Dr.

Poonam Kaushal
Asst. Professor
IBS, IUD
 ETHICS
 Ethics is called “Ethicus” in Latin language and
“Ethicos” in Greek.

 This word has originated from “ethos” meaning

character or manners

 Ethics is thus said to be the source of morals; recognised

rules of conduct.
 Moral principles that govern a person's behaviour or the
conducting of an activity

 The branch of knowledge that deals with moral principles.

 Fundamental principles of decent human conduct. It

includes study of universal values such as the essential
equality of all men and women, human or natural rights,
obedience to the law of land, concern for health and safety
and, increasingly, also for the natural environment.
BUSINESS ETHICS

Business ethics (also corporate ethics) is a form of applied

ethics or professional ethics that examines ethical
principles and moral or ethical problems that arise in a
business environment.

It applies to all aspects of business conduct and is relevant

to the conduct of individuals and entire organizations
 According to Crane, "Business ethics is the study of
business situations, activities, and decisions where issues
of right and wrong are addressed.”

 Baumhart defines, "The ethics of business is the ethics

of responsibility. The business man must promise that he
will not harm knowingly."
 NATURE OF ETHICS

 Ethics is a subject that deals with human beings. Humans by their nature
are capable of judging between right and wrong, good and bad behaviour.

 There was an argument whether ethics is a science or an art. But experts

were of the opinion that ethics is more of science than an art. Because it
is a systematic knowledge about moral behaviour and conduct of human
beings.

 Ethics is a normative science. The term normative implies a guide or

control of action. So, normative ethics tells us what we ought to do.

 Ethics deals with human conduct that is voluntary and not formed by any
persons or circumstances.
 OBJECTIVES OF ETHICS

The primary objective is to define the highest good of man and set a
standard for the same.
Here, ethics deal with several interrelated and complex problems which
may be of psychological, legal, commercial, philosophical, sociological
and political in nature.

Ethics should be guided by virtues like:

 Truthfulness

 Accuracy

 Objectivity

 Impartiality

 Fairness

 Public accountability
 OBJECTIVES OF ETHICS CONTD..

 Ethics are a study of human behaviour. Makes evaluative assessment

about that as moral or immoral.
 Ethics establish moral standards/norms of behaviour.
 Ethics make judgment upon human behaviour based on these standards
and norms.
 Ethics prescribe moral behaviour, makes recommendations about how to
or how not to behave.
 Ethics expresses an opinion or attitude about human conduct in general.
 The very basic objective is to define the greatest good of man and
establish a standard for the same.
 Suggests moral behaviour and prescribes recommendations about dos
and don’ts.
UNDERSTANDING ETHICS

Presented By:
Dr. Poonam Kaushal
Assistant Professor
IBS, IUD
IMPORTANCE OF BUSINESS ETHICS

1
• Stop business malpractices

2
• Improve consumer confidence

3
• Survival of business

4
• Protecting consumers confidence

5
• Protecting employees, shareholders etc.

6
• Develops good relations b/w business and society

7 • Healthy competition

8 • Smooth business functioning

9 • Satisfaction
ETHICAL THEORIES
 Meta-ethics: about theoretical meaning and reference
of moral propositions and how their truth values (if any)
may be determined.

 Normative Ethics: about the practical means of

determining a moral course of action
 THREE DIFFERENT NORMATIVE THEORIES

1. Teleological theory

 Teleology finds its etymology in the Greek word ‘telos’ which

means “end” and logos, “science”.
 The teleological approach is also called “consequentialism”.
 It determines the moral worth of any action by the consequences or
outcomes of that action.

 An action is good if its consequences are good; an action is wrong

if its consequences are bad.
 Hence, for judging an action morally, we have to consider its
actual or likely results.
Egoism
an ethical theory that treats self-interest as the foundation of
morality.

Utilitarianism
the doctrine that an action is right in so far as it promotes
happiness, and that the greatest happiness of the greatest number
should be the guiding principle of conduct.

Altruism
disinterested and selfless concern for the well-being of others.
Altruism vs. Utilitarianism vs. Egoism: a comparison through an
(admittedly unrealistic) example

Three men, A, B, and C, are arrested and put in jail. None of the men have
committed a crime. They each know nothing about each other except for the
fact that they are all innocent.

A is pulled aside and given three choices:

1: He will be given one year in prison, B and C will each get ten years,
2: All three will each be given five years in prison, or
3: He will be given 20 years in prison, B and C will each get 1 year.

Assuming that external factors are ignored (the happiness of the men's
families, later consequences of each option, etc.), and that each man would
suffer equally from each year spent in prison,
Altruism would say to take #3, as he should live for others.
Utilitarianism would say to take #2, as that would minimize the amount of
overall suffering.
(Normative) Egoism would say to take #1, as that would minimize one's
own suffering.
 THREE DIFFERENT NORMATIVE THEORIES

2. Deontological theory: Focus on certain fundamental duties that have

as human being such as not committing murder or theft

 Duties to God
 Duties to self
 Duties to others
 THREE DIFFERENT NORMATIVE
THEORIES
 Virtue Theory: This theory emphasis character development rather than the
articulation of abstract moral principles that guide actions.

 Virtue are those dispositions of character which an individual considers to be

good.
 Applied Ethics: about how moral outcomes can be achieved in
specific situations.
Often deals with controversial moral issues such as abortion female
feticide etc.

 Descriptive Ethics: also known as comparative ethics, is the

study of people’s beliefs about morality
 Descriptive ethics: What do people think is right?
 Meta-ethics: What does "right" even mean?

 Normative (prescriptive) ethics: How should people act?

