Ethical Theories Essay

It is vital for bank linees to empathize the importance of ethics in this slashing environment. Organizations that ar committed to long bourn success experience in and realize that creating a culture where h integrityst miens atomic number 18 rewarded and advance is the ultimate key to survival and growth. accord to Joseph 2003, barter ethics refers to clear standards and norms that suffice employees to distinguish sound from wrong behavior at l adder, while in the youthful(prenominal) hand h integrityst theories be theories that refer l shiting what is correct and wrong and doing the skillful thing but the f lay out that the proper(a) thing is non straight ship put ups in the subject of honourable dilemmas. usu exclusivelyy ethical theories goat be bem roled up into two separate groups, teleological and deontological. teleological theories look to the rightness of exercises and are determined by the substance of ethical consequences they train an d focussing on outcomes that are based on determinations. In teleological theories these actions are justified by the innoxiousness of what the actions achieve, rather than some feature of the actions themselves.In otherwise words, decisions that benefit the overall final stage and/or objective is collectively be perchved as a way to justify what is right or wrong. The philosophy of utilitarianism is angiotensin converting enzyme of the well-nigh commonly used and accepted ethical theories in the teleological group and is link to Jeremy Bentham and whoremonger S Mills. According to put out and Matten (2010) utilitarianism is defined as an action which is complete(a)ly right if it results in the sterling(prenominal) mensuration of good for the greatest amount of good deal affected by the action. This dogma focuses all on the consequences of an action and it weighs the good results against the bad results. It also encourages the action that results in the greatest a mount of good for all volume involved. Utilitarianism is very powerful in business since it puts at the centre of the virtuous decision a variable which measures the value of an action. Deontological by contrast to teleological, consequences are irrelevant when find what is right and wrong. Deontological possibility states that batch should bond to their obligations and duties when analyzing an ethical dilemma. This means that a somebody will follow his or her obligations to a nonher(prenominal) individual(a) or society because upholding ones art is what is considered ethically correct. For instance, a deontologist will always keep his promises to a friend and will follow the law.A person who follows this  opening will produce very consistent decisions since they will be based on the individuals set duties. Deontological ethical re importantss are have-to doe with with the nature of an action that is being judged, whereas teleological judges the consequences of the act rather than the act itself. Founded by Immanuel Kant, Kantian Ethics is the iconic representation of deontological theories. Kantianism emphasizes the regulations behind actions rather than an actions results. Acting rightly therefrom requires being cause by meet universal principles that treat everyone with respect. When youre motivated by the right principles, you overcome your fleshly instincts and act ethically. Until the great mass of the lot shall be filled with the mind of state for all(prenominal) others wel removede, affectionate rightness nooky never be attained (Helen Keller). John Rawls, an Ameri bottom object lesson and political philosopher, whose major work, A hypothesis of Justice, had a profound impact on ethics and political conjecture, believed there must(prenominal)(prenominal) be an alternative view of arbiter than the view of the Utilitarianism where the action that benefits the greatest is the best. Rawls believed that the principles of jus tice and legality among individuals must be fair.John Rawls, favorable justice theory seeks to urinate a society where the principles of justice and fairness are set asided and to ensure the protection of passable access to liberties, rights, and opportunities, as well as taking condole with of the least advantaged members of society. The imagination is based rough a social contract, which is the voluntary agreement among people with each a nonher and the governing which results in an form society. On the other hand, the philosophy of fair play ethics, which primarily deals with the ways in which a person should live, has puzzled philosophers from the beginning of epoch. recognised as one of the greatest philosophers in the world, Aristotle explains virtue as a fictitious flake trait that manifests itself in habitual action. This theory claims that virtues are traits of character that you must employ actively so that they become a part of you and shapes you into fair a virtuous ethical person. So when you are a virtuous person, you will backsheesh a prosperous fulfilled life. Since there are many contrasting interpretations regarding a tiny definition of virtue, Aristotle theory argues that the individual require practical scholarship, which is what a person ask in nightclub to live well.On the contradictory side there is Milton Friedman, who is know as one of the greatest and just about influential economists and open intellectuals in the world. He was a firm believer of free-market ceilingitalist economy which would in turn contribute and adequately administer wealth throughout the nation. hidebound economists, much(prenominal) as Milton Friedman, claim that business is most responsible when it pees profit efficiently, not when it misapplies its energy on social projects, Friedman determines that it is in the best interests for firms to maximize profits. With this Friedman is invoking a deontological, not consequentialist, th eory. A consequentialist reading Friedmans work would look to identify an ends justifies the means sense of reasoning. Friedman however rats clear the means of achieving the ends are important, as profits need to be maximized within the regulatory environment and master(prenominal) focus. Along the same steps as Friedman we have Friedrich Hayek, who follows the libertarianism theory. Libertarianism is a set of link political philosophies that uphold liberty as the highest political end.This includes emphasis the primary of individual liberty, political freedom, and voluntary association. This theory and Hayek assay that the market will take care of itself, the ideal market is self-regulating and it limits government intervention and/or involvement in the marketplace. Libertarianism expresses that people have certain born(p) rights and deprivation of those rights is immoral. The entitlement theory just exchangeable Hayek, also supports a market system with little to none govern ment intervention, this theory of justice is cognize by Robert Nozick. Nozicks entitlement theory is based on the next three principles one, a person who acquires a holding in accordance with the principle of justice in acquisition is empower to that holding second, a person who acquires a holding in accordance with the principle of justice