BUSINESS ETHICS

LESSON I: The Nature of ETHICS and BUSINESS ETHICS

 “According to Aristotle, the term ETHICS came from the Greek word “ETHOS” which in turn found
its source in “ETHIMOS” which means regularity and routine.
 Thus, ETHOS may refer to one’s character which is a product of what one does regularly and
repeatedly so that it has become a routine.
 Ethics is the philosophy of life. It delves into the deepest whys and wherefores of human existence,
men’s action, problems and destiny. Therefore, Ethics is the discipline that investigates the rightness or
wrongness of human actions.
Ethics studies human acts or human conduct. There are indeed other sciences which also studies human
conduct, such as sociology, psychology and education. But ethics differs from each of these in its standpoint or
in particular aspects of human acts with which it is particularly concerned; and this is the morality of human
action.

1. Philosophy - this is how a person views things in his/her perspective.

2. Principles - a law, fact, theory and doctrine of nature that tells how something works to know what is
right and wrong. It influences human actions.

Terms:

1. Science- systematic study or a system of scientific conclusions clearly demonstrated, derived from
clearly established principles and duly coordinated.
2. Morality- the quality of right and wrong in human acts.
3. Human acts- acts done with knowledge and consent.

WHAT IS MORALITY?

MORALITY has originated from the Latin term “Mos” (plural form MORES) which was used to refer to
one’s disposition, character, temperament, manners, customs or the proper behavior of a person in the society.
Therefore, MORALITY refers to the quality of goodness or badness in a human act.

“EVERY DAY WE PASS JUDGMENT ON THE MORALITY OF HUMAN ACTIONS”

Ethics as a Prescriptive Subject

The primordial question that students of ethics ask is: “Given a particular situation, what should a person
do?” That is why many authors would say that ethics is not just a descriptive subject; rather it is a prescriptive
one.
It means that this subject is not only concerned about describing the facts, the circumstances of human
agents and the conflicting principles that arise from the situation. Instead, ethics is concerned about prescribing
what should be done after knowing all the facts.

To further clarify this difference between descriptive and prescriptive, think of the patient-doctor
relationship. When a person is sick, he or she goes to the doctor. The patient tells the doctor what he feels. After
knowing the facts, the doctor prescribes the illness but he does not stop here. After describing, the doctor
prescribes what the patient should do for him to get well. According to these authors, the aim of ethics is not
only describing but also prescribing the ethically correct course of action that the human agent should take.
ETHICS AND ETIQUETTE
We must not be confused with ethics and etiquette. One may violate etiquette without necessarily
violating an ethical standard. You may not use the words “Po” and “Opo” in talking with elder people but it
does not make you immoral. You may not observe some table manners but it does not make you morally bad.
Similarly, you may not shake the hand of a person you are introduced to by a business colleague, but it would
not be immoral.
However, the society might judge you as disrespectful, rude and even uncivilized because of your
disregard for etiquette; it does not follow that this outright disregard renders you unethical.
But notice that when your act involves dumping of toxic materials in the river, people will not only call you as
rude or uncivilized; they see that your act involves the concept of being “unethical” and “immoral”. The
dumping of toxic materials in the river is not a simple case of violation of courtesy (etiquette), rather it is a more
complex issue that involves ethical and moral evaluation.

Duska said that “the actions examined in ethics are those that affect other people and ourselves
positively or negatively in some serious way”

ETHICS AND LAW

Law

 The overlapping of ETHICS and LAW shows that many human actions are legal and at the same time
ethical.
 ”As long as I am following the law, then I am doing what is right.” It is because the law commonly
mirrors the society’s ethical codes and moral beliefs.
 However, the law does not encompass all of ethics. There are things that are legal but are not ethical. In
other words, there are actions that are perfectly accepted and allowed by existing laws: but deeper
analysis of these actions makes one feel certain unease, a kind of “gut-feel” that something is wrong
even though a law is not violated.
 “The simple diagram also shows that there are things that are ethical but are judged by society as
illegal.” In other words, there are situations when you think that your actions are ethically correct but
you might be apprehended because the said actions are judged by the current legal system as
unacceptable.
 As general rule, we have to follow the law because it is the embodiment of man’s cherished ethical
principles and moral convictions. It ensures a society that is less chaotic and more peaceful, harmonious
and humane.
ETHICS AND PROFESSIONAL CODE OF ETHICS

PCE (PROFESSIONAL CODE OF ETHICS)

 Is an attempt to translate the general norms into the specific context by profession.
 ”These are set of principles and rules used by professional organizations to govern their decision-making
in choosing between right and wrong”
 Since PCE’S are made by human hands, it is open to limitation and abuses.
 “when moral diligence triumphs over intellectual laziness, one’s conscience takes priority over any
written code and rule”

WHAT IS BUSINESS ETHICS?

 When this discipline is used to explore the rightness or wrongness of business activities and the conduct
of business persons and professional, that is called “BUSINESS ETHICS”

Ethics is generally subdivided into three sub-fields:

1. Metaethics—focuses mainly on the investigation of the sources of our ethical principles.
2. Normative Ethics—attempts to come up with those ethical principles that we can use to judge whether
our actions are right or wrong.
3. Applied Ethics-- it investigates morally debatable issues such as death penalty, the use of
contraceptives, euthanasia and others. Business ethics is an applied ethics because it generally talks
about the morally debatable issues in the field of business and commerce.

CONSIDERATIONS IN ETHICAL DECISION-MAKING

1. Know all the facts and circumstances.

2. Identify other needed information and find ways to attain them.
3. Identify the ethical problems and issues involved.
4. Identify those who will be affected by any decision that you will make.
5. Consult the various ethical principles that you studied in your ethics subject. But remember that these
ethical theories are not the end-all and be-all of correct ethical reasoning.
6. Consult people especially those whom you trust much and those who you believe to embody firm values
and moral principles.
7. Think of your family and whether they will agree and support you on your decision.
8. Think of your personal relationship with your God and how this will factor in your decision.
9. Ask yourself whether your decision contributes to your overall idea of a meaningful life, a worthwhile
living and a virtuous person.
10. Make a decision and own it.
11. Always remember that your final decision may be revised in the event that new circumstances or
insights enter the picture. This means that when it comes to resolving an ethical dilemma, a final
decision never remain final after.