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Ethical Theories,[object Object],Chapter 12,[object Object]
Acca p1  chap 12- ethical theories
Ethical & moral belief of society,[object Object]
Acca p1  chap 12- ethical theories
Deontological v/s teleological approach to ethics,[object Object]
Deontological,[object Object],A non consequentialist theory.,[object Object],Motivation & principle is important.,[object Object],Action is based on Moral.,[object Object],3 maxims/ tests of action, to know if action is morally right- all 3 maxims must be satisfied.,[object Object],Consistency- Action is right if everyone can follow the same principle,[object Object],Human dignity – Treat humanity as an end, never as a means . Humanity inside you and inside people.,[object Object],Universality- Would others / external parties , view the action as moral or suitable,[object Object]
Deontological approach- categorical imperative,[object Object],Maxim 1,[object Object],Act only according to that maxim by which you can desire that it should become a universal law.,[object Object],Explanation,[object Object],Action is right if everyone follows the same principle.,[object Object],Eg certain behaviors are judged as immoral by almost everyone , namely; murder, child abuse, fraud.,[object Object]
Maxim 2- Principle of human dignity,[object Object],Act to treat humanity , in yourself and in others , always as an end , never as a means only.,[object Object],Explanation,[object Object],Never consider humans as slaves , or as only providers of service only,[object Object],Consider their needs and expectations,[object Object],Some concept of Empowerment of employees,[object Object]
Maxim 3- Principle of Universality,[object Object],Act only so that the will , through its maxims , could regard itself at the same time as universally law giving.,[object Object],Principle of universality,[object Object],Will an action be viewed as moral when viewed by external parties. Not by the initiator of the action/decision.,[object Object],Outside – in approach.,[object Object],If the initiator doubt of the moral founding/ grounding of the action, then the moral status is doubtful.,[object Object],Examples,[object Object]
Teleological approach,[object Object],Consequentialist theory,[object Object],The right or wrong depends on conseqences/ outcomes of the decision.,[object Object],If the outcome is right , then the action itself is irrelevant.,[object Object],2 perspectives to view an outcome ,[object Object],Egoism,[object Object],Utilitarianism,[object Object]
2 perspectives ,[object Object]
Teleological approach,[object Object],The goal is important , not the means to get there.,[object Object],Consequentialist theory- whether a decision is right or wrong will depend on the outcomes of the decision.,[object Object],Utilitarianism,[object Object], highly subjective approach,[object Object],The effect of collective welfare,[object Object],Concept of utility,[object Object],Measuring good or bad utility produces a Cost benefit analysis of decisions , thus making those decisions ,[object Object]
Kohlberg Level of Human development,[object Object],[object Object]
The move is decided by how a decision is made , not what the decision is about.
Research show that most people , including business managers tend to reason on Level 2.,[object Object]
Critics of CMD theory,[object Object],Gender bias-study interviewed only young American males,[object Object],Too great emphasis on rights & justice compared to other bases of morality.,[object Object],People use different moral reasoning strategies in different situations so there may not be any sequence of stages.,[object Object],Moral reasoning strategies – the brain react differently to all sorts of stressing situations. ,[object Object],When in happy situations , brain will react more positively and will be more creative.,[object Object]
C.M.D (explained),[object Object],Pre conventional – obedience & punishment,[object Object],Right/wrong defined according to expected rewards / punishments from people of authority,[object Object],Eg – eyee make unethical decision and believes they won’t be punished.,[object Object],Pre Conventional – Instrumental purpose & exchange,[object Object],Right is defined according to whether there is fairness in exchange,[object Object],Self interest prevails,[object Object]
C.M.D (explained),[object Object],Conventional – interpersonal accord & conformity,[object Object],Action is guided by what is expected from peers & close ones,[object Object],Conventional – social accord & system maintenance,[object Object],Expectations of others extended / broadened to social accord,[object Object],Not limited to immediate peers,[object Object]
C.M.D (explained),[object Object],Post conventional- social contract & individual rights,[object Object],Right / wrong determined i.r.o :,[object Object],Basic rights,[object Object],Values,[object Object],Contracts of society,[object Object],Post conventional – universal ethical principles,[object Object],Decisions taken, based on self chosen principles which the person believe , everyone should follow.,[object Object],Autonomy in decision making.,[object Object]
Social responsibility,[object Object]
Social responsibility,[object Object],Org need to be socially responsible.,[object Object],This entails – Social accountability,[object Object],Gray, Owens & Adams theory – 7 positions on social responsibility.,[object Object]
Social responsibility – 7 positions,[object Object],Pristine capitalist,[object Object],Expedient,[object Object],Proponents of social contract,[object Object],Social ecologist,[object Object],Socialist,[object Object],Radical feminist,[object Object],Deep ecologist,[object Object]
