Business Ethics - 2023 PDF

Business Ethics. A Path to Excellence for Business Students Marta Rocchi, 2023 1  Business Ethics. A Path to Excellence for Business Students Business Ethics. A Path to Excellence for Business Stud...

Business Ethics. A Path to Excellence for Business Students Marta Rocchi, 2023 1  Business Ethics. A Path to Excellence for Business Students Business Ethics. A Path to Excellence for Business Students. January 2023 Author: Marta Rocchi Please cite as: Rocchi, M. (2023). Business Ethics. A Path to Excellence for Business Students. DCU Business School. Second Edition. [email protected] Marta Rocchi, 2023 2  Business Ethics. A Path to Excellence for Business Students Table of Contents Chapter 1................................................................................................................... 4 Philosophical Frameworks for Business Ethics.......................................................... 4 1.1 What does ethics mean to you?.................................................................... 4 1.2 Defining ethics............................................................................................... 4 1.2.1 Ethics as a part of philosophy................................................................. 5 1.2.2 Practical aspect of ethics........................................................................ 5 1.2.3 Are all our actions free?.......................................................................... 6 1.3 Ethics in the context of our lives.................................................................... 7 1.3.1 Perspectives on human action................................................................ 7 1.4 Deontological ethics...................................................................................... 8 1.4.1 The categorical imperatives.................................................................... 9 1.5 Consequentialism and Utilitarianism........................................................... 10 1.5.1 Consequentialism................................................................................. 10 1.5.2 Utilitarianism......................................................................................... 10 1.5.3 The Principle of Utility........................................................................... 11 1.5.4 Limits of the Principle of Utility.............................................................. 11 1.5.5 The Trolley Dilemma: What would you do?.......................................... 12 1.6 Virtue ethics................................................................................................ 12 1.6.1 What kind of person do I want to become? The concept of flourishing. 13 1.6.2 A quick historical perspective............................................................... 14 1.6.3 The virtues............................................................................................ 14 1.6.4 The Doctrine of the mean..................................................................... 15 1.6.5 Four virtues........................................................................................... 16 1.6.6 How can we grow in the virtues?.......................................................... 17 1.7 Comparing the ethical theories.................................................................... 17 1.8 Ethics as a guide to human excellence....................................................... 18 1.9 Ethics in business....................................................................................... 19 1.10 Review of Chapter 1................................................................................ 20 References............................................................................................................... 21 About the Author...................................................................................................... 23 Marta Rocchi, 2023 3  Business Ethics. A Path to Excellence for Business Students 1. C Chapter 1 Philosophical Frameworks for Business Ethics Chapter 1, Philosophical Frameworks for Business Ethics, introduces us to the philosophical foundations of business ethics. There will be a special focus on the philosophical foundations of this discipline, and on the concrete applications of business ethics to day-by-day business life. We will learn: What is ethics; How ethics relates to our everyday choices; What are the prominent ethical theories we can use to conduct an ethical analysis of everyday business scenarios. You will find included in this chapter a range of videos, articles and exercises to support your learning. All the resources available throughout Chapter 1 aim to make you comfortable with the terminology and fundamental business ethics concepts. 1.1 What does ethics mean to you? In class brainstorming. 