Universalism theory in business ethics. Utilitarianism, Universal GRILL3BB. (3) Who gets hurt? WebIt has these characteristics: (1) universality, because it applies to all acts of human behavior, even those that appear to be done from altruistic motives; (2) objectivity, meaning it operates beyond individual thought, desire, and perspective; (3) rationality, because it is not based in metaphysics or theology; and (4) quantifiability in its About In fact, John Mackey, the founder of Whole Foods, has said that love has been the basis of his success in business, which translates into care and concern for customers beyond profit and for workers beyond productivity (Figure 5.8).39, Recall the statement by IBM quoted earlier in the chapter: [IBM] remain[s] dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer, more diverse, more tolerant, more just.40. <>/Border[0 0 0]/Contents(scholar@valpo.edu)/Rect[350.833 72.3516 427.21 82.8984]/StructParent 8/Subtype/Link/Type/Annot>> MGMT The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. Many companies in the United States, Europe, and elsewhere were pressured in the 1980s and before by public interest groups whether or not to continue doing business or leave South Africa. Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. Are the Values Central to Business Ethics Universal? Web(SEM III) THEORY EXAMINATION 2021-UNIVERSAL HUMAN VALUES & PROFESSIONAL ETHICS. Read this article on the LIBOR scandal and the consequences for an in-depth overview. Ethical Theories in Business The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. 16 terms. But looking to the humanities to understand business is an opportunity to engage business in subjects and ideas that have a tremendous, if often overlooked, impact on people. It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. WebUniversalism is the philosophical and theological concept that some ideas have universal application or applicability. This book explores the reasons why grappling with universality and ethics Federal Sentencing Guidelines for felonies and serious misdemeanors now carry mandatory prison time for individual executives who are convicted. So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. Transparency, whistleblower programs, ethics training, and modeling of appropriate behavior by upper management can create the conditions for employees to act ethically, but conscience is a personal phenomenon. The Supreme Court upheld her and her staffs decision. <> The focus still seems to be on organizational responsibility and compliance as opposed to individual responsibility and the formation of ethical conscience. 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. 0000000016 00000 n The UN Convention Against Corruption has called corruption an insidious plague that exists everywhere and hurts the poor disproportionately by diverting funds intended for development, undermining a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment.27 For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. philosophy could add a critical element to business education, an element that would keep business education always alive and prevent it from becoming an accepted, orthodox ideology.38. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. Business To get a sense of individual rights in the workplace, log on to one of the Best Companies to Work For annual lists (http://fortune.com/best-companies/). The main principles of business ethics are based in academia and on academic writings on proper business operations. The society, on the other hand, perceives business ethics as the right or wrongs that occur as a result of organizations operating in the community. Other names for this doctrine are universal restoration, universal Marketing Ethics: Selling Controversial Products, 17. An action is morally right if the net benefits over costs are greatest for all affected compared with the net benefits of all other possible choices. In the conclusive section, some suggestions and recommendations are presented. e d u / j v b l)/Rect[230.8867 233.3227 360.5693 245.0414]/StructParent 5/Subtype/Link/Type/Annot>> The Workplace Environment and Working Conditions, 23. That is, whether an action is right or wrong depends on the moral norms of the society in which it is practiced. > endstream Ethical relativism is the theory that holds that morality is relative to the norms of one's culture. Still, the U.S. Constitutions Bill of Rights, ratified in 1791, was designed as and remains the foundation of, which is based on freedom and justice to protect the basic rights of all. For example, although what constitutes ethical behavior in Islamic society is strongly linked to religious values, secular philosophers can endorse a highly developed commitment to commercial ethics, too. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. and you must attribute OpenStax. 0000015844 00000 n The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. Corruption can be defeated only by individuals acting in accordance with their conscience and being supported by systems and corporate culture that encourage such action. then you must include on every digital page view the following attribution: Use the information below to generate a citation. However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Practical wisdom, however, is often required to be virtuous. Before turning to organizational and systems levels of ethics, we discuss classical ethical principles that are very relevant now and on which decisions can be and are made by individuals, organizations, and other stakeholders who choose principled, responsible ways of acting toward others. But it becomes dangerous when people use it to blind themselves to the reality around them, reinforce hardened positions even in the face of contradictory evidence, and shirk their responsibility as moral beings. There are many sources of controversy. The