in transfer, from someone else empower to the holding, is entitled to the holding and third, no one is entitled to a holding draw by repeated applications of 1 and 2 (Anarchy, State, and Utopia 1974, p.151). According to the entitlement theory, people should only birth what they are actually entitled to jibe to these principles. Many of these theories are seen throughout the casings from the script Ethics and the Conduct of Business by John R. Boatright. Case 3.2 Exporting befoulment is perfect theoretical account that includes different sights and insights into such(prenominal) theories.The slipperiness summarizes as follows, Rebbec a Wright, an assistant to the immorality president of environmental affairs at Americhem, savors the opportunity to apply her training to public policy analysis that her company faces. She is convinced(p) that cost-benefit analysis, her specialty, provides a rational decision- devising tool that cuts through personal feelings and lays bare the hard economical realities. Jim Donnelly, Rebeccas boss, started her with a draft of a memo that she thought would create a furor if it were ever made public. Jim is preparing a memo of where to establish the companys natural office of their chemical dress. The main problem is that atmospheric pollutants caused by the plant will produce a decided haze and some of the particles have been kn hold to cause colored cancer in a small portion of people exposed. Four main points about this location are further discussed of what would happen if this new plant opened. Milton Friedmans, Kant, and deontological ethics can be seen in this case. Friedmans perspective for this case would have Rebecca to follow her duties because this would be doing what would bring the most profits and doing what the stakeholders would want. For deontological and Kants perspective on the other hand, it whitethorn be argued both ways. Rebecca must follow her duties unheeding of the consequences she is working towards, because she has a specific duty she must perform. If she follows the rules she would benefit herself, the company, and all the stakeholders. At the time Kantian ethics quieten implies that one must follow moral law regardless of the consequences. So because this new plant may cause liver cancer and inflict pain on others, Rebecca can disagree with the companys decision on manufacturing the new plant. For this case, it depends on which side Rebecca wishes to stand as to what is ethical or not. Whether to support or not the construction of the new plant has ethical attributes with both benefits and consequences. Lavish Pay a t Harvard is another fount great example that applies to some of the theories explained. old salt R. Meyer, the head of Harvard Universitys $20 billion gift lineage was under pressure to change the fee plan for the funds top investment animal trainers due to the high amount of endowment the top five employees were receiving. A fewer Harvard alumni protested, their collective concern was that they thought the amount of money being nonrecreational to those ethnic music was obscene. The stipend of the endowment fund managers far exceeded the salaries of Harvard faculty member and administrators, including the president, who made around half a million dollars. Also, the 5% hike n tutorship for Harvard students in 2004 was equal to the $0 million paid to the two highest earners. Although Harvard has the largest university endowment, the salaries and bonuses paid to the managers greatly exceeded the compensation paid at any other check. In response to the critics, Mr. Mey er noted that the alumni failed to recognize that the amount of bonuses paid does not add up to the value they are self-aggrandising the university.The schools large endowment was used in many ways to benefit students such as the coverage of 72% financial aid for undergraduate students, no tuition for families earning less than $60,0000, and it also enable the school to increase the faculty in exploitation areas and to expand facilities. In the end, Harvard decided to cap the compensation of fund managers. The result was that diddlysquat Meyer and his team of managers left to start their own investment companies, at which many could earn 10 times than they did at Harvard. Teleological and Utilitarianism theories are two great theories that can be applied to this case. With both of these theories we can argue that the amount of money that was being used to pay these managers/employees was a commonsensible pay due to what they were giving cover to the college. Millions of student s and faculty were benefiting from Mr. Meyer and his team, which thats the main focus on both of these theories actions are right if they are useful or are for the benefit of the majority and the end justifies the means. Although they were acquire paid large amounts of money their reward on the student population had a higher impact. Some of Nozicks touch sensations can be seen in Case 3.4 A bowling piny Situation. Kent Graham is an account manager for Dura-Stick Label Products, which has a well-deserved reputation for quality, adept knowledge, and service that enables the company to command a premium price for its products in a very competitive market.Kent has been with Dura Stick for 2 years and his accomplishments have been outlet downhill and fears his time with company may end leaving his wife and children to provide for. Kent calls Jack Olson at Spray-On Inc. about get a large account. Jack informs Kent of a new product of theirs they would need labels for, which Jack p romises they can do. Although, Kent later finds out Dura-Stick cannot make the desired products so must use another company and mark up the prices so Dura-Stick can still make profit. Kent uses the companys image as leverage to convince Jack to take the deal. This situation can be argued in different ways for Kent and Dura Stick. Kent knows that he has to land a big time account and he knows he must do so in order to provide for his family. Though he does lie to customer, he isnt doing anything illegal. Nozicks belief of just acquisition is an excellent example in this situation. As long as the seller had rightful ownership, the transaction is just and proper, but if not, then possession is not proper and victims have to be compensated or transaction undone.In contradictive of Nozick, Aristotles theory of virtue would argue that this case is exactly what a person with virtuous ethics shouldnt do. Virtues are traits of character that you must practice actively so that they becom e a part of you and shapes you into becoming a virtuous ethical person. Because of his actions, Kent is place in jeopardy his honesty, loyalty, self-control virtues, shaping him in the wrong ethical approach. These theories emphasize different aspects of an ethical dilemma and lead to the most ethically correct cloture according to the guidelines within the ethical theory itself. People can use these theories and the wisdom of these philosophers to determine what is ethical and what is not. Though all decisions have their advantages and disadvantages, by applying this knowledge one can come closer to making the right ethical decision.