1.2 Defining ethics Socrates, Plato and Aristotle were the first philosophers to propose a systematic and rational approach to the discipline that we now call moral philosophy or ethics. The word “ethics” comes from the Greek word “ethos” meaning “behaviour.” So, the first characteristic that helps us move towards a definition of ethics is that ethics has something to do with behaviour, and with the way we live and interact with other people. If we want to study our behaviour, we can study it to increase our knowledge or make some practical changes in how we live and act. Ethics helps us in these efforts – indeed, it is both a philosophical and practical discipline. With this brief overview, we have already reached three essential characteristics of ethics (Rodriguez Luño & Belloq, 2014): Ethics has human behaviour as the primary object of study; Ethics is part of philosophy; Ethics has a practical methodology and practical ends. Marta Rocchi, 2023 4  Business Ethics. A Path to Excellence for Business Students These three fundamental characteristics of ethics help us define our field of study. In light of these characteristics, we can now define ethics as a “philosophical and practical study of human acts and behaviour.” We will now take a closer look at the reasons why ethics has both a philosophical and a practical component. 1.2.1 Ethics as a part of philosophy The term “philosophy” comes from Greek, and it literally means “love of knowledge,” and philosophers are people who “love knowledge.” Ethics is a branch of philosophy that enquires into human behaviour. The philosophers who have been enquiring into human behaviour have tried to answer questions such as: Why do we act? What is the reason behind our actions? Why do we take one course of action instead of another? Is it different to decide for oneself or for an entire community? Do I adopt the same criteria when I decide something for my family or when I am managing an organization which includes many and different people? Are our actions connected with just what we do, or do they shape who we are? You might relate to some of the above questions asked by philosophers. You might have asked yourself some of these questions in different moments of your life, or of your professional career. These questions have a transformational impact on our way of behaving if we are able to face the relevance of the answers! For this reason, ethics is not just a philosophical discipline, but also an applied one. 1.2.2 Practical aspect of ethics Ethics as a practical study can be defined as “a guide for human excellence” (Melé, 2019). According to Aristotle, we do not study ethics only to know what the good is, but also to “become” good and we study the virtues to become virtuous (Aristotle, 2000). As a philosophical enquiry, ethics is systematic and rational, so it is important to distinguish ethics as a field of study from our moral experience. Moral experience is essential to ethics, but it is pre-philosophical. “Ethics proposes a rational and systematic approach to morality which permits one to verify personal views and to evaluate the morality of human actions and behaviour” (Melé, 2019, p. 7). An experience as common as a short dialogue between a father and his son in a supermarket can become the object of a philosophical enquiry into human actions. For example, parents generally teach their children not to steal but to pay for what they Marta Rocchi, 2023 5  Business Ethics. A Path to Excellence for Business Students get in a shop. In this way, parents apply their moral judgment and guide their children on how to be good people. This situation illustrates that three main components interact in our everyday moral experience (and possibly, in our reflection on our moral experience). These components are as follows: o The existence of something good toward which we tend: why do parents want their children to be good people? o The existence of some norms that help us approach what we consider being good (“do not steal” can be considered a norm that many of us have adopted in childhood); o The existence of some inclinations inside us that drive us to repeat those actions that make us want to attain what is good for us. In everyday choices, goods, norms and virtues orient our actions. Moreover, our actions do not only relate to what we do but help define who we are (MacIntyre, 1992, 1999). Aristotle argued that those who practice virtue or vice become a specific kind of person: “We become just by performing just acts, temperate by performing temperate ones, brave by performing brave ones” (Aristotle, 2000). Did you notice what just happened? By reflecting on an everyday situation such as the one in the example, we turned a moral experience (a short and probable dialogue between a father and his son in a supermarket) into the object of a philosophical enquiry into human actions. 1.2.3 Are all our actions free? Every day you make numerous decisions: What time to get up. What to wear. What task you want to prioritise during your day. Time to study and time to go out. Where to eat. How to spend your free time and your money. There are actions we deliberately decide to perform and thoughts we decide to follow through. We perform them willingly using our judgment. However, are all our actions free? Think for a moment. What actions do you perform daily that are not under your control? Can you choose whether to breathe? You can choose to hold your breath for seconds or minutes if you practice; however, you cannot decide not to breathe at all. Other examples might include you deciding whether your heart beats or whether you follow your automatic reflexes. We will describe these actions as “acts of man” (Rodriguez Luño & Belloq, 2014). Ethics does not take into account “acts of man” (i.e., human acts that are not under the disposition of our