Module 2

Ethical Theories and Models:

Ethical relativism and absolutism – role of ethical theory in business –
Classification of ethical theories:
1) Consequentiality or Teleological theories – Utilitarianism – Egoism
2) Nonconsequentialist or Deontological theories – Kantian theories
3) Other normative theories: stockholder, stakeholder, social contract,
and trusteeship theories

-Compiled by Dr. Veenu Joy

Ethical Relativism
Example 3: Dressing styles
Ethical relativism means morality changes depending on: •Wearing short clothes is acceptable in some
•Time/era modern cities.
•Culture •Considered inappropriate in some traditional
•Society or community regions.
•Situations Ethical relativism says: Morality is relative, not fixed.
There is no single universal rule that applies to everyone.

Example 1: Different cultures

•Eating beef is acceptable in the U.S.
•Eating beef is considered wrong in many parts of India.
This shows that what is “ethical” varies by community.

Example 2: Changing through time

•In ancient societies, child marriage was socially accepted.
•Today, it is considered unethical and illegal.
Ethics changed with time → relativism.
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Ethical Absolutism

Ethical absolutism means moral rules are fixed, the same Example 3: Human rights
for: •Torture
•All people •Slavery
•All cultures These are seen as always
•All time periods unethical, with no exceptions.
There is one universal standard of right and wrong. Absolutism says: Morality does
not change.
Example 1: Killing an innocent person is always wrong
Regardless of country, culture, or era, killing someone who
has done no harm is considered wrong.

Example 2: Honesty
Many absolutists argue that lying is always wrong, no
matter the situation.
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Strengths of Ethical Relativism
Relativism = Morality depends on culture, society, or time.

Encourages tolerance
•It helps us respect other cultures and understand that different societies have different beliefs.
Western countries accept divorce; some traditional communities discourage it. Relativism says
both cultures deserve respect.

Flexible and adaptable

•Ethical rules can change as society changes.
Attitudes toward women working outside the home changed over time. Relativism allows
ethical standards to evolve.

Realistic about cultural diversity

•Recognises that there is no single moral rule for every culture.
Funeral practices vary—some cultures cremate, others bury, and others conduct sky burials.
Relativism accepts all as valid. -Compiled by Dr. Veenu Joy
Criticisms of Ethical Relativism

Anything can be justified

If morality depends on culture, even harmful practices can be considered “right.”
Child marriage or honour killings might be defended using “cultural norms,” which is
dangerous.

No universal human rights

Relativism makes it hard to say practices like slavery, torture, or discrimination are always
wrong.
If one culture supports discrimination, relativism cannot object.

Contradictions among cultures

If every culture decides its own ethics, we cannot judge between two conflicting moral systems.
One culture may say abortion is moral, another may say it is immoral—relativism gives no way
to decide.
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Strengths of Ethical Absolutism

Absolutism = Moral rules are fixed, universal, same everywhere.

Provides clear rules
•People always know what is right or wrong.
“Do not steal” applies to everyone in all places.

Protects human rights

Universal rules can protect vulnerable groups.
Slavery is always wrong, regardless of culture or time.

Stable and consistent

•No confusion, no changing morality every generation.
Killing innocent people is always wrong, clear and consistent.

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Criticisms of Ethical Absolutism

Too rigid
•Does not consider cultural differences, situations, or context.
Stealing food to survive a famine is still “wrong” in absolute terms.

Impractical in modern diverse societies

•One rule cannot fit all cultures and traditions.
Dress codes, food habits, or marriage rules differ across societies; absolutism ignores this
diversity.

Leads to cultural intolerance

•Believing only one moral rule is correct can lead to judging or condemning others.
A culture may label another “wrong” simply because they follow different customs (e.g.,
burials vs. cremation).
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Deontological Ethics

•Deontology says actions are right or wrong based on rules, not on results.
•A person must follow moral rules no matter what happens.
•Focus = duty, principles, moral laws.
“Do the right thing because it is your duty — not because of the outcome.”
Examples
Telling the truth
A doctor tells the patient the truth about their illness, even if the truth might upset them.
Deontological view: The doctor must follow the rule, regardless of consequences.

Not stealing
If someone is starving, deontology says stealing is still wrong because the rule “Do not steal”
must be obeyed.

