Manager ethics
Slovak University of Technology
Faculty of Material Science and Technology in Trnava
Manager ethics
Doc. Ing. Miloš Čambál, CSc.
Ing. Ľubica Černá, PhD.
TRNAVA 2007
1. Definition of Ethics
2. Dividing of ethics
3. A History of Business Ethics
4. Business Ethics
5. Business Code of Ethics
6. Human rights
7. Discrimination
8. Sexual harassment
9. ETHICAL DECISIONMAKING MODEL
10. MORAL DEVELOPMENT
11. The Role of Social Partners and Social dialogue
12. Decent work
1. Definition of Ethics
The word "ethics" is used in a variety of ways, and confusions between these uses are common.
At least three main types of question are called "ethical" in different senses:
Questions as to what is right, good, etc., or of how we ought to behave (normative ethics, morals);
Questions as to the answers given by particular societies and people to questions of type (descriptive ethics or comparative ethics, a branch of moral sociology or anthropology);
moral philosophy). It is perhaps best, in philosophical writing, to reserve the word "ethics" (unqualified) for inquiries of type
The Collins English Dictionary gives the following definitions of „ethics“:
(Functioning as singular) the philosophical study of the moral value of human conduct and the rules and principles that ought to govern it; moral philosophy.
(Functioning as plural) a social, religious, or civil code of behaviour considered correct, especially that of a particular group, profession or individual.
(Functioning as plural) the moral fitness of a decision, course of action, etc.; he doubted the ethics of their verdict. [1]
Deeper definition of Ethics
Questions as to the meanings or uses of the words used in answering questions of type or the nature or logical character of the moral concepts, or, in older language, of what goodness, etc., are (theoretical ethics, philosophical ethics) ,
First, ethics refers to well based standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy. Such standards are adequate standards of ethics because they are supported by consistent and well founded reasons.
Secondly, ethics refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and well-founded. Ethics also means, then, the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to standards that are reasonable and solidly-based.
2. Dividing of ethics
The field of ethics, also called moral philosophy, involves systematizing, defending, and recommending concepts of right and wrong behavior. Philosophers today usually divide ethical theories into three general subject areas:
metaethics,
normative ethics,
applied ethics.[2]
Metaethics
Metaethics talks about the nature of ethics and moral reasoning. Discussions about whether ethics is relative and whether we always act from self-interest are examples of meta-ethical discussions. In fact, drawing the conceptual distinction between Metaethics, Normative Ethics, and Applied Ethics is itself a "metaethical analysis."
Metaethics investigates where our ethical principles come from, and what they mean. Are they merely social inventions? Do they involve more than expressions of our individual emotions? Metaethical answers to these questions focus on the issues of universal truths, the will of God, the role of reason in ethical judgments, and the meaning of ethical terms themselves. "Metaphysics" is the study of the kinds of things that exist in the universe.
A area of metaethics involves the psychological basis of our moral judgments and conduct, particularly understanding what motivates us to be moral. We might explore this subject by asking the simple question, "Why be moral?" Even if I am aware of basic moral standards, such as don't kill and don’t steal, this does not necessarily mean that I will be psychologically compelled to act on them. Some answers to the question "Why be moral?" are to avoid punishment, to gain praise, to attain happiness, to be dignified, or to fit in with society.
Normative ethics is interested in determining the content of our moral behavior. Normative ethical theories seek to provide action-guides; procedures for answering the Practical Question ("What ought I to do?"). The moral theories of Kant and Bentham are examples of normative theories that seek to provide guidelines for determining a specific course of moral action. Think of the Categorical Imperative in the case of the former and the Principle of Utility in the case of the latter. The Golden Rule is a classic example of a normative principle: We should do to others what we would want others to do to us. The Golden Rule is an example of a normative theory that establishes a single principle against which we judge all actions. Other normative theories focus on a set of foundational principles, or a set of good character traits. The key assumption in normative ethics is that there is only one ultimate criterion of moral conduct, whether it is a single rule or a set of principles.
Three strategies will be noted here:
virtue theories. Virtue theorists, however, place less emphasis on learning rules, and instead stress the importance of developing good habits of character, such as benevolence.
duty theories. Duty theories base morality on specific, foundational principles of obligation. These theories are sometimes called deontological, from the Greek word deon, or duty, in view of the foundational nature of our duty or obligation.
consequentialist theories. Consequentialism: An action is morally right if the consequences of that action are more favorable than unfavorable.
Consequentialist theories became popular in the 18th century by philosophers who wanted a quick way to morally assess an action by appealing to experience, rather than by appealing to gut intuitions or long lists of questionable duties. In fact, the most attractive feature of consequentialism is that it appeals to publicly observable consequences of actions. Most versions of consequentialism are more precisely formulated than the general principle above. In particular, competing consequentialist theories specify which consequences for affected groups of people are relevant.
Three subdivisions of consequentialism emerge:
Ethical Egoism: an action is morally right if the consequences of that action are more favorable than unfavorable only to the agent performing the action.
Ethical Altruism: an action is morally right if the consequences of that action are more favorable than unfavorable to everyone except the agent.
Utilitarianism: an action is morally right if the consequences of that action are more favorable than unfavorable to everyone.
Applied Ethics attempts to deal with specific realms of human action and to craft criteria for discussing issues that might arise within those realms. The contemporary field of Applied Ethics arouse in the late 1960s and early 1970s. Today, it is a thriving part of the field of ethics. Numerous books and web-sites are devoted to topics such as Business Ethics, Computer Ethics, and Engineering Ethics. (See the Bioethics Center for an example of activities in the area Medical Ethics).
