Ethical reasoning 2

1
Ethical reasoning 2

• Consequentialism We can decide the right action
  (alternative, option, in a decision) by
  considering consequences, rather than just saying
  this is wrong, or intrinsically bad
• Consequences if we do this, then this is what
  will probably happen.
• ? What good and bad things count as consequences?
  Money, Happiness, Freedom Friendship, Life, Pain,
  Death?
• ? How likely are these consequences?
• ? Consequences for whom? The decision maker, the
  company, every person, the planet?

2
Ethical Egoism (and market) 2

• Ayn Rand USA famous book The Fountainhead.
  Milton Freidman and Alan Greenspan part of same
  group of thinkers
• You should decide what is ethically correct by
  considering consequences for self.
• This philosophical position is defensible using
  long term / strategic arguments If you really
  think about life consequences, you treat others
  with care and compassion, etc. The problem is
  short term, you can gain while harming others.
  In a dynamic mobile society this can become long
  term too fight dirtythen move on.

3
ethical egoism (cont.) 2

• In management decisions, ethical egoism is
  associated with hard-core profit maximisation by
  the firm (Since profits and sales growth are
  generally linked to managements self-interest).
  
• Many egoistic strategic decisions knowingly
  harm other companies, as part of the competitive
  game.
• It can be argued (very dubiously) that managers
  sometimes sacrifice their own interests for the
  sake of the shareholders, that is, they are being
  altruistic towards shareholders.
• We must distinguish ethical-egoism (should,
  normative) from psychological-egoism (is,
  empirical)

4
Utilitarianism Cost-Benefit Analysis 2 Mill
J Bentham

• We should decide by considering consequences for
  everyone.
• Cost Benefit Analysis (cf. Pinto) is based on
  this principle, with everything estimated in
  dollar terms (e.g. value of life from actuarial
  tables). Probabilities can be used.
• Very widely understood ethical principle. It
  seems scientific. It is used in government,
  public policy, because it provides a compelling
  justification for policies.
• BUT. (i) ignores minority rights (e.g. slavery)
• (ii) forecasts of consequences are very
  unreliable.
• (iii) What counts as a consequence?
• UTILIT. IS similar to the STAKEHOLDER model.
• UTILIT. IS NOT UTILITY MAX. or PROFIT MAX in a
  market of buyers and sellers

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Contractarianism (J. Rawls) 2

• Ethics and morals are based upon agreements
  amongst free persons (like a contract).
• Reflective thinking or deliberation is important.
  (i.e. agreement within each person)
• Pluralism
• Every situation requires the application of a
  mixture of these EDM approaches. Where
  prescriptions conflict some kind of balanced
  judgement is needed.

6
Deontology (Kant) 2

• Emphasis on duties and obligations (and to a
  lesser extent, rights).
• Non-consequentialist, intrinsic principles and
  rule. Especially the golden rule
• (i) act only according to a maxim that you would
  want to be universalised
• (ii) never treat others purely as means to an
  end, always partly as ends in themselves.
• First form conflicts with competition.
• Second form conflicts with human resources
  concept and the idea that managers treat
  employees solely as a means for profit.