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Organizational Ethics Situational Analysis

Raleigh Araujo

Arizona State University

OGL 345: Organizational Ethics

Professor Dave Wells

April 28, 2023

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Introduction

One thing that has been continuously debated for hundreds of years is the matter of

ethics. The definition of what is considered to be ethical or what is “good” or “bad” tends to vary

depending on who you ask. There are many factors that influence a person’s perspective on what

is ethical and what isn’t. There are cultural, religious, familial, and community influences, as

well as many others. But are there universal rules for what is ethical as well? Here we will

discuss three different ethics theories, compare them to one another, as well as apply each of

them to an ethical situation. This discussion will provide a deeper understanding and analysis of

these theories and how ethics can be viewed in numerous ways.

Virtue Theory

The first ethics theory we will go over is Virtue Theory. Virtue theory is all about

focusing more on a person’s character rather than their actions. It is about the kind of person that

one needs to be in order to be deemed “ethical”. Aristotle brings up the point that if we are to

live truly flourishing and fulfilling lives, then we need to be more virtuous. “For Aristotle,

(flourishing) is not something we achieve as a result of being virtuous, rather it is achieved

through being virtuous…virtue is its own reward” (Fryer, pg. 174, 2015).

Here we can see from Aristotle’s perspective that one lives a more meaningful and

abundant life when being virtuous. And when one is more virtuous, it is as if everything seems to

work about a bit better and fall into place. This means that when approaching ethical issues, we

should seek to find a solution that would be in line with being more virtuous. And when we are

seeking to be more virtuous and acting accordingly, we are in turn fulfilling our “purpose”

(Fryer, 2015).
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Ethical Relativism

Ethical relativism in itself is more about a person having their own ethical autonomy and

having the ability to express their ethical convictions (Fryer, 2015). There are many theories that

fall under the category of ethical relativism, but the one I will be discussing is Friedrich

Nietzsche’s idea of morality and power. Nietzsche believed that there is a “slave morality” and a

“master morality”. The slave morality has to do with people who are often seen in lower

positions in life, for example in a lower social class or in subordinate positions. He says that

these people are weaker than the “masters”. They are people who are not as willing to take risks

and do not try to take as much control as the masters do. Whereas the master type is much more

dominant, usually in some sort of position of power or in a higher social class. They seek power

and are willing to take more risks to achieve what they desire in life (Fryer, 2015).

Nietzsche also believed that “all living things are fundamentally motivated by a desire to

assert themselves over everything and everyone around them. (Fryer, pg. 224, 2015). This is

consistent with the idea of the slave and master moralities. He says that this is what drives us and

keeps the human race progressing further. On the other hand, he believes that the more sensitive

and considerate slave morality is what hinders humans from progressing and that it only holds

back the elites from reaching their full potential (Fryer, 2015). This is a very interesting take

because it promotes being more ruthless, arrogant, competitive, and prideful in order to get what

you want out of life. To Nietzsche this is not seen as bad thing, but a good thing because it would

further help society.

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Discourse Ethics

The final theory we will discuss is Discourse Ethics. Discourse Ethics takes more of a

democratic approach when it comes to solving ethical dilemmas. And by “democratic” I mean

that this theory is about getting all affected stakeholders involved and in discourse about

whatever the matter may be. Jurgen Habermas states “only those norms can claim to be valid that

meet (or could meet) with the approval of all affected in their capacity as participants in a

practical discourse” (Fryer, pg. 251, 2015). So, this basically means that if the most optimal

decisions are to be made regarding an issue, then everyone who would be affected by the issue

itself must be involved in the decision-making process. All voices must be heard.

This theory is about being able to embrace multiple perspectives. It is about valuing those

perspectives and these people of varying perspectives being able to listen to one another,

collaborate, and come up with higher quality solutions than they would if it were just one person

or a small group of people with a limited perspective making these decisions on their own (Fryer,

2015). Would it be ethical to make a decision that affects other people without them being able

to give any input on the matter? Discourse Ethics says “no”. All persons must be involved or at

least have a representative present who can speak for larger groups of people.

Comparing Theories

Now that we have a little more knowledge about these theories, we can now see how they

compare to one another. Virtue theory is based on a person’s character and being more virtuous.

Nietzsche’s take on Ethical Relativism and morality and power is about a person making

decisions based off what will give them the most power. And Discourse Ethics is about including

all affected parties in the decision-making process to create the highest quality solution.
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Virtue Theory and Discourse Ethics are similar in that they are the most considerate of

the three theories. I would like to say that when it comes to including more people and

perspectives in making ethical decisions, that this would also be a more virtuous act as well.

