Ethical Theories

Ethical Theories and Principles

• Utilitarianism: Focuses on maximizing happiness for the greatest number of people.
• Kantian Ethics: Requires actions to follow universal moral laws, treating people as ends, not means.
• Virtue Ethics: Emphasizes developing good character traits like honesty and courage.
• Ethical Egoism: States that actions are moral if they benefit the individual acting.
• Rawls’ Veil of Ignorance: A principle guiding decision-making that asks individuals to consider societal rules as if they didn't know their social position. The principle focuses on fairness and equality, allowing for inequalities that benefit the least advantaged.
• Stakeholder Theory: Prioritizes all affected groups equally, not just shareholders.
• Ethical Relativism: Suggests that morality depends on cultural or situational contexts.
• Rest's Model of Ethical Decision-Making: Includes stages of moral awareness, judgment, intent, and behavior.

Case Studies: Ethical Dilemmas and Corporate Responsibility

• Volkswagen "Dieselgate": Involved misleading emissions tests, violating Kantian ethics.
• Tide Pod Challenge: Highlighted corporate responsibility to design products minimizing harm and misuse.
• Purdue Pharma: Example of prioritizing shareholder profits over patient and community well-being.
• Tony's Chocolonely: Prioritized ethical sourcing and fair treatment of cocoa farmers.
• Jane Elliott's Blue Eyes/Brown Eyes experiment: Demonstrated the ease of discrimination based on arbitrary characteristics.
• Fair Trade Coffee: Worked to provide fair wages and treatment for farmers.
• Cambridge Analytica: Example of unethical data collection practices by Facebook.
• Procter & Gamble (Tide Pods): Took action to address potential risks by strengthening packaging and launching safety campaigns.
• WireCard: Illustrated the importance of ethical oversight and transparency.
• Italian Fashion Industry: Exemplified ethical issues around labor practices violating fairness and respect.
• Unilever Project Shakti: Worked to empower rural women entrepreneurs in India.
• Starbucks: Faced criticism due to labor violations and union-busting despite CSR initiatives.

Key Concepts and Applications

• Kantian Ethics and the Categorical Imperative: Emphasizes acting according to universally applicable rules. Key questions are to ensure actions could universally apply without issues or harm.
• Moral Intent: Prioritizing moral values over other competing interests.
• Greenwashing: Lying about environmental practices.
• Difference Principle: Inequalities are allowed only if they benefit the least advantaged.
• Veil of Ignorance: Making decisions as if one did not know one's position in society.
• Moral Awareness: Recognizing that a situation involves a moral issue.
• Moral Behavior: Acting on a moral decision.
• Main Criticism of Kantian Ethics in Business Practices: It can be too rigid and may not account for outcomes or contexts.
• Ethical Application: Different ethical theories lead to different business decisions (e.g., prioritizing profit vs. stakeholder benefit).