Ethics Theories: A Deeper Understanding PDF

**Ethics Theories: A Deeper Understanding** The field of ethics explores the moral principles that govern human behavior. There are three dominant normative ethical theories that help guide moral decision-making: **Utilitarianism**, **Deontological Ethics**, and **Virtue Ethics**. Each of these app...

**Ethics Theories: A Deeper Understanding** The field of ethics explores the moral principles that govern human behavior. There are three dominant normative ethical theories that help guide moral decision-making: **Utilitarianism**, **Deontological Ethics**, and **Virtue Ethics**. Each of these approaches offers a different perspective on how to assess whether actions are right or wrong. Let\'s break down each theory with additional context and examples. **Utilitarianism: A Consequentialist Approach** **Utilitarianism** is a consequentialist ethical theory that argues the morality of an action depends entirely on its consequences. The goal is to maximize happiness or pleasure and minimize pain or suffering for the greatest number of people. **Key Philosophers and Concepts:** 1. **Jeremy Bentham (1748--1832)**: - Bentham famously said, *"Nature has placed mankind under the governance of two sovereign masters; pain and pleasure."* This suggests that our actions should be judged based on how much happiness or pain they produce. - **Principle of Utility**: The idea that the right action is the one that maximizes overall happiness or well-being for the greatest number of people. 2. **John Stuart Mill (1806--1873)**: - Mill expanded on Bentham\'s ideas by emphasizing **quality** as well as quantity of happiness. He argued that intellectual and emotional pleasures are of a higher order than physical or indulgent pleasures. For instance, *\"It is better to be a human being dissatisfied than a pig satisfied.\"* Mill recognized that some pleasures (like intellectual pursuits) are more valuable than others (like mere physical gratification). - **Harm Principle**: Mill also contributed to the development of the **harm principle**, which states that the only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others. **Key Features of Utilitarianism:** - **Consequences Matter**: The morality of an action is determined by its outcomes. - **The Principle of Utility**: Actions are judged based on how much happiness or utility they generate. - **Happiness is Quantifiable**: Utilitarianism seeks to maximize the total happiness of all affected individuals. **How Utilitarianism is Applied:** - In **business**: Utilitarianism can help guide decisions that aim to maximize overall satisfaction. For example, a business decision might weigh the benefits of a new product against its costs to determine if the overall happiness (customer satisfaction, economic benefit) outweighs the harm (environmental impact, worker exploitation). - **The Trolley Problem**: A classic moral dilemma where a person must decide whether to sacrifice one life to save five others. From a utilitarian perspective, pulling the lever to redirect the trolley, killing one but saving five, would be the morally right choice, as it maximizes overall happiness. **Criticisms of Utilitarianism:** - **Predicting Consequences**: It\'s often impossible to predict all consequences accurately, especially in complex, real-world scenarios. - **Injustice**: Utilitarianism can justify morally questionable actions if they lead to a greater overall good (e.g., sacrificing a few individuals for the benefit of the many). - **Neglecting Minority Rights**: It may overlook the rights and well-being of minority groups if their suffering is outweighed by the benefits to the majority. - **Subjectivity**: The evaluation of happiness or well-being is subjective and may vary across cultures or individuals. **Example of Utilitarianism Gone Wrong:** - **Guatemala Syphilis Experiment (1946--1948)**: U.S. doctors intentionally infected over 700 Guatemalans with syphilis to test penicillin's effectiveness, resulting in 83 deaths. The decision was justified by the utilitarian belief that the long-term benefit (scientific knowledge) outweighed the harm caused. **Deontological Ethics: A Duty-Based Approach** **Deontological Ethics** (from the Greek word *deon*, meaning \"duty\") focuses on following moral rules or principles, regardless of the consequences. The rightness of an action is determined by whether it aligns with a duty or rule, not by the outcome. **Key Philosopher: Immanuel Kant (1724--1804)** - Kant emphasized that morality is based on rational principles, which are universally binding. - Kant's **Categorical Imperative** is central to his theory, and it posits that actions must be guided by principles that can be universally applied. For example, you should act only in ways that you would want everyone else to act in similar situations. **Key Features of Deontological Ethics:** - **Duty and Rules**: Actions are morally right if they align with universal rules or duties, independent of the outcome. - **Intrinsic Value of Actions**: The moral worth of an action is based on whether it is performed out of a sense of duty, not for personal gain. - **Respect for Persons**: People should not be treated as mere means to an end. Every individual has inherent dignity and deserves to be treated with respect. **The Categorical Imperative:** Kant's central ethical commandment is: *"Act only according to that maxim by which you can at the same time will that it should become a universal law."