will). Instead, it is a rational inquiry into the actions under the “control” of our free will. Marta Rocchi, 2023 6  Business Ethics. A Path to Excellence for Business Students 1.3 Ethics in the context of our lives In the previous paragraphs, we defined ethics and established which actions ethics considers. We learned that: a) Ethics is part of philosophy There is a long tradition of philosophers debating the meaning of our moral experience, trying to understand the most profound meaning of our everyday choices and actions. In the history of philosophy, many thinkers have been asking questions such as: o Why do we act? o What is the most profound meaning of our actions? o Do we judge according to the intentions or to the outcome of the actions? o Which principles do we apply to our personal and social life? o Are these two domains in contrast? Answering these questions has led to the development of ethics over time and up to the present day. We now know many different ways of answering these and similar questions. In the following paragraphs, we will explore the most famous philosophical answers to the above questions. b) Ethics has a practical methodology and practical ends We do not only need to understand what is good for us, we also need to make it a reality in our life. Aristotle helps us understand that how we act shapes not just what we do but who we are as people. From this perspective, ethics can be seen as a guide for human excellence, and – as we shall see – business ethics as a guide for human excellence in a business or organization (Melé, 2019). c) Ethics focuses on human behaviour as the primary object of study Ethics asks questions like: Why do we act? or What is the ultimate horizon of our choices? During this module, we will focus on those aspects of our behaviour that poses questions from an ethical point of view in the everyday life of business. d) Ethics looks at free human acts Ethics considers voluntary acts that we define as moral acts. For example, while breathing in itself is not a moral act, a moral act is a decision to buy something, or undertake a specific course of action, or make a personal or business decision. 1.3.1 Perspectives on human action Now that we know all the characteristics of ethics, it would be interesting to reflect on another critical component of the ethical enquiry - the context of our actions. Marta Rocchi, 2023 7  Business Ethics. A Path to Excellence for Business Students Annas (1995) noted that there are two main ways of looking at an action: Ancient ethical theories tend to look at an action in the context of the life of the acting person, understood as a narrative unity. These theories are “agent- centred.” As a point of observation, they do not focus on the single action, but on how it fits in the context of the life of the acting person. Another group of ethical theories can be considered “act-centred.” Modern ethical theories tend to be act-centred. They tend to abstract the action from the person who is acting. This second way of understanding ethical enquiry might be easier to apply. For example, if we say that it is always good not to steal, we can apply this prohibition to every person in every situation. At the same time, common sense morality would suggest that, in extreme situations, stealing is not always bad: for example, if it is the only way to help someone survive or in an extreme circumstance where there is no other alternative (and with the intention of repaying or giving back what was taken). This chapter will explain ethical theories belonging to both these categories, in order to give you a complete view of what different philosophers thought about ethics. At the same time, later parts of the ebook will be more inspired by an agent-centred approach. We will be looking at the actions from the perspective of the acting person, understanding his or her life as a narrative unity (MacIntyre, 2007). Anyhow, this way of setting the course will leave you with the intellectual space to think for yourself what is the best way to approach this discipline, given that the course aims at providing you with effective tools to nourish your own ethical reflection. In the next paragraphs, we will look at how three philosophers answered the challenging question “why do we act?”, extending the reflection to all human beings and so structuring a systematic way to conduct an ethical reflection. Specifically, we will explore the following ethical theories: o Deontological ethics; o Consequentialism and Utilitarianism; o Virtue Ethics. 1.4 Deontological ethics In this paragraph, we will explore Deontological Ethics. The term “deontological” comes from the Greek word “deon” which means “duty” or “what I need” + the word “logos” which means “discourse,” and in this case, “study of”. In the case of “deontological ethics,” we are taking the meaning of “deon” as “duty” and deontological ethics is the ethical approach which has “duty” as its main focus. Marta Rocchi, 2023 8  Business Ethics. A Path to Excellence for Business Students What kind of duty? A duty to do what? As a first approximation, we can say that deontological ethical theories see ethics as adherence to some rules, which need to be applied mandatorily. The most renowned philosopher in deontological ethics is Immanuel Kant (1724- 1804). Kant thinks that ethics deals with the way the world “ought to be,” and the way to make our world in the way it “ought to be” is to adhere to the moral law. Kant distinguishes different types of imperatives that we need to follow and, in particular, we are going to look at what he calls “categorical imperatives,” which are commands that everyone should obey unconditionally. In a way, Kant is saying that the categorical imperative needs to be followed in every situation, it does not depend on the circumstances. 