PHILOSOPHICAL
ETHICS AND
BUSINESS
CHAPTER 3
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INTRODUCTION: ETHICAL FRAMEWORKS
AND TRADITIONS
• Reasons that guide an individual’s ethical judgment fall into three general
categories:
• Consequences
• Principles
• Personal character
• An ethical framework: An attempt to provide a systematic answer to the
fundamental ethical question:
How should human beings live their lives?
• Ethical frameworks provide reasons to support their answers.
RELIGIOUS ETHICS VS.
PHILOSOPHICAL
ETHICS
• Religious ethics: Explains human well-being in
religious terms.
• Philosophical ethics: Provides justifications
that must be applicable to all people
regardless, of their religious starting points.
DECISION POINT: WHO IS TO SAY WHAT
IS RIGHT OR WRONG?
• An ethical relativist holds that ethical values are relative to
particular people, cultures, or times.
• The relativist denies that there are can be any rationally
justified or objective ethical judgments.
• When there are ethical disagreements between people or
cultures, the ethical relativist concludes that there is no way to
resolve that dispute and to prove that one side is right or more
reasonable than the other.
• Ethical relativists believe that ethical values depend on
one’s own background, culture, and personal opinions .
THE ETHICAL TRADITIONS
• Utilitarianism: Directs us to decide based on
overall consequences of our acts.
• Deontological ethical traditions: Direct us to
act on the basis of moral principles such as
respecting human rights.
• Virtue ethics: Directs us to consider the moral
character of individuals and how various
character traits can contribute to, or obstruct, a
happy and meaningful human life.
UTILITARIANISM: MAKING DECISIONS BASED ON
ETHICAL CONSEQUENCES
•Utilitarianism has been called a consequentialist
approach to ethics and social policy.
• We should act in ways that produce better consequences
than the alternatives we are considering.
•What is meant by “better consequences”?
• Better consequences are those that promote human well-being:
the happiness, health, dignity, integrity, freedom, respect of all
the people affected.
•A decision that promotes the greatest amount of these
values for the greatest number of people is the most
reasonable decision from an ethical point of view.
UTILITARIANISM: MAKING
BASED ON ETHICAL DECISIONS
CONSEQUENCES
• Utilitarianism is identified with the principle of:
• “Maximize the overall good.”
OR
• “The greatest good for the greatest number.”
• The economy and economic institutions are utilitarian:
• They exist to provide the highest standard of living for
the greatest number of people.
• They do not exist to create wealth for a privileged few.
UTILITARIANISM:
• Child labor
EXAMPLES
• Compare the problematic consequences of child labor to the
consequences of alternative decisions.
• Consider also the consequences to the entire society.
• Thus, one might argue on utilitarian grounds that child labor
practices are ethically permissible because they produce
better overall consequences than the alternatives.
Permissible: Diijinkan, diperbolehkan
UTILITARIANISM: LESSONS FROM
EXAMPLES
• Utilitarians tend to be very pragmatic thinkers:
• They decide on the basis of consequences.
• The consequences of our actions will depend on the
specific facts of each situation.
• No act is ever absolutely right or wrong in all cases in
every situation; it will always depend on the
consequences.
UTILITARIANISM: LESSONS FROM
EXAMPLES
• Utilitarian reasoning supplies support for each competing
available alternative:
• Example: Banning child labor as harmful to the overall good
or allow child labor as contributing to the overall good.
• Deciding on the ethical legitimacy of alternative decisions
requires that we make judgments about the likely
consequences of our actions.
• How do we do this?
• With the help of social sciences: Social science studies the
causes and consequences of individual and social actions.
FREE AND COMPETITIVE MARKETS
• One movement within utilitarian thinking invokes the tradition of
Adam Smith.
• Claims that free and competitive markets are the best means for
attaining utilitarian goals.
• Classic free market economics: Economic activity aims to
satisfy consumer demand.
• The goal of free market economics is to maximize the
satisfaction of wants.
• To attain the utilitarian goal, current free market economics
advices to structure our economy according to the principles of
free market capitalism.
INFLUENTIAL VERSION OF UTILITARIAN
POLICY
• Policy experts can predict the outcome of
various policies and carry out policies that will
attain utilitarian ends.
• The administrative side (presidents, governors,
mayors) executes (administers) policies to fulfill
public goals.
CHALLENGES TO UTILITARIAN
ETHICS
• Counting, measuring, comparing, and
quantifying the consequences of alternative
actions is very difficult.
• The principle shift occurring from one of the
earliest ethical principles — “the end does not
always justify the means” to the utilitarian
principle — “the end justifies the means.”
SHORTCOMINGS OF UTILITARIAN
ETHICS
• Forces us to examine the outcomes of our
decisions.
• It is difficult to know everyone who will be
affected by our decisions and how they are
impacted.
• It does not exhaust the range of ethical
concerns.
