Ethics And Integrity Notes PDF

Ethics and Integrity notes CHAPTER 1: ETHICS AND ITS CONCEPTUALIZATION IN LIFE Defining ethics Greek word; Set of Revolve Critical Model of Imam Al GhazaIi : ethos: principles around 3 analysis of behavior in ethics is akhlaq...

Ethics and Integrity notes CHAPTER 1: ETHICS AND ITS CONCEPTUALIZATION IN LIFE Defining ethics Greek word; Set of Revolve Critical Model of Imam Al GhazaIi : ethos: principles around 3 analysis of behavior in ethics is akhlaq or character, that contain central human acts order to character spirit and behavioral concept; self, in two major harmonize development. attitudes of code. Outline good and criteria: human According to “ilm people moral duty other truth and relationship, al-Akhlaq”, as a (Rahman, and (Abdullah, justice minimize branch of A.R.A.) obligations and Zainol (Mauro) welfare and knowledge is a (Khalidah) Abidin) welfare of science which society deals with the (Hanafi And ways to maintain Hamid Salam) virtues at their optimum level, i.e. to avoid wrongdoing and to do what is right and desirable (McDonough,1984) Normative Study Descriptive Study to investigate and attempts to find conclusions Attempts to explain actual life situation without on what acts are rightful or wrongful arriving any conclusion Morality Ethics Norms, value and beliefs embedded in social Study of moral standard whose explicit purpose process, which define right and wrong for an is to determine, as far as possible whether individual or a community given moral standard or judgment based on Ex; cheating is wrong that standard is more or less correct Ex; why cheating is wrong Origin of ethics: it comes from our inner feelings which subsequently translate into our moral behavior Learn and adapt to the ethics and moral principles through our: - Upbringing - Socialization (i.e. the behavior around those around us) - Experiences and self-reflection - Standards of our culture - Belief or faith in religion  Ethics Legality Relate to questions of right and wrongdoing, Refer to the law that was written to protect rights and justice. ourserlf Reflect people’s relation with another Rest upon one conscience and commitment to do good deeds Eastern Perspectives Western Perspectives See religion as an important factor contributing Placed emphasis on secularism and to ethics universalism as ideologies Fall back more on religious and cultural Man-made ethical theories and principles principles which are practically based on rational thinking and objectivity Religion is one of critical factors that influencing ethical values: - Most religion embody the idea of a Transcendent Reality which has bearing on purpose and meaning of life. - The Golden Rule of Life: do to others what you want others do to you Islamic Ethics Buddhist Ethics Christian Ethics Hindu Ethics 5 pillars of Islam Noble 8 fold Bible Reincarnation 6 pillars of Imamn path of Buddhist Christianity Selfless action for the benefit of Taqwa (fear, ethics (kingdom of others; Karma Yoga respect and Heaven where God is Omnipresent and reverence for God) Christ is Kind Omnipotent (God appears in according to everything, living and non-living Scripture) matter) Ethical Principle from Western Perspectives: - The Golden Rule - Immanuel Kant’s Categorical Imperative - Descartes’ Rule of Change - The Utilitarian Perspective - The Risk Aversion Principle - The Ethical ‘No Free Lunch’ Rule Universally Accepted Moral Values: Good Values Bad Values Compassion, courage, honesty, integrity, Cheating, cowardice, cruelty, deceit, greed, respect for human life, self control lying, selfishnes Integrity Being upright and honest Integrity person will consistently consider dignity, image and reputation before undertaking an action and always strive to do good deeds  Integrity in Islam is Taqwa. Taqwa is comprehensive word found in Quran that carries the meaning of fear, respect and reverence for God. Individual with Taqwa will obey the rules of Allah and be grateful to him Self-control Ability to control human behavior/desires, to remain calm and not show his emotions by being impulsive, angry or over-reactive when faced with conflict, crisis / unfavorable situation. Courage Doing the right thing despite the cost. Ability to face danger, pain etc without showing fear Importance of ethics in Business: - Business are part of society - Unethical business conduct will have negative impacts on society - It is necessary to manage business ethically in order to: * keep existing customers * attract new customers * avoid lawsuits * reduce employee turnover * please customers, employees and society CHAPTER 2: INTERNALIZING ETHICS IN THE CONDUCT OF BUSINESS Theoretical Models on Moral Reasoning and Decision-making Kohlberg’s Model of Cognitive Moral Trevino’s Person-Situation Interactionist Model Development of ethical reasoning Level 1: Pre-conventional Moral Reasoning Individual Moderators: Ego strength, Field (Judgment is based on personal needs and the dependence rules of others) Situational Moderators: Reinforcement, Other Level 2: Conventional Moral Reasoning pressures (Judgment is based on others’ approval. Family Organizational Culture; Obedience to authority, expectation etc) responsibility for consequences Level 3: Post-conventional Moral Reasoning Characteristic of the work: role taking Importance of managing business ethically Why? To.. -socially responsible, as business are part of - keep existing new customers society. - attract new customers -unethical business conduct will have negative - avoid lawsuits impacts on society - reduce employer turnover - please customers, employees and the society Common ethical challenges: - conflict of interest - level of openness - responsibility to stakeholder - personality traits  Individual Organization Business System Ethical Management Management of ethics Acting ethically as a manager by doing the right Acting effectively in situations that have an thing for individual success and organizational ethical aspect (how lecturer control ethics of effectiveness student) For effective business decisions: Moral Dimension Economic Dimension Legal Dimension Concern the best course of Concerns business benefits Concerns administrative decisions action to avoid harm to others and the legalities involved Managing Ethical Challenges Is it legal? Is it balanced? How will the action make me Violating company policies or Acting fairly in the decisions? feel about myself? statutory laws? Complying Consideration the needs of Will I be happy after taking religious beliefs and principles others while fulfilling own such actions? Will I have a that the persons’ uphold? needs? Causing harm to others clear conscience that I have or are the actions taken just not done anything wrong to and fair? others? Religion Rule in resolving ethical issues in business: Most religion embody the idea of Transcendent Reality which bearing upon the purpose and meaning of life. Internalization of ethics comes from within one’s conscience to be ethical as a social obligation and as a commitment to obey God’s rules. From Islamic perspective: require one to apply fundamental of iman and taqwa as Khalifah on earth ETHICAL THEORIES Branches of philosophy Metaphysics Study of Existence Epistemology Study of Knowledge Ethics Study of Action Politics Study of Force Aesthetics Study of Art Fundamental of Moral Philosophy Meta-Ethic Normative Ethic Study about where ethical concepts come from Provide general guidelines for deciding what is and what they mean morally right or wrong  -Moral relativism -Teleological theories (Utilitarianism) depending on person, circumstances and social rightness of actions determined solely by situation (abortion in Japan vs in My) amount of good consequences they produce -Moral objectivism (lying wrong but consequences is good) Objectively right or wrong, regardless of human -Deontological theories (Islamic ethics) opinion (Islamic region, Solat, in Alquran) denies consequences are relevant to the action taken (not about consequences, about moral) Teleological Ethic (Utilitarianism) (capitalistic ideology) Utilitarianism (from Jeremy Bentham and John Stuart Mill, Adam Smith) - acting to produce the best consequences possible – the common good – utility (satisfaction or pleasure that people receive) - According to Utilitarian theory of ethics, obligation or duty in any situation to perform the action that will result in the greatest possible balance of good over evil - Promote the greatest good for the greatest number – J S Mill - Evaluate moral action on the basis of consequences and goal orientation Four theses of Utilitarianism Consequentialism Hedonism Maximalism Universalism Solely on Pleasure and only Good consequences > Consequences to consequences pleasure is good bad consequences everyone Classical or Act Utilitarianism (Jeremy Bentham) Rule Utilitarianism (John Stuart Mill) An action is right if and only if it produce the greatest balance of pleasure Both of rule and act over pain for everyone – emphasize on happiness result than pain focus on the ; bombing on Hiroshima; ended war for many people but on the other consequences or side, the receiving end would be having long term effect results Calculating utility: i) the amount of utility (balance between pleasure over pain) for each individual affected by an action ii) amount of utility for the whole society Bentham’s Idea: choose action that promises the greatest net benefit (measured in dollars) 6 points of Utilitarianism 1. When deciding which action produce the greatest happiness, must also consider unhappiness or pain 2. Act on action that bring the greatest net happiness 3. Utilitarians evaluate action according to their consequences, and actions produce different results in different circumstances, almost everything might be morally right 4. Maximize happiness not simply