1.4.1 The categorical imperatives These are the two formulas of Kant’s categorical imperatives: o The Formula of Universal Law: “Act only on that maxim by which you can at the same time will that it should become a universal law” (Kant, 2002, p. 39 - G4: 421) This formula means that, when we act, we should think about whether our criteria for action can be universalized. For example, if I steal a soft drink in the supermarket because I am thirsty, we should think that we are universalizing the principle “it is allowed to steal something if you desire it.” o The Formula of Humanity: “Act in such a way that you treat humanity, whether in your own person or in any other person, always at the same time as an end, never merely as a means”. This formula means that each person has an intrinsic value for the fact of being a person, and should so be respected and not treated as a mean, which is something whose value depends on its use. Kant presents these two categorical imperatives in his book “Groundwork for the Metaphysics of Morals” (Kant, 2002). For a deeper understanding of Kant’s imperatives, refer to “Kantian Normative Ethics” (Hill, Jr., 2006). What Kant envisions is the existence of a kingdom of ends, where everyone follows the categorical imperatives. The problem is that this world is not the world we inhabit. This is the reason why we need to follow the laws of our world: they help us to be close to the categorical imperatives and to walk towards the kingdom of ends. Advantage of Kantian ethics: o It recognizes the existence of an intrinsic value of human life. Disadvantage: Marta Rocchi, 2023 9  Business Ethics. A Path to Excellence for Business Students o It looks at the adherence of actions to imperatives, not at the outcome of the actions (Rohlf, 2018) See the example of the application of “do not lie” – from minute 5 of the following video: https://youtu.be/8bIys6JoEDw 1.5 Consequentialism and Utilitarianism n this paragraph, we will learn about Consequentialism, which is another ethical approach. Within Consequentialism, we can find the ethical approach known as Utilitarianism. 1.5.1 Consequentialism Consequentialism asserts that the moral evaluation of actions and intentions should be done according to the consequences that they produce. Consequentialists are concerned with the outcome of the actions, so the relevant question to ask is not Kant’s question (“am I respecting the categorical imperatives?”) anymore. Instead, consequentialists ask themselves whether their actions bring about the best consequences possible. 1.5.2 Utilitarianism The most famous stream within Consequentialism is Utilitarianism. The fathers of Utilitarianism are considered to be Jeremy Bentham and John Stuart Mill. These two philosophers have been really influential, especially in shaping the way we think about the economy and in designing economic models that you study in other business courses. Jeremy Bentham (1748-1832) famously stated that it is the greatest happiness of the greatest number that is the measure of right or wrong. However, what is the content of this happiness? For Bentham, happiness is a state occurring when pleasure prevails on pain (Crimmins, 2019). The following quote highlights the way of thinking that Bentham suggests: “Nature has placed mankind under the governance of two sovereign masters, pain and pleasure. It is for them alone to point out what we ought to do, as well as to determine what we shall do. On the one hand the standard of right and wrong, on the other the chain of causes and effects, are fastened to their throne. They govern us in all we do, in all we say, in all we think: every effort we can make to throw off our subjection, will serve but to demonstrate and confirm it. In words a man may pretend to abjure their empire: but in reality he will remain. subject to it all the while. The principle of utility recognizes this subjection, and assumes it for the foundation of that Marta Rocchi, 2023 10  Business Ethics. A Path to Excellence for Business Students system, the object of which is to rear the fabric of felicity by the hands of reason and of law” (Bentham, 1999, p. 14). 1.5.3 The Principle of Utility From the work of Bentham and Mill, we received what is generally known as the Principle of Utility: “Act always so as to produce the greatest good for the greatest number of people”. What does this principle mean? It means that, in every situation, the best thing to do is act in the way that will bring about the greatest good for the majority of people. The application of this principle leads to famous ethical dilemmas, for example, the trolley dilemma and the doctor’s dilemma, which you can watch at the following links. 