Following the law

A teacher reports an incident of cheating because it is the rule, even if the student is bright and
the consequences may harm their future. -Compiled by Dr. Veenu Joy
Teleological Ethics
•Teleology says actions are judged by their consequences or outcomes.
•If the outcome is good, the action is considered ethical.
•Focus = results, impact, maximizing good.
“What matters is the final result — not just the rule.”
Examples
Stealing food to save a life
If someone steals food to stop a child from starving:
•Teleological view: The action is justified because the outcome is good.

Doctor lying to calm a patient

A doctor may reassure a nervous patient with a mild lie to keep them calm before surgery.
•Teleological view: Ethical because it produces a positive result.

Breaking a traffic rule to save a life

An ambulance driver breaks a red light to rush a patient to the hospital.
•Good outcome: Saving a life
•Therefore: The action is morally right. -Compiled by Dr. Veenu Joy
Key Roles of Ethical Theories in Business

[Link] Decision-Making

Example: A company deciding whether to use cheaper but environmentally harmful materials
can apply Utilitarianism (greatest good for the greatest number) to choose sustainable options.

[Link] Trust and Reputation

Example: Patagonia follows Virtue Ethics, prioritizing honesty and environmental responsibility,
which strengthens its brand image.

[Link] Social Responsibility (CSR)

Example: Tata Group in India applies Deontological Ethics (duty-based) by investing in

education and healthcare as a moral obligation.

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[Link] Resolution

Example: Johnson & Johnson during the Tylenol crisis applied Rights Theory, prioritizing
consumer safety over short-term profits by recalling products.

[Link]-Term Sustainability

Example: Unilever uses Stakeholder Theory, considering the impact on employees,

communities, and the environment, not just shareholders.

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Ethical Theories in Action
•Utilitarianism:
Example: A pharmaceutical company pricing drugs affordably to maximize public health
benefits.

•Deontology (Duty-Based Ethics):

Example: A bank refusing to exploit loopholes in tax laws because it’s morally wrong, even if
legal.

•Virtue Ethics:
Example: A CEO promoting integrity and fairness in hiring practices.

•Rights Theory:
Example: Tech companies ensuring user privacy because individuals have a right to data
protection.

•Justice Theory:
Example: Fair trade practices ensuring farmers receive
-Compiled by Dr. Veenu Joy equitable compensation.
Understanding Teleological (Consequentialist) Theories
• Definition: Teleological ethics (from Greek telos = "end") focuses on the ends or goals of actions.
• Core Idea: “The end justifies the means.” What matters most is the result of the action, not the action itself.
• Key Principle: Actions are morally right if they maximize overall good (happiness, welfare, utility).

Types of Consequentialist Theories

• Utilitarianism: The most famous form. Proposed by Jeremy Bentham and John Stuart Mill. It holds that the
right action is the one that produces the greatest happiness for the greatest number.

• Rule Consequentialism: Instead of judging individual acts, it evaluates rules. A rule is right if following it
generally leads to good outcomes.

• Ethical Egoism: Actions are right if they promote the agent’s own good.

• Altruistic Consequentialism: Actions are right if they promote the good of others, even at personal cost.

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1. The Trolley Problem
• Scenario: A runaway trolley is heading toward five people. You can pull a lever to
divert it onto another track, where it will kill one person.
• Consequentialist view: Pull the lever, because saving five lives outweighs the harm of
losing one.
• Deontological view: Do not intervene, because killing is always wrong, even if it
saves more lives.

2. Medical Ethics
• A doctor has five patients needing organ transplants. One healthy person could be
sacrificed to save them.
• Strict utilitarianism: Sacrifice the one to save five.
• Criticism: This feels morally wrong, showing the limits of pure consequentialism.

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[Link] Decision
• A company can automate jobs, increasing profits and lowering prices, but many workers
will lose employment.
• Consequentialist reasoning: If overall societal benefit (cheaper goods, new opportunities)
outweighs harm, automation is justified.
• Deontological reasoning: It may be wrong to treat workers merely as means to profit.

4. Environmental Policy
• Ban plastic bags: inconvenience for shoppers, but reduces pollution.
• Consequentialist view: The long-term environmental benefits outweigh short-term
inconvenience.