Whereas Nietzsche’s morality of power would be far less accommodating and where an

individual would more likely be more selfish and do whatever is best for them, without

considering how that decision may impact others. Nietzsche’s theory would probably be the least

virtuous of these, therefore to Aristotle a person who operates under master morality would not

be living a flourishing life and would not be living out their purpose. Which is contrary to what

Nietzsche believes, who says that a person will only reach their greatest potential by acting in

this way.

As you can see, there are some differences in each of these theories, but there are also a

few similarities. Virtue Theory and Discourse Ethics being very different, but also the closest in

similarity. Ethical Relativism’s morality of power is the one that differs the most from the others.

Virtue Theory would most likely not have an issue with Nietzsche’s desired traits like courage,

strength, and endurance. But it certainly would have an issue with traits like arrogance, pride,

and ruthlessness. And Nietzsche would probably say that it is alright to include others in

discourse like in Discourse Ethics, but as long as the result is giving you more power. Here we

can see where all of the varying mindsets and intentions lie when it comes to making ethical

decisions.

Theories Applied to Whiskey Fungus Case

In Lincoln County, Tennessee Jack Daniels has several barrel houses. The distilleries and

barrel houses make a great profit for the county, but many residents are less than thrilled to have

them nearby. Unfortunately, these barrel houses where Jack Daniel’s Bourbon barrels are stored,
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produce an ethanol-fueled fungus that covers just about any and everything in the surrounding

area. This includes people’s homes, street signs, trees, and many other things. Although the

county has stated the fungus does not pose a health hazard to residents, they are still not

completely satisfied and are unhappy constantly power washing their homes and other areas to

make it clean again, just for the fungus to grow back within 3 months. One resident even stated

that he has watched many trees die from this terrible fungus (Levenson, 2023). Not only is this

fungus a nuisance to deal with, but it is also harming the environment.

Here we will apply each theory discussed and how one might handle this matter

according to that particular theory. If Jack Daniels was operating under Virtue Theory, they

would definitely aim to do the most virtuous thing which is to not ignore complaints from

residents and to instead see what they can do to keep their business while also trying to keep this

fungus from invading the lives of people in Lincoln County. I can see them possibly testing air

filtration systems that would not impact the flavor of their alcohol, which would calm down the

growth of the fungus, while keeping residents happy. I think Jack Daniels would also do more

environmental testing to see exactly what kind of impact this fungus is having and then take the

appropriate measures to diminish the damage that has been done. Maybe they would even initiate

an environmental clean-up as well as make a promise to residents about the new measures they

are putting in place to rid everyone of this fungus.

If Jack Daniels were operating under Nietzsche’s morality of power within Ethical

Relativism, they would most likely ignore the complaints from residents in the county and ignore

their environmental impact. They are bringing in a good amount of money and are obviously

successful since they are trying to open up more barrel houses in the area. Concerning

themselves with these complaints is likely the least of their worries since they are able to get
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away with it. The only time they may have to take it more seriously is if the county keeps them

from opening up the barrel houses they want to open, and then they may have to go about

worrying to get the correct permits in order to do their business. But if nothing is really holding

them back, they will continue to dominate and be ruthless about their endeavors with making

more alcohol and profits.

If Jack Daniels were to take an approach from Discourse Ethics, they will be sure to

consider the people of Lincoln County, Tennessee as well as their environmental impact. They

would hold a meeting with everyone who is being affected by this fungus, which would include

Jack Daniels employees/workers, residents, and environmental activists. They would take the

time to listen to each perspective and stories from all parties. Then after everyone shares, they

would collaborate to figure out what kinds of solutions they can come up with to make everyone

happy. This method is sure to bring about a more optimal result. People would also appreciate

Jack Daniels more for allowing everyone to get involved, which would only help the Jack

Daniels business and reputation even more.

Conclusion

Virtue Theory, Ethical Relativism, and Discourse Ethics are only a few different theories

that we could apply to any ethical situation. I believe that all of these theories and ways to

analyze ethical dilemmas are valuable in their own right, whether you agree with them or not.

Some offer better results than others, but I guess it is up to you to decide whether you think those

results are “good”, “bad”, “ethical”, or “unethical”. This is one reason why ethics will most

likely continue to be debated for years and years to come. Whether your decision-making

process includes being more virtuous, being more powerful, or being more considerate of others,

it is up to you to decide what your ethical convictions are.

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References

Fryer, M. (2015). Ethics Theory and Business Practice. Perusall Edition. Sage Publications .

Levenson, M. (2023, March 1). Whiskey fungus fed by Jack Daniel's encrusts a Tennessee

town. The New York Times. Retrieved April 28, 2023, from

https://www.nytimes.com/2023/03/01/us/whiskey-fungus-jack-daniels-tennessee.html