1.5.4 Limits of the Principle of Utility o Doctor’s Dilemma Killing one healthy person to save four ill people. Is the greatest good of the greatest number reached? Watch the video below from 7 mins to 8.30 mins. Video: Doctor's Dilemma “A surgeon has five patients dying of organ failure and one healthy patient whose organs can save the five. In the right circumstances, surgeon will be permitted (and indeed required) by consequentialism to kill the healthy patient to obtain his organs, assuming there are no relevant consequences other than the saving of the five and the death of the one. Likewise, consequentialism will permit (in a case that we shall call, Fat Man) that a fat man be pushed in front of a runaway trolley if his being crushed by the trolley will halt its advance towards five workers trapped on the track” (Larry & Moore, 2016). o The Trolley Dilemma Watch the video below which details The Trolley Problem. The first proponent of this dilemma was Philippa Foot, speaking about actions with double effect (Foot, 2002). Video : Trolley Dilemma o Moral Machine More recently, the trolley dilemma is applied to self-driving cars. In particular, MIT researchers developed a global scale experiment called “The Moral Machine Experiment.” Marta Rocchi, 2023 11  Business Ethics. A Path to Excellence for Business Students Learn about the Moral Machine Experiment watching this video: MIT Moral Machine Take part in the experiment visiting this webpage: https://www.moralmachine.net/ Read the article related to their experiment – See Awad et al. (2018) Limits of the principle of utility o In the name of the greatest good of the greatest number of people, are all actions morally permissible? Applying the principle of utility could lead to committing evil actions in the name of the greater good (i.e. the ends justify the means). o Is it possible to calculate, each time, the exact outcome of all our actions? The principle of utility is practically hard to apply. Other references: Brink (2006). 1.5.5 The Trolley Dilemma: What would you do? After watching The Trolley Dilemma video above, think about the following questions: o If you were the man managing the lever, what would you do? o If the scenario changes and the person who is alone on the rail is someone that you know well and you care about, would your decision change? 1.6 Virtue ethics In this paragraph, we will learn about virtue ethics. Aristotle is considered to be one the fathers of virtue ethics. In his book Nicomachean Ethics, he writes about human actions and their tendency to a “good,” which he calls “eudaimonia.” Let’s see what this concept means. The Nicomachean Ethics begins in this way: “Every art and every inquiry, and similarly every action and pursuit, is thought to aim at some good; and for this reason the good has rightly been declared to be that at which all things aim” (Aristotle, 2000; Book 1, 1094a, 1-3). After naming this “good,” Aristotle makes it clear that it is worthwhile to define it: “If, then, there is some end of the things we do, which we desire for its own sake […], clearly this must be the good and the chief good. Will not the knowledge of it, then, have a great influence on life? Shall we not, like archers who have a mark to aim at, be more likely to hit upon what is right?” (Aristotle, 2000; Book 1, 1094a, 18-24). Marta Rocchi, 2023 12  Business Ethics. A Path to Excellence for Business Students Aristotle says that we act to obtain a special kind of good, which we want for its own sake. This good is called eudaimonia. A translation in English of this expression would be “happiness.” However, a translation closer to the original Greek word would be “flourishing.” This is what Aristotle says about eudaimonia: “Verbally there is very general agreement; for both the general run of men and people of superior refinement say that it is happiness, and identify living well and doing well with being happy; but with regard to what happiness is they differ, and the many do not give the same account as the wise. For the former think it is some plain and obvious thing, like pleasure, wealth, or honour; they differ, however, from one another – and often even the same man identifies it with different things, with health when he is ill, with wealth when he is poor; but conscious of their ignorance, they admire those who proclaim some great ideal that is above their comprehension. Now some thought that apart from these many goods there is another which is self-subsistent and causes the goodness of all these as well” (Aristotle, 2000; Book I, 1095a). Aristotle was concerned about the content of eudaimonia, and he was particularly interested in studying those habitual dispositions that help us do the good in each situation in our lives, i.e., the virtues. In virtue ethics, we have a clear teleological structure. This means that all the actions are considered to be performed in light of the existence and desirability of a good. Each person acts to attain that good and by doing the good this person becomes good. Indeed, Aristotle affirms that: “We are inquiring not in order to know what virtue is, but in order to become good, since otherwise our inquiry would have been of no use” (Aristotle, 2000; Book II, 1103b). 