Ethics and the Conduct of Business Eighth edition Chapter Ethical Theories Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Modules • Introduction: Ethical Theories • 3.1: Utilitarianism • 3.2: Kantian Ethics • 3.3: Virtue Ethics • 3.4: Rights • 3.5: Justice • Conclusion: Ethical Theories Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Learning Objectives (1 of 2) • 3.1: Describe the four theses of classical utilitarianism, the utilitarian approach to decision making, and the main criticisms of the cost-benefit analysis method • 3.2: Summarize the two intuitive principles of Kantian ethics and their implications for moral reasoning • 3.3: Define virtue and explain how virtues and principles of virtue ethics are relevant to business • 3.4: Identify the meaning and importance of rights and the types of rights that apply in different situations Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Learning Objectives (2 of 2) • 3.5: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Introduction: Ethical Theories • Types of ethical theories • Teleological theories • Deontological theories Virtue ethics Copyright â 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Figure 3.1 Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 3.1: Utilitarianism Objective: Describe the four theses of classical utilitarianism, the utilitarian approach to decision making, and the main criticisms of the cost-benefit analysis method 3.1.1: Principle of Utility Four these of utilitarian principle Act- and rule-utilitarianism Calculating utility 3.1.2: Cost-Benefit Analysis Quantitative method for decision making Advantage of cost-benefit analysis Evaluation of cost-benefit analysis Assigning monetary values Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Table 3.1: Pros and Cons of Cost-Benefit Analysis Points Consequences measured by monetary value in a market Shadow pricing of nonmarket goods Placing a value on human life and experiences Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Pros Cons The market price or value of goods and services can be used to Not all costs and benefits have a discernible market value or can compare outcomes be objectively valued Market value can be estimated by analyzing the relative worth of Not all people are able to act or choose in accordance with their choices suggested by actual behavior preferences, or make rational decisions Can apply cost-benefit analysis to issues such as human health Seems cold-hearted and reductive; life, love, happiness, etc and safety cannot be bought and are cheapened by assigned values 3.2: Kantian Ethics Objective: Summarize the two intuitive principles of Kantian ethics and their implications for moral reasoning 3.2.1: Universalizability Categorical imperative Implications for moral reasoning 3.2.2: Respect for Persons Features Respect people as human beings Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 3.3: Virtue Ethics Objective: Define virtue and explain how virtues and principles of virtue ethics are relevant to business 3.3.1: What Is Virtue? Aristotle’s idea about virtue Characteristics of virtuous people 3.3.2: Defending the Virtues Traits required for a good life 3.3.3: Virtue in Business Applying virtue ethics to business Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Table 3.2: Virtues and Vices in Business Job Virtue Vice Bank loan officer Prudence, Caution Charity School guidance counselor Empathy, Enthusiasm Indifference Personnel manager Resourcefulness, Impartiality Prejudice Corporate executive Confidence, Focus Arrogance Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 3.4: Rights Objective: Identify the meaning and importance of rights and the types of rights that apply in different situations 3.4.1: Meaning of Rights Confusing claim of rights Understanding rights as entitlements 3.4.2: Kinds of Rights Different kinds of rights Natural rights theory by John Locke Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 3.5: Justice (1 of 2) Objective: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick 3.5.1: Nature and Value of Justice  Aristotle’s categorization of justice 3.5.2: Aristotle on Distributive Justice Aristotle’s principle of distributive justice Justifying features 3.5.3: Rawls's Egalitarian Theory Rawl’s principle on justice Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved 3.5: Justice (2 of 2) Objective: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick 3.5.4: Nozick's Entitlement Theory  Difference between Rawls’s theory and Nozick’s theory  Main principles of Nozick’s theory Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved Conclusion: Ethical Theories • Main concepts and theories of ethics • Useful in evaluating business activities • Continue to be a source for improvement Copyright © 2017, 2012, 2009 Pearson Education, Inc All Rights Reserved ... 3. 5: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by Rawls and Nozick Copyright © 2017, 2012,... Reserved 3. 5: Justice (1 of 2) Objective: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by Rawls... principles of Kantian ethics and their implications for moral reasoning • 3. 3: Define virtue and explain how virtues and principles of virtue ethics are relevant to business • 3. 4: Identify the meaning