UNIT II: THE DIFFERENT NORMATIVE ETHICAL THEORIES

COMMONLY USED IN BUSINESS IN DECISION MAKING

 UNIT II: The Different Normative Ethical Theories
Commonly Used in Business in Decision Making

Module 3: The Different Normative Ethical Theories

Source: [Link]

Module Overview

In business, leaders often face choices that go beyond what is legal or profitable.
They must decide what is right and fair in situations where values may conflict. To guide
these decisions, philosophy provides us with normative ethical theories—frameworks that
help us evaluate human actions and determine which ones should be considered right or
wrong.

In this module, we will examine the ethical theories most often applied in business.
Each theory provides a different lens for analyzing moral dilemmas, and each has its
strengths and limitations. By understanding these theories, you will be able to apply them to
real-world business cases, ensuring that your decisions as future administrators are not
only strategic but also ethically sound.

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 UNIT II: The Different Normative Ethical Theories
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Learning Objectives

After completing this module, you should be able to:

1. Define normative ethical theories and explain their relevance to business decision-
making.
2. Describe and analyze the main ethical theories.
3. Apply these ethical frameworks to evaluate business dilemmas and governance
issues.
4. Critically assess the strengths and limitations of each ethical theory in the context of
business.
5. Reflect on personal decision-making styles and identify which ethical theory
resonates most with your values as a future leader.

Core Content

Understanding Normative Ethical Theories

Normative ethical theories are systematic frameworks that philosophers have
developed to guide human conduct. They provide principles, rules, or standards that help us
evaluate whether an action is morally right or wrong, fair or unfair, just or unjust. The word
“normative” comes from “norms,” meaning standards or guidelines. So, normative ethics is
not just about describing what people do (that’s descriptive ethics), but about prescribing
what people ought to do.
In the context of business, normative ethical theories are especially important
because leaders and managers are constantly faced with choices that affect employees,
customers, shareholders, and society. Profit alone cannot be the only guide, because some
profitable actions might be harmful or unjust. Normative theories provide the moral
compass for responsible decision-making.

Examples of Normative Ethical Theories Commonly Applied in Business

Kohlberg’s Stages of Moral Development in Business Decision-Making

Psychologist Lawrence Kohlberg developed a model of moral development that
explains how individuals progress in their ability to reason about right and wrong.
According to him, moral reasoning develops through three levels with six stages, each
representing a more advanced way of thinking about ethical issues.

In business decision-making, understanding these stages is important because

leaders and employees make choices based not only on rules and profits but also on their
level of moral maturity. Let us go through each stage and see how it applies in the business
context.

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 UNIT II: The Different Normative Ethical Theories
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Source: [Link]
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Level 1: Pre-Conventional Morality

This level is typical of children but can also be found in adults who view morality in
terms of self-interest and avoiding punishment.
 Stage 1: Obedience and Punishment Orientation. At this stage, decisions are made to
avoid punishment. In business, an employee may follow rules simply because they
fear being fired or penalized. For example, a worker might avoid stealing office
supplies not because it is wrong, but because they fear getting caught.
 Stage 2: Individualism and Exchange. Here, the focus is on self-interest and “what’s
in it for me.” In business, a salesperson might treat customers only if it helps them
gain a bonus or personal advantage. Ethics is seen as a tool for personal gain rather
than a genuine obligation.

Level 2: Conventional Morality

At this level, individuals begin to see the value of rules, relationships, and social
order. Many adults operate primarily at this level.
 Stage 3: Good Interpersonal Relationships. People act morally to win approval and
maintain good relationships. In business, a manager may act fairly to be seen as a
“good boss” by employees, or a company may engage in corporate social
responsibility projects mainly to improve its public image.
 Stage 4: Maintaining Social Order. Decisions are guided by respect for laws, rules,
and authority. In business, this means complying with labor laws, tax regulations, or
safety standards, not necessarily out of personal conviction but to maintain order

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and avoid disrupting the system. For example, a company pays taxes because it
believes following the law is necessary for society to function.