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1. Hospital Triage (Choosing who gets treatment first)
A hospital has one ventilator left. Two patients arrive.
•Patient A has a high chance of survival.
•Patient B has a very low chance.

A utilitarian approach says:

Give the ventilator to Patient A because it saves more life-years and benefits more people overall (family,
society).

[Link] Budget Allocation

A government has ₹10 crores to spend.

Two options:
Build a stadium used by 5,000 people
Improve a public bus system used by 50,000 people every day
Utilitarian choice:
Improve public transport, because it increases happiness for more people.

-Compiled by Dr. Veenu Joy

Office Scenario — Choosing Working Hours

Employees prefer:
•Option A: Work from 8 AM to 4 PM (benefits 90% of staff)
•Option B: Work from 10 AM to 6 PM (benefits 10% of staff)
Utilitarian standpoint:
Choose the timing that benefits the majority.

Environmental Example — Banning Plastic

Plastic bags are convenient for individuals, but they harm:
Marine life
Environment
Future generations
A utilitarian decision:
Ban plastic bags because it creates greater long-term good for society and the planet.
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Four Thesis of Utilitarianism

[Link]: An action is right or wrong only based on its consequences (results).

Intentions don’t matter — only the outcome matters.

example:
A company decides to switch to eco-friendly packaging.
•Consequence: less pollution, healthier environment.
So according to consequentialism, this is the right action because the outcome is good.

2. Hedonism: Happiness or pleasure is the ultimate good.

Anything that increases happiness or reduces pain has value.

example:
A school organizes a stress-relief activity for students before exams.
It makes students feel relaxed and happy.
So under hedonism, this is good because it increases happiness.
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3. Maximalism: A right action is the one that produces the greatest amount of good and minimizes bad
consequences.
example:
A hospital has limited budget and must choose one improvement:
•Option A: New garden (benefits few people)
•Option B: New ventilators (saves many lives)
Maximalism would say choose Option B, because it brings maximum good to the greatest number.

4. Universalism: While making a decision, you must consider everyone who is affected, not just yourself or a small
group.
Everyone’s happiness counts equally.
example:
A government plans a new road.
They must consider:
Residents
Shop owners
Commuters
Environment
Future generations
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Universalism says: Include everyone’s impact, not only the benefit to a few business owners.
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1. Why did Ford rely heavily on financial cost–benefit analysis instead of prioritizing human safety?

Answer Pointers:
•Pressure to compete quickly in the small-car market
•Desire to minimize production costs
•Corporate culture focusing on profit and efficiency
•Management assumption that lawsuits would cost less than redesigning the car

2. How might the inclusion of non-financial factors (human life, emotional suffering, public trust) have
changed Ford’s decision?
Answer Pointers:
Realizing human suffering outweighs profit
Recognition that emotional and long-term societal costs are higher
Awareness that reputational damage could exceed short-term savings
Understanding that ethical concerns must override cost savings

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4. What does the Ford Pinto case teach about the limitations of cost–benefit analysis when making ethical decisions?
Answer Pointers:
•Numbers alone cannot represent human dignity or moral duty
•Financial models often ignore long-term harm
•Ethical considerations require more than economic calculations
•Some values—life, safety—cannot be reduced to monetary figures

5. If Ford had used a proper utilitarian analysis, what alternative actions could they have taken?
Answer Pointers:
Implement the $11-per-car safety fix
Delay launch until safety improvements were complete
Communicate risks openly and recall affected vehicles
Create policies ensuring safety is non-negotiable

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7. What personal lesson can future managers and entrepreneurs learn from the Pinto case regarding ethical decision-
making?
Answer Pointers:
•Always consider human welfare over short-term gain
•Ethical leadership demands taking responsibility for safety
•Decisions affect real people, not just numbers
•Long-term trust and integrity matter more than immediate profit
•Ethical analysis should include all stakeholders, not just shareholders

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Cost Benefit Analysis

[Link]

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Rule Consequentialism
An action is right if it follows rules that, in general, lead to the best overall
consequences for everyone.

Instead of judging each action separately, this theory focuses on following rules that
usually produce good outcomes.

