2.

ETHICAL THEORIES
Introduction
Business Decision making process is different and more difficult
because of complex situations.
Coming to an ethical conclusion in business situations far more
complex than in most of the situations where we as private
individuals have to make ethical decision.
Ethical theories are the rules and principles that determine right and
wrong for a given situation.
Cont
There are two theories:
1. Normative
2. Descriptive
Normative Theories
A normative theories aims to discover what should be, and would
include sentence like Companies should follow corporate governance
standard
This is the study of moral standards which are correct or supported by
the best reasons, and so attempts to reach conclusions about moral
rights and wrong and moral goods and evil.
Types of Normative theories

Normative
Theories

Non-
Consequentialist
Consequentialist

Duty-Based Right-Based
Egoism Utilitarianism Altruism
Ethics Ethics
Consequentialist Ethical Theory
Many philosopher have argued that the moral tightness of an action
is determined solely by its result.
If its consequences are good, then the act is right; if they are bed, the
act is wrong.
Consequentialist have offered three definitions of good. Each of
gives us different consequences moral theory, these are
1. Egoism
Egoism is a standard that focuses on self-interest.
Egoism equates with an individuals personnel interest.
Decision based on egoism provide the most favorable consequences
for that party regardless of the consequences to other party.
Self interest may be long run or short run.
Cont
Critics of Egoism theory
It is an unethical theory is not really moral theory at all.
Psychological Egoism is not a sound theory.
Ethical Egoism blatant wrong doing
2. Utilitarianism
Act Utilitarianism is solely concerned with achieving maximum good.
According to this theory an individuals rights may be infringed upon
in order to benefit a greater population.
In other words, act Utilitarianism is not always concerned with justice
, beneficence or autonomy for an individual, if oppressing the
individual leads to the solution that benefit a majority of people.
3. Altruism
Altruism is selfless concern for the welfare of other.
The term altruism may refer to an ethical doctrine that claims that
individual are morally obligated to benefit other.
Non-Consequentialist(Deontological) Ethical
Theory
Deontological is a Greek word refers to moral philosophies that
focuses on the rights of individuals and on the intentions associated
with particular behavior rather than on its consequences.
Fundamentally this theory is the idea that equal respect must be
given of all persons.