Level 3: Post-Conventional Morality

This is the highest level, where moral reasoning is guided by universal principles
and personal conscience, beyond mere rules or approval. Leaders at this level think critically
about laws and systems, asking whether they are just and fair.
 Stage 5: Social Contract and Individual Rights. Individuals recognize that laws are
important but not absolute; they must promote the greatest good and protect
individual rights. In business, this might mean challenging outdated laws that allow
environmental harm, or choosing to pay fair wages even when loopholes in labor
law would allow otherwise. A leader here asks: “Does this decision respect the rights
of all stakeholders?”
 Stage 6: Universal Ethical Principles. At this stage, individuals are guided by
universal values such as justice, equality, and human dignity. In business, this may be
seen when a company recalls a product that poses risk to consumers, even if the law
does not require it and even if it causes financial loss. Leaders here act out of a deep
moral conviction rather than legal obligation or fear of criticism.

Kohlberg’s Theory in Business Context

Kohlberg’s stages help explain why people in the same business situation may act
differently. Some may obey rules out of fear of punishment, while others may act out of
principle. For example, in a case of corporate fraud, employees at Stage 1 may remain silent
to avoid punishment, those at Stage 3 may stay quiet to protect relationships, while those at
Stage 6 may expose the fraud (whistleblowing) because it violates justice and honesty.

For businesses, understanding these stages is vital for leadership and organizational
culture. Companies led by individuals at higher moral stages are more likely to build trust,
embrace social responsibility, and make decisions that balance profit with the welfare of
people and society.

The Machiavellian Principles in the Context of Business Decision-Making

The term Machiavellian comes from Niccolò
Machiavelli, a 16th-century political thinker best
known for his book The Prince. In it, Machiavelli
described how rulers could maintain power and
control, often recommending strategies that
prioritized effectiveness over morality. His ideas were
controversial because they suggested that leaders
may sometimes need to be ruthless, manipulative, or
pragmatic rather than virtuous to achieve their goals.

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Applied to business, Machiavellian principles refer to decision-making approaches

that emphasize power, control, manipulation, and results, sometimes at the expense of
ethical standards. They reflect the idea that “the end justifies the means.”

Core Machiavellian Principles in Business

1. The End Justifies the Means. In a Machiavellian approach, what matters is achieving
success—such as gaining market share, eliminating competition, or maximizing
profit—regardless of whether the methods are entirely ethical. For example, a
business might engage in aggressive advertising that bends the truth to dominate its
market.

2. Power and Control as Central Goals. Machiavelli emphasized maintaining power

above all else. In business, this can translate into controlling markets, manipulating
competitors, or exerting dominance over employees and suppliers to secure
advantage.

3. Pragmatism over Morality. Machiavellian decision-making prioritizes practical

outcomes rather than ideals. For instance, instead of asking, “Is this decision fair to
all stakeholders?” the focus might be: “Will this decision help us survive or win in a
competitive market?”

4. Manipulation and Cunning. Leaders adopting Machiavellian tactics may use

deception, negotiation tricks, or hidden strategies to achieve their goals. In
corporate settings, this could include concealing weaknesses from investors or
exploiting rivals’ vulnerabilities.

Machiavellianism as a Business Leadership Style

In modern psychology, “Machiavellianism” is even considered part of the “Dark
Triad” of personality traits, along with narcissism and psychopathy. People high in
Machiavellianism tend to be strategic manipulators, calculating, and self-interested. In
business, such leaders may achieve short-term wins, but they often undermine trust, loyalty,
and long-term sustainability.

For example:

 A CEO who cuts wages drastically while awarding themselves bonuses may keep the
company profitable short-term, but employee morale and public trust suffer.
 A manager who manipulates coworkers to climb the corporate ladder may gain
promotions but create a toxic workplace culture.

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The Dangers of Machiavellian Principles in Business

While Machiavellian strategies may seem effective in the short term, they usually
backfire in the long run:
 Loss of Trust: Customers, employees, and investors may turn away once they realize
they have been manipulated.
 Damaged Reputation: Businesses seen as ruthless or dishonest may face public
backlash.
 Legal and Ethical Risks: Unethical decisions motivated by “winning at all costs” can
lead to lawsuits, sanctions, or bankruptcy.

The Positive Side of Machiavelli?

