BUSINESS ETHICS

Bryan R. Ramones, CPA

October 6, 2018
 WHAT IS ETHICS?
• [BROAD] It is a branch of philosophy that involves systematizing, defending,
and recommending concepts of right and wrong conduct

• [SIMPLE] Day-to-day morals and ethical norms

• Three major areas of study within ethics recognized today are:

• Metha-ethics
• Normative ethics
• Applied ethics
 WHAT IS BUSINESS ETHICS?
• Business ethics is an applied ethics.

• If ETHICS are day-to-day morals and ethical norms,

• Then BUSINESS ETHICS is the integration of these day-to-day morals and

ethical norms to business and applies to all types of business. Additionally, it
studies ethical principles, morals and problems that take place in the
business environment
 WHAT IS BUSINESS ETHICS?
• In finer terms, it implies the good or bad, right or wrong behavior, in pursuing
business, determined on the basis of expected behavior approved by the
society.
 CHARACTERISTICS OF BUSINESS ETHICS
1. Discipline

Business ethics are the guiding principles of business

function. It is the knowledge through which human
behavior is learnt in a business situation.
 CHARACTERISTICS OF BUSINESS ETHICS
2. Ancient Concept

Business ethics is an ancient concept. It has it origin with

the development of human civilization.

How ancient?

One of the earliest written treatments of business ethics is found

in the Tirukkuṛaḷ, a Tamil book dated variously from 300 BCE to
7th century CE
 CHARACTERISTICS OF BUSINESS ETHICS
3. Personal Dignity

The principles of ethics develop the personal dignity. Many

of the problems of ethics arise due to not giving dignity to
individual. All the business decisions should be aimed by
giving dignity to the customers, employees, distributors,
shareholders and creditors, etc. otherwise they develop in
immorality in the business conducts.
 CHARACTERISTICS OF BUSINESS ETHICS
4. Related to Human Aspect

Business ethics studies those activities, decisions and

behaviors which are concerned with human aspect. It is
the function of the business ethics to notify those decisions
to customers, owners of business, government, society,
competitors and others on good or bad, proper or
improper conduct of business.
 CHARACTERISTICS OF BUSINESS ETHICS
5. Study of Goals and Means

Business ethics is the study of goals and means for the

rational selection of sacred objects and their fulfillment. It
accepts the principles of “Pure goals inspire for pure
means” and “Means justifies the end”. It is essential that
goals and means should be based on morals.
 CHARACTERISTICS OF BUSINESS ETHICS
6. Different from Social Responsibility

Social responsibility mainly relates to the policies and

functions of an enterprise, whereas business ethics to the
conduct and behavior of businessmen. But it is a fact that
social responsibility of business and its policies is influenced
by the business ethics.
 CHARACTERISTICS OF BUSINESS ETHICS
7. Greater than Law

Although the law approves various social decisions, the

law is not greater than ethics. Law is usually related to the
minimum control of social customs whereas ethics gives
importance to individual and social welfare actions.
EGOISM
Bryan R. Ramones, CPA
October 6, 2018
 WHAT IS EGOISM?
• In philosophy, egoism is the theory that one’s self is, or
should be, the motivation and the goal of one’s own action.

• Egoism has two variants:

1. Descriptive
2. Normative
 WHAT IS EGOISM?
• The term “egoism” derives from “ego,” the Latin term for “I”
in English.

• Egoism should be distinguished from egotism, which means

a psychological overvaluation of one’s own importance, or
of one’s own activities.
 DESCRIPTIVE EGOISM
• The descriptive egoist’s theory is called “psychological
egoism.”
• Psychological egoism describes human nature as being
wholly self-centered and self-motivated.
• Examples of this explanation of human nature predate the
formation of the theory, and, are found in writings such as
that of British Victorian historian, Macaulay, and, in that of
British Reformation political philosopher, Thomas Hobbes.
 DESCRIPTIVE EGOISM
• To the question,

“What proposition is there respecting

human nature which is absolutely and
universally true?"
 DESCRIPTIVE EGOISM
• Macaulay replies,

"We know of only one . . . that men always

act from self-interest."
 DESCRIPTIVE EGOISM
• Hobbes maintains that,

"No man giveth but with intention of good

to himself; because gift is voluntary; and of
all voluntary acts the object to every man
is his own pleasure."
 DESCRIPTIVE EGOISM
• In its strong form:

Psychological egoism asserts that people

always act in their own interests, and, cannot
but act in their own interests, even though they
may disguise their motivation with references to
helping others or doing their duty.
 NORMATIVE EGOISM
• It stipulates the agent ought to promote the self above
other values.

SELF_____
Other values
 NORMATIVE EGOISM
• Herbert Spencer said,

“Ethics has to recognize the truth, recognized in

unethical thought, that egoism comes before
altruism. The acts required for continued self-
preservation, including the enjoyments of benefits
achieved by such arts, are the first requisites to
universal welfare. Unless each duly cares for himself,
his care for all others is ended in death, and if each
thus dies there remain no others to be cared for.”
 NORMATIVE EGOISM
• Herbert Spencer was echoing a long history of the
importance of self-regarding behavior that can be traced
back to Aristotle’s theory of friendship in the
Nichomachaean Ethics.
 NORMATIVE EGOISM
• In his theory, Aristotle argues that a man must befriend
himself before he can befriend others.
 NORMATIVE EGOISM
• The general theory of normative egoism does not attempt
to describe human nature directly, but asserts how people
ought to behave.
CYRENAIC GUIDELINES
Bryan R. Ramones, CPA
October 6, 2018
 WHAT IS CYRENAIC ?

• They are a group of ancient Greek hedonists of the

third and fourth centuries b.c., so named because
Cyrene was the native city of the chief personalities.
 CYRENAIC GUIDELINES
BY GORDON ZINIEWICZ

1. Overall End or "Summum Bonum" or "Reason for Living": Pleasure (of smooth
physical sensations). Seek pleasure and avoid pain (of rough sensations).
2. Pleasure, physical satisfaction at the fulfillment of some desire, is superior to
happiness, an overall state of well being and contentment in life.
3. Bodily pleasures are better than mental pleasures.
4. Bodily pains are worse than mental pains.
5. Intense pleasures are better than mild pleasures.
6. Immediate (here and now) pleasures are better than anticipated or
remembered pleasures.
7. Intense pleasure is not derived from memory or anticipation of what is
pleasant.
 CYRENAIC GUIDELINES
BY GORDON ZINIEWICZ

8. Pleasure is not derived from hearing or from sight alone, but needs touch
(especially) or taste or smell.
9. Present and certain pleasure is superior to future and uncertain pleasure.
10. One should not endure present pain for the sake of future pleasure.
11. Reason must work to manipulate conditions in order to maximize pleasure.
12. Reason must master pleasure and not be mastered by it, although coming
by pleasure is not always under our control.
13. What counts is the particular pleasure itself; the source or cause or acts
leading up to that pleasure are unimportant (are not good or bad).
14. Pleasure is good even if it results from the most unseemly conduct.
 CYRENAIC GUIDELINES
BY GORDON ZINIEWICZ

15. Nothing is good or bad by nature, but only by convention and custom.
16. We cannot feel the pleasures and the pains of others.
17. Friendship is for the sake of pleasure.
18. The pleasure of a friend is not in itself desirable, for it is not felt by his
neighbor.
19. Pleasure is not simply the absence of pain; nor is it simply freedom from
trouble.
20. The wise man will consider first his own interests, for he does not regard
anyone else as equally deserving.
21. The wise man would indulge his desires openly without concern for
circumstances.