immediately but in the long run as well. Direct implications has to be considered as well  5. Utilitarians acknowledge that future is uncertainty, so we must act that the expected happiness is as great as possible 6. When choosing action, we should not disregard our own pleasure nor give it added weight. Rather our own pleasure and pain enter into calculus equally with pleasures and pains of others Strength of utilitarian theory Weakness of utilitarian theory - Accordance with much of our moral reasoning - sometimes lead to ambiguity (charging and rational thoughts customers exceptionally high although they - Result – oriented. Provide relatively precise willing to pay for the product to maximize their and objective method for moral decision utility, the producers earn more profit, but it is making not fair to other customers who cant afford the - simple and provide an easily understood product, leading to greed, jealousy) decision procedure - how can we be objective in calculating utility? - favor among economist, who use assumption - does not give an account of the rights we have that individuals seek to maximize their utility or and what is just and fair (only talk about welfare (such as price and allocation of consequences, not talk about rights, justice) resources) KANTIAN ETHICS Kantian Ethics (Deontological Ethic) - Immanuel Kant’s Ethics of Duty theory which insists that it is not a matter of the individual weighing up consequences. Human actions must be rationalized based on human intelligence and willpower. - An action is morally right if only if the actor is motivated by goodwill. - But if an act is out of self-interest, it has no moral worth. - Categorical = Absolute Imperative = Command Kant Ethics of Duty Theory 1st categorical imperative 2nd categorical imperative Act only according to that maxim by which you can at Act so that you treat humanity, the same time will that it should become a universal law whether in your own person or in Maxim: general truth/ rule of behavior that of another always as an end Will: human capacity to act from principle and never as a means only Require us to put ourselves in the place of the receiving People, unlike things, ought never to party (robin hood act of stealing, place ourselves at the be merely used. person stolen) Employees may be hired for their If the action going to bring pain rather than happiness labor, skills, knowledge and abilities, to us, then the action is not ethical but must always be treated with respect as humans Strength Weakness Principles of universalizability and respects for What exactly does it have moral worth? persons Kant is too severe on this point.  Universalizability: as a matter of logic, must be What does it mean to treat people as consistent in our judgements. No double means? Because sometimes we freely standards choose to do it (working overtime etc) Foundation for rights: individual rights must be acknowledged and inviolable ARISTOTLE’S VIRTUE OF ETHICS - Focuses on virtues of humans - Defined virtue as an activity of the soul, implying a rational principle - Morality is a necessity and vital for human beings. It is a pre-condition for a life with human dignity - People who compromise morality are degrading themselves and they have missed their goal in life To achieve a rewarding life, 1. Live in a just society 2. Must engage themselves with good friends 3. Individual need material and physical provisions 4. They need to develop and cultivate own potential - Aristotle believe that everything in life has a specific goal or telos in Greek (objective or purpose) - Virtues are the “mean” or midway point between 2 extreme points. Called Golden Mean - Prudence is the virtue that enables one to know what is reasonable in a given situation (being careful and sensible) - Virtuous person: person who take rational control in life, cultivated natural dispositions into moral virtues, always found happiness/pleasure/satisfaction in his actions - Virtues: Honesty, patience, pride, shame How to lead a rewarding life - One has to live in a society which promotes justice; It is the responsibility of politicians and social scientist to develop a just society and ensure social order to attain eudaimonia, Greek word to signify ultimate happiness or overall, well being - Engage themselves with good friends because human are social beings who depend on others to develop themselves for a rewarding life - Individual need material or physical provisions for good life - Individuals need to develop and cultivate their potential - 1-3 external factors, and the last one is intrinsic factor for individual success. Virtual ethics theory focuses on the last factor JUSTICE AND MARKET SYSTEM The free market (capitalist) system - system where all economic decisions are taken by individual household and firms with no intervention from government - recognize the rights of individuals to accumulate wealth and