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BUSINESS ETHICS-CONCEPTS AND CASES
                 CHAPTER 2
       ETHICAL PRINCIPLES IN BUSINESS




     JUSTICE AND FAIRNESS



             VIVIN VINCY
                 ASB
JUSTICE AND FAIRNESS
  JUSTICE AND FAIRNESS

Managers who are fair in their dealings are
generally more successful in motivating their
subordinates than those who are not. A reputation
for being unfair or biased is surely going to be a
liability for managerial success.                    FAIR   UNFAIR




   .                                                            13–2
TYPES OF JUSTICE
 TYPES OF JUSTICE

 DISTRIBUTIVE                 COMPENSATORY
  JUSTICE                       JUSTICE
   – Requires distributing       – Requires restoring to a
     society’s benefits and        person what the person
     burdens fairly.               lost when he or she was
                                   wronged by someone.
 RETRIBUTIVE
  JUSTICE
   – Requires fairness when
     blaming or punishing
     persons for doing
     wrong.
                                                             13–3
DISTRIBUTIVE JUSTICE
 DISTRIBUTIVE JUSTICE
JUSTICE AS EQUALITY: EGALITARIAN
Egalitarians hold that there are no relevant differences among
people that can justify unequal treatment. According to the
egalitarian, all benefits and burdens should be distributed
according to the following formula:

“Every person should be given exactly shares of a society’s or a
               group’s benefits and burdens.”
EGALITARIANISM
EGALITARIANISM

POSITIVES:

When workers in a group receive equal compensation, they
tend to become more cooperative with each other and also feel
greater solidarity with each other. This has been found to be
more effective especially in collectivistic cultures.
EGALITARIANISM
 EGALITARIANISM

CRITICISMS:
 There is no quality that all human beings possess precisely in
the same degree i.e they differ in their abilities, intelligence,
virtues, etc.
 If everyone is given the same things, the lazy will get the same
as the industrious one or a sick will get the same as the healthy
one. The individuals will have no incentives to exert greater efforts
in their work.
 When lazy get as much as the industrious ones it demoralizes
the industrious ones which would lead to decline in society’s
productivity and efficiency. On the other hand, if the society did
not provide for the sick, the needy and the crippled ones, then the
value of care for one another would be eroded.
EGALITARIANISM
EGALITARIANISM

 POLITICAL EQUALITY
   Equal participation in, and treatment by, the political system.

 ECONOMIC EQUALITY
   Equality of income, wealth, and opportunity.
DISTRIBUTIVE JUSTICE
 DISTRIBUTIVE JUSTICE

JUSTICE BASED ON CONTRIBUTION: CAPITALIST
JUSTICE
According to capitalist view of justice, when people engage in
economic exchanges with each other, what a person gets out of the
exchange should be at least equal in value to what the person
contributed. In a more simple statement:

   “Benefits should be distributed according to the value of the
 contribution the individual makes to a society, a task, a group, or
                          an exchange.”
CAPITALIST JUSTICE
CAPITALIST JUSTICE

NEGATIVES:

     When workers are paid in accordance to the principle of
contribution, it tends to promote among them an uncooperative and
competitive atmosphere in which resources and information are less
willingly shared and in which status differences emerge.

The value of contribution of individual should be measured in
terms of work effort. Contribution should be rewarded in terms of
productivity.
CAPITALIST JUSTICE
CAPITALIST JUSTICE
 PURITAN ETHIC               PRODUCTIVITY
   – The view that every        – The amount an individual
     individual has a             produces or that a group
     religious obligation to      produces per person.
     work hard at his or her
     calling(the career to
     which god summons
     each individual).
 WORK ETHIC
   – The view that values
     individual effort and
     believes that hard work
     does and should lead to
     success.
DISTRIBUTIVE JUSTICE
 DISTRIBUTIVE JUSTICE

JUSTICE BASED ON NEEDS AND ABILITIES: SOCIALISM

According to this concept, work burdens should to be distributed
according to people’s abilities and benefits should be distributed
according to people’s needs.
Work should be distributed in such a way that a person can be as
productive as possible i.e. according to people’s abilities. The
benefits produced should be used to promote human happiness and
well being.
The socialist view is based on the notion that societies should be
communities in which benefits and burdens are distributed on model
of a family.
SOCIALISM
  SOCIALISM
CRITICISMS:
There would be no relation between the amount of effort a
worker puts forth and amount of remuneration the worker
receives. Hence workers would have no incentive to put forth any
work efforts at all, knowing that they will receive the same
regardless of whether they work hard.
It is unrealistic to think that entire societies could be modelled
on familial relationships as human beings are intrinsically self-
interest motivated. The counter argument by the socialists is that
human beings are not intrinsically selfish but are trained to
acquire the selfishness and competitiveness by modern social and
economic institutions.
The socialist principle would eradicate individual freedom.
There will be no freedom of choice but everything is decided
based on abilities and needs.
Business ethics

