IMPLICATIONS OF

ETHICAL
TRADITIONS FOR
BUSINESS
 TELEOLOGICAL AND
DEONTOLOGICAL THEORIES ;
JUSTICE AND RIGHTS THEORIES
Philosophers have sought the basis for right
conduct since Socrates and Confucius. By
discerning ethical principles through reason, all
humans can establish a moral life that benefits
all cultures and societies. Philosophers and all
humans aim to find principles and theories of
the good that can be accepted by rational
humans worldwide, regardless of their ethnic
and religious backgrounds.
 OUR SERVICE
WESTERN THOUGHT,
THE TYPICAL ETHICAL THEORIES OR
SYSTEMS PRESENTED IN APPLIED ETHICS RIGHTS AND JUSTICE ARETIAC
COURSES,
Applied ethics courses typically present THEORIES
Western thought focuses on rights and
three types of ethical theories:
consequentialist, deontological, and pure
justice theories. Rights refer to an
Another word for
individual's entitlement to something,
aretaic. Consequetialist ethics focus on the
consequences of an action, while
interpreted as the absence of prohibitions virtue theory
or restrictions. They are categorized as
deontological ethics consider the intrinsic
legal rights and moral rights based on develop from the
character of the action. Pure oretaic ethics
ethical standards. Justice theories define
prioritize the agent's character, while the
justice as the ideal, morally correct state of
Greek for
fourth alternative, which only considers
traditions and past influences, is rarely
things and persons, categorized into "excellence" or
distributive, retributive, and compensatory
defended by ethicists.
justice. "virtue"
 ARETAIC OR VIRTUE THEORY

Intent
Principle Action Outcome
Character

DEONTOLOGY CONSEQUENTALIATISM
 Figure 1 illustrates the interrelationships between various
ethical theories.
Deontology, a duty-based theory, emphasizes moral
obligation, but its scope can be limited.
Consequentialist views, including utilitarianism and the
egoistic paradigm, focus on maximizing shareholder wealth
and achieving happiness for the largest number, sometimes
disregarding individual human rights.
 ADAM
SMITH
" Act in such a way that the impartial
observer can sympathize with your
behavior"

Adam Smith's system raises doubts about

an objective moral norm.
VIRTUE ETHICS
The virtual approach to ethics emphasizes
personal moral character development,
focusing on virtues and vices. Managers
should analyze ethical behavior in their
organizations by considering these virtues
and vices inherent in a person's character.
VIRTUE ETHICS

Virtue ethics emphasizes character as the core of being a good

person in business, balancing situational determinism and
emphasis on free will. It calls for sound ethical policies and
rigorous enforcement in corporations and the business community.
Virtues are real because they play a causal role in creating human
well-being, not just for those who are virtuous.
 ARISTOTLE'S VIRTUE THEORY
Aristotle's virtue theory is a promising pre-modern moral theory, focusing on
purpose or end. It examines qualities that advance the purpose and practice of
an institution, underpin excellence, and result in the flourishing of individuals
and organizations through these virtues.

Virtue ethics
Virtue ethics addresses moral schizophrenia by focusing on an individual's
character and motivations, rather than rules governing action. It makes ethics
an objective rather than a constraint, allowing individuals to pursue moral
excellence as a goal.
VIRTUE ETHICS:
HISTORICAL
BACKGROUND
 THE DEVELOPMENT OF ETHICAL THEORY IN
WESTERN CIVILIZATION HAS BEEN GRADUAL,
INFLUENCED BY GREEK PHILOSOPHERS WHO
VIEWED ETHICS AS RELATING TO THE "GOOD LIFE"
AND EXAMINED VIRTUE AND CHARACTER ETHICS.
VIRTUE ETHICS, ROOTED IN ANCIENT HISTORIANS
LIKE SOCRATES, PLATO, AND CICERO, FOCUSES ON
THE OBJECTIVE TRUTH AND THE LIBERATION OF
THE SOUL FROM BODY-BOUNDNESS.

