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The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. 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. Vol. 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. Bribery was also at the heart of the FIFA (Fdration Internationale de Football Association) corruption scandal, in which soccer officials, marketing executives, and broadcasters were accused of racketeering, wire fraud, and money laundering by the U.S. Department of Justice in 2015. In the business world, various ethical theories and principles are used. Ethical relativism holds that people set their own moral standards for judging their actions. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. WebUniversalism: broadmindedness; wisdom; social justice; equality; a world at peace; a world of beauty; unity with nature; protecting the environment; inner harmony Benevolence: helpfulness; honesty; forgiveness; loyalty; responsibility; friendship Tradition: accepting one's portion in life; humility; devoutness; respect for tradition; moderation 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. 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. The justification for this rises from human nature, which is a shared vulnerability of suffering and demands universal reasoning. W. Wahdat-ul-Wujood - Wahdat-ul-Shuhud - War, philosophy of - Western philosophy - Wu wei. citation tool such as, Authors: Stephen M. Byars, Kurt Stanberry. In the context of business ethics, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 issued a broader _____ rule in order to address the weaknesses of the Sarbanes-Oxley Act. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). 0000016028 00000 n Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. Is it possible to identify a set of universal values that is consistent across cultures and time? Alani_Parra. It is not only a method to make a decision; it is a way of incorporating a humane consideration of and for individuals and groups when deciding a course of action. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. grramire. One distinctive understanding of universalism in ethics is that ethical principles are principles for everybody. It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. <>/Border[0 0 0]/Contents(Business Commons)/Rect[137.2383 212.4906 226.2812 224.2094]/StructParent 6/Subtype/Link/Type/Annot>> As the LIBOR (London Interbank Offered Rate) scandal, in which banks were manipulating rates to profit from trades, showed, ethical breakdowns often occur because systems fail or people make bad decisions, and sometimes both. A belief in one fundamental truth is another important tenet in 0000003899 00000 n It focuses on the type of person we ought to be, not on specific actions that should be taken. If you are redistributing all or part of this book in a print format, The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors. v a l p o . 130 0 obj Unfortunately, in the United States, much of this money is spent on merely meeting the minimum requirements of compliance, so that if there is ever a problem with the Department of Justice or the Securities and Exchange Commission, the organization is insulated from criticism or liability because its employees have engaged in the recommended training. Subsequently, some common factors and discrepancies between the two theories will be discussed. WebMoral universalism (also called moral objectivism) is the meta-ethical position that some system of ethics, or a universal ethic, applies universally, that is, for "all similarly situated First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. Iss. [133 0 R 134 0 R 135 0 R 136 0 R 137 0 R 138 0 R 139 0 R 140 0 R] Dec 12, 2022 OpenStax. ]yy+ Creative Commons Attribution License (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. Other names for this doctrine are universal restoration, universal 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. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo Available at: Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. <>/MediaBox[0 0 612 792]/Parent 125 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. After all, free enterprise has the interests of the enterprise at heart. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. Corporate Governance and Sarbanes-Oxley Act and Other Recent Reforms, 8. Universal business ethic is an attempt to formulate common business ethic principles that are acceptable by all rational agents and applied to all countries beyond What are major ethical principles that can be used by individuals and organizations? in the circumstance that telling the truth leads to death, objectivism could require we lie Some limitations of this principle suggest that it does not consider individuals, and there is no agreement on the definition of good for all concerned. In addition, it is difficult to measure costs and benefits. This is one of the most widely used principles by corporations, institutions, nations, and individuals, given the limitations that accompany it. | 8 grramire. Becoming familiar with these principles, then, can help inform your moral decision process and help you observe the principles that a team, workgroup, or organization that you now participate in or will be joining may be using. Altruism is also part of character-based virtue ethics. Next: A Framework for Making Ethical Decisions, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. Although Universalism has appeared at various times in Christian history, most notably in the works of Origen of It has often been an intellectual norm for researchers and authors to classically characterise ethics into two divisions of normative notions. 