DEONTOLOGY: AN ETHICS OF RIGHTS AND
DUTIES
• Deontological ethical frameworks are principle-based.
• It supplements the utilitarian approach.
• It tells us that there are some rules that we ought to
follow even if doing so prevents good consequences from
happening or even if it results in some bad consequences.
DEONTOLOGY: AN ETHICS OF RIGHTS AND
• What rules should we follow? DUTIES
• Legal rules
• Rules which are derived from various institutions in which we
participate, or from various social roles that we fill.
• Role-based rules (Business)
• Professional rules
• The above mentioned roles are described as gatekeeper functions,
which insure the integrity and proper functioning of the economic,
legal, or financial system.
• These rules are a part of a social agreement, or social contract, which
functions to organize and ease relations between individuals.
HUMAN RIGHTS AND DUTIES
• According to Immanuel Kant, German philosopher, there is
essentially one fundamental ethical principle that we should
follow:
• Respect the dignity of each individual human being.
• Kant claimed that this duty to respect human dignity could be
expressed in several ways.
• Act according to those rules that could be universally agreed
to by all people.
• Treat each person as end in themselves and never only as
means to our own ends.
Dignity: Martabat
HUMAN RIGHTS AND DUTIES
• The Kantian tradition claims that our fundamental
human rights are derived from our nature as free and
rational beings:
• Humans do not act only out of instinct and conditioning;
they make free choices about:
• How they live their lives.
• Their own goals or ‘ends’.
• Humans are said to have a fundamental human right of
autonomy, or self-rule.
HUMAN RIGHTS AND DUTIES
• Two related rights have emerged as fundamental
within philosophical ethics.
• If autonomy, or “self-rule,” is a fundamental
characteristic of human nature, then the freedom
to make our own choices deserves special
protection as a basic right.
• Since all humans possess this fundamental
characteristic, equal treatment and equal
consideration is also a fundamental right.
Deserve: berhak mendapat
DISTINGUISHING BETWEEN MORAL RIGHTS
AND LEGAL RIGHTS
• Legal rights may be granted on • One cannot contract away
the basis of legislation or one’s moral rights - moral
judicial rulings. rights lie outside of the
• Legal rights might also arise bargaining that occurs in a
from contractual agreements. contract.
• Moral rights establish the
basic moral framework
for legal environment itself, and
more specifically for any
contracts that are negotiated
within business.
CHALLENGES TO AN ETHICS OF
RIGHTS AND DUTIES
• There is no agreement about the scope and
range of ethics based rights.
• Practical problems in applying a framework of
rights to real-life situations.
VIRTUE ETHICS: MAKING DECISIONS BASED ON
INTEGRITY AND CHARACTER
•Virtue Ethics is a tradition within philosophical
ethics that seeks a full and detailed description of
those character traits, or virtues, that would
constitute a good and full human life.
Sifat dari
Karakter
• Davidson et al. (2008, 2010) yang dipimpin para peneliti ini
untuk membedakan antara dua dimensi karakter, yaitu
karakter kinerja dan karakter moral.
Karakter Moral (Aku harus melakukan
Karakter Kinerja kebaikan kapanpun,
(Aku harus melakukan yang dimanapun)
terbaik !!)
Orientasi relasional dalam kebaikan
Mengejar kemenangan Saling menghormati
Sinergitas
Mengutamakan kualitas Empati
Ketekunan Kasih Sayang
Disipilin Diri Kejujuran
Kecerdasan Emosional Bersikap adil
VIRTUE ETHICS
• An ethics of virtue shifts the focus from
questions about what a person should do, to
a focus on who that person is.
• Implicit in this distinction is the recognition that our
identity as a person is constituted in part by our
wants, beliefs, values and attitudes.
• The self is identical to a person’s most
fundamental and enduring dispositions, attitudes,
values, and beliefs.
VIRTUE
ETHICS
• Emphasizes the more affective side of our
character.
• Seeks to understand how our traits are formed and
which traits bolster and which undermine a
meaningful, worthwhile, and satisfying human life.
• Encourages a fuller description, rather than simply
describing people as good or bad, right or wrong.
• Reminds us to examine how character traits are
formed and conditioned.
A DECISION-MAKING MODEL
FOR BUSINESS ETHICS
1. REVISITED
Determine the facts
2. Identify the ethical issues involved
3. Identify stakeholders
4. Consider the available alternatives
6. Guidance
7. Assessment
A DECISION-MAKING MODEL
FOR BUSINESS ETHICS
5.
REVISITED
Consider how a decision affects stakeholders
a. Consequences
i. Beneficial and harmful consequences
b. Duties, rights, principles
i. What does the law say?
ii. Are there professional duties involved?
iii. Which principles are most obligatory?
iv. How are people being treated?
c. Implications for personal integrity and character
i. What type of person am I becoming through this
decision?
ii. What are my own principles and purposes?
iii. Can I live with public disclosure of this decision?
Tugas
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