Supreme Court upheld her and her staffs decision. | Use of this principle generally applies when resources are scarce, there is a conflict in priorities, and no clear choice meets everyones needsthat is, a zero-sum decision is imminent, Universalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. The Volkswagen emissions scandal also began in 2015, when the Environmental Protection Agency cited the German automaker for violating the Clean Air Act by cheating on emissions tests. then you must include on every physical page the following attribution: If you are redistributing all or part of this book in a digital format, Spheres of human value encompass morality, aesthetic preference, human traits, human endeavour, and social order.Whether universal values exist is an unproven conjecture of moral philosophy and cultural anthropology, though it is clear that certain values are Our mission is to improve educational access and learning for everyone. Ethics Theory and Business Practice By: Mick Fryer Publisher: SAGE Publications Ltd Publication year: 2015 Online pub date: February 05, 2019 Discipline: Business & Management Subject: Business Ethics (general), Organization Studies (general) DOI: https://dx. Applying the common good principle can also be asked by a simple question: How will this decision or action affect the broader physical, cultural, and social environment in which I, my family, my friends, and others have to live, breathe, and thrive in now, next week, and beyond?. Practical wisdom, however, is often required to be virtuous. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. are licensed under a, Ethical Principles and Responsible Decision-Making, Major Characteristics of the Manager's Job, How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems, Administrative and Bureaucratic Management, External and Internal Organizational Environments and Corporate Culture, The Internal Organization and External Environments, Organizing for Change in the 21st Century, Ethics, Corporate Responsibility, and Sustainability, Dimensions of Ethics: The Individual Level, Leadership: Ethics at the Organizational Level, Ethics, Corporate Culture, and Compliance, Emerging Trends in Ethics, CSR, and Compliance, Cultural Stereotyping and Social Institutions, Characteristics of Successful Entrepreneurs, Trends in Entrepreneurship and Small-Business Ownership, Strategic Analysis: Understanding a Firms Competitive Environment, Gaining Advantages by Understanding the Competitive Environment, A Firm's External Macro Environment: PESTEL, A Firm's Micro Environment: Porter's Five Forces, Competition, Strategy, and Competitive Advantage, The Strategic Management Process: Achieving and Sustaining Competitive Advantage, The Role of Strategic Analysis in Formulating a Strategy, Strategic Objectives and Levels of Strategy, Planning Firm Actions to Implement Strategies, Measuring and Evaluating Strategic Performance, An Introduction to Human Resource Management, Influencing Employee Performance and Motivation, Talent Development and Succession Planning, Benefits and Challenges of Workplace Diversity, Situational (Contingency) Approaches to Leadership, Substitutes for and Neutralizers of Leadership, Transformational, Visionary, and Charismatic Leadership, Opportunities and Challenges to Team Building, Factors Affecting Communications and the Roles of Managers, Managerial Communication and Corporate Reputation, The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing, Formal Organizational Planning in Practice, Management by Objectives: A Planning and Control Technique, The Control- and Involvement-Oriented Approaches to Planning and Controlling, MTIIts Importance Now and In the Future, External Sources of Technology and Innovation, Internal Sources of Technology and Innovation, Management Entrepreneurship Skills for Technology and Innovation, Managing Now for Future Technology and Innovation, https://openstax.org/books/principles-management/pages/1-introduction, https://openstax.org/books/principles-management/pages/5-3-ethical-principles-and-responsible-decision-making, Creative Commons Attribution 4.0 International License. Universal Moral Values for Corporate Codes of Ethics Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. This principle has at least four major components that are based on the tenets that (1) all individuals should be treated equally; (2) justice is served when all persons have equal opportunities and advantages (through their positions and offices) to societys opportunities and burdens; (3) fair decision practices, procedures, and agreements among parties should be practiced; and (4) punishment is served to someone who has inflicted harm on another, and compensation is given to those for a past harm or injustice committed against them. "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," A Framework for Making Ethical Decisions, 11. (4) Who has to pay for the consequences? Business can mean an activity of exchange. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License 4.0 license. Universalism Discuss need of Value education. Using creativity is also important when examining difficult moral decisions when sometimes it may seem that there are two right ways to act in a situation or perhaps no way seems morally right, which may also signal that not taking an action at that time may be needed, unless taking no action produces worse results. By the end of this section, you will be able to: One of the perennial themes in business ethicsindeed, in ethics in generalis the difference between relative and absolute values. endobj Ethical business strategies Typically arise from managers with strong moral characters. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. Theories of Business Ethics. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Dec 12, 2022 OpenStax. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. 