endobj 0000003514 00000 n 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 for building trust and confidence in the operations of organizations around the world. 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. 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. 5. (credit: Love Is All You Need Signage by Jacqueline Smith/Pexels, CC0), article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption, article on the LIBOR scandal and the consequences, https://openstax.org/books/business-ethics/pages/1-introduction, https://openstax.org/books/business-ethics/pages/5-4-are-the-values-central-to-business-ethics-universal, Creative Commons Attribution 4.0 International License, Explain the difference between relative and absolute ethical values, Discuss the degree to which compliance is linked with organizational responsibility and personal values, Identify the criteria for a system of normative business ethics. 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? and you must attribute OpenStax. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. 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. 0000006541 00000 n Boeing leadership encourages employees to proactively seek out issues, speak up and report concerns, and engage with transparency. Vol. At the core of Toms' model exists the idea of charity. Federal Sentencing Guidelines for felonies and serious misdemeanors now carry mandatory prison time for individual executives who are convicted. When seen from Bubers perspective, however, love is not an idyllic feeling but a driving force for justice and care. WebBusiness ethics exists on three levels: the individual, the organizational, and the societal. 129 0 obj 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 A. developing a consensus among companies worldwide as to what ethical principles that businesses should be expected to observe in the course of conducting their operations. If you are redistributing all or part of this book in a print format, citation tool such as, Authors: David S. Bright, Anastasia H. Cortes. . At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. If there is anything to be learned from these scandals, it is that organizations will succumb to ethics crises if they do not pay attention to their organizational culture and foster their employees growth as moral beings. And such agency needs to be at the heart of business ethics. xref Some bias is good, as in having a favorable disposition toward those who work hard in intellectually honest ways. 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. 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. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo endobj Other names for this doctrine are universal restoration, universal > Finally, if normative business ethics is to recognize and, ultimately, be based on the individual, it must address another human trait: bias. WebBased on the expressed preferences of 163 undergraduate and graduate students of business ethics, this article briefly examines the two most popular theories, Universalism Are the Values Central to Business Ethics Universal? Some limitations when using this principle are (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are right, and (3) individuals can exaggerate certain entitlements at the expense of others. To put this question another way, is there a set of universal values that all can endorse? One distinctive understanding of universalism in ethics is that ethical principles are principles for everybody. First, some individuals may disagree about who is virtuous in different situations and therefore would refuse to use that persons character as a principle. <>stream The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. e d u / j v b l / v o l 8 / i s s 2 / 3)/Rect[128.1963 131.7406 312.7275 143.4594]/StructParent 7/Subtype/Link/Type/Annot>> Webmoral relativism theory or more similar to the moral universalism theory and if there are any differences between the arguments. Ethical Principles and Responsible Decision-Making, 10. 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. At the organizational and societal levels, laws, regulations, and oversight can go a long way toward curtailing illegal activity. Ethical relativism holds that people set their own moral standards for judging their actions. Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior . A few different business ethics theories exist , such as the utilitarian , rights , justice , common good and virtue approach . 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. Utilitarian ethics says, in general, that the most ethical course of action is the one that provides the greatest benefit to the most people. Additionally, the study investigates if the Responsibility to Protect (RtoP) adoption can be interpreted and derived from the moral theories by focusing on one of the three RtoP pillars, prevention. In the business world, various ethical theories and principles are used. Want to cite, share, or modify this book? Business, too, is about relationships. This principle is grounded in both legal and moral rights. (2) Is it right? Content: formal principles or uniform requirements? In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. 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. Accessibility Statement, Privacy 0 Many leaders character and actions serve as examples of how character-based virtues work. (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. Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices.19 Howard Schultz, founder of Starbucks; cofounder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. Universalism (pronounced yu-ni-VER-sul-iz-um) is a doctrine that teaches all people will be saved. The following section discusses how ethical leadership at the top and throughout organizations affects ethical actions and behaviors.21. Business ethics motivates managers to (1) meet legal and industry governing and reporting requirements and (2) shape corporate culture so that corrupt practices such as bribery, embezzlement, and fraud have no place in the organization. 