* This means that before taking an action, one should ask whether it would be morally acceptable if everyone else did the same thing. **Example:** - **Lying to Save a Life**: If a murderer asks you where his intended victim is hiding, Kant would argue that you cannot lie, even if lying might save a life. To do so would be to violate the categorical imperative, as lying cannot be universally applied as a moral rule. **Criticisms of Deontological Ethics:** - **Rigidity**: Deontological ethics can be inflexible and may require one to perform actions that lead to negative outcomes because they adhere to a rule (e.g., not lying, even to save lives). - **Conflict of Duties**: It doesn\'t always provide clear guidance when duties conflict (e.g., when to prioritize telling the truth over protecting someone's life). - **No Consideration of Consequences**: It ignores the real-world outcomes of actions, which can sometimes lead to harmful results. **Virtue Ethics: Focus on Character and Integrity** Virtue Ethics, rooted in **Aristotelian philosophy**, focuses on the moral character of the individual rather than the morality of specific actions. According to Virtue Ethics, being a good person is about cultivating virtues---traits like courage, kindness, and honesty---and acting in ways that reflect these virtues. **Key Philosopher: Aristotle (384--322 BC)** - In **Nicomachean Ethics**, Aristotle argues that to live a good life, one must develop virtues that help individuals flourish (a concept known as **eudaimonia** or flourishing). - Virtue Ethics emphasizes the **moral agent** over the action, asking questions like *What kind of person am I becoming by acting in this way?* **Key Features of Virtue Ethics:** - **Focus on Character**: Ethical decisions stem from a person\'s character, motivations, and intentions rather than specific outcomes or rules. - **The Golden Mean**: Virtue lies between extremes (e.g., courage is the balance between recklessness and cowardice). - **Moral Development**: Virtue is cultivated through practice and habituation. The more virtuous acts a person performs, the more virtuous they become. **Criticisms of Virtue Ethics:** - **Lack of Clear Guidance**: Virtue Ethics doesn\'t provide concrete rules for action, which can make it difficult to apply in specific ethical dilemmas. - **Cultural Relativity**: Different cultures may have different views on what constitutes virtue, leading to potential disagreements about what constitutes a \"good\" life. **Comparing Utilitarianism, Deontology, and Virtue Ethics** **Theory** **Focus** **Key Question** **Strengths** **Weaknesses** -------------------- ----------------------------------------------------------- ----------------------------------------------------------- -------------------------------------------------------------- ----------------------------------------------------------------- **Utilitarianism** Consequences (Greatest happiness for the greatest number) What action will maximize happiness? Simple and intuitive; democratic; practical in many contexts Ignores rights of minorities; difficult to predict consequences **Deontology** Duty and principles (Categorical Imperative) What is the right thing to do, regardless of the outcome? Universal application; respects individual rights Rigid; ignores consequences; can be inflexible **Virtue Ethics** Character and integrity What kind of person should I be? Focuses on moral development; emphasizes character Vague guidance for action; cultural relativism **Business Applications: Ethics in Action** 1. **Utilitarianism in Business**: Businesses often use cost-benefit analysis to decide on projects or policies. For example, the **Philip Morris Economic Impact Study** in 2000 aimed to measure the net economic impact of smoking on the Czech economy. A utilitarian approach could support smoking for its tax revenue but overlook the public health consequences. 2. **Deontological Ethics in Business**: Deontological ethics might guide a company to always be transparent with stakeholders, even if it results in a loss of profit, because honesty is a duty. A multinational corporation might establish a **code of conduct** to ensure that its employees follow moral principles, even in competitive business environments. 3. **Virtue Ethics in Business**: A company that prioritizes ethical leadership, integrity, and corporate responsibility (virtues) may foster a more ethical workplace culture, where decisions are made with the intention to contribute positively to society, rather than just maximizing profit. **Virtue Ethics: Focus on Character, Not Just Actions** Virtue ethics focuses on cultivating good character and becoming a virtuous person rather than merely following rules or calculating consequences. It is concerned with what kind of person we should be, rather than prescribing specific actions we should take. The key questions in virtue ethics, as proposed by modern philosopher **Alasdair MacIntyre**, are: 1. **Who am I?** 2. **Who ought I become?** 3. **What steps ought I take to become that person?