Unit 3 Lecture Notes Professional Ethics and Philosophy PDF

UNIT 3: Professional Ethics and Philosophy 1. Introduction to Entrepreneurship Ethics 2. Moral issues in Entrepreneurship Ethics 3. Moral dilemmas and decision- making Lecturers: Ms G. Mudada 4. frameworks/processes Mr T. Matutu 5. Leadership, Ethics...

UNIT 3: Professional Ethics and Philosophy 1. Introduction to Entrepreneurship Ethics 2. Moral issues in Entrepreneurship Ethics 3. Moral dilemmas and decision- making Lecturers: Ms G. Mudada 4. frameworks/processes Mr T. Matutu 5. Leadership, Ethics and Entrepreneurship.  Ethics: Definition What is ethics? What does being “ethical” or “moral” mean?  The English word "ethics" is derived from the Ancient Greek word ēthikós (ἠθικός), meaning "relating to one's character",  which itself comes from the root word êthos (ἦθος) meaning "character, moral nature, custom, or habit”.  The word ethics refers to a set of beliefs about right and wrong behaviour.  It refers to a set of moral principles that distinguish what is right from what is wrong.  Social behaviour: conforms to generally acceptable social norms.  Professor Deon Rossouw is often asked to define ethics, and for him it is simple: “Ethics is about the triangle of the self, the good and the other”  That means you are ethical when you don’t only think about what is good for yourself, but also for others.’  Another way of thinking about this is the golden rule of doing unto others as you would have them do unto you.  This model emphasizes the importance of balancing personal interests, moral principles, and the impact on others in ethical considerations.  The word ethics refers to a set of beliefs or principles about right (i.e., acceptable social norms) and wrong behaviour.  Ethics also includes reflection and thinking based on the lived experiences of the people.  Human beings have the inner capacity to distinguish between good and evil, between right and wrong.  Ethics: a system of moral principles and a branch of philosophy which defines what is good for individuals and society.  Ethics is a system of moral principles: what is good for individuals and society.  Ethics affect how people make decisions and lead their lives (how to live a good life and make morally justifiable or well- informed decisions/choices).  As a field of study, ethics covers the following dilemmas: 1) how to live a good life 2) our rights and responsibilities 3) the language of right and wrong 4) moral decisions - what is good and bad?  Our concepts of ethics have been derived from religions, philosophies and cultures.  They infuse debates on topics like abortion, human rights and professional conduct.  Ethics should not be confused with i.e., behaving in line with social conventions, religious beliefs and the law.  The role of Ethics to entrepreneurial Decision-making  An ethical entrepreneur = making ethical decisions/actions.  Ethics helps entrepreneurs to:  Distinguish between right and wrong,  Ensure that their choices align with moral values/societal norms.  Ethical decision-making in a global business environment is a complex topic that requires careful consideration. “Entrepreneurs must navigate through ethical dilemmas, weighing the interests of stakeholders, societal expectations, and legal obligations” (Faster Capital 2024)  The Myth of Amoral Business: The Stockholder Approach and Milton Friedman  Amoral: lacking a moral sense; unconcerned with the rightness or wrongness; neither moral nor immoral.  Munyaradzi Mawere (2010) defines the myth of amoral business: “’a belief that business and ethics do not mix’ they are mortal enemies”.  The concept of amoral business = businesses operate in a sphere separate from moral considerations, focusing solely on profit maximization.  Economist Milton Friedman: the primary responsibility of business is to its shareholders (i.e., financial investors).  This means that decisions should focus on increasing profits, often sidelining ethical considerations.  According to Friedman, the primary duty of a business is to maximize shareholder value.  Corporate executives’ responsibility is to act in the best interests of the owners:  i.e., prioritizing financial returns over social responsibilities.  Based on this stockholder theory, shareholders are one of many groups a corporation or organization must serve.  Thus, according to this stockholder view, the primary ethical responsibility (if any) is to maximise profits for shareholders. The myth of amoral business, encapsulated in the stockholder approach advocated by Milton Friedman, suggests that profit should be the sole focus of business operations.  Critics argue that this approach encourages a short-term focus on profits at the expense of long-term sustainability.  The stockholder approach often ignores the interests of other stakeholders i.e., employees, customers, and the community.  This can lead to negative social impacts, including job loss, poor working conditions, and environmental degradation.  