Interestingly, not everything in Machiavelli’s philosophy is negative. Some of his
advice emphasized realism, adaptability, and foresight, which can be valuable in business. A
leader who is pragmatic and strategic—but still grounded in ethics—can make tough
decisions while maintaining integrity. For example, making a difficult decision to restructure
a company to ensure survival may reflect Machiavellian pragmatism but does not have to
involve deception or exploitation.

Utilitarianism
Utilitarianism is one of the most influential ethical
theories, developed by philosophers Jeremy Bentham and John
Stuart Mill. At its core, utilitarianism argues that an action is
morally right if it produces the greatest good for the greatest
number. In other words, the morality of a decision is judged by its
consequences—not by intentions, rules, or character.
In business, utilitarianism is often applied when leaders
face difficult choices that affect multiple stakeholders. Since every
business decision has winners and losers, utilitarianism provides
a way of weighing the costs and benefits to determine which
choice maximizes overall well-being.

Source: [Link]

Key Principles of Utilitarianism in Business

1. Consequences Matter Most. The morality of a business action is determined by its
outcomes. For example, if lowering product prices benefits millions of consumers,
even though it reduces short-term profits, utilitarianism would view it as morally
right.
2. Greatest Good for the Greatest Number. Business leaders must consider not just their
shareholders, but all stakeholders—employees, customers, suppliers, communities,
and even the environment. An ethical choice is one that produces the most benefit
for the widest group.

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3. Impartiality. Everyone’s happiness or welfare counts equally. In business terms, this

means leaders should not favor only shareholders while ignoring employees or
customers.

Utilitarianism in Business Decision-Making: Examples

 Product Recalls: A company discovers a defect in its product. Recalling it will cost
millions, but it will protect customers from harm. Utilitarianism says recalling the
product is the right decision because the benefit to consumers outweighs the
company’s financial loss.
 Downsizing a Company: A business is struggling financially and considers laying off
200 employees to save 2,000 jobs. From a utilitarian perspective, the layoff may be
justified because it protects the welfare of the majority.
 Environmental Responsibility: A factory can save money by dumping waste illegally,
but this harms the community and environment. Utilitarian reasoning would reject
this action because the harm to the community far outweighs the factory’s savings.

Strengths of Utilitarianism in Business

 It encourages decision-makers to consider all stakeholders, not just their own
interests.
 It provides a clear and practical method of comparing costs and benefits.
 It promotes social welfare and can justify sacrifices if they benefit the majority.

Limitations of Utilitarianism in Business

 It may sacrifice minority rights if doing so benefits the majority. For instance, laying
off a few workers might be justified even if it devastates their lives.
 Measuring happiness or well-being is subjective and difficult. How do we quantify
things like dignity, trust, or fairness?
 It can justify questionable actions if the outcomes are positive. For example,
deceptive advertising might be excused if it increases overall sales and benefits
many stakeholders.

Utilitarianism as a Leadership Tool

In the real world of business, utilitarian thinking is often applied in cost-benefit
analysis. Leaders ask: “Which decision creates the most value and the least harm?” However,
effective ethical leadership means balancing utilitarian outcomes with other frameworks
(like rights-based ethics and justice) to ensure that minority voices and human dignity are
not ignored.

The Principle of Rights and Virtues: The Kantian Ethics

Kantian ethics, developed by the German philosopher Immanuel Kant, is one of the
most influential theories in moral philosophy. Unlike utilitarianism, which judges actions by
their consequences, Kantian ethics emphasizes principles, duties, and respect for human

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dignity. For Kant, an action is morally right not because it leads to good results, but because
it is done from a sense of duty and in accordance with universal moral law.

At the heart of Kantian ethics is the idea that people are not tools to be used for
profit or convenience. Instead, every person has intrinsic worth and must be treated as an
end in themselves, never merely to an end. In business, this translates into respecting the
rights, dignity, and autonomy of all stakeholders—employees, customers, investors, and
society at large.