The field of business ethics examines moral controversies relating to the social responsibilities of capitalist business practices, the moral status of corporate entities, deceptive advertising, insider trading, basic employee rights, job discrimination, affirmative action, drug testing, and whistle blowing. Issues in environmental ethics often overlaps with business and medical issues.
Psychological egoism, psychological hedonism and psychological altruism
One important area of moral psychology concerns the inherent selfishness of humans. 17th century British philosopher Thomas Hobbes held that many, if not all, of our actions are prompted by selfish desires. Even if an action seems selfless, such as donating to charity, there are still selfish causes for this, such as experiencing power over other people. This view is called psychological egoism and maintains that self-oriented interests ultimately motivate all human actions. Closely related to psychological egoism is a view called psychological hedonism which is the view that pleasure is the specific driving force behind all of our actions. 18th century British philosopher Joseph Butler agreed that instinctive selfishness and pleasure prompt much of our conduct. However, Butler argued that we also have an inherent psychological capacity to show benevolence to others. This view is called psychological altruism and maintains that at least some of our actions are motivated by instinctive benevolence.[3]
3. A History of Business Ethics
If we move from religion to philosophy we have a similar long tradition. Plato (429 -347 BC) is known for his discussions of justice in the Republic, and Aristotle explicitly discusses economic relations, commerce and trade under the heading of the household in his Politics. His discussion of trade, exchange, property, acquisition, money and wealth have an almost modern ring, and he makes moral judgments about greed, or the unnatural use of one's capacities in pursuit of wealth for its own sake, and similarly condemns usury because it involves a profit from currency itself rather than from the process of exchange in which money is simply a means.[4] He also gives the classic definition of justice as giving each his due, treating equals equally, and trading equals for equals or "having an equal amount both before and after the transaction."[5]
Greek Moral Philosophy
Socrates (469-399 BC)
Socrates was the first philosopher to focus specifically on the area of VALUES (the problems of God, the Good and the Beautiful). He did not claim an interest in "things beneath the earth and in the skies" (i.e., a knowledge of nature).[6]
Aristotle ( 384-322 BC )
Aristotle was the most practical and business-oriented of all philosophers who asked ethical questions. You may stop at the idea that a person who's been dead for nearly 2,400 years has anything practical to say about modern organizations. But Aristotle remains relevant because he is particularly interested in defining principles in terms of the ethics of leadership.
In his Nicomachean Ethics, Aristotle concludes that the role of the leader is to create the environment in which all members of an organization have the opportunity to realize their own potential. He says that the ethical role of the leader is not to enhance his or her own power but to create the conditions under which followers can achieve their potential.
Of course Aristotle never heard of a large business or corporation. None-theless, he did raise a set of ethical questions that are directly relevant to corporate leaders who wish to behave in ethical ways. [7]
Hellenistic and Roman Ethics
Epicureanism taught that all humans by nature seek a pleasant life and that the best way to the pleasant life is through a life of moderate satisfaction.
Stoicism taught that "the world is independent of our will" and consequently that a life detached from the natural events of life will be calmer and less troubled than a life bound up with false desires for worldly things.
Early Christian Ethics
In the West, after the fall of Rome, Christianity held sway, and although there were various discussions of poverty and wealth, ownership and property, there is no systematic discussion of business except in the context of justice and honesty in buying and selling. We see this, for instance, in Thomas Aquinas's discussion of selling articles for more than they are worth and selling them at a higher price than was paid for them and in his discussion of, and, following Aristotle's analysis, his condemnation of usury. Nonetheless he justified borrowing for a good end from someone ready to lend at interest.
Reformation ethics
Luther, Calvin, and John Wesley, among other Reformation figures also discussed trade and business and led the way in the development of the Protestant work ethic.5 R. H. Tawney's Religion and the Rise of Capitalism argues persuasively that religion was an essential part in the rise of individualism and of commerce as it developed in the modern period. The modern period, however, sought the divorce of the religious from the secular and politics from religion. In the process, economics and economic activity were similarly divorced from religion and joined with politics to form what was known as political-economy.
Modern ethics
John Locke developed the classic defense of property as a natural right. For him, one acquires property by mixing his labor with what he finds in nature.
Adam Smith (1723-1790)
Adam Smith was an important Scottish political philosopher and economist whose famous work Wealth of Nations (1776) set the tone for work on politics and economics for many people even through today. This was, in fact, the first comprehensive effort to study the nature of capital, the development of industry and the effects of large-scale commerce in Europe.
Adam Smith's fundamental argument was that individuals should be allowed to pursue their own private economic interests as much as possible and so long as they do not violate basic principles of justice. In this way, Smith thought, they would do much more to further the public good and public interests than if the same people were to try to help the public deliberately and intentionally. Smith called this the invisible hand of the market - although everyone is acting in their own self-interest, they are led to achieve the good of all as if by an invisible hand of economic forces. Therefore, outside interference will inevitably lead to disaster. This became known as laissez-faire economic policy.
In 1759 he published the book Theory of Moral Sentiments, where he discussed the standards of ethical conduct that hold society together. This book was a compilation of ideas and lectures from his time as a professor of moral philosophy at the University of Glasgow.[8]
Major Works of Adam Smith
- The Theory of Moral Sentiments (1759)
- An Inquiry into the Nature and Causes of the Wealth of Nations (1776)