Act Consequentialism Rule Consequentialism

Evaluates each action individually based on its Follows rules that generally lead to good
outcome outcomes

“Is this action good?” “Is this rule good?”

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Honesty in Business
Rule: Always tell the truth to customers.
•Being honest builds trust.
•Businesses grow when customers rely on them.
•Society benefits when honesty is a standard rule.

Even if lying once could give quick profit, the rule of honesty produces better consequences overall.
Example: A shopkeeper tells a customer that a product is defective instead of hiding it. The rule of
honesty builds long-term trust.

Keeping Promises
Rule: Always keep your promises.
Promises build relationships and cooperation.
Society works better when people can trust one another.

Example: A colleague promises to finish a presentation slide. Even if they are busy, they keep their
promise to maintain trust and reliability.
This follows a rule that has good overall consequences.

-Compiled by Dr. Veenu Joy

Ethical Egoism

An action is morally right if it promotes the agent’s (the doer’s) own good or
self-interest.

It does not say people always act selfishly (that is Psychological Egoism).
Instead, it says people should act in ways that benefit themselves.

Ethical Egoism focuses on:

•Long-term benefit rather than short-term pleasure
•Rational self-interest, not impulsive selfishness
•The idea that promoting one’s own welfare can also, indirectly, help society

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Career Choice
A student chooses a high-paying job in a city far away instead of staying near family,
because:
•It offers growth opportunities
•Helps them achieve financial independence
•Improves their long-term goals
Even though staying near family might be emotionally comforting, ethical egoism says
choosing the job is morally right because it benefits the individual most.

Student Helping a Friend Study

A student tutors a friend before exams because:
Teaching reinforces their own learning
They may need help in another subject later
It builds goodwill and trust
Although it seems altruistic, the action is motivated by self-interest, so ethical egoists
consider it morally right.
-Compiled by Dr. Veenu Joy
Altruistic Consequentialism
An action is morally right if it produces the best consequences for others, not for oneself.
Here, the moral focus is on others’ well-being, others’ happiness, and others’ interests.
The agent’s own benefit is not the priority.
It is the opposite of Ethical Egoism.

Other-oriented morality:
The good consequences must benefit other people, not the agent.
Consequences determine rightness:
An action is evaluated by its outcomes, not the intention or rules.
Sacrifice is acceptable:
Individuals may be morally required to sacrifice their own comfort, pleasure, or resources if
doing so benefits others.
Can still be rational:
The theory does not demand extreme self-neglect, but it prioritises others’ wellbeing when
making moral choices.
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Choosing a Lower-Paid Job to Serve Society

A trained doctor chooses to work in a rural government hospital where doctors are
needed, despite a higher-paying job offer in a city.
•Rural communities gain better medical access.
•The doctor personally sacrifices income, but the social benefit is higher.
Therefore, the action is morally right under Altruistic Consequentialism.

Returning a Lost Wallet with Money Intact

A person finds a wallet full of cash and returns it without taking anything.
The owner benefits through relief, trust, and regained funds.
The finder gains nothing, and even spends time and effort.
Action is morally right because it prioritises others’ welfare.

-Compiled by Dr. Veenu Joy

 Immanuel Kant (1724–1804)
was a German philosopher
who is widely considered
one of the most influential
thinkers in the history of
Western philosophy. He
lived during the
Enlightenment period and
profoundly shaped modern
philosophy, particularly in
the areas of ethics,
epistemology (the theory of
knowledge)

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Motive

Motive is very important in Kantian ethics. It means your

action can have negative consequences but still be
considered a moral act.

For example, if you stop to help someone who has been

knocked down by a car in the street and by helping them
you accidentally kill them, your action would still be
considered a moral act because you tried to help because
you felt it was your duty to do so.

-Compiled by Dr. Veenu Joy

 Non-Consequentialist or Deontological ethics
• Deontological Theory: Determine the ethics of an act by looking at
the process of the decision ( The means)
• Greek word Deon meaning Duty
• Immanuel Kant (1724– 1804) - German philosopher-principle of
Universalism
• “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”
• Regardless of consequences, this approach is based on universal
principles, such as justice, rights, fairness, honesty, and respect.