1.6.1 What kind of person do I want to become? The concept of flourishing The term “eudaimonia” comes from two terms: “eu” which means “good”, and “daimon” which means spirit. Those who have “eudaimonia” have good spirit inside, which means that they live a good flourished life. Therefore, “flourishing” would be a better translation for the Aristotelian concept of “eudaimonia” and we need to understand what it means for human beings to flourish. The concept of flourishing concerns the development of ourselves at our best. It expresses the way a person can become the best version of herself through her daily life and actions. Marta Rocchi, 2023 13  Business Ethics. A Path to Excellence for Business Students The concept of flourishing is receiving growing attention in the field of business ethics and in other disciplines: “The phrase Personal Flourishing is emerging as a keyword for consistent personal growth not only in the overlapping areas of philosophy and psychology, but in the field of business ethics scholarship. The similarities between the terms growth, maturity, and flourishing - which have always been used to refer to human development - have evolved such that it makes sense to devote to them a systematic treatment gathered from different disciplines working together. The human person clearly develops within an ordered structure and towards a direction that, particularly for human beings, evidences that there is some common understanding regarding the most suitable conditions for growth”(Mercado, 2018, p. v). According to Aristotle, looking for eudaimonia in the context of a virtuous life, means to be excellent. We will keep looking at ethics from this perspective: as a guide to excellence for human beings. 1.6.2 A quick historical perspective Historically, one of the main interpreters of Aristotle’s thought was Thomas Aquinas, a philosopher from the middle ages. Later on, the ethics of virtue got obscured for many centuries (especially among English speaking philosophers). It experienced a revival after 1958, which was the year of the publication of Elizabeth Anscombe’s essay Modern Moral Philosophy (Anscombe 1958). Currently, Alasdair MacIntyre is considered to be the most influential Neo-Aristotelian philosopher in the recovery of virtue ethics which happened in the last century and is still currently ongoing. As Sison, Beabout and Ferrero explain: “Virtue ethics, like deontology, subscribes to universal principles, and, like utilitarianism, it considers overall results. But unlike deontology, virtue ethics pays attention to the particulars of agents (motives, intentions, habits, character, relationships) and actions (circumstances, community), and unlike utilitarianism, it maintains that exceptionless prohibitions do exist” (Sison et al., 2017, p. viii). 1.6.3 The virtues Aristotle looks at virtues as those qualities which help us put into practice this tendency for eudaimonia. For Aristotle, a virtue is a habitual disposition to do the good. We do not have to think about virtue as something abstract or as a mere concept. Virtues can be conceptualised and studied. For our purposes, we will look at the Marta Rocchi, 2023 14  Business Ethics. A Path to Excellence for Business Students definitions of the main virtues, in order to observe them in action, in their dynamic state. To better understand what is a virtue, we can have a look at the Greek and Latin words from which they derive (MacIntyre, 1966; Rhonheimer, 2011). What we now call “virtue” corresponds to the Greek word “arête,” which was the special characteristic of the hero in Homer’s epic poems. In Latin, this concept is translated to “virtus,” which has the root of the word “vir,” meaning “man.” Therefore, “virtus” is the idea of the plenitude of being a human being. It then became a synonym for “excellence.” A person is considered to be “virtuous” when he or she is “excellent,” outstanding in the community where this person is living. “Arete and virtus indicated the excellence of the human being as such. Somebody who was virtuous was not – in the classical sense – someone who lived a ‘blameless life,’ in the sense of not being blamed for anything, someone, perhaps, who was dear and beloved even if he hadn’t done much with his life, but rather it was somebody who used his human ability for a good end, who did what was good with mastery, consistency, and joy, who was competent and had his wits about him, was knowledgeable and had the ability to size up situations quickly and correctly; in short, someone who realized what Aristotle called ‘the good life’ and eupraxia” (Rhonheimer, 2011, p. 189). We are now ready to read the definition that Aristotle gives for virtues, and to understand something more about it. Aristotle says that a “Virtue is a habit of choosing, which keeps a mean in relation to ourselves according to the determination of reason, and in such a way as a wise man is accustomed to determine it” (Aristotle, 2000; Book II 1106b-1107a). As Rhonheimer (2011, p. 198) clearly notes, in this definition there are 4 important elements to outline about the virtues: o Moral virtue is about “choosing;” o “Choosing” relates to a “mean;” o The measure of this “mean” is determined by our reason; o The reason Aristotle refers to is the reason of a “wise man.” 1.6.4 The Doctrine of the mean This definition introduces us to what is called the “doctrine of the mean.” Aristotle says that virtue is in the middle between two extremes. In Latin, it is the famous expression “in medio stat virtus,” virtue stays in the middle point. Marta Rocchi, 2023 15  Business Ethics. A Path to Excellence