Ethical Action
Ethical Actions in Business Environments
The ethical behavior of people who act in institutional roles, for instance as employees, managers, owners or workers, depends on several factors. The following diagram gives a simple overview:
"In the long run, though, ethical companies survive longer and perform better than their unethical or amoral counterparts. A growing body of research indicates that companies with a good reputation for ethical behavior can charge a premium in retail transactions and can lower their operating costs by streamlining arrangements with suppliers, vendors, and retailers." (Bowie, Norman E, and Schneider. 2011. Business Ethics for Dummies. Hoboken, NJ: Wiley.)
(Sourse: Trevino, L. K. (2010). Managing Business Ethics, 5th Edition(5th ed.). John Wiley & Sons, Inc. Page 20.)
Why be ethical?
Assuming that you accept the notion that business ethics can be taught, and that as current or future managers you have a role to play in creating an environment supportive of ethical conduct, you may still wonder why you should care about being ethical. As workers, we should care about ethics because most of us prefer to work for ethical organizations. We want to feel good about ourselves and the work we do.
As responsible citizens, we must care about the millions of people who lost houses, savings, and opportunities because of the greed of companies like AIG, Citigroup, Lehman Brothers, Merrill Lynch, and other financial firms, who almost brought down the global economy in 2008. We live in a world community, and we’re all inextricably connected to each other and to the environment that surrounds us. Our future depends on caring enough for each other.
Analyzing Decisions
The whole point of learning ethical theory is to understand and ask questions like the following when you are analyzing an ethically problematic situation or case:
What are the decision maker's motives?
Are the decision makers motives in accordance with justified ethical principles?
What duties should the decision-maker fulfill?
Can everyone consistently fulfill these duties?
Is the decision-maker treating anyone as a means rather than an end?
Does the decision-maker have any correlative duties arising from the general rights of others?
Does the decision-maker have any general rights that others must respect?
Does an obligation not to harm others limit the decision maker's liberty of action?
Does the decision-maker have any correlative duties arising from the specific rights of others?
Do any promises arise from contracts involving offers and acceptances?
Are these legal contracts ethically free and fair?
Do any promises arise from customary expectations and practices?
Would the decision to respect rights lead to unjust distributions or to utility reductions?