CHAPTER 1: ETHICS

AND BUSINESS(Continuation)
JOMARY S. MANGUIAT, LPT
 OBJECTIVES

4 Distinguish ethical norms and values from other business-

related norms

5 responsibilities
Distinguish legal responsibilities from ethical

6 compliance
Explain why ethical responsibilities go beyond legal

7 reasoning.
Describe ethical decision making as a form of practical
4 Distinguish ethical norms and values from
other business-related norms
NORM – a principle of right action binding upon the members of
group and serving to guide, control, or regulate proper and
acceptable behavior (Merriam-Webster Dictionary)
VALUES – a person’s principles or standards of behavior; one’s
judgment of what is important in life (Google). It is also the
underlying beliefs that cause us to act or to decide one way rather
than another.
4 Distinguish ethical norms and values from
other business-related norms
• You make decision to
spend your money on
groceries rather than
on a vacation because
you value food more
than relaxation.
4 Distinguish ethical norms and values from
other business-related norms
• Many different types of values can be recognized: financial,
religious, legal, historical, nutritional, political, scientific,
and aesthetic.
• Talk of a corporation’s “culture” is a way of saying that a
corporation has a set of identifiable values that establish the
expectations for what is “normal” within that firm.
• However, individual’s or a corporation’s set of values may lead
to either ethical or unethical results.
4 Distinguish ethical norms and values from
other business-related norms
• Different types of values are distinguished by the various ends
served by acts and choices.

“ How are ethical values to be distinguished from these types of

values?”
“What ends do ethics serve?”
4 Distinguish ethical norms and values from
other business-related norms
Elements of Ethical Values
1. Ethical values serve the ends of human well-
being. Acts and decisions that seek to promote
human welfare are acts and decisions based on
ethical values.
4 Distinguish ethical norms and values from
other business-related norms

2. The well-being promoted by ethical values is not a personal

and selfish well being. From the perspective of ethics, no
one person’s welfare is more worthy than any other’s.

Ethical vales are those beliefs and principles that

impartially promote human well being.
5 Distinguish legal responsibilities from
ethical responsibilities
• Legal norms and ethical norms are not identical, nor do they
always agree.
• Some ethical requirements, such as treating one’s employees
with respect, are not legally required, though may be ethically
warranted.
• Conversely, some actions that may be legally permitted such as
firing an employee for no reason, would fail many ethical
standards.
5 Distinguish legal responsibilities from
ethical responsibilities
• Individual businesses may decide to go beyond the legal
minimum, such as when a business supports the local arts, but
these choices are voluntary.
• Ethics requires obedience to the law; anything beyond that is a
matter of corporate philanthropy and charity, something
praiseworthy and allowed, but not required.
5 Distinguish legal responsibilities from
ethical responsibilities
• Many corporations have established ethics programs and hired
ethics officers.
• Ethics officers do a great deal of good and effective work; but it
is fair to say that much of their work focuses on compliance
issues.
• The Sarbanes-Oxley Act created a dramatic and vast new layer
of legal compliance issues.
5 Distinguish legal responsibilities from
ethical responsibilities

“ Is compliance with the law all that

is required to behave ethically?”
“”No.”
 5 Distinguish legal responsibilities from ethical responsibilities

REASONS WHY LEGAL COMPLIANCE IS

INSUFFICIENT TO ETHICS
1. Holding that obedience to the law is sufficient to fulfill one’s ethical duties begs the
question of whether the law, itself, is ethical.
2. Societies that value individual freedom will be reluctant to legally require more than just
an ethical minimum.
3. Telling business that its ethical responsibilities end with obedience to the law is just
inviting more legal regulation.
4. The law cannot possible anticipate every new dilemma that businesses might face; so,
often, there may not be a regulation for the particular dilemma that confronts a business
leader.
5. The perspective that compliance is enough relies on a misleading understanding of law.
6 Explain why ethical responsibilities go
beyond legal compliance
• Americans with Disabilities Act (ADA) – a law that requires employers to make
reasonable accommodations for employees with disabilities.

“What counts as a disability and what would be considered a

reasonable accommodation?”
Over the years, claims have been made that relevant disabilities
include obesity, depression, dyslexia, arthritis, hearing loss,
high blood pressure, facial scars, and the fear of heights.
6 Explain why ethical responsibilities go
beyond legal compliance
• Imagine that you are a corporate human resource manager and
an employee asks you to reasonably accommodate his allergy.
How would decide whether allergies constitute a disability
under the ADA?
• The legal answer remains ambiguous. There will always be
some differences among cases.
6 Explain why ethical responsibilities go
beyond legal compliance
• In civil law there is a real sense that one has not done anything
illegal unless and until a court decides that one has violated a
law.
• Even those business people who are committed to strictly
obeying the law will be confronted on a regular basis by the
fundamental ethical questions: What should I do? How should I
live?
7 Describe ethical decision making as a
form of practical reasoning.

• Ethics is a vital element of practical reasoning –

reasoning about what we should do – and is
distinguished from theoretical reasoning, which is
reasoning about what we should believe.
7 Describe ethical decision making as a
form of practical reasoning.
• Theoretical reason is the pursuit of truth, which is the highest
standard for what we should believe. According to this
tradition, science is the great arbiter of truth.
• Thus, scientific method can be thought of as the answer to the
fundamental questions of theoretical reason: What should we
believe?
7 Describe ethical decision making as a
form of practical reasoning.
“Is there a comparable methodology or procedure for
deciding what we should do and how we should act?”
There is no single methodology that can in every
situation provide one clear and unequivocal answer. to
this question.
 “If moral behavior were simply
following rules, we could program a
computer to be moral.”
Samuel P. Ginder