Many argue that businesses have a broader ethical responsibility beyond profit.  This includes considering the social and environmental impacts of their operations and contributing positively to society.  Contemporary consumers and investors increasingly demand that businesses demonstrate social responsibility. The stakeholder response (Freeman)  R. Edward Freeman’s stakeholder theory offers a counterpoint to Milton Friedman's stockholder approach.  Freeman argues that businesses have a responsibility to a broader range of stakeholders, not just shareholders.  This perspective emphasizes the interconnectedness of various parties involved in or affected by business activities.  Freeman suggests that a company's stakeholders are "those groups without whose support the organization would cease to exist."  i.e., customers, employees, suppliers, political action groups, environmental groups, local communities, the media, financial institutions, governmental groups, etc.  Key ethical frameworks/Ethical Theories Ethical theories are formal (and ideally coherent and justified) statements that explain a certain matter. They are formal statements about what we ought to do, when faced with an ethical dilemma. Is it, for example, wrong to tell a lie, even if we thereby avoid making somebody sad? Or what if we, by harming one individual, can avoid ten people being harmed; should we in such cases choose the lesser evil? In trying to answer such questions, it becomes clear that one of the central issues in ethics is whether we should focus on the consequences or the nature of actions. Should we, perhaps focus on our emotions? Personal views?  (a) Consequentialism: right/wrong depend on the consequences of an act i.e., the more good consequences are produced, the better the act.  The morally right action is the one with the best overall consequences i.e., if telling a lie would help save a person’s life, then it’s the right thing to do.  Utilitarianism is an example of consequentialism – it determines right from wrong by focusing on outcomes.  Utilitarianism judges consequences by a “greatest good for the greatest number” standard  i.e., the most ethical or moral choice is the one that will produce the greatest good for the greatest number.  Hedonism (another form of consequentialism): pleasure/ absence of pain as the most important principle.  i.e., the most ethical or moral choice is the one that will produce the greatest good (i.e., happiness or pleasure) for the greatest number.  So, an action that brings about more benefit than harm is good, while an action that causes more harm than benefit is not.  For example, what if we, by harming one individual, can avoid ten people being harmed; should we in such cases choose the lesser evil?  Most utilitarians would say yes, if by harming one individual we can prevent ten people from being harmed, then its okay to harm one individual in this case.  (b) Deontological ethics: (Greek: deon, meaning duty) uses rules to distinguish right from wrong = duty-based ethics.  It suggests that actions are good or bad according to a clear set of rules - only actions that obey these rules are ethical!  Deontology is simple to apply: follow the rules, do your duty.  Immanuel Kant believed that ethical actions follow universal moral laws, such as “Don’t lie. Don’t steal. Don’t cheat” – these are absolutely prohibited, even in cases where the action would bring about more happiness/better outcomes than the alternative. “Act only on that maxim through which you can at the same time will that it should become a universal law of nature” - Kant  Divine Command Theory: morality is somehow dependent upon God, and that moral obligation consists in obedience to God’s commands - duty to follow God’s commands.  So, although it is important to follow rules and do the right thing, deontological ethics also acknowledges that actions and their outcomes are independent things.  Are there some things you have to do, even though you know they are wrong, such as shooting an intruder to protect your family?  There is a dilemma here: you know that killing is bad, but you also have the duty to protect your family!  Here, some deontologists might say that you should never kill no matter what!  Others will say that you have to focus on your duty by protecting your family, and not the likely death it will mean for the intruder.  Based on this, then, an act that is not good morally can lead to something good i.e., for example, we can agree that killing is wrong, but shooting the intruder to protect your family might seem right since you have the duty to protect your family.  Virtue Ethics What is virtue ethics?  The traditional list of cardinal virtues was:  Prudence i.e., the ability to discern the appropriate course of action to be taken in a given situation at the appropriate time.  Justice i.e., fairness, righteousness.  