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Introduction:
There are two types of ethical theories, namely,
teleological theories
deontological theories.
Teleological theories:
The word teleological is derived from the Greek word 'TELOS' which
means an end.
A great deal is depending on what is considered as good and what is
considered as evil.
According to classical utilitarianism, pleasure is considered as ultimate
good.
The human well being is considered as good.
Deontological theories:
The word deontology derives from the Greek word 'DEON' which means duty.
In other words the deontological theories have given equal importance to the means as to
the end.
We have a duty and responsibility not to be bad.
Ideas of Confucius:
The ideas of Chinese philosopher Confucius are an example of deontological theory.
The major ideas of Confucius are given below:
(a) What you do not wish done to yourself, do not do to others.
(b) Do not wish for quick results, nor look for small advantages. If you see quick results,
it is difficult to attain the ultimate goal.
(c) When you see someone of worth, think of how you may emulate. When you see
someone unworthy, examine your own character.
(d) Wealth and rank are what people desire, but unless they are obtained in the right way
they may not be possessed.
(e) Feel kindly towards everyone, but be intimate only with the virtuous.
business.
(b) It is based on the psychological aspects of motivation.
(c) Ultimate end can result in quick actions.
Virtue ethics:
Aristotle is a pioneer of virtue ethics.
A virtue is a positive quality like patience, hard work and justice.
A good number of virtues are to be developed by business people.
A virtue ethics is primarily considering the character, motivations and intentions of
business people.
Virtue ethics reflects the excellence of human character.
One's character can be assessed in terms of principles followed in life like honesty,
The concept of character in virtue ethics can be defined by the community where the
individual isliving or operating.
Virtue ethics is useful in determining the ethics of an individual with reference to
his society and profession. For example, a virtuous auditor has to follow the code of
professional ethics.
Virtue ethics encourages a deontological approach by looking into the right aspect in each
and every situation.
Every community and profession has its own code of conduct. There cannot be a best
approach in any given situation. But a legal and ethical situation can be found out by
using virtue ethics.
Individual ethics and social ethics can go hand in hand. Individual ethics can be called
micro ethics and social ethics as macro ethics.
Virtue is a source of practical wisdom. For example love, courage, benevolence and
honesty make customers, employees, suppliers and competitors happy and enable to
provide co-operation.
The virtue ethics approach allows the decision maker to depend on the relevant
community standards without going through the process of using deontological or
consequentialist approaches.
Demerits:
(i) In the modern real world situation, the ideas of Aristotle are not followed. This is
because of fall in the values of the society.
(ii) There are conflicts between individual ethics and social ethics.
(Hi) The excellence of human character is not very much appreciated. A significant part
of the society is corrupt.
our customers and fair to our suppliers. I regard my handshake on a deal as a contract. I
have never entered into price fixing schemes with my competitors. I have never allowed
my salesmen to spread injurious rumours about other companies. Our union contract is
the best in our industry. And, if I do say so myself, our ethical standards are of the
highest".
Many business people are ethical in private lives and not in business.
Industrial espionage is not considered unethical.
Many companies make use of concealed cameras and microphones or by bribing
employees.
These companies do not set up research and design departments of their own. These are
all unethical practices.
Industrial espionage is not considered unethical. These unethical practices are cheaper
compared to setting up of a research department.
The best example for this industrial espionage is electronics industry.
A CEO made a comment:
"If ethics cannot be embodied in the law of the land, you cannot expect the business to
fill the blank".
The violation of ethics takes place in all areas of human operations. In 1967, a key
manufacturer was accused of providing master keys for automobiles to a few automobile
thieves.
The old John D. Rockfeller told in a Sunday School, "God gave me my money".
Everybody knows that business prosperity and departure from business ethics are highly
related to each other.
(b) In the war we should know the way, the weather, the terrain, the leadership, and
discipline.
In business also we should know the way, the business conditions, the nature of
competition, prevailing business leadership and business discipline.
(c) As in war in business also we have to find out who is superior in all these things,
whether ourselves or our competitors. Then only we can mobilize our business forces.
(d) The business should empower team of the businessman to understand the strategy and
the way. Then only he can take the team with him.
(e) If people are treated with benevolence, faithfulness and justice they will be happy and
offer full co-operation. A business leader should also be kind to both the employees and
customers.
(f) An army general should be a good planner using his talents and intelligence. He will
employ different types of people, such as intelligent, brave, greedy, and foolish people.
Intelligent will show their merits, brave are ambitious, the greedy welcome an
opportunity to pursue profit and the fools do not care if they die. Similarly a good
business organisation should have people with different capabilities to follow the various
business activities and operations.
(g) An army cannot act without knowing the strategies and conditions of opponents.
Similarly in a world of "brand wars", each competitor should know the present strategies
of the otherplayers.
Kant has suggested the ethics of duty in terms of which every person has two types of
duties, namely, internal duty and external duty. The internal duty refers to think with
morals and external duty is to act with moral principles. He has pointed out that emotion
cannot go with moral.
Kant has given three fundamental criteria of categorical imperative:
(a) Universalizabilitv:
If an act is right for one person, it is right for all others.
(b) Respect:
We have to give a self respect to ourselves and respect others. The goodness has to be
legalized.
(c) Publicitv:
We have to openly acknowledge good acts of people.
Human beings should use rationality and reasoning. The rights of individuals have to be
given importance. The positive rights have to be recognised.
Kant suggested that business is an opportunity to live well and get along with others.
Criticism of Kant:
(1) Many people are not rational in their behaviour.
(2) Rights are not available to all people at all times.
(3) In the modern world, the concept of virtue is fast diminishing. The bad concepts of
black money, corruption, bribery and other unethical practices have become accepted
practices.
One minute moralist theorv of Robert Soloman
This is a deontological theory justifying the means to reach the ends. Robert Soloman
puts the questions to businessmen:
i) Does ethics in business lead to profits?
ii) Is good ethics good for business?
Even in a cut throat competition ethical ideas can be practiced. It is not the question of
preaching ethics but practicing ethics.
Ethics is a way of life. Ethics is the art of mutually agreeable tentative compromise.
Ethics should not be super imposed on business. A good business should be defined by
ethics and practiced by ethical standards.
Every society at each stage should reexamine ideas about business. It is hypocrisy to
believe that business is a tough minded moral struggle for survival and profits rather than
an established ethical enterprise.
This theory concluded that nothing is more ethical than good business.
(d) Universalism:
What is applicable to one country should be applicable to other countries also. This
concept is very much relevant to the modern days of globalisation.
Criticism:
(1) It is difficult to measure utility. Money cannot be the measuring rod of utility.
(2) In any business, cost-benefit analysis cannot be applied on all occasions. During
scarcity prices go up and during abundance prices are normal.
Questions
Section 'A'
1) What is a teleological theory?
2) Define deontology.
3) What are the ideas of Confucius on business ethics?
4) Define virtue ethics.
5) Explain the conventional ethics of Albert Z. Carr.
Section 'B'
1) Describe the ends-means ethics of Machiavelli.
2) Explain might equals right approach of Karl Marx.
3) How business can be compared to the art of war?
4) Describe the idea of one minute moralist of Robert Soloman.
Section 'c'
1) Examine the categorical imperative approach of Immanuel Kant.
2) Discussthe utilitarian ethics of John Stuart Mill.