universalism theory in business ethicsuniversalism theory in business ethics

What responsibilities do companies have regarding justice and care? When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo This book uses the The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. At the same time, each one has a logic. Page 1 of 1. Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. By definition, ethics in a business setup are norms that a given business organization has to adhere to in its daily business transactions. Many leaders character and actions serve as examples of how character-based virtues work. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. Many companies in the United States, Europe, and elsewhere were pressured in the 1980s and before by public interest groups whether or not to continue doing business or leave South Africa. 94 terms. MGMT 325 Quiz 2.2. Or it may be identified with various claims to identify a single fundamental universal principle, from which all other ethical principles and judgments derive. Some limitations of this principle suggest that it does not consider individuals, and there is no agreement on the definition of good for all concerned. In addition, it is difficult to measure costs and benefits. This is one of the most widely used principles by corporations, institutions, nations, and individuals, given the limitations that accompany it. Exchange is fundamental to business. Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. Spheres of human value encompass morality, aesthetic preference, human traits, human endeavour, and social order.Whether universal values exist is an unproven conjecture of moral philosophy and cultural anthropology, though it is clear that certain values are (4) Who has to pay for the consequences? Someones principle is a moral principle if he or she is willing to universalize it and if not it is then the other way round. In fact, we could argue that anything that makes an impact on people should legitimately be within the scope of business. It focuses on the type of person we ought to be, not on specific actions that should be taken. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. Businesses currently rely heavily on data analytics, algorithms, and statistical analyses to drive decision-making. It simply emphasizes the other side of the twofold purpose of business (profit and responsibility). <>stream But In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. These guidelines also are designed to help organizations with compliance and reporting, and they introduce seven steps toward that end: (1) create a Code of Ethics, (2) introduce high-level oversight, (3) place ethical people in positions of authority, (4) communicate ethics standards, (5) facilitate employee reporting of misconduct, (6) react and respond to instances of misconduct, and (7) take preventive steps. Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. At the individual level, when corruption takes place, it is a matter of conscience. WebFollowing a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) endstream Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. Practical wisdom, however, is often required to be virtuous. However, the nature of human happiness is subjective. Limitations here also show that using this principle may not always prove realistic or practical in all situations. Although ethical practice has been directly influenced by religion, as noted, ethics is not religion and religious belief is not a prerequisite for a commitment to business ethics. Ch. <>/Border[0 0 0]/Contents()/Rect[499.416 612.5547 540.0 625.4453]/StructParent 4/Subtype/Link/Type/Annot>> Are the Values Central to Business Ethics Universal? How are they related? To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. Feelings may come and go, but the solidarity that people have with each other and the care they take with one another define them as human beings (Figure 5.8). (2) Is it right? According to Mel & Snchez-Runde (2013), Universal ethics can be perceived as a form of moral constitution which is expressed as a set of specific ethical That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). and you must attribute OpenStax. In the business world, various ethical theories and principles are used. WebEthical universalism and ethical relativism are two types of meta-ethical views, meaning the two theories attempt to understand the reason behind ethical properties, attitudes, boundaries and judgements. CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. Again, the UN Universal Declaration of Human Rights is a useful starting point for the way business can conduct itself. 3 Howard Schultz, founder of Starbucks; co-founder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. JN9u4 0-FR1.ke4 nzG q57:6H*U*N5"T] t@L0fCf%gUc !` HpT!e0IyF'Xd)W8>dn>DR()p0^. WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. Moreover, moral standards, according to this principle, vary from one culture to another. Web4.4 business ethics theories 4.4.4 Deontology or universalism theory The proponents of the deontology theory are Immanuel Kant who emphasises that the ends do not justify the means of an action; the right thing must always be done even if doing the wrong thing would do the most good for the most people (Weiss, 2009:107). JVBL e d u / j v b l / v o l 8 / i s s 2 / 3)/Rect[128.1963 131.7406 312.7275 143.4594]/StructParent 7/Subtype/Link/Type/Annot>> 1. Can Martin Bubers notion of love play a role in business? Vol. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. Altruism is also part of character-based virtue ethics. WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. As the LIBOR (London Interbank Offered Rate) scandal, in which banks were manipulating rates to profit from trades, showed, ethical breakdowns often occur because systems fail or people make bad decisions, and sometimes both. Copyright. For those dedicated to the case method, novels, short stories, and plays offer an inexhaustible storehouse of riches, more detailed, subtle, and complete than most cases written up for courses.37, In DeGeorges humanities model, business ethics would not prepare students to do certain things, for which they likely will be trained by their employers, but to be certain persons. Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many. For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. One model of ethical behavior, sometimes called the humanistic business model, may provide the answer for businesses that wish to achieve the dual goal of human flourishing and responsible profits. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. To put this question another way, is there a set of universal values that all can endorse? 0000003514 00000 n Loyalty to the Brand and to Customers, 24. These principles can be, and are, used in combination; different principles are also used in different situations. For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. Business endobj Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. The influence of positive psychology is evident, and there is much to commend in this kinder approach to the job of management that makes an effort to establish sustainable human welfare.36 At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. If require any missing data; then choose suitably. 4, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. (3) Who gets hurt? Legal rights are entitlements that are limited to a particular legal system and jurisdiction. Let us look at how it is possible to align business with human rights in such a way that both profitability and responsibility are honored across the globe. WebIt has these characteristics: (1) universality, because it applies to all acts of human behavior, even those that appear to be done from altruistic motives; (2) objectivity, meaning it operates beyond individual thought, desire, and perspective; (3) rationality, because it is not based in metaphysics or theology; and (4) quantifiability in its 16 terms. 0000003899 00000 n An example of bias occurs when employees engage in unethical activity because it has been sanctioned by higher-ups. [133 0 R 134 0 R 135 0 R 136 0 R 137 0 R 138 0 R 139 0 R 140 0 R] It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. endobj hb```b``c`a`bb@ !6 daA@@-6WO pg5,eP=ycF62P,ZSK[xtV`g? Want to cite, share, or modify this book? then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. One alternative is to put the humanities into business. Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. 131 0 obj then you must include on every digital page view the following attribution: Use the information below to generate a citation. Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. This book explores the reasons why grappling with universality and ethics Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. <>stream Business 148 Study Guide. In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. Personal responsibility is a different matter. In most professional disciplines, including business, the primary ethical frameworks used in the classroom draw on Universalist approaches. V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. | This principle is grounded in both legal and moral rights. Ethical Principles and Responsible Decision-Making, 10. 139 0 obj Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. Becoming familiar with these principles, then, can help inform your moral decision process and help you observe the principles that a team, workgroup, or organization that you now participate in or will be joining may be using. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. The claim that ethical standards or principles are universal is an ancient commonplace of many ethical traditions and of contemporary political life, particularly in appeals to universal human rights. It also involves religion mandates and existing moral codes. It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many.20, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. For example, South Africas all-white National Party and government after 1948 implemented and enforced a policy of apartheid that consisted of racial segregation. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. (5) Do I/we want to assume responsibility for the consequences? In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. 2 x 10 = 20 a. philosophy could add a critical element to business education, an element that would keep business education always alive and prevent it from becoming an accepted, orthodox ideology.38. But it becomes dangerous when people use it to blind themselves to the reality around them, reinforce hardened positions even in the face of contradictory evidence, and shirk their responsibility as moral beings. (credit: Love Is All You Need Signage by Jacqueline Smith/Pexels, CC0), article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption, article on the LIBOR scandal and the consequences, https://openstax.org/books/business-ethics/pages/1-introduction, https://openstax.org/books/business-ethics/pages/5-4-are-the-values-central-to-business-ethics-universal, Creative Commons Attribution 4.0 International License, Explain the difference between relative and absolute ethical values, Discuss the degree to which compliance is linked with organizational responsibility and personal values, Identify the criteria for a system of normative business ethics. In opposition to moral relativism, moral universalismalso called moral objectivismholds that there are objective right or wrong actions, independently of the ;;rlH,.6\I)- ld P1|d`-0iA 6H3dxU0[0u0*3lar H"%LX001da0rJ`X` uq&%61d2g,e^|N Z@@: -l,3BNZ D H What would that look like? The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . | endobj 138 0 obj Bias also rewards those who support and nurture the best elements of a culture, whether corporate, social, or political. <>/Border[0 0 0]/Contents()/Rect[72.0 607.0547 200.4551 619.9453]/StructParent 3/Subtype/Link/Type/Annot>> Many leaders character and actions serve as examples of how character-based virtues work. However, middle managers and employees often complain their ethics training consists of passing a computerized sexual harassment or fraud program once a year but that nothing is done to address issues in a substantive way or to change the culture of the organization, even those that have experienced problems.31 Ultimately, the theory of universalism in business ethics helps to promote ethical behavior and responsibility in the business world, and can serve as a powerful tool 0000004093 00000 n The main principles of business ethics are based in academia and on academic writings on proper business operations. > 0000006541 00000 n This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. They understand the concept of stakeholders (those who have a stake in a decision because they are affected by it) and they always consider the business, financial and emotional consequences of their actions on all stakeholders. It poses an extremely high cost to the citizenry, it saps the credibility of government and it places companies under an unbearable economic burden.26 Richard DeGeorge (1933) of the University of Kansas describes what adding the humanities to business education entails: Students do not need psychosociological jargon in their business interactions. Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. The Workplace Environment and Working Conditions, 23. A belief in one fundamental truth is another important tenet in 0000001898 00000 n Universalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. Compliance is important, but business managers must attempt to go above and beyond to clearly model and enforce the highest standards of ethical behavior. Intellectual, emotional, and social biases affect all decision-making, including those of an ethical nature. DeGeorge suggests that a course in the philosophy of business would enable students to think about the foundations of businessits values, ends, purpose, and justification . CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. 2 0000002849 00000 n Marketing Ethics: Selling Controversial Products, 17. WebMoral universalism (also called moral objectivism) is the meta-ethical position that some system of ethics, or a universal ethic, applies universally, that is, for "all similarly situated In the United States, companies spend more than $70 billion annually on ethics training; worldwide, the figure is more than double that.30
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