PLATO BELIEVED THAT SENSIBLE PLEASURES ARE

DEVOID OF VALUE AND THAT THE PATH TO TRUE
LIFE IS A PATH OF PURIFICATION, AIMING TO
REACH GENUINE WISDOM. HE BELIEVED THAT THE
PLATO LIFE OF VIRTUE REFLECTS DIVINITY AND
EMBODIES DIVERSE CHARACTERISTICS.
 ARISTOTLE'S NICOMACHEAN
ETHICS
ARISTOTLE'S NICOMACHEAN ETHICS IS A SIGNIFICANT WORK ON VIRTUE
ETHICS, EMPHASIZING THE SUPREMACY OF RATIONAL NATURE AND THE
PURPOSIVE NATURE OF THE UNIVERSE. IT EMPHASIZES HAPPINESS AS
THE ULTIMATE END, AND VIRTUE, WHICH REFERS TO THE EXCELLENCE
OF A THING, IS THE DISPOSITION TO PERFORM ITS PROPER FUNCTION
EFFECTIVELY.
Aristotle believed happiness was an activity and achievement, not a feeling.
His definition included the "Activity of soul" and "in accordance with
virtue." His virtue theory focused on character development and virtuous
actions for flourishing. A happy life signified success in human life.
THE CLASSIC VIRTUE THEORY'
identifies four human virtues as the "hinge" or "cardinal": courage,
moderation, justice, and prudence.

Plato was the first to list these virtues, but the term "cardinal virtues" was not
coined until the 4th century AD

Thomas Aquinas, a Christian, differentiated his ethics from Aristotle by

stating that all human action has an end, which is divine causality, and the
eternal law is the supreme norm of morality.
 DAVID HUME
David Hume, a philosopher, emphasized the
emotional aspect of human nature in moral life,
arguing that moral distinctions are derived from
feeling and moral sentiment, rather than reasoning. He
differentiated between virtues like pride and humility,
and viewed social utility as an overarching intention,
rendering otherwise virtuous actions as idle.
 IMMANUEL
ImmanuelKANT
Kant, the founder of deontological ethical theory,
believed in a priori moral principles that are universally
accepted by all rational beings. He argued that morality's
universal basis lies in rational nature, and the categorical
imperative, the fundamental moral law, dictates actions based on
principles that can be consistently willed to be principles for
everyone. Kantian ethics, now known as duty ethics, posits that
actions are right if they conform to these principles.
 Contemporary scholars like Elizabeth Anscombe and Alasdair
Macintyre have emphasized the resurgence of virtue/character ethics,
defining virtue as acquired human qualities for achieving the "good"
in their profession. Popular writers like William J. Bennett also
contribute to this renaissance. Try

WHY VIRTUES SHOULD MATTER IN MANAGEMENT AND

FINANCE

Ethical management involves focusing on virtues and qualities rather than

just avoiding negative outcomes. Finance ethics emphasizes the importance
of virtuous actions, arguing that personal happiness comes from virtue rather
than utility or duty. Virtue ethics offers a more holistic account of agents and
actions, surpassing utilitarianism and deontology. Deontology has been
dominant in theory, while utilitarianism has been dominant in practice.
VIRTUE ETHICS DEFINES A VIRTUE AS A
DESIRABLE CHARACTER TRAIT, SUCH
AS COURAGE, THAT BALANCES
EXTREMES. A VIRTUOUS AGENT SEEKS
BALANCE IN DECISION-MAKING,
EXERCISING SOUND MORAL JUDGMENT
GUIDED BY VIRTUES LIKE COURAGE,
WISDOM, TEMPERANCE, FAIRNESS,
INTEGRITY, AND CONSISTENCY.
FINANCIALIZATION, AN INCREASING
SHARE OF FINANCE IN THE ECONOMY,
CAN BE CONSIDERED A VICE IF IT
BECOMES AN END IN ITSELF. HOWEVER,
FINANCE CAN BE CONSIDERED
"VIRTUOUS" IF IT MAINTAINS A
 Aristotle argues that we only need a finite amount
of material resources to satisfy our needs and
achieve flourishing. More money may not
necessarily lead to a better life, and excessive
wealth can hinder personal flourishing.
Businesspersons should focus on achieving
financial sustainability and viewing the organization
as a community of persons, fostering growth and
service.
 In business organization must make rational
judgments and relate to core values, requiring the
development of leadership virtues that affect both
mind and character. Virtue ethics emphasize the
leader's character as it influences strategies and
serves as a role model. Good leadership is ethical and
effective, and virtues must be applied correctly, at the
right time, towards the right objects, people, for the
right reason, and in the right manner.
THANK
YOU