for Business Students “I refer to moral virtue, for this is concerned with emotions and actions, in which one can have excess or deficiency or a due mean. For example, one can be frightened or bold, feel desire or anger or pity, and experience pleasure and pain in general, either too much or too little, and in both cases wrongly; whereas to feel these feelings at the right time, on the right occasion, towards the right people, for the right purpose and in the right manner, is to feel the best amount of them, which is the mean amount—and the best amount is of course the mark of virtue. And similarly there can be excess, deficiency, and the due mean in actions. Now feelings and actions are the objects with which virtue is concerned; and in feelings and actions excess and deficiency are errors, while the mean amount is praised, and constitutes success; and to be praised and to be successful are both marks of virtue. Virtue, therefore is a mean state in the sense that it is able to hit the mean” (Aristotle, 2000; 1106b). We can give some examples: The mean between cowardice and temerity is courage; The mean between avarice and prodigality is generosity. Watch the video below which covers a lot of the content we have learned in this paragraph about Virtue ethics, especially the doctrine of the mean from 3 mins into the video up until 5 mins 40. Video: https://youtu.be/PrvtOWEXDIQ In the next paragraph, we will explore four particular virtues. 1.6.5 Four virtues In the previous paragraph, we learned what a virtue is for Aristotle and what the “doctrine of the mean” is. We will now explore four virtues in particular, which are called “cardinal virtues.” The term “cardinal” comes from the Latin word “cardo,” which means “hinge, pivotal point.” (Rhonheimer, 2011, p. 215). The first philosopher who categorised these four classical virtues was Plato. They are: o Practical wisdom is the virtue which enables us to identify the good end to pursue and to choose the best means to achieve it; o Justice is the habitual disposition which gives each person what is due to him/her. We will see that there is justice in material and immaterial things, and both forms of justice are relevant to business activity; o Courage is the virtue that enables us to persevere in pursuing the good, even when we are in the middle of obstacles and adverse circumstances; Marta Rocchi, 2023 16  Business Ethics. A Path to Excellence for Business Students o Temperance is the virtue of moderation. It helps us to moderate our desire for pleasure by orienting it to a good end. It is particularly interesting to see the virtues “in action.” We will try to come back to these definitions during the module, so that you can appreciate how someone who cultivates these traits is better equipped to make decisions and solve dilemmas in the business context. 1.6.6 How can we grow in the virtues? There is a huge amount of literature on the way we acquire virtues. For the purpose of this module, we need to know that we can acquire virtues in different ways, which are: o Our natural inclinations; o The imitation of people whom we think are living a life worth living, people that we admire; o Some rules that help us with being virtuous in moments when we do not know how to distinguish what is the best thing to do; o The experience that we acquire while living our life. 1.7 Comparing the ethical theories In this paragraph, we will compare the ethical theories we learned about in previous paragraphs. The following table (Figure 1.1) synthetises the main aspects of Deontological Ethics, Utilitarianism and Virtue Ethics. Note: the table is not a complete synthesis of each theory; it is meant to help in the comparison of the main aspects of each theory. Marta Rocchi, 2023 17  Business Ethics. A Path to Excellence for Business Students Figure 1.1: Comparing Ethical Theories Copyright: Marta Rocchi, 2020 / Design: DCU IDEAS Lab, 2020 1.8 Ethics as a guide to human excellence In previous paragraphs, we explored the existence of different ethical theories. The last one that we explored was virtue ethics and we considered the meaning of excellence in the context of the ethics of Aristotle. In this paragraph, we reflect on our own concept of excellence, which will need to inform our reflections in the next topics of this course. Marta Rocchi, 2023 18  Business Ethics. A Path to Excellence for Business Students Reflect – Stop for a moment and think about your own concept of excellence: how does an excellent person look like, in your opinion? 1.9 Ethics in business Up to this point, we have discussed ethical approaches in general. As this module is about Business and Professional Ethics, let’s now look at ethics from a business perspective. Can business be associated with the concepts of happiness and excellence? In this module, we will explore how the actions we perform and the choices you will make as employees, managers and leaders, contribute to shaping your lives and the lives of others. Similar to how we looked at individuals and their lives as a pursuit of eudaimonia, we can see businesses as organised groups of people who share some mission. Therefore, if we say that ethics concerns excellence, we have to understand that the individuals striving for excellence are situated in an organizational context and are influenced by a company’s culture. If