Source: [Link]

Key Principles of Kantian Ethics in Business

1. The Categorical Imperative. Kant’s central idea is the “categorical imperative,” which
means moral duties apply universally, without exception. A business decision is
ethical if it can be made into a universal law that everyone could follow.
o Example: If a company lies in its advertising to sell products, could lying be
acceptable as a universal business practice? Clearly not—because if
everyone lied, trust in business would collapse.
2. Respect for Persons (Principle of Rights). Every individual has the right to be treated
with dignity and respect. In business, this means employees are not just “resources”
to be exploited and customers are not just profit-generating units. A Kantian
business leader would reject practices such as sweatshop labor or misleading
customers, even if these generate high profits, because they violate human dignity.
3. Duty over Consequences. For Kant, morality comes from doing one’s duty, not from
chasing outcomes. In business, this means following principles of honesty, fairness,
and justice even if they reduce profit in the short term. For example, a company may
feel obligated to disclose product risks truthfully to consumers, even if that honesty
reduces sales.
4. Virtue and Integrity. Kantian ethics also emphasizes acting from good will and
integrity. Leaders and employees should cultivate virtues such as honesty, fairness,

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and responsibility, and act not out of fear of punishment or desire for reward, but
out of genuine commitment to doing what is right.

Applications in Business Decision-Making

 Employee Relations: A Kantian manager would ensure fair wages, safe working
conditions, and opportunities for development, not because it leads to higher
productivity (though it may), but because it is a duty to respect employees as human
beings.
 Marketing Practices: Misleading or manipulative advertising violates Kantian
principles, because it treats customers as mere means to make money rather than as
rational individuals deserving of the truth.
 Corporate Governance: A Kantian approach demands transparency and honesty in
financial reporting. Even if “creative accounting” boosts stock prices temporarily, it
is unethical because it is dishonest and undermines trust.
 Social Responsibility: Businesses are obliged to respect communities and the
environment, not merely to avoid backlash, but because it is their duty as corporate
citizens to treat society with fairness and dignity.

Strengths of Kantian Ethics in Business

 It provides clear rules for ethical behavior (truth-telling, fairness, respect).
 It protects human rights and dignity, even when sacrificing profit.
 It builds trust and credibility, which are essential for long-term business success.

Limitations in Business Context

 It can sometimes be rigid, since Kantian ethics does not consider outcomes. For
example, refusing to lie under any circumstance may cause harm in rare cases (e.g.,
not protecting trade secrets).
 In highly competitive markets, some argue that strict adherence to duties may put
businesses at a short-term disadvantage.

Prima Facie Principles

The term prima facie comes from Latin, meaning “at first
sight” or “on the face of it.” In ethics, prima facie duties were
introduced by the philosopher William David Ross as part of his
moral theory. According to Ross, in any given situation we may have
several moral duties, and these duties can sometimes conflict.

A prima facie duty is a moral obligation that is binding unless

it conflicts with another duty of greater importance. When duties
conflict, we must use moral judgment to decide which duty takes
priority. In other words, prima facie principles act as guidelines for
[Link]
decision-making, but they are not absolute rules.

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Ross’s Prima Facie Duties

Ross identified several key duties, which are often used as ethical guides in business:
1. Fidelity – The duty to keep promises, contracts, and commitments.
2. Reparation – The duty to make amends when we wrong someone.
3. Gratitude – The duty to return kindness or recognize benefits received.
4. Justice – The duty to distribute benefits and burdens fairly.
5. Beneficence – The duty to help others and promote their well-being.
6. Self-improvement – The duty to develop one’s talents and character.
7. Non-maleficence – The duty to avoid harming others.

Prima Facie Principles in Business Context

In business decision-making, leaders often face situations where multiple duties are
relevant and may conflict. Prima facie principles help evaluate these conflicts by identifying
the most pressing duty in each situation.
Examples:
 Case of Product Safety: A company discovers that one of its products has a defect.
o Duty of fidelity: keeping commitments to shareholders by ensuring profit.
o Duty of non-maleficence: avoiding harm to customers.
o Resolution: The duty to avoid harm (non-maleficence) overrides the duty to
shareholders, so the product must be recalled even if it reduces profit.
 Case of Employee Layoffs: A firm is losing money and considers layoffs.
o Duty of beneficence: protect the well-being of employees.
o Duty of justice: treat all stakeholders fairly, including investors and
customers.
o Resolution: Leaders may choose to lay off a smaller group of employees
rather than close the entire company, balancing justice with beneficence.
 Case of Advertising: A marketing team considers exaggerating claims about a
product.
o Duty of fidelity: be truthful and keep promises.
o Duty of beneficence: promote customer satisfaction.
o Resolution: Truthful advertising must prevail, because fidelity and honesty
are fundamental duties that outweigh temporary sales gains.