Pristine capitalist,[object Object],S/h wealth maximization is of Value.,[object Object],What reduces s/h wealth is Theft.,[object Object],Liberal democratic economy is correct.,[object Object],Business have no moral obligations beyond their responsibilities to s/h & creditors.,[object Object],Explanation,[object Object],Shareholders’ needs are the most important for the org.,[object Object],Low CSR consideration,[object Object],Shareholders expect maximum returns,[object Object],No returns tantamount to theft,[object Object]
Expedients ,[object Object],Some social expenses needed to position the org.,[object Object],Concept of “ enlightened self-interest”.,[object Object],Minimum social responsibility necessary to achieve Long term economic stability & welfare.,[object Object],CSR is acceptable if it is within interest of business.,[object Object],Explanation,[object Object],Business need some minimum ethical guidelines.,[object Object],Impact on society need to be considered.,[object Object],A co can’t simply use resource & not consider impact on society.,[object Object]
Proponents of social contract,[object Object],Co has license , granted by society,[object Object],Co exist at society's will, must serve society,[object Object],Behave according to ethical norms of society,[object Object],Behavior change as norms change,[object Object],Explanation,[object Object],Existence of co & decisions made are justified if they serve public interest.,[object Object],But responsibilities & accounting requirements are not clear.,[object Object]
Social ecologist,[object Object],A biz has a social & environmental footprint. ,[object Object],Therefore is responsible to minimize the footprint,[object Object],There is an overall concern for the environment,[object Object],Recognition that large organizations cause environmental & social problems.,[object Object],Explanation,[object Object],More concern for resource allocation , pollution effect & waste control.,[object Object],With these changes , it is assumed that quality of life will be improved or will be constant.,[object Object]
Socialist,[object Object],Actions of biz = actions of capitalist oppressing other lower classes.,[object Object],This is the view of the socialist and their recurrent battle.,[object Object],Biz should help to correct imbalance in society,[object Object],Capitalist should not dominate social , economic or political life,[object Object],Change needed to reduce capitalist power,[object Object],In the socialist system , capitalist oppress workers,[object Object],So change is required.,[object Object],Explanation,[object Object],Economic systems & the creation of things is a secondary objective rather than a primary,[object Object],Mistrust of accounting & CSR systems ,[object Object],No clue how these can be amended,[object Object]
Radical feminist,[object Object],Society & biz should be based on feminine characteristics. E.g. equity , dialogue, compassion,  fairness.,[object Object],More emotional side ,[object Object],Business reflect too much masculine concepts of aggressivity. ,[object Object],Need more feminine values of compassion, love & cooperation.,[object Object],Radical change needed in ownership & structure of society,[object Object],More towards feminist viewpoint,[object Object]
Deep ecologist,[object Object],Human beings have no monopoly on the world’s resources,[object Object],Biz have to be cautious with the environment,[object Object],Lack of environment awareness by biz,[object Object],There is too much negative impact on the environment caused by co’s operations.,[object Object]
Variables determining cultural context of ethics & csr,[object Object],Focus on Profit,[object Object],Focus on Law & Compliance,[object Object],Focus on what is right,[object Object],Focus on doing what is desired,[object Object]
Variables (cont’d),[object Object],Ethics & csr will vary according to Culture,[object Object],The 4 variables will vary according to European and US culture.,[object Object],European = Ethics & philanthropic actions can be enforced legally,[object Object],US= Focus on discretionary actions of co’s & individuals,[object Object],Caroll model of CSR …,[object Object]
Acca p1  chap 12- ethical theories
Corporate & personal ethical stances,[object Object]
Corporate & personal ethical stances,[object Object],Corporate stance- approach of the org to the different theories.,[object Object],Personal stance – Approach of the individual to different theories.,[object Object]
Multiple stakeholder theories,[object Object],Short –term shareholder interests,[object Object],Corporate stance,[object Object],- In short term, org need adequate ROI.,[object Object],- Conflict exist in 2 areas :,[object Object],1) Need to pay dividend & investing in the co.'s future.,[object Object],2) Shareholder’s expectations of return,[object Object],Personal stance,[object Object],[object Object]
Small/ minority s/h need annual Roi as a form of income + capital growth
Larger s/h have little interest in short term returns. For them short term dividend may conflict with long term goals.,[object Object]

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Acca p1 chap 12- ethical theories

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  • 14. The move is decided by how a decision is made , not what the decision is about.
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  • 36. Small/ minority s/h need annual Roi as a form of income + capital growth
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