** These questions shift the focus from \"What should I do?\" (a question that implies a rule-based or consequence-based approach) to \"What kind of person should I be?\" which is at the heart of **virtue ethics**. **What Are Virtues?** Virtues are **traits of character** that distinguish individuals as acting in noble or morally excellent ways. Virtue ethics stresses that moral virtues (like honesty, courage, and generosity) are not innate; they are **acquired through habit** and **practice**. Over time, virtuous behavior becomes second nature, enabling individuals to live moral lives. Some examples of virtues include: - **Courage**: The ability to face fear or adversity. - **Prudence**: Wisdom or practical judgment in decision-making. - **Temperance**: Self-control, particularly in matters of indulgence. - **Honesty**: Truthfulness and transparency. - **Justice**: Fairness in distributing resources or treatment. - **Empathy**: Understanding and sharing the feelings of others. - **Generosity**: Willingness to give to others. A **virtuous person** is one who, over time, naturally performs actions that align with these virtues, because they are ingrained in their character. **Types of Virtues: Moral vs. Intellectual** Aristotle distinguishes between **moral virtues** and **intellectual virtues**: - **Moral virtues**: These are traits of character like courage, honesty, and generosity, which arise through practice and habit. For example, a person who is truly courageous does not have to fight their natural inclinations when faced with danger; courage has become second nature. - **Intellectual virtues**: These include wisdom, knowledge, and practical judgment (phronesis). Intellectual virtues guide a person's ability to reason and make sound decisions. Both moral and intellectual virtues are necessary for a well-lived life. **The Golden Mean: Balance Between Extremes** The **Golden Mean** is a central concept in virtue ethics, suggesting that moral virtue lies between the extremes of excess and deficiency. To display a virtue, one must find the **balance** between two vices (extremes) that represent excess or deficiency. For example: - **Courage** lies between **cowardice** (deficiency) and **foolhardiness** (excess). - **Generosity** lies between **stinginess** (deficiency) and **wastefulness** (excess). The Golden Mean is a way of thinking about how to cultivate a balanced emotional response, making moral decisions based on the middle ground rather than extremes. **Difference from Other Ethical Theories** Unlike **deontological ethics** (which focuses on following rules) or **utilitarianism** (which emphasizes outcomes or consequences), **virtue ethics** focuses on what a virtuous person would do. It does not simply ask \"What should I do?\" (as deontology or utilitarianism would), but rather \"What kind of person should I be?\" **Example**: - A **lie** is wrong not because it has negative consequences or violates a rule, but because **an honest, virtuous person**would not lie. Virtue ethics emphasizes moral character rather than the rules or outcomes alone. **Benefits of Virtue Ethics** - **Flexibility**: Virtue ethics does not apply an inflexible rule that must be followed in all situations. It allows for nuanced decision-making based on the context and the person involved. - **Focus on Character**: It helps cultivate good character traits, which ultimately benefits society and social harmony. - **Practical Wisdom**: It emphasizes the importance of **practical wisdom** (phronesis), the ability to make wise decisions based on experience and reflection. - **Improvement Over Time**: Virtue ethics encourages continual **self-improvement**, developing habits of virtue through practice. **Criticisms of Virtue Ethics** 1. **Lack of Specific Guidance**: Virtue ethics does not always provide clear instructions on what specific actions are right or wrong in particular situations. It leaves room for interpretation and can be seen as vague. 2. **Prioritization of Virtues**: Virtue ethics doesn't tell us which virtues should take precedence when virtues conflict, leaving a degree of ambiguity. 3. **Not a Guarantee of Happiness**: Being virtuous does not necessarily guarantee that a person will lead a happy life. Other factors, such as luck or external circumstances, also play a role in overall well-being. 4. **Varied Circumstances**: The ability to cultivate virtue depends on personal circumstances. Some people may be more fortunate and have the resources or guidance to develop virtues, while others may lack these opportunities, making moral development more difficult. **Ethical Decision-Making: A Psychological Approach** While philosophical ethics prescribes how we should act, the **psychological descriptive approach** seeks to understand **how we actually think and behave** in ethical situations. This approach arose from research showing that people often act in ways that are not entirely rational or ethical. **The Ethical Decision-Making Process (Trevino & Nelson, 2011)** The process of making ethical decisions involves three stages: 1. **Ethical Awareness**: Recognizing that a situation involves ethical issues. 