Professional Ethics &Principles of Ethical decision

making

11 Nov 2014

ETHICSEthics is a Branch of Philosophy concerned with the norms of Human conduct

Ordinary citizens have ethical responsibilities

Professional EthicsProfessional ethics is defined as the personal and corporate rules that govern behavior within the context of a particular profession.

Professionals have extra ethical responsibilities than the other Citizens

Principles of Ethical decision making

Principles of Ethical decision making

1.Ethical Relativism2.Utilitarianism3.Universalism4.Rights5.Justice

Ethical RelativismWhat is morally right for one society or culture may be not be perceived as right in another

No universal standards or rules can be used to guide the morality of an act.

The logic of ethical relativism extends cultural relativism.  As the saying goes, "When in Rome, do as the Romans do." 

A company owned by Islamic Management declare additional 1 day holiday for the day after Ramzan for their Employees & ask for compensation on a Sunday .(Provided condition 90% employees are Islam people , 10% from other religion & Saturday has a normal working day)

Example 1

Advantage• Flexibility.  Social norms and values are seen in a cultural context.

Business ImplicationsPeople doing business in a foreign country are obliged to follow that country's social values, norms, and customs (and laws, of course).

Example 2• Ethical issues of McDonalds in India

UtilitarianismAn action is judged as right or good depending upon its consequences.

The ends of an action justify the means used to reach those ends.  "The greatest good for the greatest number."

Advantage Practical, practicable, and especially useful when resources are fixed or scarce.

Business Implications Useful in business (and government) because resources are usually fixed and the "greatest good" is sometimes objective and quantifiable. This can facilitate (simplify) decision-making.

ExampleA pharmaceutical company may operate by the principle that it will release any  officially approved drug with some side effects as long as it helps more persons combat a particular disease than the number troubled by a minor side effect.

If the benefits are sufficiently great and the problems with the side effects sufficiently limited, then the action of the pharmaceutical company may be justified on act utilitarian grounds.

Universalism• A person should choose to act if and only if he or she would be willing to have every person on earth, in that same situation, act exactly that same way.

• There are no exceptions or qualifications.  Also, the action must respect all others, and treat people as ends, not means to an end.

Advantage   The interests of people are put first.  There are no exceptions, special situations, or shades of meaning .

Business Implications One only makes decisions as one would like to see all other businesses and cultures make that same decision--no exceptions

Example• Nike’s sweatshop.• Coca Cola Controversy in India

Human Rights• Individual rights mean entitlements at birth. 

• These entitlements usually include the right to life, liberty, health, dignity, and choice. 

• These rights are often, although not always, seen as being granted to individuals by God.  Rights can override utilitarian principles.

 

Advantage:  Human dignity and individual worth are always protected, because they are seen as the greatest good.

Business Implications Businesses tend to operate from a cost/benefit (utilitarian perspective).  But business executives should be aware that in many cases, and in many cultures, individual rights must also be taken into consideration. 

Example1.Shell Corporation states that among its core values is respect for the human rights of its employees including Good and safe working conditions

Competitive employment environment. 

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Example2.Apple's Code of Conduct for its smaller-sized suppliers targets the individuals that work for its suppliers and stipulates that Workers may not be subjected to discrimination based on race, sexual orientation or religion,

The workweek is limited to no more than 60 hours,

Employees must not be harassed and that child labor is strictly prohibited

Justice• The principle of justice deals with fairness and equality. 

• Benefits and opportunities -- as well as burdens -- are to be shared equally.

AdvantageMore easily codified into regulations and laws than some other ethical principles. 

Along with the Rights perspective this principle provides the foundation of many national laws.

Business ImplicationsEmphasis on equal opportunity for all has an impact on hiring and promotion decisions. 

The justice principle is usually written into law, and so has codified foundation.

This can be helpful when making business decisions in one's own country--or in a foreign land.

Example • LTC Residential Facility – Smoking Prohibition case.