Strengths of Prima Facie Principles in Business

 Flexibility: Unlike strict Kantian rules, they allow leaders to weigh duties in context.
 Practicality: Business often involves conflicting obligations, and prima facie
principles help prioritize without ignoring any.
 Focus on Relationships: Duties like gratitude, fidelity, and justice strengthen trust
among stakeholders.

Limitations
 Subjectivity: It requires moral judgment to decide which duty takes precedence, and
people may disagree.

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 No clear hierarchy: Ross did not provide a strict ranking of duties, so conflicts must
be resolved case by case.

The Moral Positivism of Hobbes in Business Decision-Making

The idea of moral positivism comes largely from the
philosophy of Thomas Hobbes (1588–1679), best known for his
work Leviathan. Hobbes believed that in a natural state—
without rules or authority—human beings would act based on
self-interest, leading to constant conflict or what he famously
described as life being “solitary, poor, nasty, brutish, and short.”
To escape this chaos, Hobbes argued that people agree
to form a social contract, surrendering some freedom to a
sovereign authority (the state or governing body) in exchange
for peace, security, and order. From this perspective, what is [Link]
considered “moral” is not rooted in higher ideals or universal laws, but in human
agreements and established rules created by authority. This is why Hobbes is often linked to
legal or moral positivism—the idea that morality and law come from human conventions
and the enforcement of rules, rather than from natural law or divine commands.

Hobbes’s Principles in Business Context

When applied to business decision-making, Hobbes’s moral positivism emphasizes the
importance of:
1. Rules and Agreements. Business operates smoothly only when people respect
contracts, company policies, and legal regulations. Without clear rules, competition
would devolve into conflict, deception, or exploitation. For Hobbes, morality in
business comes from honoring these agreements because they provide order.
2. Authority and Compliance. Just as society requires a sovereign to enforce laws,
businesses need leadership and governance structures. Ethical business decisions,
from a Hobbesian view, are those that follow and enforce rules set by legitimate
authorities such as governments, regulators, or corporate boards.
3. Self-Interest and Order. Hobbes recognized that people are naturally self-interested.
In business, this means companies will always pursue profit. However, to avoid
destructive competition and disorder, they must operate under agreed-upon
regulations such as labor laws, tax codes, and trade agreements.
4. Social Contract in Business. Just as citizens agree to surrender some freedoms for
security, businesses enter a “social contract” with society. They are permitted to
operate and make profits, but in return, they must respect laws, pay taxes, and avoid
actions that harm the public.

Examples in Business Decision-Making

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 Contracts and Trust: A supplier may want to cut corners to save money, but under
Hobbes’s view, honoring contracts is essential because breaking them undermines
the entire system of business order.
 Regulatory Compliance: A company may disagree with environmental regulations,
but Hobbesian positivism says following the law is a moral obligation because it
maintains societal order.
 Corporate Governance: Internal policies and codes of conduct are binding because
they are part of the business “social contract.” An employee who disregards these
rules undermines organizational stability.

Strengths of Hobbesian Moral Positivism in Business

 It emphasizes the necessity of rules and contracts in maintaining trust and stability
in commerce.
 It provides a realistic view of human behavior, recognizing that self-interest must be
balanced with enforceable rules.
 It underscores the role of government regulation in preventing destructive or
exploitative practices.

Limitations in Business Context

 It may encourage blind obedience to authority, even if rules are unjust. For instance,
if laws allow exploitative labor, Hobbesian ethics might still consider it “moral” to
comply.
 It does not always account for higher ethical principles such as justice, fairness, or
human dignity that go beyond written rules.
 It assumes that morality is purely external (from authority), which may discourage
individuals from developing internal moral responsibility.

