values, Discuss the degree to which compliance is linked with organizational responsibility and personal values, Identify the criteria for a system of normative business ethics. Contributing to a Positive Work Atmosphere, 26. The Volkswagen emissions scandal also began in 2015, when the Environmental Protection Agency cited the German automaker for violating the Clean Air Act by cheating on emissions tests. 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). That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. The dilemma for the Washington Posts then CEO centered on her having to choose between exposing the truth based on freedom of speechwhich was the mission and foundation of the newspaperor staying silent and suppressing the classified information. A hallmark of any profession is the existence of ethical guidelines, often based on values like honesty, integrity, and objectivity. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. Vol. Principles help inform and influence values. The focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. 4.8 (4 reviews) Term. We recommend using a These different cohorts of normative theories are often termed as rival ethical Businesses currently rely heavily on data analytics, algorithms, and statistical analyses to drive decision-making. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. trailer b. grramire. 0000009193 00000 n Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. Ethical relativism is really not a principle to be are not subject to the Creative Commons license and may not be reproduced without the prior and express written startxref In fact, John Mackey, the founder of Whole Foods, has said that love has been the basis of his success in business, which translates into care and concern for customers beyond profit and for workers beyond productivity (Figure 5.8).39, Recall the statement by IBM quoted earlier in the chapter: [IBM] remain[s] dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer, more diverse, more tolerant, more just.40. Therefore, utilitarianism goes by the rule that an action is evaluated to be ethical based on a set of rules or principles that can bring the retreat usefulness to the greatest amount of people (Mill, 2006). Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. Using creativity is also important when examining difficult moral decisions when sometimes it may seem that there are two right ways to act in a situation or perhaps no way seems morally right, which may also signal that not taking an action at that time may be needed, unless taking no action produces worse results. (3) Who gets hurt? How can businesses do this? Business It focuses on the type of person we ought to be, not on specific actions that should be taken. For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. Thus, love, as responsibility, depends on relationships based on good faith and concern. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Moreover, moral standards, according to this principle, vary from one culture to another. After all, literature that has stood the test of time can provide tremendous insight into human behavior, and Homer or Shakespeare may be more relevant to contemporary executive leadership than a business seminar on how to motivate employees. Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. Ethical relativism holds that people set their own moral standards for judging their actions. Society and Business Anthology by Various Authors is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. 0000003514 00000 n 139 0 obj In the case of LIBOR, the United Kingdoms Serious Fraud Office determined there were inadequate systems of oversight in the setting of rates and that individual executives encouraged rate fixing, which led to the conviction of several traders, at least one of whom still maintains his innocence.33 129 20 Except where otherwise noted, textbooks on this site Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . Before turning to organizational and systems levels of ethics, we discuss classical ethical principles that are very relevant now and on which decisions can be and are made by individuals, organizations, and other stakeholders who choose principled, responsible ways of acting toward others.17. For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. 3 Howard Schultz, founder of Starbucks; co-founder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. 8 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. 0000003899 00000 n Altruism is also part of character-based virtue ethics. GRILL3BB. Business 148 Study Guide. Web(SEM III) THEORY EXAMINATION 2021-UNIVERSAL HUMAN VALUES & PROFESSIONAL ETHICS. In the conclusive section, some suggestions and recommendations are presented. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. 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.20, 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. 2 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. Other names for this doctrine are universal restoration, universal 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. There are some limitations to this ethic. 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?. 0000003198 00000 n The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. What are major ethical principles that can be used by individuals and organizations? A Framework for Making Ethical Decisions, 11. WebUniversalism is the philosophical and theological concept that some ideas have universal application or applicability. We recommend using a Furthermore, most religions have high ethical standards but do not address many of the problems faced in business. Ethical executives are caring, compassionate, benevolent and kind. are licensed under a. 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. <>/Metadata 127 0 R/Outlines 88 0 R/Pages 124 0 R/StructTreeRoot 93 0 R/Type/Catalog/ViewerPreferences<>>> | But From these systems has emerged a basic set of ethical norms for the business world. Universalism and particularism: principles and judgment, Fundamental principles: Kantian universalizability. Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. Corporations and their Social Responsibility. 0000001486 00000 n The Supreme Court upheld her and her staffs decision. The influence of positive psychology is evident, and there is much to commend in this kinder approach to the job of management that makes an effort to establish sustainable human welfare.36 This principle is grounded in both legal and moral rights. The society, on the other hand, perceives business ethics as the right or wrongs that occur as a result of organizations operating in the community. The problem is that if anything flourishes in this model, it is often the business rather than the employees. Marques, Joan then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. Compliance is important, but business managers must attempt to go above and beyond to clearly model and enforce the highest standards of ethical behavior. <>stream SECTION A 1. 0000000016 00000 n A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. It has often been an intellectual norm for researchers and authors to classically characterise ethics into two divisions of normative notions. List the four dimensions of a human being. endobj At the same time, each one has a logic. Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. WebChapter 9. WebThis document is designed as an introduction to making ethical decisions. Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. Limitations here also show that using this principle may not always prove realistic or practical in all situations. 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 (3) Who gets hurt? Our mission is to improve educational access and learning for everyone. (credit: Happiness Is a Piece of Cake Close Up Photography by Antonio Quagliata/Pexels, CC0), If there is anything that transcends time, place, and culture, it is love. Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. How are they related? 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. endobj 0000005814 00000 n This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. Types of Business EthicsPersonal responsibility. Each person who works for a business, whether on the executive level or the entry-level, will be expected to show personal responsibility.Corporate responsibility. Businesses have responsibilities to their employees, their clients or customers, and, in some cases, to their board of directors.Loyalty. Respect. Trustworthiness. More items This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. Without a relationship of trust, there can be no exchange of goods or services upon which economies are built.

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