Chapter 2 Contents

 Normative theories
 Consequencialist theory
 Egoism
 Utilitarianism
 Non- consequentialist theory
 Rights principle
 Distributive Justice
 Ethics of Care
 Virtue Ethics

Ajmal Khan-MBA Finance

Email: Ajmal.khanzai1985 mobile 0770665566
Normative Theories
Normative means process of setting standards or rules of behavior”.

Normative theories propose some actions or principles for distinguishing

right actions from wrong actions, These theories can be divided into

1. Consequentialist
2. Non- consequentialist
approaches.
Consequentialists Theory

Many philosophers (Jeremy Bentham) have argued that the moral

rightness of an action is determined only by its results or consequence

 If the results are good , then the act is right.

 If the results are bad , then that act is wrong.

It can be further divided into two more approaches :

A: Egoism B: Utilitarianism
Egoism(Consequentialist)

The view that associates morality with self interest if referred to egoism.

Egoists contends that an act is morally right if and only if it best

promotes an agents self interest (Agent refers to particular group or organization)
Egoists use their self interest as the standard for measuring the actions rightness.
Egoism(Consequentialist)

According to egoism we care for others because it is in

our best self interest.

I am not required to act in the interest of others, but I should if

that is the only way to promote my own self interest.

Example…
Providing more and more facilities to your employees does not
mean that you are caring for your employees, but you want
them to be more productive(profit).
Problems with Egoism

Egoism is not a sound theory:

It is a wrong notion that we care for others only
because it is in our own best self interest.

Egoism ignores blatant Wrongs:

The most common objection to egoism is that by reducing everything to the
standards of self-interest.
Egoism takes no stand against seemingly outrageous acts like
 Stealing
 Murder…
 Deliberately false advertising…
 Earnings through illegal ways
Utilitarian ( consequentialist )
Utilitarianism

Proposes that an action is right if it produces the most utilities(benefits) for

all persons affected by the action (including the person performing the
act).

Example:

Is it right to let one patient die in order to harvest his organs and perhaps
save five lives?
Utilitarian (cont’s)

Utilitarianism:

Holds that actions and policies should be evaluated on the

basis of the “benefits” and “costs” they will impose on society.
In any situation the right action or policy is the one that will
produce the greatest net benefits and less cost.
Note:
Benefits here means happiness and satisfaction or monetary benefits.
Utilitarian (cont’s)
Example:
The government may appropriate private property for public use,
usually with compensation to the owner. Thus the government may
legally purchase your house from you to widen the highway- even if
you don’t want to sell the house or want more money than the
government is willing to pay. The public interest is served at your
private expense. Is this justice ?
Problems with utilitarianism
Sacrificing sufferings of some people for the general
benefits of others.

Example:
Medical researchers initiated a long range study of viral hepatitis at
New York institution of mentally retarded children. They deliberately
infect some of the children with a strain of hepatitis virus epidemic
(disease). According to utilitarian’s the suffering of some individuals
was justified because it maximize the total happiness produced.
 Problems with utilitarianism
Some actions are wrong even if they produce more good:
Like utilitarianism focuses on the result of an action.

Example:
If a dying woman has asked you to promise to send 25,000$ to her
nephew and she dies without anyone else knowing about the money.
You also know the nephew is spendthrift and a drunkard and were the
money delivered to him it would be wasted in a week.
On the other hand very fine orphanage needs such a sum, something
that would provide happiness to many children for years to come. Being
a utilitarian you should give the amount to the orphanage.
Utilitarianism and Organization

Utilitarianism
Make it appealing as a standard for decision making in business and
non-business organizations.
Utilitarianism provides a clear and straightforward basis for
formulating policies.
By utilitarian standards, an organizational policy, decision or action is
good if it promotes the general welfare.
Non consequentialist Theory
These philosophers contend tat right and wrong are determined by more
than the likely consequences of an action.

Example:
Tom to break his promise to fred is wrong not simply because it has bad
results (Fred hurts feelings) but because of the inherent character of the
act itself.
Rights Principle:
The morally correct action is the one that you have a moral right to
do.

According to this view, all people have natural rights to life,

liberty, and property, and everyone is morally permitted to do
anything they wish, provided that their actions do not violate the
rights of other people.
Rights are entitlements
 Example: Right to free speech
 Example: Right to freedom of religion
 Example: Right to an education
Distributive Justice Principle
The morally correct action is the one that produces a fair
distribution of resources(benefits and burdens).

Each person receives resources according to how much

they deserve (in terms of contribution, effort or merit.)
Distributive Justice (Fairness)
General Fairness Principles:
 People who are similar in relevant respects should be treated similarly
 People who differ in relevant respects should be treated differently.
Example
If Jack and Jill both do the same work, and there is no relevant difference, then in
justice they should be paid the same wages.

And if Jack is paid more than Jill simply because he is a man, or because he is white,
then we have an injustice
Ethics of Care
Care Principle:
The morally correct action is the one that appropriately cares for the people with whom
you have relationships.
Example:
1. Love toward son or daughter versus love toward a stranger
2. Care for the needs of people with whom you have relationships.
Examples:
Care for your own needs
1. Family
2. Friends
3. Employees
4. Customers
5. Stockholders