maximize their potential. Competition encouraged - major decisions are decide through the market Rights of individuals under the free-market system - own a private property - to own a business and to keep all its profit after taxes - freedom to compete in wealth accumulation and consumption - freedom of choice based on the ability to pay Justice - Justice is fairness - Good one must be recognized and rewarded. Bad ones must be punished - Justice is associated with probity (complete uprightness, honesty/integrity) and virtue and legality, serving the administration of rights, rewards, and punishment – Roget’s Thesaurus - Self-interest is balanced with altruistic (concern for needs and feelings of others above own) - Concept of justice is relevant to business ethics primarily in the distribution of benefits and burdens. Aristotle and Justice Procedural (Universal) justice Particular justice A just or morally upright person Concerned with virtue in specific situations, consist of is one who always does what is taking only a proper share of some good morally right and obeys law In administering justice, fair, 1) Corrective or compensatory; compensating impartial rules and procedures persons for wrongs done to them should be applied 2) Retributive; extent of punishment 3) Distributive; distribution of benefits and burden Compensatory and retributive justice resembles Qisas principle of the al quran John Rawls; theory of Justice or Egalitarian Theory - Related to distributive justice; conflicts should be settled by devising a fair method of choosing the principles by which conflicts are resolved. Eg; by having a contract between parties involved in business Egalitarian Theory: John Rawls use the notion of contract and propose 2 basic principles Principle 1 – Principle of equal liberty Principle 2 – a) Difference Principle b) Principle of Fair Equality of Opportunity Everyone have equal right to most a) to the greatest benefit of the least extensive total system of basic liberties advantaged (rich people does not need to (freedom) and have basic right be supported) - must be protected from invasions by b) attached to the offices and positions others open to all under conditions of fair equal of oppurtunity CHAPTER 3: THEORY OF RIGHTS Rights - United Nations Universal Declaration of Human Rights in 1948 which set forth basic human rights for all people - Rights is entitlements to something Kind of Rights Legal and moral rights Specific and general rights Negative and positive rights Legal- recognized legal Specific- individual or parties Negative- right of human being to be system; employment act in contract free from outside interference (choice 1995 General- claims humanity in of religion, right to property) Moral- general ethical general (freedom of speech) Positive- interest that human beings rules and principles have in receiving certain benefits (adequate healthcare, child education) Natural Rights Human Rights - John Locke: stated that there is a higher law Universality; rights possessed by everyone that applies to all persons everywhere and Unconditionally; rights that do not depend on serve as a standard any particular practise or institutions - supposition of a state of nature, which is the Ex; right to be treated with fairness, freedom of condition of human beings speech, to choose one way of life -most important is right to property In Islam; human rights embody his entire needs - society or nation forms a government as a as an individual as well as a member of a representative of all members to protect their society or more generally of the human race individual rights as human being Human Right and Islam Dignity of Man as Allah’s best creations Equality as a fundamental principle Unity of human race Religious freedom The right to ownership, individual privacy, an honourable life, education Freedom of expression and information Political right Ethics of Care (developed by feminist ethicists) - Ethic that emphasize caring for the concrete wellbeing of those near to us, preserving and nurturing concrete valuable relationships - Why need to support: identity of oneself is based on relationship with other people. Individual cannot exist, in isolation from caring relationship with others  Caring about something Caring after someone Caring for someone Concern and interest that Care for the needs of the For general well being and one can have for things or people concerned, the care nurture the development of ideas (money) remains objective and distant the person (mother to child) (social departments) Caring is not detached, but engrossed Emphasize on 2 moral demands: preserve and nurture those concrete and valuable relationships exercise special care with whom we are concretely related Moral issues related; Not all relationship have value Demands of caring are in conflict with demands of justice Ex; relationship which involved domination, Ex; offering job to relative