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Categorical Imperative

This means unconditional or absolute. An imperative is a command or

rule—something you’re told to do.
•It applies no matter what your So, an imperative tells you what
situation, goals, or desires are, it applies you ought to do.
always and to everyone.
Example:
Example: “Close the door.” That’s an
“Tell the truth” — You must do it, imperative—a command.
always, no matter how inconvenient it is.

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In Kantian ethics, a maxim means:

A personal rule or principle on which you act.

It is the intention behind your action, stated clearly as:

•What you want to do, and
•Why you want to do it.

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Morality and Imperatives
What is an imperative? Command - "Pay your taxes!"
• Hypothetical Imperatives : command conditionally : "if you are
hungry, then go eat something!"
• Categorical Imperatives: Command unconditionally “Don’t cheat on
your taxes.”
• Morality must be based on the categorical imperative because
morality is such that you are commanded by it, and is such that you
cannot opt out of it or claim that it does not apply to you.

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What is it our moral duty to do?
Kant argued that moral actions are not dependent
on circumstances.

For example, we must always care for our children.

This is not dependent on circumstances or
particular situations, it is always right and is what
Kant called a categorical imperative.
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Kant’s Principle of the Categorical Imperative

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1. Formula of Universal Law
Text: “Act as if the maxim of your action were to secure through your will a universal law of
nature.”
Before acting, ask yourself:

“Could everyone act this way? Would the world still function rationally?”
If your action cannot be universalised without contradiction, it is morally wrong.

Wasting water
Maxim: “I will waste water because I pay for it.”
If everyone did this, water scarcity would worsen and society would suffer.
Conclusion: The maxim fails universalisation → immoral.

Cheating in exams
If everyone cheated, exams would lose meaning and education quality would collapse.
Thus, the action contradicts the idea of a universal law → wrong.
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2. Formula of Humanity
Text: “Act so that you treat humanity, whether in your own person or in that of another,
always as an end and never merely as a means.”

Humans must never be manipulated or used. Every individual has dignity and inherent
worth.

Exploiting workers
If an employer underpays labourers just to maximise profits, they treat them merely as tools
for earning money.
This violates human dignity.

Fake promises in relationships

If someone pretends to love another person solely to gain financial benefits, they use the
person as a means.
This violates Kant’s principle of humanity.
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Human Dignity and Autonomy What Does This Mean?

•Every person should be treated “Treat people as ends in themselves”

as an end in themselves, not as •See people as valuable in their own right, not
a means to an end. just for what they can do for you.

•Respecting others means Respect their dignity, freedom, and choices.

respecting their rationality and “Don’t treat people merely as a means to an
free will. end”
•Don’t use others like tools to achieve your
personal goals.
•Don't manipulate, lie to, or exploit others—even
for a good result.

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3. Formula of Autonomy
Text: “Act as if you were through your maxims a law-making member of a kingdom of ends.”

We must act as rational moral agents who create ethical laws for ourselves.
We should behave as if we are part of a society where everyone respects each other’s
freedom and dignity.

Choosing not to plagiarise

A student avoids copying assignments because they respect academic honesty, not merely to
avoid punishment.
They act from self-given moral law → autonomy.

Environmental responsibility
An individual segregates waste even when no one is watching, acting from moral duty, not
pressure.
This shows rational self-governance.
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"Copernican Revolution" in Philosophy
(Epistemology)
Imagine putting on blue sunglasses.
Everything you see will have a blue tint.
Kant’s groundbreaking idea in his book
Critique of Pure Reason was:
Kant is saying:
“The mind shapes the world we
Our mind is like those glasses—it filters
experience.”
and shapes all our experiences.
He flipped the older belief that our mind
We never see the world as it is in itself;
simply reflects the world. Instead, he
we see it as it appears to us, shaped by our
argued that our mind actively organizes
mind.
what we perceive using built-in
categories like time, space, and cause-
effect.
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Kant said: Our mind is not a blank
slate that just receives information.

•Instead, the mind has built-in

structures that organize what we
see.
These structures include:
•Space
•Time
•Cause and effect
•Quantity, quality, relation, etc.

