Ethical Theories

The Goal of Ethical Theory

Generally: to provide a systematic answer
to the question of how we should behave
Introduction to Ethical Theory
 Consequentialism
Consequentialists maintain that whether
an action is morally right or wrong
depends on the action's consequences. 
In any situation, the morally right thing to
do is whatever will have the best
consequences.
Consequentialist theories are sometimes
called teleological theories.
Psychological Egoism
Only moral obligation we have is to
ourselves
Not mentions to help others explicitly
However, can help others in order to
promote self interest
Criticism
Isnot really a moral theory
Not a sound theory to suggest all men are
motivated by self interest
Ignores blatant wrongdoings
What Kind of Consequences?
Consequentialism isn't very informative
unless it's combined with a theory about
what the best consequences are.

Utilitarianism is such a theory.

◦ Utilitarianism is the most influential variety of
consequentialism
 Utilitarianism
Jeremy Bentham and John Stuart Mill
An action is good if it benefits someone
An action is bad if it harms someone
Utility: tendency of an object to produce
happiness or prevent unhappiness for an
individual or a community
Happiness = advantage = benefit = good =
pleasure
Unhappiness = disadvantage = cost = evil =
pain
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Principle of Utility
(Greatest Happiness Principle)
An action is right (or wrong) to the extent
that it increases (or decreases) the
total happiness of the affected parties.

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Inferences and implications of
Utilitarian theory
 Along with happiness, unhappiness or pain that may be
encountered should also be considered
 Any action will have different impact on different people
 Anything, thus, can be morally right in some
circumstance
 Maximization of happiness, not only in the immediate
but also in long term
 Most of the time we are not sure what the consequence is
going to be in future
 Does not expect us to give up our own pleasure while
choosing among actions.
Highway Routing Scenario
Statemay replace a curvy stretch of
highway
New highway segment 1 mile shorter
150 houses would have to be removed
Some wildlife habitat would be destroyed

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Evaluation
 Costs

◦ $20 million to compensate homeowners

◦ $10 million to construct new highway
◦ Lost wildlife habitat worth $1 million
 Benefits

◦ $39 million savings in automobile driving costs

 Conclusion

◦ Benefits exceed costs

◦ Building highway a good action

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Case for Act Utilitarianism
Focuseson happiness
Down-to-earth (practical)
Comprehensive
Workable ethical theory

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Case Against Act Utilitarianism
Unclear whom to include in calculations
Too much work
Ignores our innate sense of duty
Susceptible to the problem of moral luck

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Anti-Worm Scenario
August 2003: Blaster worm infected
thousands of Windows computers
Soon after, Nachi worm appeared
◦ Took control of vulnerable computer
◦ Located and destroyed copies of Blaster
◦ Downloaded software patch to fix security
problem
◦ Used computer as launching pad to try to
“infect” other vulnerable PCs

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 Evaluation using Rule Utilitarianism
 Proposed rule: If I can write a helpful worm that removes a
harmful worm from infected computers and shields them
from future attacks, I should do so
 Who would benefit

◦ People who do not keep their systems updated

 Who would be harmed

◦ People who use networks

◦ People who’s computers are invaded by buggy anti-worms
◦ System administrators
 Conclusion: Harm outweighs benefits. Releasing anti-worm
is wrong.

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Case Against Utilitarianism in General
All consequences must be measured on a
single scale.
Utilitarianism ignores the problem of an
unjust distribution of good consequences.
◦ Utilitarianism does not mean “the greatest good
of the greatest number”
◦ That requires a principle of justice
◦ What happens when a conflict arises between
the Principle of Utility and a principle of
justice?
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Kantianism
Good will: the desire to do the right thing
Immanuel Kant: Only thing in the world
good without qualification is good will.
Reason should cultivate desire to do right
thing.

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 Categorical Imperative (1st Formulation)

Act only from moral rules that you can at the

same time will to be universal moral laws.

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 Illustration of 1st Formulation
 Question: Can a person in dire straits make a promise with
the intention of breaking it later?
 Proposed rule: “I may make promises with the intention of
later breaking them.”
 The person in trouble wants his promise to be believed so
he can get what he needs.
 Universalize rule: Everyone may make & break promises
 Everyone breaking promises would make promises
unbelievable, contradicting desire to have promise
believed
 The rule is flawed. The answer is “No.”

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 Categorical Imperative (2nd Formulation)

Act so that you treat both yourself

and other people as ends in themselves
and never only as a means to an end.

This is usually an easier formulation to work

with than the first formulation of the
Categorical Imperative.