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. The influence of positive psychology is evident, and there is much to commend in this kinder approach to the job of management that makes an effort to establish sustainable human welfare.36 Many leaders character and actions serve as examples of how character-based virtues work. 0000000696 00000 n No matter our culture, geography, or time, could we identify some basic normative behaviors to govern business conduct in general? Except where otherwise noted, textbooks on this site 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. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. 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. 16 terms. <>/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>> Z. Zemlyak - Zen - Zoroastrianism - Zurvanism The claim that ethical standards or principles are universal is an ancient commonplace of many ethical traditions and of contemporary political life, particularly in appeals to universal human rights. We recommend using a Organizational responsibility is fairly straightforward: Comply with applicable local, state, national, and international regulations. From these systems has emerged a basic set of ethical norms for the business world. FAQ These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. WebUniversal ethics refer to a moral system that applies to the entire humanity, transcending personal whims, and culture in the process. To put this question another way, is there a set of universal values that all can endorse? Only the individuals self-interest and values are relevant for judging his or her behavior. Want to cite, share, or modify this book? DeGeorge suggests that a course in the philosophy of business would enable students to think about the foundations of businessits values, ends, purpose, and justification . Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . X [%:6Ou\Ng73Y 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. In the case of LIBOR, the United Kingdoms Serious Fraud Office determined there were inadequate systems of oversight in the setting of rates and that individual executives encouraged rate fixing, which led to the conviction of several traders, at least one of whom still maintains his innocence.33 Dec 12, 2022 OpenStax. Discuss need of Value education. A simple way of summarizing this principle when examining a moral dilemma is to ask of a proposed action or decision: (1) Is it fair? My Account endobj Again, the UN Universal Declaration of Human Rights is a useful starting point for the way business can conduct itself. 0000001898 00000 n Using one or more of these principles and ethical approaches intentionally can also help you examine choices and options before making a decision or solving an ethical dilemma. endobj Business 148 Study Guide. b. grramire. Get FREE shipping on Universality, Ethics and International Relations by Veronique Pin-Fat, from wordery.com. 2. endobj 0000002159 00000 n Immanuel Kant, a German philosopher, calls the WebUniversalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. If require any missing data; then choose suitably. President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. Virtue ethics is based on character traits such as being truthful, practical wisdom, happiness, flourishing, and well-being. <>/Border[0 0 0]/Contents(scholar@valpo.edu)/Rect[350.833 72.3516 427.21 82.8984]/StructParent 8/Subtype/Link/Type/Annot>> When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. This does not deny the need for profit and financial success. Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessnessanother misinterpretation, as I argue with Ed Freeman's help. 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. 2 (2015), Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making. Business The dilemma for the Washington Posts then CEO centered on her having to choose between exposing the truth based on freedom of speechwhich was the mission and foundation of the newspaperor staying silent and suppressing the classified information. Marketing Ethics: Selling Controversial Products, 17. Utilitarianism: Ethical Theories and Business. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. WebBusiness Ethics Final. Altruism is also part of character-based virtue ethics. OpenStax is part of Rice University, which is a 501(c)(3) nonprofit. endobj WebWe believe that compliance and ethical behavior are everyones responsibility. Some of the strengths and weaknesses that will be discussed for Universalism are consistency, intension basis, and universalizability, while some of the discussed strengths and weaknesses for Utilitarianism are flexibility, outcome-basis, and lack of consistency. 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/). In the United States, companies spend more than $70 billion annually on ethics training; worldwide, the figure is more than double that.30 BUSG 210 Practice Final Exam. Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), and presents a SWOT analysis of both. On their list of values, corporate responsibility to the public is among the top ones. WebUbuntu - Universalism - Utilitarian bioethics - Utilitarianism. Ethical Principles and Responsible Decision-Making, 10. ;;rlH,.6\I)- ld P1|d`-0iA 6H3dxU0[0u0*3lar H"%LX001da0rJ`X` uq&%61d2g,e^|N Z@@: -l,3BNZ D H They prescribe obligations for everybody, define Business ethics exists on three levels: the individual, the organizational, and the societal. > How can businesses do this? It is an orientation that many use quite frequently. 