Divine Command Ethics in Business Decision-Making

Divine Command Ethics is a moral theory that grounds
right and wrong in the will or commands of God. According to
this view, an action is morally right if it is commanded by God
and wrong if it is forbidden by God. Morality is therefore not
based on human reason, consequences, or social contracts, but
on obedience to divine authority.
[Link]
command-theory/
This ethical framework is rooted in religious traditions such as Christianity, Islam,
and Judaism, which teach that God provides absolute moral laws (e.g., through scriptures,
commandments, or teachings) that humans must follow. Unlike human-made rules, divine
commands are considered unchanging, universal, and binding.

In business, Divine Command Ethics means that decisions should be guided not only
by profitability or legality but also by adherence to principles that reflect God’s will, such as
honesty, justice, compassion, fairness, and stewardship.

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Core Principles of Divine Command Ethics in Business

1. Moral Authority Comes from God. Business leaders and employees must act in ways
that reflect divine moral standards. For example, lying to customers, exploiting
workers, or engaging in corruption is wrong, not just because it harms people, but
because it violates God’s command to be truthful and just.
2. Universal and Absolute Rules. Ethical business behavior is not relative to culture or
convenience. If God commands honesty, then truthfulness in financial reporting,
marketing, and transactions is a universal duty, even when dishonesty could
increase profits.
3. Human Dignity and Stewardship. Most religious traditions emphasize that human
beings are created in God’s image. This means businesses must respect the dignity of
employees, customers, and communities, and use resources responsibly as stewards
of creation.
4. Accountability Beyond Earthly Laws. A company might comply with legal standards
yet still act unethically if it ignores divine principles. For example, legal loopholes
that allow tax avoidance may still be immoral if they violate the spirit of justice and
fairness taught in scripture.

Applications in Business Decision-Making

 Honesty in Marketing: Divine command ethics would reject misleading
advertisements because they involve dishonesty, which most religions condemn.
 Employee Treatment: Fair wages and safe working conditions are moral obligations,
reflecting divine commands to respect human dignity and care for others.
 Corporate Social Responsibility: Protecting the environment, helping the poor, and
engaging in fair trade can be seen as fulfilling the divine command to be stewards of
creation and to love one’s neighbor.
 Corruption and Bribery: Even if common in some societies, bribery violates divine
commands against greed and injustice, and thus is morally unacceptable in business.

Strengths of Divine Command Ethics in Business

 Provides clear and absolute moral standards that are not easily bent for
convenience.
 Encourages integrity and accountability, since individuals believe they answer not
only to society but to God.
 Promotes universal values like honesty, justice, fairness, and compassion that
strengthen trust in business.

Limitations in Business Context

 In pluralistic societies, people may follow different religions, leading to
disagreements about which divine commands apply.
 It may be rigid, offering little flexibility in complex business dilemmas where rules
seem to conflict.

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 Some argue it depends heavily on faith and interpretation—different groups may

interpret divine commands differently.

Learning Activities

Activity 1: Case Reflection

Consider a company that discovers its product has a minor defect that poses no
immediate danger but could inconvenience customers. From the perspective of
utilitarianism, deontology, virtue ethics, rights-based ethics, and justice theory, discuss
whether the company should recall the product. Write a short essay (200 words)
summarizing your personal conclusion.
[Link]

Activity 2: Ethical Lens Exercise

Divide into groups. Each group will be given a short business case (e.g., data privacy
issue, employee layoff, or environmental pollution). Each group will analyze the case using
one ethical theory and present its decision and reasoning to the class.

Assessment Tasks

Term Paper
Prepare a 5–7-page term paper analyzing a real-world business scandal or
governance issue. Apply at least two ethical theories to evaluate the decisions made by the
leaders involved. Conclude by recommending what should have been done differently based
on ethical reasoning.