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In other words,
The two formulations can be understood
as:
1. To act only in ways that one would wish
others to act when faced with the same
circumstances; and
2. Always to treat other people with dignity
and respect.
Plagiarism Scenario
 Carla
◦ Single mother
◦ Works full time
◦ Takes two evening courses/semester
 History class
◦ Requires more work than normal
◦ Carla earning an “A” on all work so far
◦ Carla doesn’t have time to write final report
 Carla purchases report and submits it as her own work

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Kantian Evaluation (1st Formulation)
 Carla wants credit for plagiarized report
 Rule: “You may claim credit for work performed by
someone else”
 If rule universalized, reports would no longer be
credible indicators of student’s knowledge, and
professors would not give credit for reports
 Proposed moral rule is self-defeating
 It is wrong for Carla to turn in a purchased report

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Kantian Evaluation (2nd
Formulation)
Carla submitted another person’s work as
her own
She attempted to deceive professor
She treated professor as a means to an
end
◦ End: passing the course
◦ Means: professor issues grade
What Carla did was wrong

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Case for Kantianism
Rational
Produces universal moral guidelines
Treats all persons as moral equals
Workable ethical theory

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Case Against Kantianism
Sometimes no rule adequately
characterizes an action.
There is no way to resolve a conflict
between rules.
Kantianism allows no exceptions to moral
laws.

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Stockholder Theory
Stockholder Shareholder
Managers, BOD agents of the owners
Agents responsible to further the interest
of the owner
Thus, no social responsibility
Milton Friedman – economist who
succinctly summarizes the stockholder
theory.
Criticisms:
Myopic view of corporate responsibility,
an outmoded relic of the past
Lack of faith in laissez-faire capitalism
Contemporary economic conditions have
far moved from those of a true, free
market
A false analogy with the govt.
Stakeholder Theory
A stakeholder is any person or group who
is affected for better or worse by the
activities of a business or whose rights are
affected by the activities of a business
Companies ought to take into account the
interests of all stakeholder groups
It is to be noted that this may often be easier said than
done since the interests of stakeholders may often
point in very different directions regarding firm strategy
and operation.
STAKEHOLDER THEORY
 Itallows us to ask:
 Who or what groups have been affected positively or
negatively by businesses?
 What if anything should a business be doing to take into
account the interests of these stakeholder groups?
 Have businesses already taken any steps to deal with
morally significant stakeholder interests?
Criticisms
Difficulty is defining who is a genuine
stakeholder
Its better to rely on the management to
deliver social benefit where it is required
rather than suggesting a wide range and
diversity of stakeholders to cater to
Opens up a path for corruption
Rights of stakeholders extended far too
much
Social Contract Theory
Thomas Hobbes
◦ “State of nature”
◦ We implicitly accept a social contract
 Establishment of moral rules to govern relations
among citizens
 Government capable of enforcing these rules
Jean-Jacques Rousseau
◦ In ideal society, no one is above rules
◦ That prevents society from enacting bad rules

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James Rachels’s Definition
“Morality consists in the set of rules,
governing how people are to
treat one another, that rational
people will agree to accept, for their
mutual benefit, on the condition that
others follow those rules as well.”

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Kinds of Rights
Negative right: A right that another can
guarantee by leaving you alone
Positive right: A right obligating others to
do something on your behalf
Absolute right: A right guaranteed
without exception
Limited right: A right that may be
restricted based on the circumstances

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DVD Rental Scenario
Bill owns chain of DVD rental stores
Collects information about rentals from
customers
Constructs profiles of customers
Sells profiles to direct marketing firms
Some customers happy to receive more
mail order catalogs; others unhappy at
increase in “junk mail”

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 Evaluation (Social Contract Theory)
 Consider rights of Bill, customers, and mail order
companies.
 Does customer have right to expect name, address to be
kept confidential?
 If customer rents DVD from Bill, who owns information
about transaction?
 If Bill and customer have equal rights to information, Bill
did nothing wrong to sell information.
 If customers have right to expect name and address or
transaction to be confidential without giving permission,
then Bill was wrong to sell information without asking for
permission.

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Case for Social Contract Theory
Framed in language of rights
Explains why people act in self-interest
without common agreement
Provides clear analysis of certain
citizen/government problems
Workable ethical theory

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Case Against Social Contract
Theory
No one signed contract
Some actions have multiple
characterizations
Conflicting rights problem
May unjustly treat people who cannot
uphold contract

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Teachings of the Church
 Rerum Novarum – the theme being ‘the relationship
between the State, employers and the workers’
◦ It strongly laid the foundation for human dignity
 Gaudium Et Spes – cultural and social transformation
has repercussions on man’s religious life as well.
 Popularum Progressio – concern over too much
consumption by the rich and inadequate consumption by
the poor
 Centesimus Annus: ecological concern arising from
consumerism
Indian Ethical Traditions
Gandhian Principles:
◦ Principle of trusteeship
◦ Sarvodaya – welfare for all
Bhagawad Gita:
◦ Nishkama Karma
◦ Steady Mind
◦ Whenever adharma increases, dharma will be
re-established
Business and Islam
No fraud or deceit
No excessive oaths in a sale
Need for mutual consent
Be strict in regard to weights and measures
The prophet was very much against monopoly
Free enterprise
Hoarding is forbidden
Forbidden transactions
Shariah and Interest on Capital