despite there is a oppression, hatred, disrespect, injustice, person with a higher qualification than the exploitation relative Criticism of Ethics of Care: unjust favouritism can lead to “burn-out” ISLAMIC ETHICS – ETHICS OF THE SOUL Islamic Ethics: a set of universal standards of right or wrong that prescribe the acceptable or unacceptable human conduct as highlighted in the Quran and shown by the exemplary life of the Prophet Muhammad Islamic Ethic represent all virtuous deeds (al’amal assalih) Akhlaq: 1) foundation that establish standards of right or wrong 2) Islamic disposition or practice of virtue and morality. Adab: the manners, etiquette or behaviour of an individual - Priority on the soul development which is crucial to the individual’s behaviour and character development (istigfar, taubat) Source and origin of Islamic ethics Al quran Sunnah Divine book of revelation Hadith or reports about the recorded sayings,personal teachings, characters of Prophet Muhammad Worldview: collection of one’s belief, ideas or values about God, the world and the inter-relationship with God and the world Islamic Worldview: derived from Al-Quran and founded on the fact that Islam a religion and a way of life in which Muslim must pay attention to the world, the Hereafter and the Day of Judgment Core idea of islamic worldview - Unity of god; Allah is one and the only creator - Man is accountable to Allah; man will be judged by Allah based on his action - Allah has chosen a few humans as Prophets; to show others the right path - All Prophets carried the same message; to worship only on Allah - Muhammad SAW has been commanded to lead the entire humanity and was the last of all Prophets Four Vital principles of the Islamic Ethical System Tawheed Taqwa Khalifah (leader) ‘abd (servant) Belief in unity of Allah Inner consciousness of Role as the khalifah Servant of Allah First and foremost one duty toward Allah (vicegerency)of Allah As a servant, we have requirement to Quality of human on earth / trustee of to follow and obey his embrace the Islamic being that related to Allah rules faith the state of heart Strive to do the right Within the boundaries To be accountable and thing and avoid doing of Shari’ah – life is a fear of reprisals Allah harm worship Taqwa (fear, respect and reverence for God) - Must sincerely obey the rules of Allah - Enlightened obedience, not blind obedience - Patient, truthful, obedient. Charitable, seekers of forgiveness in the early morning - Inner consciousness of one’s duty toward Allah - Motaqeen; people who hold taqwa as value Axioms of Islamic Ethical Philosophy (Axiom represent the core values accepted as being true to guide the day-to-day conduct of a Muslim) 1) Unity: Allah is the only creator of the earth and universe. Requires total submission to Allah 2) Equilibrium: Action must be based on justice and maintenance of social harmony 3) Free will: freedom to live but within the bounds of syariah 4) Responsibility: every action will be accounted for the day in the judgment 5) Benevolence: compassion toward others Our role as Khalifah/Trustee of Allah 3 responsibilities as Khallifah (Self, society, physical world) 1) Make yourself good 2) Help others be good 3) Make the physical world good Islam and Stakeholder Relationship - Islam encourage entrepreneurial activities, but must be in line with maqasid al Shariah (Islamic law and order as in the Quran and Sunnah) - Promote social justice by taking care of well being of the stakeholders (customers, shareholders, employees) in the spirit of justice and brotherhood - Must maintain balance and harmony in society - Humans are responsible towards the natural environment thus business owners must prevent their business in destroying the environment Relationship with Stakeholders: - Relationship with shareholders: Shareholders have the responsible that they invest must be in line with Syariah Maximization for both shareholder and stakeholder, not only shareholders - Relationship with employees: Treat employees with fairness, respect Prohibit any form of discrimination Employers are to treat their employees with respect and fulfil their responsibility - Relationship with Customers: Must be truthful, must be free from gharar (risk), transparent and free from deception. Not sale of unseen items because it put buyer in unfair disadvantage - Relationship with suppliers: Make prompt payments when receiving the products Raw materials must be made clear on contract - Relationship with environment: Humans free to utilize natural resources but must not cause harm and destruction Protection of natural environment Business that cause harm to natural environment are not consistent with Khalifah principles Prohibited Earnings and Business Transactions - Prohibit trading in haram (illegitimate) items that have riba (interest), gharar (risk), and masyir (gambling) elements Islamic ethical system : Islam, Iman, Ihsan, Taqwa