class: middle, title-slide # Business Ethics — Ethics and Economics ## The Nature of Morality ### Dennis A. V. Dittrich ### 2022 --- layout: true <div class="my-footer"> <span><img src="img/tcb-logo.png" height="40px"></span> </div> --- # Introduction to Business Ethics .row[.col-6[ ### What is ethics? _Ethics_ can be used as a synonym for '_morality_' but it can also refer to '_moral philosophy_.' The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility. ] .col-6[ ### What is business ethics? Business ethics is a form of _moral philosophy_. The study of right and wrong, duty and obligation, moral norms, individual character, and responsibility – **in the context of business**. ]] --- # Moral Versus Nonmoral Standards .row[.col-6[ ### Nonmoral standards Standards about behavior or practices **with no serious effects** upon human well-being ] .col-6[ ### Moral standards Standards about behavior or practices **with serious** upon human well-being * Moral standards take priority over nonmoral standards. * The soundness or validity of moral standards depend on the quality of the arguments or the reasoning that support them. ]] --- # Morality and Etiquette .row[.col-7[ Rules of etiquette are ordinarily nonmoral in character and are meant to serve as guidelines for socially acceptable behavior. Violations of etiquette can sometimes have moral implications. The strict observance of rules of etiquette can sometimes conceal serious moral issues. ]] --- # Morality and Law .row[.col-6[ **Statutes**: Laws enacted by legislative bodies such as the U.S. Congress and state legislatures **Regulations**: Laws enacted by special boards or agencies for various kinds of conduct **Common law** : The body of judge-made laws developed in English-speaking countries over the course of many centuries **Constitutional law** : Court rulings on the requirements of the U.S. Constitution and on the constitutionality of legislation ] .col-6[ **The distinction between morality and legality** * An action can be illegal but morally right * An action can be legal but morally wrong **Professional codes** The rules that govern the conduct of the members of a given profession * Individuals have the responsibility to critically assess the rules of their professions * These rules are not always complete and reliable guides to adequate moral conduct ]] --- # Morality and Law .row[.col-7[ ![](img/Shaw9e_PPT_Ch012.jpg) ] .col-5[ You come upon this scene—the car is smoking, and it is clear that an accident just took place. In many states, you are not legally obligated to stop and offer help to the victims. <br/> .question[ What other examples can you think of that show how an action can be either a. illegal but morally right, b. legal but morally wrong, or c. both legal and morally right? ] ]] --- # The Sources of Morality .row[.col-6[ **The justification of moral norms** Moral philosophers study mainly the justification, rather than the origin, of moral norms. Some claim that morality is based on religion: * Religion provides incentives to be moral * Religion provides moral guidance * Moral norms are in essence divine commands .tip[ Morality is not necessarily based on religion. ] ] .col-6[ **Ethical relativism** The view according to which moral norms derive their ultimate justification from the customs of the society in which they occur. This means that moral norms are not universal, but are dependent upon a particular cultural or social context. .tip[ There are many problems with this theory ] ]] --- # Ethical relativism .row[.col-6[ **Implications of relativism** * There is no independent standard by which to judge the rightness or wrongness of other societies. * The idea of ethical progress loses its significance. * It wouldn't make sense to criticize the moral code of one’s own society or culture. ] .col-6[ **Relativism and the “game” of business** * The idea that business is a just game captures the thesis of Albert Carr. * He argued that business professionals are expected to follow a code that has little or nothing to do with ethics in other contexts. * This view entails – incorrectly – that the practices of business professionals cannot (or should not) be evaluated from an ordinary moral standpoint. ]] --- # The Importance of Moral Principles .row[.col-6[ **What it means to have principles** Accepting moral principles is not just a matter of intellectual recognition, but of profound individual commitment to a set of values. **Conscience** The internalized set of moral principles taught to us by various authority figures – parents and social institutions. **Conscience and its limits** Conscience is not always a reliable guide because it can be (1) conflicted and (2) erroneous. ] .col-6[ **Moral principles and self-interest** The morality of an action can run counter to our self-interest * The moral point of view requires that we restrict our self-interest to satisfy social co-existence. * In situations of conflict between moral principles and self-interest, it is important to appeal to shared principles of justification. ]] --- # Morality and Personal Values .row[.col-7[ **Morality in the narrow sense** The moral principles or rules that do, or should, govern the conduct of individuals in their relations with others **Morality in the broad sense** The values, ideals, and aspirations that influence the decisions and lifestyles of individuals and entire societies Business ethics are mainly concerned with morality in the narrow sense. But values, ideals, and aspirations also affect the behavior and ethical choices of business professionals. ]] --- # Individual Integrity and Moral Responsibility .row[.col-7[ **Organizational norms** Employees of business organizations (especially corporations) are: * Expected to further profit goals * Often pressured to compromise moral values and ignore or violate rules of ethical conduct ]] .row[.col-6[ **Conformity** Studies show that individuals are more prone to act unethically when they are a part of an organization or a group. ] .col-6[ #### Asch Conformity Experiment ![](img/Shaw9e_PPT_Ch013.jpg) ]] --- # Individual Integrity and Moral Responsibility .row[.col-7[ **Groupthink** The pressure on group members to conform to morally questionable policies or strategies, often resulting in unethical conduct. **Diffusion of responsibility** The multiplicity, complexity, and distribution of tasks that can lead individuals to feel less responsibility or accountability for their actions. ]] .row[.col-6[ <br/> ] .col-6[ .question[ What, if anything, should an employee do when his or her superiors do not look into apparent wrong-doing in their branch office? ] ] ] --- # (Moral) Reasoning .row[.col-6[ **Argument** A group of statements in which one statement (**conclusion**) follows from the others (**premises**) ] .col-6[ .tip[ 1. If Norman is bald, then Norman does not need a haircut. 