2 x 7 = 14 a. Furthermore, most religions have high ethical standards but do not address many of the problems faced in business. Webundergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism (Kantian) and Utilitarianism (consequentialist), Ultimately, the theory of universalism in business ethics helps to promote ethical behavior and responsibility in the business world, and can serve as a powerful tool Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. 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. 0000015844 00000 n Moreover, moral standards, according to this principle, vary from one culture to another. The problem is that if anything flourishes in this model, it is often the business rather than the employees. V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. (4) Who has to pay for the consequences? endobj Webmoral relativism theory or more similar to the moral universalism theory and if there are any differences between the arguments. 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. 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. So, although the work of national, regional, and international organizations can limit corruption through enforcement and the prosecution of cases (as was the case with the revelation of the so-called Panama Papers), corruption will not be reduced in any significant way unless efforts have been made to form individual conscience and teach practical ways to act on it. This principle is related to universalism. Moreover, moral standards, according to this principle, vary from one culture to another. 0000002618 00000 n > As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. A result was enflamed widespread public protests from American youth and others. (5) Do I/we want to assume responsibility for the consequences? Ethical business strategies Typically arise from managers with strong moral characters. 148 0 obj <>/Border[0 0 0]/Contents()/Rect[72.0 618.0547 118.127 630.9453]/StructParent 2/Subtype/Link/Type/Annot>> There are some limitations to this ethic. Accommodating Different Abilities and Faiths, 29. However, happy employees are one thing; the human flourishing identified by Aristotle and John Stuart Mill is quite another. WebUniversal ethics [ edit] There are several ethical standards that are considered to be self-evident, and seem to apply to all people throughout all of history, regardless of cultural, political, social, or economic context. Still, legal requirements are usually clear, as are the ways an organization can exceed them (as do, for example, companies such as Whole Foods, Zappos, and Starbucks). Some of the principles presented here date back to Plato, Socrates, and even earlier to ancient religious groups. 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. <>/Border[0 0 0]/Contents()/Rect[72.0 607.0547 200.4551 619.9453]/StructParent 3/Subtype/Link/Type/Annot>> Attempt all Sections. 137 0 obj WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. Read this article on the LIBOR scandal and the consequences for an in-depth overview. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. Can being aware of the actual values you use to guide your actions make a difference in your choices? The Supreme Court upheld her and her staffs decision. It is helpful to ask and if not clear, perhaps identify the principles, you most often use now and those you aspire to use more, and why. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . We recommend using a doi. "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," 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 Also needs of individuals involved in a Practical wisdom, however, is often required to be virtuous. It is not a coincidence that it appears in the American Declaration of Independence (1776), which was written by Thomas Jefferson and inspired by the British Enlightenment philosopher John Locke. WebKeywords: universalism, utilitarianism, punctuated equilibrium 1. Iss. However, the nature of human happiness is subjective. Content: formal principles or uniform requirements? Compliance can be an immense task for industries like aerospace, pharmaceuticals, banking, and food production, due to the large number of employees involved, the certification of them that sometimes is necessary, and the requisite record keeping. Kantian ethics are a set of universal moral principles that apply to all human beings, regardless of context or situation. At the same time, each one has a logic. The result was a staggering $6 billion cumulative fine for the banks involved (i.e., Barclays, J.P. Morgan Chase, Citicorp, Royal Bank of Scotland, and Deutsche Bank).34. For example, everyone must eat to survive, but not everyone would agree that eating chocolate-raspberry cake brings happiness. 73 terms. These guidelines also are designed to help organizations with compliance and reporting, and they introduce seven steps toward that end: (1) create a Code of Ethics, (2) introduce high-level oversight, (3) place ethical people in positions of authority, (4) communicate ethics standards, (5) facilitate employee reporting of misconduct, (6) react and respond to instances of misconduct, and (7) take preventive steps. This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. JVBL Federal Sentencing Guidelines for felonies and serious misdemeanors now carry mandatory prison time for individual executives who are convicted. This principle is grounded in both legal and moral rights. Legal rights are entitlements that are limited to a particular legal system and jurisdiction. https://scholar.valpo.edu/jvbl/vol8/iss2/3, ValpoScholar Home Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License 4.0 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. Corporations and their Social Responsibility. endobj 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.