34 terms. President Johnson was pressured to resign, Secretary of State McNamara later apologized, and the war eventually ended with U.S. troops withdrawing. WebUniversalism is a principle that considers the welfare and risks of all parties when considering policy decisions and outcomes. Read this article on the LIBOR scandal and the consequences for an in-depth overview. No matter our culture, geography, or time, could we identify some basic normative behaviors to govern business conduct in general? How are they related? Moreover, moral standards, according to this principle, vary from one culture to another. One model of ethical behavior, sometimes called the humanistic business model, may provide the answer for businesses that wish to achieve the dual goal of human flourishing and responsible profits. 132 0 obj Finally, in the same vein, ethics is not science. WebFor forty years, successive editions of Ethical Theory and Business have helped to define the field of business ethics. Limitations when using this principle involve the question of who decides who is right and wrong and who has been harmed in complex situations. (3) Who gets hurt? Also needs of individuals involved in a WebAdherents of ethical universalism are likely to believe that Common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople. Next: A Framework for Making Ethical Decisions, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. The social and natural sciences provide data to make better ethical choices, but science cannot tell people what they ought to do (nor should it). (4) Who has to pay for the consequences? 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. Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. 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. List the four dimensions of a human being. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. Ethical principles are different from values in that the former are considered as rules that are more permanent, universal, and unchanging, whereas values are subjective, even personal, and can change with time. 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. 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. > What is universal ethics theory? (5) Do I/we want to assume responsibility for the consequences? When in Rome, do as the Romans do.. 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. It recognizes that decisions about right and wrong can be difficult, and may be related to individual context. 0000001898 00000 n *$nMY9s:SZC;>M:yREn\rDk~iG']rDn>v]1m7@u,sI>wQZVmb^emU(W y Q)\u58y.? 0000005814 00000 n As some have asked, What is a human life worth?. Altruism is also part of character-based virtue ethics. It is an orientation that many use quite frequently. 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. 16 terms. The Concept of Ethical Business in Ancient Athens, Ethical Advice for Nobles and Civil Servants in Ancient China, Comparing the Virtue Ethics of East and West, Utilitarianism: The Greatest Good for the Greatest Number, Ethical Decision-Making and Prioritizing Stakeholders, Three Special Stakeholders: Society, the Environment, and Government, Corporate Law and Corporate Responsibility, Sustainability: Business and the Environment, The Impact of Culture and Time on Business Ethics, The Relationship between Business Ethics and Culture, The Workplace Environment and Working Conditions, Contributing to a Positive Work Atmosphere, Criticism of the Company and Whistleblowing, Recognizing and Respecting the Rights of All, Accommodating Different Abilities and Faiths, Animal Rights and the Implications for Business, Ethical Issues in the Provision of Health Care, Changing Work Environments and Future Trends, Alternatives to Traditional Patterns of Work, Robotics, Artificial Intelligence, and the Workplace of the Future, Business Ethics in an Evolving Environment, Making a Difference in the Business World, Profiles in Business Ethics: Contemporary Thought Leaders, The pursuit of happiness is as near a universal human trait as we can find. 0000001486 00000 n v a l p o . In most professional disciplines, including business, the primary ethical frameworks used in the classroom draw on Universalist approaches. Someones principle is a moral principle if he or she is willing to universalize it and if not it is then the other way round. Corporations and Politics: After Citizens United, 14. Philosopher and historian Martin Buber (18781965) taught that love is not a feeling but a responsibility of one person for another. 6. Moreover, moral standards, according to this principle, vary from one culture to another. 129 20 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. The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. 1 / 35. Business ethics concerns. 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 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?. The universalizability theory holds two significant views. Leaders create positive relationships with stakeholders, including their employees, to cultivate investor goodwill and because they believe in the underlying values of trust and authenticity. Diversity and Inclusion in the Workforce, 28. are licensed under a. 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. WebUtilitarianism is a consequentialist ethical approach it focusses on the outcomes of an act to judge its goodness. There are programs that do this, such as Giving Voice to Values at the Darden School of Business at the University of Virginia.35 WebChapter 9. 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. 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? In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. > <<77326D38A9B4B2110A000018C493FC7F>]/Prev 592216>> Loyalty to the Brand and to Customers, 24. 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. <>stream <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . 0000002618 00000 n Get FREE shipping on Universality, Ethics and International Relations by Veronique Pin-Fat, from wordery.com. | About | Thus, love, as responsibility, depends on relationships based on good faith and concern. The main principles of business ethics are based in academia and on academic writings on proper business operations. The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo This is even more important in industries like banking that are more susceptible to unethical behavior because of the great sums of money that change hands. Many leaders character and actions serve as examples of how character-based virtues work. And although a good system of law incorporates ethical standards, the law can and sometimes does deviate from what is ethical. V. Value pluralism - Value theory - Vedanta - Verificationism - Verism - Vienna Circle - Virtue ethics - Vitalism - Voluntaryism. 