 Applied ethics: How do we take moral knowledge and

put it into practice?
 ETHICS OF JUSTICE

The ethics of justice constitutes an ethical perspective in

terms of which
 ethical decisions are made on the basis of universal
principles and rules,
 and in an impartial and verifiable manner with a view to
ensuring the fair and equitable treatment of all people.

The ethics of justice deals with moral choices through a

measure of rights of the people involved and chooses the
solution that seems to damage the fewest people
Kohlberg's theory of moral development
is a theory that focuses on how children
develop morality and moral reasoning.

Kohlberg's theory suggests that moral

development occurs in a series of six
stages within three different levels.

The theory also suggests that moral

logic is primarily focused on seeking
and maintaining justice.
Level 1 – Pre-conventional morality
Pre-conventional morality is the first stage of moral development, and lasts
until approximately age 9.

At the pre-conventional level children don’t have a personal code of morality,
and instead moral decisions are shaped by the standards of adults and the
consequences of following or breaking their rules.

• Stage 1. Obedience and Punishment Orientation.

The child/individual is good in order to avoid being punished. If a person
is punished, they must have done wrong.

• Stage 2. Individualism and Exchange.

At this stage, children recognize that there is not just one right view that is
handed down by the authorities. Different individuals have different
viewpoint
Level 2 - Conventional morality
Conventional morality is the second stage of moral development, and is
characterized by an acceptance of social rules concerning right and wrong.
At the conventional level (most adolescents and adults), we begin to internalize
the moral standards of valued adult role models.
Authority is internalized but not questioned, and reasoning is based on the
norms of the group to which the person belongs.
A social system that stresses the responsibilities of relationships as well as social
order is seen as desirable and must, therefore, influence our view of what is right
and wrong.

• Stage 3. Good Interpersonal Relationships.

The child/individual is good in order to be seen as being a good person by others.
Therefore, answers relate to the approval of others.

• Stage 4. Maintaining the Social Order.

The child/individual becomes aware of the wider rules of society, so judgments
concern obeying the rules in order to uphold the law and to avoid guilt.
Level 3 – Post-conventional morality
Post-conventional morality is the third stage of moral development,
and is characterized by an individuals’ understanding of universal
ethical principles. These are abstract and ill-defined, but might
include: the preservation of life at all costs, and the importance of
human dignity.
Individual judgment is based on self-chosen principles, and moral
reasoning is based on individual rights and justice. According to
Kohlberg this level of moral reasoning is as far as most people get.
Only 10-15% are capable of the kind of abstract thinking necessary
for stage 5 or 6 (post-conventional morality). That is to say, most
people take their moral views from those around them and only a
minority think through ethical principles for themselves.
• Stage 5. Social Contract and Individual Rights. The
child/individual becomes aware that while rules/laws might exist
for the good of the greatest number, there are times when they will
work against the interest of particular individuals. 
The issues are not always clear-cut. For example, in Heinz’s
dilemma, the protection of life is more important than breaking the
law against stealing.
• Stage 6. Universal Principles. People at this stage have
developed their own set of moral guidelines which may or may not
fit the law. The principles apply to everyone.
E.g., human rights, justice, and equality. The person will be
prepared to act to defend these principles even if it means going
against the rest of society in the process and having to pay the
consequences of disapproval and or imprisonment. Kohlberg
doubted few people reached this stage.
The famous story of dilemma, where a woman was suffering from a
terminal disease, and her husband, being unable to buy the only drug for his
wife, was left with no option but to steal the medicine, was used by
Gilligan in the case study involving two children Jake and Amy. The
question asked to them was; should the husband named Heinz, steal the
medicine, or see his wife dying without the medicine. Jake gave a straight
forward answer; Heinz should steal the medicine to save his wife. He
argued that value of human life is far more than that of the medicine. Jake’s
answer was clearly based upon rationality. He even challenged the law
against stealing as obstacle in the way of Heinz stealing the drug. Amy’s
answer to the same question put her one full stage lower than that of Jake,
as per Kohlberg’s criteria. Amy’s answer was unsure. She claimed that the
man should not steal the drug, but at the same time his wife also should not
die. Her argument was, should the man get caught while stealing would be
jailed, and there would be no one to take care of his ailing wife. She even
emphasised that Heinz should borrow money, negotiate on the price, to
arrange for the medicine. Gilligan argues that this difference in opinion
between Jake and Amy is due to the fact that Amy, unlike Jake, does not
see the problem through the prism of rationality, rather care and love.
Carol Gilligan based upon her ‘care of ethics’, developed a 3-
stage development model.
Stage 1- Pre-conventional stage: A girl-child’s morality is self-
and-others oriented, and she does what she thinks best for her to
do.
Stage 2 – Conventional stage: At this stage care for others
takes the front seat. Women at this stage develop sense of
respect for and responsibility to others, and also the element of
self-sacrifice gets rooted in their psyche.
Stage 3 – Post-conventional stage: At this stage women learn
and practice to equate personal needs with that of others, and
the focus shifts to dynamic relationship. In the later part of this
stage care does not remain confined to personal relationship, but
extends inter-personal relationship, like condemnation of
violence against and exploitation of human beings.
SUMMARY
(1) Kohlberg’s model is male centric, and does not give
complete picture of the process of moral development
of human beings. Gilligan challenged this and
constitutes separate model of women.
(2) Kohlberg’s theory is based upon rationality, duty,
impartiality, and universally accepted abstract principle
of justice. Gilligan’s model is based upon female
characteristics of care and relationship.
(3) Women as per Kohlberg’s model are inferior to men so
long as moral development is concerned. Gilligan made
this impression null & void by incorporating in her
model female traits of care and love.