happiness is the driving force and ultimate goal of an individual, then the contribution to the good of society is the driver of business activity. In this module, we will consider the following overlapping areas: o Personal Ethics: How a person tends to her flourishing in the context of her life understood as a narrative unity. o Business Ethics: How business helps realise the best society possible, through providing goods and services for the good of society. o Social Ethics: How society tends to the realisation of the common good, which is the good of each and every one living in a society. Marta Rocchi, 2023 19  Business Ethics. A Path to Excellence for Business Students Figure 1.2: Summary of Personal, Business and Social Ethics Copyright: Marta Rocchi, 2020 / Design: DCU IDEAS Lab, 2020 1.10 Review of Chapter 1 On completion of Chapter 1 we now know how to: o Define ethics and explain how it is relevant in our lives; o Discuss the three main ethical theories, the questions they answer and list the philosophers behind them; o Discuss and critically examine the importance of the ethical dimension in business Marta Rocchi, 2023 20  Business Ethics. A Path to Excellence for Business Students 2. C References Annas, J. (1995). The Morality of Happiness (First paperback edition). Oxford University Press. Aristotle. (2000). Nicomachean Ethics. Cambridge University Press. Awad, E., Dsouza, S., Kim, R., Schulz, J., Henrich, J., Shariff, A., Bonnefon, J.-F., & Rahwan, I. (2018). The Moral Machine Experiment. Nature, 563(7729), 59–64. Bentham, J. (1999). An Introduction to the Principles of Morals and Legislation. Batoche Books. Brink, D. O. (2006). Some Forms and Limits of Consequentialism. In D. Copp (Ed.), The Oxford Handbook of Ethical Theory (pp. 380–423). Oxford University Press. Crimmins, J. E. (2019). Jeremy Bentham. In E. N. Zalta (Ed.), Stanford Encyclopedia of Philosophy. https://plato.stanford.edu/archives/sum2019/entries/bentham/ Foot, P. (2002). Virtues and Vices. Oxford University Press. Hill, Jr., T. E. (2006). Kantian Normative Ethics. In D. Copp (Ed.), The Oxford Handbook of Ethical Theory (pp. 480–514). Oxford University Press. Kant, I. (2002). Groundwork for the Metaphysics of Morals. Yale University Press. Larry, A., & Moore, M. (2016). Deontological Ethics. In E. N. Zalta (Ed.), The Stanford Encyclopedia of Philosophy. https://plato.stanford.edu/archives/win2016/entries/ethics-deontological/ MacIntyre, A. C. (1966). A Short History of Ethics. A History of Moral Philosophy from the Homeric Age to the Twentieth Century. The MacMillan Company. MacIntyre, A. C. (1992). Plain Persons and Moral Philosophy: Rules, Virtues and Goods. The American Catholic Philosophical Quarterly, 66(1), 3–19. MacIntyre, A. C. (1999). Dependent Rational Animals: Why Human Beings Need the Virtues. Open Court. MacIntyre, A. C. (2007). After Virtue: A Study in Moral Theory (3rd ed.). University of Notre Dame Press. Melé, D. (2019). Business Ethics in Action: Managing Human Excellence in Organizations (2nd ed.). Red Globe Press. Mercado, J. A. (Ed.). (2018). Personal Flourishing in Organizations. Springer. Rhonheimer, M. (2011). The Perspective of Morality: Philosophical Foundations of Thomistic Virtue Ethics (G. Malsbary, Trans.). Catholic University of America Press. https://doi.org/10.2307/j.ctt3fgqgv Rodriguez Luño, A., & Belloq, A. (2014). Ética General (7th ed.). EUNSA. Rohlf, M. (2018). Immanuel Kant. In E. N. Zalta (Ed.), The Stanford Encyclopedia of Philosophy. plato.stanford.edu/archives/sum2018/entries/kant/ Marta Rocchi, 2023 21  Business Ethics. A Path to Excellence for Business Students Sison, A. J. G., Beabout, G. R., & Ferrero, I. (Eds.). (2017). Handbook of Virtue Ethics in Business and Management (1st ed., Vol. 1–2). Springer. Marta Rocchi, 2023 22  Business Ethics. A Path to Excellence for Business Students About the Author Marta Rocchi is an Assistant Professor in Corporate Governance and Business Ethics at DCU Business School, and member of the Irish Institute of Digital Business. Marta holds a PhD in Business from the University of Navarra (Pamplona, Spain) with a specialization on the ethics of finance, and an MSc in Economics and BSc in Economics both from the Sapienza University of Rome (Italy). She was appointed Visiting Scholar at the Hoffman Center for Business Ethics (Bentley University, Waltham, MA, USA), and she is a member of the Virtue Ethics in Business Research Group of the University of Navarra. She was awarded the 1st prize ex-aequo of the Ethics and Trust in Finance Global Award of the Observatoire de la Finance in 2019; the Society for Business Ethics Founders’ Award in 2016 as Emerging Scholar of the Society for Business Ethics; and the 2016 Rafael Termes Research Prize on ethics and finance. She received the 2023 DCU President’s Award for Distinctive Approaches to Teaching Innovation. Marta teaches Business and Professional Ethics; her research focuses on virtue ethics in business and finance, the new perspectives of business ethics in the future of work, and the ethical dilemmas of the digital world. She published in prestigious journals in the business ethics field: Business Ethics Quarterly, Journal of Business Ethics, and Business & Society. Marta Rocchi, 2023 23  Business Ethics. A Path to Excellence for Business Students Marta Rocchi, 2023 24