2. **Ethical Judgment**: Deciding what the morally right course of action is. 3. **Ethical Behavior**: Acting on the ethical judgment. **Factors Influencing Ethical Awareness** Individual differences play a significant role in how we perceive and respond to ethical dilemmas. These differences can include: - **Cognitive moral development**: How developed a person\'s moral reasoning is. - **Machiavellianism**: A tendency to manipulate others for personal gain. - **Moral disengagement**: The ability to justify unethical actions. **Cognitive Moral Development (Kohlberg)** Lawrence Kohlberg\'s **cognitive moral development theory** explains how people progress through stages of moral reasoning: 1. **Preconventional Level**: Moral decisions are driven by self-interest. Individuals at this stage may think, \"What's in it for me?\" - **Stage 1**: Obedience and punishment orientation. - **Stage 2**: Instrumental purpose and exchange. 2. **Conventional Level**: Moral decisions are guided by societal norms and laws. People look to others for guidance. - **Stage 3**: Interpersonal accord, conformity, and mutual expectations. - **Stage 4**: Social system and law maintenance. 3. **Postconventional Level**: Moral decisions are based on abstract ethical principles such as justice and rights. - **Stage 5**: Social contract and individual rights. - **Stage 6**: Universal ethical principles. **Machiavellianism** **Machiavellianism** refers to a personality trait associated with self-interest and manipulativeness. Individuals with high Machiavellian traits often prioritize personal gain over ethical considerations, believing \"the ends justify the means.\" **Cognitive Biases and Ethical Decision-Making** Human decision-making is prone to **biases** that can distort our ethical reasoning: - **Confirmation bias**: Tendency to seek information that supports our pre-existing beliefs. - **Framing bias**: The way information is presented influences our decisions. - **Anchoring bias**: The tendency to rely too heavily on the first piece of information encountered. Understanding these biases can help individuals make more rational and ethical decisions. **Locus of Control** **Locus of control** refers to the degree to which individuals believe they have control over events in their lives. People with a high **internal locus of control** believe that their actions determine outcomes, while those with a high **external locus of control** attribute outcomes to luck or external forces. Individuals with an internal locus of control are more likely to take responsibility for their actions and make ethical choices. ### **Short Questions and Answers on Ethics Theories:** ### **Utilitarianism: A Consequentialist Approach** 1. **What is the central idea of Utilitarianism?** - **Answer:** Utilitarianism argues that the morality of an action depends entirely on its consequences, aiming to maximize happiness and minimize pain for the greatest number of people. 2. **Who are the key philosophers associated with Utilitarianism?** - **Answer:** Jeremy Bentham and John Stuart Mill. 3. **What is the \"Principle of Utility\"?** - **Answer:** It states that the right action is the one that maximizes overall happiness or well-being for the greatest number of people. 4. **What is the Harm Principle by John Stuart Mill?** - **Answer:** It asserts that the only reason for exercising power over an individual against their will is to prevent harm to others. 5. **How is Utilitarianism applied in business?** - **Answer:** Businesses may use Utilitarianism to weigh the benefits of a project against its costs, ensuring that the overall happiness (customer satisfaction, economic benefit) outweighs the harm (e.g., environmental impact). 6. **What is a criticism of Utilitarianism?** - **Answer:** It can justify morally questionable actions if they lead to a greater overall good, such as sacrificing individual rights for the benefit of the majority. ### **Deontological Ethics: A Duty-Based Approach** 7. **What does Deontological Ethics emphasize?** - **Answer:** Deontological Ethics emphasizes following moral rules or principles regardless of the consequences. 8. **Who is the main philosopher associated with Deontological Ethics?** - **Answer:** Immanuel Kant. 9. **What is the Categorical Imperative?** - **Answer:** It is Kant\'s principle that actions must be guided by rules that can be universally applied. Before acting, one should ask, \"Can I will this action to be a universal law?\" 10. **How does Deontological Ethics apply to the scenario of lying to save a life?** - **Answer:** Kant would argue that lying is wrong even to save a life because lying cannot be universally applied as a moral rule. 11. **What is a criticism of Deontological Ethics?** - **Answer:** Deontological ethics can be inflexible, requiring actions that may lead to negative outcomes just to adhere to a rule. ### **Virtue Ethics: Focus on Character and Integrity** 12. **What is the core focus of Virtue Ethics?** - **Answer:** Virtue Ethics focuses on cultivating good character and moral virtues rather than merely following rules or calculating consequences. 13. **Who is the key philosopher associated with Virtue Ethics?** - **Answer:** Aristotle. 14. **What are virtues in the context of Virtue Ethics?** - **Answer:** Virtues are traits of character, such as honesty, courage, and kindness, that help individuals live a moral life. They are cultivated through habit and practice. 