Submission: ________________________________________

Rubric for the Term Paper:

Criterion Excellent Good Fair Poor
Content and -Contents is -Content is -Content is not -Content is
Development comprehensive, accurate and comprehensive incomplete
30 pts accurate, and persuasive and /or -Major points are not
persuasive. -Major persuasive clear and /or
-Major points points are -Major points persuasive
are stated stated are addressed, -Questions were not
clearly and are -Responses but not well adequately answered
well supported are supported.
-Content and adequate -Responses are
purpose of the and address inadequate or
writing are assignment do not address
clear -Content and -Content is
purpose of inconsistent

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the writing about purpose

are clear and clarity of
thought
Organization -Structure of -Structure is -Structure of -Organization and
and the paper is mostly clear the paper is not structure detract
Structure clear and easy and easy to easy to follow from the message of
20pts to follow follow -Paragraph the writer
-Paragraph -Paragraph transitions -Paragraphs are
transitions are transition is need disjointed and lack
logical and present improvement transition of thoughts
maintain the - -Conclusion is
flow of thought Conclusion missing or if
throughout the is logical provided, does
paper not flow from
-Conclusion is the body of the
logical and paper
flows from the
body of the
paper,
Format -Paper follows -Paper -Paper follows -Paper lacks many
20 pts all designed follows most elements of correct
guidelines designated guidelines formatting
-Paper is the guidelines -Paper is -Paper is
appropriate -Paper is the over/under inadequate/excessive
length as appropriate word length in length
described for length as -Paper is not double
the assignment described spaced
for the
assignment
-Format is
good
Grammar, -Rules of -Rules of -Paper contains -Paper contains
Punctuation grammar, grammar, few numerous
and Spelling usage, and usage, and grammatical, grammatical,
30pts punctuation are punctuation punctuation punctuation, and
followed, are followed and spelling spelling errors
spelling is with minor errors -Language uses
correct. errors -Language jargon or
-Language is -Spelling is lacks clarity or conversational tone
clear and correct includes the
precise, use of some
sentences jargon or
display conventional
consistently tone
strong, varied
structure

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Synthesis

Normative ethical theories provide vital tools for evaluating decisions in business
and governance. Utilitarianism focuses on outcomes, deontology on duties, virtue ethics on
character, rights-based ethics on protecting individuals, and justice theory on fairness. Each
has its strengths and limitations, but together they offer complementary perspectives that
can guide leaders through complex dilemmas.

For future business administrators, the challenge is not to memorize these theories
but to practice applying them to real-world situations. By doing so, you develop the ability to
balance profitability with responsibility, ensuring that your leadership contributes not just
to financial success but also to the well-being of people and society.

Key Takeaways

At the end of this module, you should remember these essential points:
 Normative ethical theories provide frameworks for deciding what is right or wrong
in business.
 Utilitarianism emphasizes outcomes, while deontology emphasizes duties and
principles.
 Virtue ethics focuses on character, rights-based ethics on individual entitlements,
and justice theory on fairness.
 These theories are tools to evaluate business dilemmas where laws or profits alone
are insufficient.
 Ethical decision-making in business requires balancing multiple perspectives for
just and responsible outcomes.

Supplementary Resources

If you want to deepen your understanding, here are some recommended materials
to explore:
Readings
 Velasquez, M. (2018). Business Ethics: Concepts and Cases. Pearson.
 Crane, A., & Matten, D. (2020). Business Ethics: Managing Corporate Citizenship and
Sustainability in the Age of Globalization. Oxford University Press.
 Garcia, J. (2020). Ethics and Good Governance in the Philippine Context. Rex
Bookstore.

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 UNIT II: The Different Normative Ethical Theories
Commonly Used in Business in Decision Making

Videos
 Ethical Theories Explained
[Link]
 Business Ethics and Decision-Making
[Link]
 John Rawls and Justice as Fairness
[Link]

References

Philp, M., & Rosen, F. (2015). Introduction to John Stuart Mill, On liberty, utilitarianism and
other essays. In Warwick Research Archive Portal (University of
Warwick). [Link]
%[Link]

Schönecker, D., & Wood, A. W. (2015). Immanuel Kant’s “Groundwork for the Metaphysics of
Morals.” In Harvard University Press eBooks.
[Link]

Aristotle, N. (1999). Nicomachean ethics. In Oxford University Press eBooks.

[Link]

Rawls, J. (1999). A theory of justice. Harvard University Press eBooks, 69(18).

[Link]

Velasquez, M. G. (2006b). Business ethics : concepts & cases. In Pearson Prentice Hall eBooks.
[Link]

Crane, A., & Matten, D. (2004). Business Ethics: A European perspective: Managing Corporate
citizenship and sustainability in the Age of
Globalization. [Link]
erspective

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