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 130 0 obj Universalism, belief in the salvation of all souls. c. <> 0000009193 00000 n 136 0 obj Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. Corruption is expensive: According to the World Economic Forum, no less than $2 trillion is lost each year worldwide as a result of corruption, a staggering waste not just of resources but of credibility for business in general.28. The utilitarianism principle basically holds that an action is morally right if it produces the greatest good for the greatest number of people. If you belong to such an institution, please log in or find out more about how to order. Grounded in good character, motives, and core values, the principle is best exemplified by those whose examples show the virtues to be emulated. If you are redistributing all or part of this book in a print format, A major limitation when using this principle is, Who determines what the common good is in situations where two or more parties differ over whose interests are violated? In individualistic and capitalist societies, it is difficult in many cases for individuals to give up their interests and tangible goods for what may not benefit them or may even deprive them. https://scholar.valpo.edu/jvbl/vol8/iss2/3, ValpoScholar Home These disagreements can be clarified, and perhaps in part resolved, by distinguishing a number of different conceptions of universalism in ethics. This book uses the 139 0 obj Our mission is to improve educational access and learning for everyone. 2023 Informa UK Limited, an Informa Group Company. Compliance is important, but business managers must attempt to go above and beyond to clearly model and enforce the highest standards of ethical behavior. Arguments Against Business Ethics In a free market economy, the pursuit of profit will ensure maximum social benefit so business ethics is not needed. A managers most important obligation is loyalty to the company regardless of ethics. So long as companies obey the law they will do all that ethics requires. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. WebCHAPTER 2 MORAL RELATIVISM - Objectivism: there is only one universal moral standard (based on objective moral facts and consists of moral values and principles that hold universal for people and societies) - Can adjust to circumstances is not morally rigid - Ex. b. are not subject to the Creative Commons license and may not be reproduced without the prior and express written Attempt all Sections. <>/Border[0 0 0]/Contents(scholar@valpo.edu)/Rect[350.833 72.3516 427.21 82.8984]/StructParent 8/Subtype/Link/Type/Annot>> Practical wisdom, however, is often required to be virtuous. Business The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. beckyschroeder. They do need to understand people and their motives, to know how to read and judge character, and to have the ability to imagine themselves in anothers shoes, be they those of a competitor, a boss, or a subordinate. Principles help inform and influence values. In the ideal case, the organizations culture never allows the latter, because scandals not only damage reputations but they make companies and countries much less attractive to investors. The problem is that if anything flourishes in this model, it is often the business rather than the employees. endobj Only the individuals self-interest and values are relevant for judging his or her behavior. 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. This principle is grounded in both legal and moral rights. For example, everyone must eat to survive, but not everyone would agree that eating chocolate-raspberry cake brings happiness. We recommend using a Universalism 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. Universality Ethics and International Relations introduces students to the key debates about ethics in international relations theory. Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. This principle is related to universalism. 135 0 obj Subsequently, some common factors and discrepancies between the two theories will be discussed. Many organizations focus on the letter of the law so that they can claim good faith in their effort to create an ethical environment. 0000004093 00000 n By definition, ethics in a business setup are norms that a given business organization has to adhere to in its daily business transactions. CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. endobj A result was enflamed widespread public protests from American youth and others. <>/MediaBox[0 0 612 792]/Parent 125 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> As an Amazon Associate we earn from qualifying purchases. Corporate Governance and Sarbanes-Oxley Act and Other Recent Reforms, 8. Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. A common description of utilitarianism is seeking the greatest good for the greatest number this is paraphrased from Jeremy Bentham, who developed Act Available at: A Framework for Making Ethical Decisions, 11. This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. What are major ethical principles that can be used by individuals and organizations? Basically, the possessor of good character is moral, acts morally, feels good, is happy, and flourishes. 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 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. One alternative is to put the humanities into business. These different cohorts of normative theories are often termed as rival ethical "Universalism and Utilitarianism: An Evaluation of Two Popular Moral Theories in Business Decision Making," On their list of values, corporate responsibility to the public is among the top ones. 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. Particularism, on the contrary, means that some people are more equal than others. Images. 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. Iss. 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. Mar 18, 2019 OpenStax. Can business ethics provide one? 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. Scandals. 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. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. 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?. 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. 1999-2023, Rice University. > GRILL3BB. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. Society and Business Anthology by Various Authors is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.