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Business ethics

  • 1. BUSINESS ETHICS-CONCEPTS AND CASES CHAPTER 2 ETHICAL PRINCIPLES IN BUSINESS JUSTICE AND FAIRNESS VIVIN VINCY ASB
  • 2. JUSTICE AND FAIRNESS JUSTICE AND FAIRNESS Managers who are fair in their dealings are generally more successful in motivating their subordinates than those who are not. A reputation for being unfair or biased is surely going to be a liability for managerial success. FAIR UNFAIR . 13–2
  • 3. TYPES OF JUSTICE TYPES OF JUSTICE  DISTRIBUTIVE  COMPENSATORY JUSTICE JUSTICE – Requires distributing – Requires restoring to a society’s benefits and person what the person burdens fairly. lost when he or she was wronged by someone.  RETRIBUTIVE JUSTICE – Requires fairness when blaming or punishing persons for doing wrong. 13–3
  • 4. DISTRIBUTIVE JUSTICE DISTRIBUTIVE JUSTICE JUSTICE AS EQUALITY: EGALITARIAN Egalitarians hold that there are no relevant differences among people that can justify unequal treatment. According to the egalitarian, all benefits and burdens should be distributed according to the following formula: “Every person should be given exactly shares of a society’s or a group’s benefits and burdens.”
  • 5. EGALITARIANISM EGALITARIANISM POSITIVES: When workers in a group receive equal compensation, they tend to become more cooperative with each other and also feel greater solidarity with each other. This has been found to be more effective especially in collectivistic cultures.
  • 6. EGALITARIANISM EGALITARIANISM CRITICISMS:  There is no quality that all human beings possess precisely in the same degree i.e they differ in their abilities, intelligence, virtues, etc.  If everyone is given the same things, the lazy will get the same as the industrious one or a sick will get the same as the healthy one. The individuals will have no incentives to exert greater efforts in their work.  When lazy get as much as the industrious ones it demoralizes the industrious ones which would lead to decline in society’s productivity and efficiency. On the other hand, if the society did not provide for the sick, the needy and the crippled ones, then the value of care for one another would be eroded.
  • 7. EGALITARIANISM EGALITARIANISM  POLITICAL EQUALITY Equal participation in, and treatment by, the political system.  ECONOMIC EQUALITY Equality of income, wealth, and opportunity.
  • 8. DISTRIBUTIVE JUSTICE DISTRIBUTIVE JUSTICE JUSTICE BASED ON CONTRIBUTION: CAPITALIST JUSTICE According to capitalist view of justice, when people engage in economic exchanges with each other, what a person gets out of the exchange should be at least equal in value to what the person contributed. In a more simple statement: “Benefits should be distributed according to the value of the contribution the individual makes to a society, a task, a group, or an exchange.”
  • 9. CAPITALIST JUSTICE CAPITALIST JUSTICE NEGATIVES:  When workers are paid in accordance to the principle of contribution, it tends to promote among them an uncooperative and competitive atmosphere in which resources and information are less willingly shared and in which status differences emerge. The value of contribution of individual should be measured in terms of work effort. Contribution should be rewarded in terms of productivity.
  • 10. CAPITALIST JUSTICE CAPITALIST JUSTICE  PURITAN ETHIC  PRODUCTIVITY – The view that every – The amount an individual individual has a produces or that a group religious obligation to produces per person. work hard at his or her calling(the career to which god summons each individual).  WORK ETHIC – The view that values individual effort and believes that hard work does and should lead to success.
  • 11. DISTRIBUTIVE JUSTICE DISTRIBUTIVE JUSTICE JUSTICE BASED ON NEEDS AND ABILITIES: SOCIALISM According to this concept, work burdens should to be distributed according to people’s abilities and benefits should be distributed according to people’s needs. Work should be distributed in such a way that a person can be as productive as possible i.e. according to people’s abilities. The benefits produced should be used to promote human happiness and well being. The socialist view is based on the notion that societies should be communities in which benefits and burdens are distributed on model of a family.
  • 12. SOCIALISM SOCIALISM CRITICISMS: There would be no relation between the amount of effort a worker puts forth and amount of remuneration the worker receives. Hence workers would have no incentive to put forth any work efforts at all, knowing that they will receive the same regardless of whether they work hard. It is unrealistic to think that entire societies could be modelled on familial relationships as human beings are intrinsically self- interest motivated. The counter argument by the socialists is that human beings are not intrinsically selfish but are trained to acquire the selfishness and competitiveness by modern social and economic institutions. The socialist principle would eradicate individual freedom. There will be no freedom of choice but everything is decided based on abilities and needs.