Normative Ethical Theories in Business Ethics

Immanuel Kant- german philosopher and his work has been largely around epistemology aesthetics and
ethics and has had a profound influence on generations of philosophers.

Ethical Theory- the rules and principles that determine the right and wrong for any given situation and
does not necessarily tell us what we should or should not do it rather offers a perspective and helps
develop an enriched moral reasoning to approach ethical dilemmas

for business as an entity the ethical decision-making process is a challenging task because the decision-
making process has to deal with complex situations which pose ethical dilemmas and require
consideration of ethics in their relationship with their customers, products, services, employees and
government amongst others

business needs to adopt rational and well thought through arguments which will have broader consent
amongst its different stakeholders on issues such as those related to organizational strategy Human
Resources policies supply chain or corporate stance on corruption amongst others

ethical theories are broadly classified into two categories normative theories and descriptive theories
normative theories refer to the theories that point to expected ways of acting morally

descriptive theories refer to the real practice

two extreme positions in ethics

ethical absolutism points too dogmatic views which prescribe an objective viewpoint in making of right
or wrong decisions

ethical relativism states that context is an important factor in determining morality and therefore it is
subjective ethical relativism proposes two contrasting beliefs can be equally correct and in doing so
differs from descriptive relativism which claims that different cultures have different ethics

example: here of people taking the stance against abortion in euthanasia which can be considered
ethical absolutism given the judeo-christian belief that life is a sacred gift from God and therefore these
are wrong acts to do however ethical relativism believes that abortion is justified in case of rape or
danger to the life of the mother or that terminally sick people have the right to decide to end their lives

two categories of normative theories

teleological theories are further explained through egoism and utilitarianism

deontological theories account for Kantian Theory, ethics of Duty and ethics of Rights and justice

teleological theories are derived from the Greek word Telos which means goals

-are also referred as consequentialist theories which claim moral judgement is based on the intended
outcomes the aims or the goals of a certain action
ethical decision-making therefore is based on the outcome or the quality of the intended outcome
egoism the presupposition here is that a manager as a moral agent or the business person or the
organization will first try to safeguard their position and first preserve their own interest this theory
poses a number of problems as it creates conflicts and if in a given situation all the parties involve seek
to pursue their own interests solutions to issues can never be achieved

utilitarianism the presupposition here is that any action is permitted if the consequence leads to
maximum benefits and minimum harm it is based on the greatest happiness principle

deontological theory come from the word deonto (Greek) which means duty in Greek they are referred
to as non-consequentialist theories it states that means are more important than the outcome that is to
say the outcome is not of main concern but it is the duty or principles which drive a decision

three important component of non-consequentialist or deontological theory

they are kantian theory ethics of duty and ethics of right and justice

Kantian theory proposes its worth of a moral action should be based on the intention of the person
performing the decision

-offers categorical imperative which are maxim one Maxim two and Maxim three

Maxim one examines the dimension of consistency of an action it proposes that an action is right if
everyone can follow the same underlying principle in any similar situation however the question also is
that if everyone were to act in a similar way in comparable situations does that make it a universal law

Maxim two - examines the dimension of human dignity the understanding being that respect for human
dignity and individual freedom is maintained where people are not treated as means to the ends of
others

Maxim three it examines the dimension of universality in an attempt to all come the challenge of
subjectivity the maximum examines if the principle can be applied to or is acceptable to every human
being

the doodle of ethics has been criticized for being very complex undervaluing outcomes and for being too
optimistic

an important non-consequentialist approach is that of ethics of right and justice which is derived from
the works of the famous philosopher John Locke the principle states that some of the most important
rights are those of right to life, freedom right and property right which have also been extended to
include freedom of speech and entitlement to a fair legal process amongst others
Summary

Normative ethical theories in business ethics provide a framework for understanding right and wrong
decisions. This module explores the importance of ethical theory in business and introduces the
concepts of ethical absolutism, ethical relativism, teleological theories (egoism and utilitarianism), and
deontological theories (ethics of duty and ethics of rights and justice).

Highlights

📜 Normative ethical theories guide moral reasoning in business ethics.

🌍 Ethical theory helps businesses navigate complex ethical dilemmas.

🤝 Ethical decision-making requires consideration of stakeholders and broader consent.

Normative theories focus on expected ways of acting morally.

🌟 Ethical absolutism prescribes objective viewpoints, while ethical relativism considers context.

🚀 Teleological theories focus on intended outcomes, such as egoism and utilitarianism.

Deontological theories prioritize principles and duties, including ethics of duty and ethics of rights and
justice.

Key Insights

📜 Normative ethical theories provide a perspective and enrich moral reasoning in business ethics. They
offer a framework for decision-making in complex situations and help businesses consider ethics in their
relationships with stakeholders.

🌍 Ethical decision-making in business requires rational and well-thought-out arguments that can gain
broader consent from different stakeholders. It involves considering ethics in various aspects of the
organization, including strategy, HR policies, supply chain, and stance on corruption.
Ethical absolutism and ethical relativism represent two extreme positions in ethics. Ethical absolutism
prescribes objective viewpoints, while ethical relativism considers the importance of context in
determining morality.

🚀 Teleological theories, such as egoism and utilitarianism, focus on the intended outcomes of actions.
Egoism prioritizes self-interest, while utilitarianism aims for maximum benefits and minimum harm.

Deontological theories, including ethics of duty and ethics of rights and justice, prioritize principles and
duties rather than outcomes. They emphasize consistency, human dignity, and the universality of
principles.

🌟 Normative ethical theories help businesses navigate ethical dilemmas and guide decision-making based
on moral principles, intended outcomes, and consideration of stakeholders’ rights and justice. They
provide a foundation for ethical reasoning and decision-making in the business context.