We don’t learn these from

experience—they are part of how
we experience anything at all.
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Ethical Relativism

Definition
Ethical relativism is the view that moral judgments are not universal; instead, morality depends
on the cultural, social, or individual context.
There is no single moral standard that applies to all people at all times.
Types
[Link] Relativism – Morality depends on cultural norms.
[Link] (Subjective) Relativism – Morality depends on personal beliefs.

Polygamy
In some cultures, polygamy is morally acceptable.
In others, monogamy is considered the only ethical form of marriage.
A relativist would say:
“Neither is absolutely right or wrong; it depends on cultural values.”

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Ethical Absolutism

Definition
Ethical absolutism states that certain moral principles are universally true, regardless of
culture, time, place, or personal belief.
Core Idea
“There are objective moral standards that must always be followed.”

Torture is inherently immoral

Some ethical traditions and human-rights frameworks consider torture always immoral.
This belief does not depend on cultural acceptance; it is treated as a universal principle.

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Stockholder Theory (Shareholder Theory)

Proposed by economist Milton Friedman, the stockholder theory argues that the primary responsibility of a
business is to maximize profits for its shareholders, as long as it operates within the rules of law and ethical
norms.

Core Ideas
[Link] are the owners of the company.
[Link] are agents who must run the business in the best financial interest of the shareholders.
[Link] responsibilities (charity, welfare, community service) are not the firm’s primary duty, unless they
ultimately improve profits.
4.A corporation’s success is measured mainly by profit, share price, and dividends.

A Company Choosing Profitable Projects

A manufacturing company has two options:
Option A: Launch an eco-friendly product that costs more to produce and gives very low profit.
Option B: Launch a regular product with high profit margins.
According to shareholder theory, the company should choose Option B because it maximizes returns for
shareholders.
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Apple Inc. share buyback programs

Apple spends billions buying back its own shares to:

•Increase share value

•Provide higher returns to investors
•Maintain investor confidence
Here, the company’s strategic decisions are aimed at maximizing
shareholder wealth—consistent with stockholder theory.

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Stakeholder Theory
Proposed by R. Edward Freeman, stakeholder theory argues that:
A business has ethical obligations not only to shareholders but to all stakeholders who
are affected by its decisions.

Stakeholders include
•Employees
•Customers
•Suppliers
•Local community
•Government
•Environment
•Shareholders

Ethical Principle
A business must create value fairly for all groups, not exploit one group for the benefit
of another. -Compiled by Dr. Veenu Joy
Stakeholder theory
• Stakeholder theory stresses that regardless of fact whether the
management achieves financial performance or not, managers should
promote interests of all stakeholders .
• Instrumental view of stakeholders : Fulfilment of responsibilities
towards stakeholders is desirable because it contributes to
companies maximising their profits
• Normative view of stakeholders: organisations have moral duties
towards stakeholders.

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Tata Steel (India)

•Provides extensive welfare facilities to employees (housing, healthcare,

education).
•Invests in community development through hospitals, schools, and
infrastructure.
•Maintains long-term relationships with suppliers and the local community.
This shows the company considers everyone affected by its operations, not only
its owners.

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Social Contract Theory

Derived from Thomas Hobbes,John Locke, and Jean-Jacques Rousseau and

applied to business ethics:

Organisations exist because society allows them to exist.

Therefore, businesses must operate in ways that benefit society, as part of an
implicit social contract.

A business must uphold:

Social justice
Fairness
Human rights
Environmental responsibility

If businesses break this social contract, society can withdraw its support (laws, penalties,
boycotts).
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Maggi Noodles Ban (Nestlé India, 2015)

When Nestlé was accused of:

•Exceeding permissible lead limits
•Mislabeling safety quality
Society (through government agencies) withdrew its “social permission to operate” by
banning the product temporarily.

Nestlé had to rebuild trust through:

•Transparent testing
•Public communication
•Safer manufacturing practices
This illustrates that a company must honor the social contract to maintain legitimacy.

-Compiled by Dr. Veenu Joy

Trusteeship Theory

Inspired by Mahatma Gandhi:

Business owners are not absolute owners of wealth. They are trustees who
must use their resources for the welfare of society.

