FIVE ETHICAL THEORIES AND

METHODS OF ANALYSIS
• UTILITARIAN—Cost/Benefit
Compare harm to benefit and do the greatest good
• UNIVERSAL—Duty to act in a way you would want
everyone to act—The Golden Rule
• RIGHTS—Respect Individual rights—freedom of choice,
speech.
• JUSTICE—How are the opportunities, rewards and
burdens distributed—are methods fair and clear to all?
• VIRTUE—What are individual moral beliefs? How will
an action affect people and how can conflicting beliefs
be resolved?
 Five Standards of Behavior
1. LEGAL STANDARD---The law generally sets a base or
foundation for what is “right” behavior. Rarely is violating
the law ethical.
2. ORGANIZATIONAL STANDARD ---The organization spells out
in detail how things are done and all are expected to follow
—HP case.
3. CODE ADOPTED BY TRADE or PROFESSIONAL GROUPS—
Accountants, Lawyers, Purchasing Managers, HR groups.
4. PUBLIC AND SOCIETAL VIEW—How is it perceived?
5. INDIVIDUAL BELIEFS—Formed by religion, philosophy, etc.
 Evaluating Ethics Training –Kohlberg’s
Six Stages of Moral Development
• Level One—Self Orientation
Stage One—Avoid Punishment-Baby and hot fire learns NOT to do
something
Stage Two—Reward Seeking—Learns that right behavior may bring
reward
• Level Two—Conventional—Other Orientation
Stage Three—Good Person—You act right to be accepted by others
Stage Four—Law and Order—You act right to obey law and to
follow social norms—this is where most adults are at.
• Level Three—Principles Level
• Stage Five—Social Contract—You follow due process, recognize
relative values and tolerate different opinions
• Stage Six—Universal Ethical Principles—Person uses moral rules to
guide behavior—St. Theresa , Ghandi, Almost saintly behavior
 Six Questions to Ask
1. Is It Right?
2. Is it Fair?
3. Who gets hurt?
4. Would you be o.k. if details are on the front
page of the newspaper?
5. What would you tell your children to do?
6. How does it smell or feel?
 Evaluating Ethics Training –Kohlberg’s
Six Stages of Moral Development
• Level One—Self Orientation
Stage One—Avoid Punishment-Baby and hot fire learns NOT to do
something
Stage Two—Reward Seeking—Learns that right behavior may bring
reward
• Level Two—Conventional—Other Orientation
Stage Three—Good Person—You act right to be accepted by others
Stage Four—Law and Order—You act right to obey law and to
follow social norms—this is where most adults are at.
• Level Three—Principles Level
• Stage Five—Social Contract—You follow due process, recognize
relative values and tolerate different opinions
• Stage Six—Universal Ethical Principles—Person uses moral rules to
guide behavior—St. Theresa , Ghandi, Almost saintly behavior
 EIGHT STEPS TO ESTABLISH A STRONG ETHICAL CULTURE

1. ADOPT A CODE OF ETHICS

A. Ask representative members to create.
B. Post in prominent places
C. Have everyone sign to show agreement.
2. PROVIDE ETHICAL TRAINING
A. Use “experts” or “managers” or “employees”
B. Use real world ethical dilemma and Code of Ethics.
3. HIRE AND PROMOTE ETHICAL PEOPLE—Ethics as a requirement
4. CORRECT UNETHICAL BEHAVIOR-Use sanctions –loss of pay, loss of job.
5. Be PROACTIVE—How to help community, adopt best practices.
6. Conduct A SOCIAL AUDIT—Have outsider examine practices and
policies.
7. Protect WHISTLE-BLOWERS--Those who report unethical conduct.
8. REMIND Managers and Employees – they must be guardians of integrity.