Scribd
Upload
107 views8 pages

Business Ethics: Concepts and Theories

This document defines key concepts and theories of business ethics. It discusses the differences between ethics, morality, and law. There are two main classifications of normative theories: consequentialist and non-consequentialist. It provides an overview of the main normative theories including egoism, utilitarianism, and Kantian ethics. It also discusses other normative theories of business ethics and the role of religion.

Uploaded by

Som ya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
107 views8 pages

Business Ethics: Concepts and Theories

This document defines key concepts and theories of business ethics. It discusses the differences between ethics, morality, and law. There are two main classifications of normative theories: consequentialist and non-consequentialist. It provides an overview of the main normative theories including egoism, utilitarianism, and Kantian ethics. It also discusses other normative theories of business ethics and the role of religion.

Uploaded by

Som ya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Chapter 2: Concepts and Theories of Business Ethics
  • Definition of Ethics
  • Classification of Normative Theories
  • Religion

Chapter 2

Concepts and Theories of Business Ethics


Definition of Ethics

Ethics as a moral and normative science refers to principles that define


human behaviour as right, good and proper.

“Morality”, according to philosophers, refers to human conduct and values.

There is a clear-cut difference between law and morality.


Classification of Normative Theories

Normative Theories

Consequentialist Non-consequentialist
(Deontological – Duty-based)

Egoism Utilitarianism Kantian ethics


Normative Themes

Egoism
• contends that an act is morally right if and only if it best promotes an
agent’s long-term interests
• makes use of self-interest as the measuring rod for actions performed
• is equated with an individual’s personal interest but it is equally identified
with the interest of an organization or society
• intends to provide positive consequences to the party’s interest without
considering the consequence to the other parties
Philosophers distinguish between two kinds of egoism: personal and
impersonal.

• Personal egoism: One should pursue his/her long-term interest and not
dictated what others should do.
• Impersonal egoism: Everyone should follow their best long-term interest.
Utilitarianism

The proponents were:

Jeremy Benthan (1748–1832)


John Stuart Mill (1806–1873)

Utilitarian principle: An action is ethically right only if the sum total of


utilities produced by that act is greater than the sum total of utilities
produced by any other act that could have been performed in its place.
Kantian Ethics

Proponent:

Immanuel Kant (1724–1804)

This theory introduces an important humanistic dimension to business


decisions, which is to behave in the same way that one would wish to be
treated under the same circumstances and to always treat other people
with dignity and respect.

Stressed that action must be undertaken for duty's sake and not for some
other reason.
Normative Theories of Business Ethics: Classification

Normative Theories

Stockholder Theory Stakeholder Theory Social Contract Theory


(day to day business) (interest of all the (serve the society)
parties)
Religion
• Christian (papal encyclicals –welfare of the
poor)
• Hindu (Gandhian Principle {trustee of the
wealth} Bhagawad Gita)
• Muslim (Islamic bonds or sukuk and Shariah
{interest is banned})

Chapter 2 Concepts and Theories of Business Ethics
Definition of Ethics Ethics as a moral and normative science refers to principles that define human behaviour as right, good
Classification of Normative Theories (Deontological – Duty-based) Consequentialist Kantian ethics Non-consequentialist Normat
Normative Themes Egoism • contends that an act is morally right if and only if it best promotes an agent’s long-term interest
Utilitarianism The proponents were: Jeremy Benthan (1748–1832) John Stuart Mill (1806–1873) Utilitarian principle: An acti
Kantian Ethics Proponent: Immanuel Kant (1724–1804) This theory introduces an important humanistic dimension to business de
Normative Theories of Business Ethics: Classification Normative Theories Stockholder Theory (day to day business) Stakehold
Religion • Christian (papal encyclicals –welfare of the poor) • Hindu (Gandhian Principle {trustee of the wealth} Bhagawad

You might also like