Ethical Frameworks
BM3012| Business Ethics and Values
Vageesha Rajapakse | Lecturer | SLIIT Business School
Learning Outcomes
At the end of this lesson, the students will be able to;
• Explain the meaning of an ethical framework.
• Identify key ethical frameworks.
• Understand the applicability of key ethical frameworks in daily lives.
Contents
• Ethical Frameworks: Meaning
• Major Ethical Frameworks
• Learning Based Activity
Ethical
Frameworks
What Are Ethical Frameworks?
• Ethical frameworks are models that help
individuals and organizations apply ethical
philosophies to real-world scenarios.
• They provide a practical approach to ethical
decision-making.
Major Ethical Frameworks
1. The Four Principles Approach
2. The Five Ethical Approaches
3. Tucker’s 5-Question Framework
The Four Principles
Approach
The Four Principles Approach
• A widely used ethical framework that applies to
various fields, including healthcare, business,
law, and social work.
• It helps guide ethical decision-making in
different professional settings.
Key Principles
Autonomy
• ....................................................................................................
Beneficence
• ....................................................................................................
Non-maleficence
• ....................................................................................................
Justice
• ....................................................................................................
Example 01
Dr. Anna is treating Mr. Kumar, a 75-year-old man with advanced cancer. His condition is
worsening, and despite multiple treatments, there is no chance of recovery. Mr. Kumar is in
constant pain and feels his quality of life is too poor. He tells Dr. Anna that he wants to stop
treatment and spend his remaining days in comfort with his family.
However, Mr. Kumar’s family insists that he continue treatment, believing that prolonging his
life is the best choice. Dr. Anna now faces a difficult ethical decision: Should she follow the
family's wishes or respect the patient’s decision?
Example 01
Autonomy Respect for individual choices and the right to make decisions.
Acting in the best interests of others and promoting well-being.
Beneficence
Example 01
Non-maleficence Avoiding harm and ensuring actions do not cause unnecessary suffering.
Ensuring fairness in decision-making and resource distribution.
Justice
The Five Ethical
Approaches
The Five Ethical Approaches
• A combination of ethical philosophies used to
evaluate ethical decisions in various situations.
• This framework helps individuals and
organizations make morally sound choices by
considering different perspectives.
The Five Ethical Approaches
• Utilitarian Approach
• Rights-Based Approach
• Justice Approach
• Common Good Approach
• Virtue Ethics Approach
The Five Ethical Approaches - Key Principles
Utilitarian Approach
• The best action is the one that produces the greatest good for the greatest number of people.
Rights-Based Approach
• Ethical decisions should respect and protect individual rights (e.g., freedom of speech, privacy, and fair
treatment).
Justice Approach
• Fairness and equality should guide decisions, ensuring that benefits and burdens are distributed
equitably.
The Five Ethical Approaches - Key Principles
Common Good Approach
• Actions should contribute to the well-being of society as a whole, prioritizing the needs of the
community over individual interests.
Virtue Ethics Approach
• Moral decisions should align with personal integrity and good character traits, such as honesty,
courage, and compassion.
Example 01:
A Bakery Deciding Whether to Increase Prices
• Imagine a small bakery that sells bread for $1 per loaf. Due to rising
costs, the bakery owner must decide whether to increase the price to
$1.50. Some customers may struggle to afford it, but the business also
needs to survive.
Utilitarian Approach (Greatest Good for Most People)
• The bakery should raise prices if it allows them to stay in business and
continue serving the majority of customers.
• Decision:
....................................................................................................................
..............................................................................................................
Rights-Based Approach (Respecting Individual Rights)
• Customers have a right to affordable food, but the owner has a right to
run a profitable business.
• Decision:
....................................................................................................................
..............................................................................................................
Justice Approach (Fair and Equal Treatment)
• The price change should be fair to all customers, without giving unfair
discounts only to certain groups.
• Decision:
....................................................................................................................
..............................................................................................................
Common Good Approach (Best for Society as a Whole)
• Keeping prices too low may hurt employees’ wages, while increasing
them too much may hurt customers.
• Decision:
....................................................................................................................
..............................................................................................................
Virtue Ethics Approach (Acting with Moral Character)
• The bakery owner should act with honesty and fairness when making
this decision.
• Decision:
....................................................................................................................
..............................................................................................................
Example 02:
A Supermarket Deciding Whether to Remove Plastic Bags
• A supermarket chain is considering banning plastic bags to be more
environmentally friendly. However, some customers complain that
reusable bags are inconvenient and expensive. The company must
decide whether to proceed with the ban.
Make Notes
Tucker’s 5-Question
Framework
Tucker’s 5-Question Framework
• A structured approach used by businesses to
evaluate ethical decisions by asking five key
questions.
• This framework helps organizations assess the
impact of their actions on different
stakeholders.
Key Questions
1. Is it Profitable?
2. Is it Legal?
3. Is it Fair?
4. What is the Impact on Stakeholders?
5. What is the Environmental Impact?
Key Questions
• Is it Profitable?
.....................................................................................
• Is it Legal?
.....................................................................................
• Is it Fair?
.....................................................................................
Key Questions
• What is the Impact on Stakeholders?
.....................................................................................
• What is the Environmental Impact?
.....................................................................................
Example
A company is considering switching to sustainable packaging.
1. Profitability: Will it increase costs or create long-term financial benefits?
2. Legality: Does it comply with environmental laws?
3. Fairness: Will all customers still have affordable access to products?
4. Stakeholder Impact: Will employees or suppliers be affected?
5. Environmental Impact: Will it reduce plastic waste and carbon footprint?
Example
A Coffee Shop Deciding to Pay Employees Higher Wages
• A small coffee shop is considering raising employees' wages, but doing
so might increase coffee prices for customers.
• The owner uses Tucker’s 5-Question Framework to make a decision.
Explain its functionality.
Make Notes
Self-Learning Task
• Understand the functionality of the
AAA model of ethical decision-
making by referring to the extra reading
material uploaded on the course web.
• Make your own short note about the
model.
In Class Activity