Ethical Principle
Profit is acceptable, but:
•Wealth must be used responsibly
•Surplus should improve society
•Workers and communities should be benefitted

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Jamsetji Tata and the Tata philosophy

•Tata Group invests heavily in social welfare through the Tata Trusts.
•66% of Tata Sons’ profits go toward community development (education,
healthcare, rural development).
•Businesses are managed not just for profit but for national development.
This reflects the idea that business leaders are trustees of society’s wealth,
not just private profit seekers.

-Compiled by Dr. Veenu Joy

Kohlberg’s Theory of Moral
Development is a well-known
psychological theory that explains how
people develop their sense of right and
wrong over time.

It was created by Lawrence Kohlberg, an

American psychologist, in the 1950s. He
expanded on the work of Jean Piaget and
proposed that moral reasoning develops
through a series of six stages, grouped
into three main levels.

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Level Stage Description
Right and wrong are based on avoiding punishment. Rules are
1. Pre-conventional Stage 1: Obedience and
fixed and handed down by authority.
(Self-centered) Punishment
"I shouldn’t steal because I’ll get punished."
Stage 2: Individualism and Right actions serve individual needs. What’s right is what’s fair to
Exchange me. "I’ll help you if you help me."

2. Conventional Stage 3: Good Interpersonal Behavior is about being “good” in the eyes of others; seeking
(Society-centered) Relationships approval. "I want people to like me, so I’ll do the right thing."

Morality is about law and order. Rules must be followed to keep

Stage 4: Maintaining Social
society functioning. "You shouldn't steal because it's against the
Order
law."
3. Post-
Stage 5: Social Contract and Recognizes that laws are important, but they can be changed for
conventional
Individual Rights greater justice. "If the law is unjust, it should be reformed."
(Principle-centered)

Moral reasoning is based on universal human rights and abstract

Stage 6: Universal Ethical principles like justice, dignity, and equality — even if it means
Principles breaking the law. "Stealing may be wrong, but saving a life is
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more important."
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Kohlberg's Stages of Moral Development
Heinz’s Dilemma
Heinz’s wife was dying from a particular type of cancer. Doctors said a new drug might save
her. The drug had been discovered by a local chemist, and the Heinz tried desperately to buy
some, but the chemist was charging ten times the money it cost to make the drug, and this
was much more than the Heinz could afford. Heinz could only raise half the money, even after
help from family and friends. He explained to the chemist that his wife was dying and asked if
he could have the drug cheaper or pay the rest of the money later. The chemist refused,
saying that he had discovered the drug and was going to make money from it. The husband
was desperate to save his wife, so later that night he broke into the chemist’s and stole the
drug.

Kohlberg asked a series of questions such as:

1. Should Heinz have stolen the drug?
2. Would it change anything if Heinz did not love his wife?
3. What if the person dying was a stranger, would it make any difference?
4. Should the police arrest the chemist for murder
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by Dr. Veenu Joy woman died?
Stealing a Medicine to Save a Life

Situation: A man’s wife is dying, and he cannot afford a life-saving

drug. He considers stealing it.

•Stage 1: “He shouldn’t steal — he’ll be punished.”

•Stage 2: “He should steal it — he’ll be happy if she lives.”
•Stage 3: “He should steal it — a good husband would.”
•Stage 4: “He shouldn’t steal — it’s against the law.”
•Stage 5: “He should steal — laws should protect life.”
•Stage 6: “He must steal — saving a life is morally right, even if
illegal.”
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Aspect Kohlberg’s Moral Development Theory Utilitarianism

Type of Theory Psychological / Developmental Ethical / Philosophical

How people develop moral reasoning over
Focus What makes an action morally right or wrong
time

Morality evolves through stages of cognitive The right action is the one that produces the
Core Idea
development greatest happiness for the greatest number

3 Levels: Pre-conventional, Conventional, No stages — it is a principle used to evaluate

Levels or Stages
Post-conventional (6 stages total) decisions

Based on the reasoning behind actions, not

Judgment Basis Based purely on the consequences of actions
just the outcome
Justice emerges as a higher stage of moral
View of Justice Justice is about maximizing overall well-being
thinking

A child might say stealing is wrong because Stealing might be right if it brings more
Example of punishment (Stage 1), or later because it happiness than harm (e.g., stealing to feed a
violates rights (Stage 6) starving family)
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Key Thinker Lawrence Kohlberg Jeremy Bentham, John Stuart Mill