2. It is the case that Norman is bald. 3. Therefore, Norman does not need a haircut. ] This argument can be stripped of its content to reveal the following argument form: .tip[ 2. If A, then B. 1. A. 3. Therefore, B. ] ]] --- # (Moral) Reasoning .row[.col-7[ **Requirements for a sound argument** If its statements (premises and conclusion) are true and its form (or structure) is valid **Validity** If the assumption that an argument's premises are true guarantee that the conclusion is true, then it's valid **Invalid arguments** If the assumption that an argument's premises are true do not guarantee that the conclusion is true, then it's invalid * Determining whether an argument is valid or invalid requires familiarity with the rules of logic. ]] --- # Valid vs. Invalid Argument .row[.col-6[ **Valid argument** Premises logically entail its conclusion. Argument forms are valid when it's impossible for the premises to be true and the conclusion to be false at the same time. ] .col-6[ .tip[ 1. If a person is a mother, the person is a female. 2. Fran is a mother. 3. Therefore, Fran is a female. ] ]] .row[.col-6[ **Invalid argument** Premises do not entail its conclusion. Invalid arguments can have true premises and a false conclusion at the same time. <br/> .tip[ We can't trust the conclusions of invalid arguments even if the premises are true. ] ] .col-6[ .tip[ 1. If a person is a mother, the person is a female. 2. Fran is a female. 3. Therefore, Fran is a mother. ] .tip[ 1. If B, then A. 2. A. 3. Therefore, B. ] ]] --- # Counterexample .row[.col-6[ An example that is consistent with the premises but is inconsistent with the conclusion. A counterexample is a **proof** that an argument is invalid or a belief is false due to the existence of an incompatible fact. Logical counterexamples prove argument forms to be invalid because they use an argument's form and have true premises, but a false conclusion. Counterexamples can be used as objections to beliefs. ] .col-6[ .tip[ 1. If a person is a mother, the person is a female. 2. Fran is a female. 3. Therefore, Fran is a mother. “Fran is a two-year-old” is consistent with premises but inconsistent with conclusion since she could not be a mother. ]]] --- # Sound vs. Unsound Argument .row[.col-6[ **Sound argument** Have true premises and valid reasoning ] .col-6[ .tip[ If a person is a mother, the person is a female. Fran is a mother. Therefore, Fran is a female. ] ]] .row[.col-6[ **Unsound argument** Have at least one false premise or invalid reasoning or both. ] .col-6[ .tip[If a person is a female, she must be a mother. Fran is a female. Therefore, Fran must be a mother. ] .tip[ If a person is a mother, the person is a female. Fran is a female. Therefore, Fran is a mother. ] ] ] --- # Moral Reasoning .row[.col-6[ **Moral arguments** Those conflicting theories and beliefs whose conclusions are moral judgments, based on the premise of moral standards and statements of fact ] .col-6[ .tip[ If an action violates the law, it is morally wrong. Affirmative action on behalf of women and minorities in personnel matters violates the law. Therefore, affirmative action on behalf of women and minorities in personal matters is morally wrong. ]]] --- # Evaluating moral arguments .row[.col-6[ * Clarifying the terms of the premises * Examining the factual claims * Assessing the moral standard Thus, an argument can be challenged by: * Uncovering ambiguity in the terms * Questioning the factual claims * Challenging the moral standards ] .col-6[ **Criteria for moral judgments** * Should be logical * Embedded in valid arguments * Compatible with moral and nonmoral beliefs * Should be based on facts * Should be based on acceptable moral principles ]] --- # Moral Arguments .row[.col-6[ **Arguments whose conclusions are moral judgments.** Moral Reasoning or argument typically moves from a **moral standard** , through one or more **factual judgments** about some person, action, or policy related to that standard, to a **moral judgment** about that person, action, or policy. ] .col-6[ .tip[ If an action violates the law, it is morally wrong. Affirmative action on behalf of women and minorities in personnel matters violates the law. Therefore, affirmative action on behalf of women and minorities in personnel matters is morally wrong. ] ]] --- # Defensible Moral Judgments .row[.col-6[ **What makes a moral judgment defensible?** If a moral judgment or conclusion is defensible, then it is must be supportable by a defensible moral standard, together with relevant facts. ] .col-6[ #### Patterns of Defense and Challenge 1. Evaluating factual claims. 2. Challenging the moral standard. 3. Defending the moral standard. 4. Revising and modifying the argument. ]] --- # Requirements for Moral Judgments .row[.col-6[ + Should be logical + Should be based on facts + Should be based on acceptable moral principles .tip[ consistent with our **considered moral beliefs** ] ] .col-6[ **Considered moral beliefs** are our intuitive moral beliefs that we are still confident are true after thinking them through. We should consider objections and counterexamples to our intuitive beliefs to make sure they aren't merely based on a hunch or prejudice. Considered moral beliefs can be taken to be provisionally true and they can be used in moral arguments. ] ]