2 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. <>/Border[0 0 0]/Contents( T h e J o u r n a l o f V a l u e s - B a s e d \n L e a d e r s h i p)/Rect[72.0 650.625 358.3672 669.375]/StructParent 1/Subtype/Link/Type/Annot>> e]__3EwcaXLpMu\6ki3=3A{aji_*i/NQwio+OKZM$>w3@-$CH^~d), q)>x1t4N8S8JrRG?;*6Q^LZE j;@+l8PPi-(v=XFM7%-Ag}VuPfa{+_gU ?hv Z&*~TVF:F78%dDZ N|#*q6]d/PQ{ox S@twnir@/ohoWDw^p Qd~`JyBAAFH Moreover, moral standards, according to this principle, vary from one culture to another. Except where otherwise noted, textbooks on this site Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. Limitations when using this principle involve the question of who decides who is right and wrong and who has been harmed in complex situations. One distinctive understanding of universalism in ethics is that ethical principles are principles for everybody. They understand the concept of stakeholders (those who have a stake in a decision because they are affected by it) and they always consider the business, financial and emotional consequences of their actions on all stakeholders. Chapter 2 - Moral Subjectivism and Moral Relativism For example, the famous Warren Buffett stands as an icon of good character who demonstrates trustworthy values and practical wisdom. Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. endobj endobj Types of Business EthicsPersonal responsibility. Each person who works for a business, whether on the executive level or the entry-level, will be expected to show personal responsibility.Corporate responsibility. Businesses have responsibilities to their employees, their clients or customers, and, in some cases, to their board of directors.Loyalty. Respect. Trustworthiness. More items Ethical relativism is really not a principle to be followed or modeled. But what does love look like in a business setting? We recommend using a WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to Many people question the place of love in a business setting. Corporations and Politics: After Citizens United, 14. Accessibility Statement, Privacy This book uses the This principle, as with universalism, can always be used when individuals, groups, and nations are involved in decisions that may violate or harm such rights as life, liberty, the pursuit of happiness, and free speech. (credit: Happiness Is a Piece of Cake Close Up Photography by Antonio Quagliata/Pexels, CC0), If there is anything that transcends time, place, and culture, it is love. JVBL For those dedicated to the case method, novels, short stories, and plays offer an inexhaustible storehouse of riches, more detailed, subtle, and complete than most cases written up for courses.37, In DeGeorges humanities model, business ethics would not prepare students to do certain things, for which they likely will be trained by their employers, but to be certain persons. Profiles of leaders and organizations policies, practices, perks, diversity, compensation, and other statistics regarding employee welfare and benefits can be reviewed. They abdicate personal responsibility by assigning blame elsewhere. grramire. From these systems has emerged a basic set of ethical norms for the business world. universal BUSI 690 Chapter 6-9 Mar 18, 2019 OpenStax. If you belong to such an institution, please log in or find out more about how to order. 5.4 Are the Values Central to Business Ethics Universal? Universalism 0000017527 00000 n Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. consent of Rice University. Applying this principle is related to a quick test before acting or making a decision by asking, What would my best self do in this situation? Others ask the question inserting someone they know or honor highly. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . endobj The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. Cultural Diversity and Universal Ethics in a Global World The Journal of Values-Based Leadership - Valparaiso | Also, the issue arises, Who defines virtuous, especially when a complex act or incident is involved that requires factual information and objective criteria to resolve?, The common good is defined as the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment. Decision makers must take into consideration the intent as well as the effects of their actions and decisions on the broader society and the common good of the many.20, Identifying and basing decisions on the common good requires us to make goals and take actions that take others, beyond ourselves and our self-interest, into account. X. Xenofeminism. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. As a theory for justifying moral practices and beliefs, ethical relativism fails to recognize that some societies have better reasons for holding their views than others. Moreover, moral standards, according to this principle, vary from one culture to another. Richard DeGeorge (1933) of the University of Kansas describes what adding the humanities to business education entails: Students do not need psychosociological jargon in their business interactions. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo After all, we cannot make a commitment to serve customers, develop leaders, and improve life for all stakeholders unless there is freedom and moral agency, the necessary ingredients in establishing an attitude of concern, that is, respect for oneself and for others, including all appropriate stakeholders. The first view uses universality to distinguish the moral from non-moral. What are major ethical principles that can be used by individuals and organizations? Limitations here also show that using this principle may not always prove realistic or practical in all situations. Corporations and their Social Responsibility. Also needs of individuals involved in a decision are identified as well as the choices they have and the information they need to protect their welfare. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit.