Chapter 1: An Introduction to Ethics
It takes 20 years to build a reputation and five
minutes to ruin it. If you think about that you’ll do
things differently.
Warren Buffett
Meaning of Ethics
❑ The word ethics comes from the Greek word ethos, meaning "character or
custom," writes Robert C. Solomon, Professor of Philosophy.
❑ Ethics is the branch of philosophy that determines what is morally right
and wrong, good and bad.
❑ It involves principles and standards that guide individuals' behavior,
decision-making, and actions, often in relation to society, laws, and
values. Ethics addresses questions about fairness, justice, rights, and
duties.
Business Ethics
For business students, ethics is an important field of study.
Business ethics is a process of decision making.
• Business must take ethics into account and integrate ethics into its organizational
structure.
Scandals are brought about by ethical failures and unethical decisions.
Types of Ethical Study
1. Normative Ethics
2. Descriptive Ethics
3. Applied Ethics
Normative Ethics
Normative Ethics focuses on establishing standards or norms for what is morally right or
wrong. It tries to define moral principles that guide individuals’ behaviors and actions
universally, providing a framework for evaluating right and wrong i.e. how they should act.
One way of understanding ethics is by looking at the norms or rules in society.
For example, imagine a scenario where a doctor has five patients who need organ
transplants, and there is one healthy patient whose organs could save all five. Believer of a
normative ethics might argue that sacrificing the one healthy patient to save the five
others is the morally right decision, as it maximizes overall well-being (the survival of five
people vs. one).
▪ This example highlights a normative ethical stance that provides a rule for how one
should act in situations involving moral choices.
Descriptive Ethics
❖ Descriptive Ethics
Descriptive ethics is the branch of ethics that studies and describes
people's actual beliefs, practices, and behaviors regarding morality. It is
concerned with how individuals or societies actually think about and act
upon moral issues, rather than prescribing what they should do. They
provide an account of how and why people do act the way they do –
they describe.
▪ Descriptive ethics focuses on understanding how different cultures,
societies, or groups define right and wrong, and how those definitions
influence behavior. This approach does not make value judgments or
argue that one moral system is better than another
Applied Ethics
Applied ethics is the branch of ethics that deals with the practical application of moral
principles and theories to real-world issues and situations.
▪ It seeks to address specific ethical problems or dilemmas that arise in various fields such
as medicine, business, law, environmental issues, technology, and politics.
▪ Unlike normative ethics (which develops general principles of right and wrong) or
descriptive ethics (which studies how people actually behave), applied ethics focuses on
how we should act in particular, often complex, situations.
▪ For example, Fair Labor Practices: Addressing issues like child labor, fair wages,
and safe working conditions.
Areas of Applied Ethics
Medical Ethics: Deals with issues like patient consent, euthanasia, abortion, and healthcare
distribution. Medical ethics helps determine how healthcare professionals should behave and make
decisions in difficult circumstances.
Business Ethics: Concerns ethical dilemmas in the business world, such as corporate responsibility,
ethical marketing, environmental sustainability, and workplace fairness.
Environmental Ethics: Focuses on the moral relationship between humans and the environment,
addressing questions like the ethics of climate change, animal rights, and resource conservation.
Legal Ethics: Involves questions about the responsibilities and conduct of lawyers and judges,
including issues of client confidentiality, justice, and the ethical use of law.
Technology Ethics: Concerns the moral issues surrounding technological advances, such as artificial
intelligence, privacy, surveillance, and cybersecurity.
Levels of Ethical Decision Making
Business ethics involves making decisions at the individual, at the
organizational, and at a broader social and governmental level.
• As individuals, each person interacts with businesses as customers, as
employees, and as citizens of the countries in which they operate.
• Organizational culture and corporate leadership have important roles
to play in decision making.
• Individual businesses' and industries' decisions are influenced by
social, economic, and political environments.
Why be Ethical? Practical Considerations for Being Ethical
A. Trust and Reputation
▪ Trust is the foundation of any relationship, whether personal,
professional, or institutional. Ethical behavior ensures honesty,
transparency, and reliability, which leads to strong, trust-based
relationships.
B. Long-Term Success
▪ Ethical behavior often contributes to sustainable success. While
unethical shortcuts might bring short-term gains, they risk long-term
consequences, including loss of reputation, legal issues, or financial
penalties.
Why be Ethical? Practical Considerations for Being Ethical
C. Legal Compliance
▪ Ethical behavior often aligns with legal standards. Many laws are created to
ensure fairness, protect human rights, and maintain public welfare. Adhering to
ethical principles helps individuals and organizations comply with legal
requirements, avoiding lawsuits, fines etc.
D. Positive Social Impact
▪ Ethical behavior benefits society by contributing to social welfare, fairness,
and justice. Acting ethically helps create harmonious communities and
prevents harm to vulnerable groups. For instance, companies that engage in
corporate social responsibility (CSR) are contributing to social good while
making a positive impact on their public image.
Why be Ethical? Theoretical Considerations for Being Ethical
Ethics plays a central role in promoting social justice, equality, and human
rights. From a philosophical perspective, ethical behavior is the cornerstone of
a just and fair society.
Ethical theories argue that we should be moral not just for self-interest, but
because society as a whole benefits from cooperation, respect for human
dignity, and the pursuit of collective well-being. For example, the abolition of
slavery and the pursuit of gender equality were morally right actions that
benefited society as a whole.
The Relevance of Culture in Shaping Ethics
Each culture has specific norms that define what is considered right or wrong,
acceptable or unacceptable behavior. These norms directly shape ethical decisions
and actions.
People are socialized into their cultural or national contexts, learning ethical behavior
through family, education, and societal influences. This shapes their moral reasoning
and decision-making.
Moreover, religious influence and legal and political systems have a profound impact
on shaping ethics from culture to culture.
Thank You!