15. **What is the Golden Mean in Virtue Ethics?** - **Answer:** The Golden Mean is the idea that moral virtue lies between extremes (e.g., courage is the balance between cowardice and foolhardiness). 16. **What is a criticism of Virtue Ethics?** - **Answer:** Virtue Ethics lacks clear guidance for action in specific situations and is often culturally relative. ### **Comparing the Three Ethical Theories** 17. **How do Utilitarianism, Deontology, and Virtue Ethics differ in their approach to ethics?** - **Answer:** - Utilitarianism focuses on maximizing happiness and minimizing suffering (consequences). - Deontology focuses on following moral duties and rules (principles). - Virtue Ethics focuses on developing good character and virtues (moral agent). 18. **What is a strength of Utilitarianism?** - **Answer:** It is simple, democratic, and practical in many contexts, aiming to maximize overall happiness. 19. **What is a strength of Deontology?** - **Answer:** It provides clear moral rules and respects individual rights, offering universal application. 20. **What is a strength of Virtue Ethics?** - **Answer:** It emphasizes moral development and character-building, fostering long-term ethical behavior. ### **Business Applications of Ethics** 21. **How does Utilitarianism apply in business decision-making?** - **Answer:** Businesses may apply Utilitarianism by conducting a cost-benefit analysis to ensure that decisions maximize overall satisfaction or utility. 22. **How does Deontological Ethics apply in business?** - **Answer:** A company may follow a code of conduct that emphasizes honesty and transparency, even if it results in lower profits. 23. **How does Virtue Ethics apply in business?** - **Answer:** Companies might prioritize ethical leadership and integrity, fostering a workplace culture focused on virtues like honesty and corporate responsibility. ### **Ethical Decision-Making: A Psychological Approach** 24. **What are the three stages of the Ethical Decision-Making Process?** - **Answer:** Ethical Awareness, Ethical Judgment, and Ethical Behavior. 25. **What is Cognitive Moral Development?** - **Answer:** It is a theory by Lawrence Kohlberg that explains how individuals progress through stages of moral reasoning from self-interest to abstract ethical principles. 26. **What is Machiavellianism?** - **Answer:** It is a personality trait characterized by manipulation, self-interest, and opportunism, often associated with unethical behavior. 27. **What are Cognitive Biases in ethical decision-making?** - **Answer:** Cognitive biases, such as confirmation bias and framing bias, can distort ethical reasoning by influencing decision-makers to rely on preconceived notions or misleading information. 28. **What is the difference between an Internal and External Locus of Control?** - **Answer:** Individuals with an internal locus of control believe they control their outcomes through their actions, while those with an external locus of control attribute outcomes to luck or external factors. 29. **How does Locus of Control influence ethical decision-making?** - **Answer:** People with a high internal locus of control are more likely to take responsibility for their actions and make ethical decisions, while those with a high external locus may be more prone to unethical behavior. Aidan Barry was delighted when his good friend and Chief Executive of the Building Society, Joe Stacy, asked him to join the Board as a non-executive director seven years ago. Things have changed a lot since then and although everyone on the Board is paid well and gets on well with each other, Aidan is feeling increasingly stressed. The bank has adopted an aggressive growth strategy which has proven very profitable. This has resulted in director salaries increasing twofold in the last five years in line with increases in the loan book. Aidan is a qualified accountant but does not have any banking experience. Lately, he is growing increasingly concerned about the financial statements due to significant growth in loans and a corresponding fall in the level of bank deposits. This concern was heightened when he heard a rumour that some of the loans were to property developers who had provided little or no security for their loans. Aidan tried to discuss this with the Chairwoman Sue Parker but she did not share his concerns. Aidan recalled rumours that Sue and Joe were having an affair and wondered was this true as they often flew abroad for business trips together and seemed to have a particularly close working relationship. He contacted the Company Secretary to get the issue of increasing risk levels on the agenda but was disappointed to see that it was not listed for discussion when he received the agenda along with over 200 pages of Board papers, two days before the Board meeting. He decided he would raise the matter at the meeting regardless. At the next board meeting, Aidan was surprised to learn that the other two non-executive directors were not in attendance but sent their apologies as they had other personal engagements. Aidan brought up the issue of the growing disparity between bank deposits and loans and expressed concern that it deviated from the bank's risk appetite statement. Joe reacted