How Can Ethical

Theories Help Businesses

Make Better Decisions?

Exploring the importance of ethical theories and their application in modern

businesses to make better decisions.
The Basics: Introduction to Ethical
Theories
1 Definition 2 Importance

Ethical theories are the foundation that By using various ethical theories,
businesses use to make moral decisions. businesses can make decisions that take
into account not only profit but also the
public good and social responsibility.
Common Ethical Theories in Business

Utilitarianism Deontology Virtue Ethics

Actions are determined by their Moral principles are absolute Actions are guided by
ability to create the most and should be obeyed, individual character and
happiness for the greatest regardless of the consequences. morality.
number of people.
Application of Ethical Theories in
Business Decision-Making

1 Case studies

Real examples of how businesses have used ethical theories to guide decisions with
positive outcomes for all stakeholders.

2 Benefits

By using ethical theories, businesses can create a positive public image, build customer
loyalty, and attract top talent.

3 Challenges

Conflicting ethical theories and balancing ethical considerations with other business
priorities can make applying ethical theories challenging.
Utilitarianism in Business
Pro: Greatest Good for the Most
People
An ethical business should produce products
and services that improve people's lives.
Con: Ignoring Minority Interests
This framework could lead to ignoring
minority interests for the sake of the majority.
Pro: Objective Standard
Utilitarianism provides an objective standard
of measuring how ethical a business's actions
are.
Con: Difficulty Quantifying
Happiness
Measuring how many people are happy vs
unhappy can be difficult.
Deontology in Business

1 Pro: Moral Principles are

Absolute

Businesses that follow Deontology are

Pro: Promotes Fairness 2 guided by an absolute moral standard.
This theory holds that everyone has
certain rights that should be respected.
3 Con: Inflexibility

The strict adherence to moral principles

can cause businesses to miss
opportunities or create situations in
which harm is caused.
Virtue Ethics in Business
Pro: Focus on
Character
Virtue ethics emphasizes the
value of developing individual
character as a way to guide
ethical decision-making.
Pro: Long-Term
Sustainability
This framework promotes long-
term thinking and sustainability
over short-term profits.
Con: Subjectivity
Virtue ethics can be subjective,
making it challenging to
determine whether a business's
actions are truly ethical.
The Importance of
Incorporating Ethical
Theories in Business
By incorporating ethical theories into business decision-making, businesses can
create a culture of responsibility that benefits themselves, their employees, and
society as a whole. Ethical businesses can build trust with customers, attract
quality employees, and increase their bottom line.