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Crane and Matten: Business Ethics (3rd Edition)
Crane and Matten: Business Ethics (3rd Edition)
Overview
Locate the role of ethical theory
Highlight international differences in
perspectives
Provide critical overview of traditional ethical
theories
Explore contemporary ethical theories
Action
Outcomes
Non-consequentialist Ethics
Consequentialist Ethics
Source: Crane and Matten (2010)
Utilitarianism
Ethics of duties
Contributors
Adam Smith
Jeremy Bentham
John Stuart Mill
Immanuel Kant
John Locke
John Rawls
Focus
Individual desires or
interests
Collective welfare
Duties
Rights
Rules
Maximization of
desires/self interest
Act/rule utilitarianism
Categorical
imperative
Concept of
human
beings
Man is controlled by
avoidance of pain and
gain of pleasure
(hedonist)
Man is a rational
moral actor
Type
Consequentialist
Consequentialist
Non-consequentialist
Non-consequentialist
Egoism
Theory of egoism - an action is morally right
if the decision-maker freely decides an action
to pursue either their (short-term) desires or
their (long-term) interests.
Adam Smith (1793): pursuit of individual interest
morally acceptable as invisible hand of market
creates benefit for all
Relies on free competition and good information
Enlightened egoism
However, markets do not function perfectly
Anti-globalisation movement
Sustainability debate
Utilitarianism
According to utilitarianism, an action is
morally right if it results in the greatest
amount of good for the greatest number of
people affected by the action
Also called the greatest happiness principle
Based on cost-benefit analysis
Rule utilitarianism
looks at classes of action and ask whether the
underlying principles of an action produce more
pleasure than pain for society in the long run.
Ethics of duties
Categorical Imperative (Kant)
Maxim 1: Consistency
Act only according to that maxim by which you can at the same
time will that it should become a universal law.
Maxim 3: Universality
Act only so that the will through its maxims could regard itself at the
same time as universally lawgiving (would others agree? Would
you be happy to see your decision reported in the press?)
Justice
The simultaneously fair treatment of individuals in a
given situation with the result that everybody gets
what they deserve
Fair procedures (procedural justice)
Fair outcomes (distributive justice)
John Rawlss
Theory of Justice
1. Each person is to have an equal right to the
most extensive total system of basic
liberties compatible with a similar system of
liberty for all.
2. Social and economic inequalities are to be
arranged so that they are both:
a. to the greatest benefit of the least advantaged;
b. attached to offices and positions open to all under
conditions of fair equality of opportunity.
Too abstract
Too reductionist
Too objective and elitist
Too impersonal
Too rational and codified
Too imperialist
Acquired traits
Intellectual virtues
Moral virtues
Key elements
Relationships
Decisions taken in context of personal human interrelations
Responsibility
Active taking of responsibility, rather than merely having it
Experience
Learn and develop from experience
Key elements
Ultimate goal of ethical issues in business should be
the peaceful settlement of conflicts
Different parties in a conflict should sit together and
engage in a discourse about the settlement of the
conflict, and ultimately provide a situation that is
acceptable to all
ideal discourse criteria
Holistic approach
Examples rather than principles
Think local, act local
Preliminary character
Summary
Towards a pragmatic use of ethical
theory
Typical Perspective
Ethical
Dilemma
Pluralistic Perspective
Pluralism?
Crane and Matten (2010) argue that for the
practical purpose of making effective decisions in
business:
Not suggest one theory or one approach as the best or
true view of a moral dilemma
Suggest that all these theoretical approaches throw light
from different angles on one and same problem
Complementary rather than mutually exclusive
Theory