quite aggressively: 'This bank has had 20% growth in profits year on year for the last five years and you are concerned. We are doing what every other bank out there is doing and you want us to stop?' Aidan could see he was being left out in the cold with no support from the other board members and decided to leave it; Joe knew more about the banking situation than he did and maybe he was right. The next day, Aidan reviewed the minutes of the meeting and there was no mention of his concerns. The following week, Aidan attended an Audit committee and was alarmed to discover that the Chief Executive has arranged for €4 billion to be transferred in from another bank to coincide with the financial year end in a month's time and that these funds are to be transferred back the following week. The Chair of the Audit committee, Paul Tuohy, tells Aidan that the Chief Risk Officer has been dismissed and that no one is sure what is going on. Aidan asked was there a code of ethics that he could review but Paul tells him that it was written up by consultants and that he should be able to access it on the bank's website. Requirement:\ (a) Identify the key corporate governance issues at Leinster Building Society. 1.Aidan is a good friend of CEO and joined 7 years ago- does independence still exist? 2.Everyone of the board is paid well and get along very well? -- This can be a cause for concern as there is no sense of independence. 3.Directors salaries are being increased in line with increases in the loan book? This is not good governance practice why? Directors salaries increase should be based on performance and increase in the loan book is not the best performance indicator. 4.Aidan has no banking experience himself- he may not fully understand the operations of the business, how does a bank run. This is why he was unable to raise his concern properly in the Board meeting. 5.He has a concern that loans are increasing and bank deposits are decreasing- This is being ignored which it shouldn't be as it is big red flag in the banking sector. 6.No security provided on loans- are all members of the board aware of this. Will the bank be able to retrieve these loans. 7.Chairman and CEO close relationship- this is not good corporate governance as the chairman should be able to challenge the decisions made by the CEO and being close friends can reduce the chances of this. 8.200 pages of Board papers? Does anybody read this. 9.Risk is not mentioned on the agenda 10.NED's should attend the board meetings- that is their purpose 11\. Issue ignored and no mention of it in the Board meeting minutes. 12.€4 billion transfer is highly unethical and deceiving. It will mislead the shareholders into believing that Building Society has these funds. 13\. Risk Officer was dismissed maybe because he did not agree with the €4 billion transfer. 14\. Codes of ethics are present, which is a good, but only seem to be on the website in order to tick the box. They are not implemented and are not followed. \(b) Discuss Aidan's role and responsibilities as a non-executive director. - aid to bring objective, balanced and independent perspective to the Board. - Not involved in day to day running of the company and therefore can view issues from a - Less likely to have conflicts of interest - Not affected by internal politics so can challenge executive directors proposals - Should be able to Challenge the Executive Directors Non-executive directors should have sufficient time to meet their board responsibilities. They should provide constructive challenge, strategic guidance, offer specialist advice and hold management to account Non-executive directors have a prime role in appointing and removing executive directors. Non- executive directors should scrutinise and hold to account the performance of management and individual executive directors against agreed performance objectives. The chair should hold meetings with the non-executive directors without the executive directors present. \(c) Evaluate in detail the Chief Executive's action in relation to the €4 billion transfer from both a utilitarian and virtue ethics perspective. Utilitarianism is an ethical theory that determines right from wrong by focusing on outcomes. It is a form of consequentialism. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. 4 Billion euros are being transferred in order to coincide with the financial year end. Pros: It would help balance the financial statements, it would benefit the Bank its employees and shareholders as the bank will still be in business. However, how are they unable to reconcile 4 billion euro this is a large amount, being caught would surely create more damage. Remember, it is better for a person to be dissatisfied than a pig to be satisfied. The Quality of the happiness created needs to be measured I think under the Utilitarian perspective, the 4 billion transfer is unethical as it creates more damage than good.- You will eventually get caught. Virtue Ethics -- Instead of looking at the act if it is ethically, it looks at the decision maker- are they a virtuous person. What does the transfer mean, Joe the CEO is lying and according to Aristotle, lying is an unethical virtue to have. Therefore under virtue ethics, the action of this transfer would also be unethical