Fortitude i.e., courage: forbearance, endurance, and the ability to confront fear, uncertainty, and intimidation.  Temperance i.e., self-control, discretion, moderation.  The modern theologian James F Keenan suggests:  Justice: Justice requires us to treat all human beings equally and impartially.  Fidelity: Fidelity requires that we treat people closer to us with special care.  Self-care: We each have a unique responsibility to care for ourselves, affectively, mentally, physically, and spiritually.  Prudence: The prudent person must always consider Justice, Fidelity and Self-care. The prudent person must always look for opportunities to acquire more of the other three virtues.  The origin of virtue ethics can be traced from early Greek thinkers of ancient Greece: Socrates, Plato and Aristotle.  Socrates (died 399 BC) was a Greek philosopher from Athens who is credited as being one of the first moral thinker of the Western ethical tradition of thought.  Socrates first raises the question, “What is virtue?” Plato states virtue is knowledge = virtue.  Plato maintains a virtue-based eudaemonistic conception of ethics: that is to say, happiness or well-being (eudaimonia) is the highest aim of moral thought and conduct, and the virtues (i.e., 'excellence') are the requisite skills and dispositions needed to attain it.  The word eu̯ dai̯monía (Greek) is translated as “the good life" or “life lived well" or “flourishing or “happiness.”  Eudaemonism is an ethical theory claiming that the highest ethical goal is happiness and personal well-being.  Plato’s argument against the egoist [egoist: ethical egoism is the normative ethical position that moral agents ought to act in their own self-interest], that it is always better to be just than unjust, is psychological in nature.  Plato believed that when reason is in control, we are free to pursue what reason desires and we in fact gain most of what we desire.  This means that reason is higher and more important than emotions (i.e., anger) and appetites (i.e., cravings, addictions).  It is important for the three parts namely, mind (reasoning), appetites, and emotions to be in a balance.  When all three harmonize or aggregate together, each flourishing in their respective domain with mind in control over all, a well-ordered soul will emerge bearing the fruit of four cardinal virtues: justice, courage, wisdom, & self - control.  But whenever the appetites (any addiction will do) or emotions (e.g., anger) take over against the mind, one will have a disordered personality.  After Plato, came Aristotle – he was the student of Plato. Aristotelianism is a tradition of thought (tradition of philosophy) that takes its defining inspiration from the work or works of Aristotle.  Aristotle first used the term ‘ethics’ to name a field of study developed by his predecessors Socrates and Plato.  Aristotle contends virtue = habits of excellence. We become what we repeatedly do.  Intellectual virtues are taught and moral virtues are acquired through habituation.  He believed that we carefully cultivate moral goodness by rigorous practice.  But the ideal of virtue is doing the right thing because you want to do the right thing; you desire to act virtuously.  For Aristotle, Virtue Ethics is about character formation, becoming a person of excellence; it works on your motivation, your desires, & your intentions.  You want to want to be a person of excellence!  Aristotle emphasized the centrality of developing excellence (virtue) of character, as the way to achieve what is finally more important, excellent conduct.  As Aristotle argues in Book II of the Nicomachean Ethics, the person who possesses character excellence will tend to do the right thing, at the right time, and in the right way.  Advantages of Virtue Ethics  It centers on the person and what it means to be human. It includes the whole of a person's life.  Motivates us to work on morality (unlike other theories, that simply state what to do when in an ethical dilemma)  Doesn't rely on a theory: self-improvement. Focuses on the individual and building ourselves into better people, more focus on individuality and aforementioned development of moral reasoning.  Allows you to learn from your mistakes and become a good person over time.  It is accommodated by both religious and secular morality.  Disadvantages of Virtue Ethics  It doesn't provide clear guidance on what to do in moral dilemmas:  although it does provide general guidance on how to be a good person.  presumably a totally virtuous person would know what to do and we could consider them a suitable role model to guide us.  There is no general agreement on what the virtues are:  it may be that any list of virtues will be relative to the culture in which it is being drawn up.  No single and definitive answer to what the virtues are, they are time-changing.  Hard to tell what someone's motives are / some may not even want to develop moral virtues?  Doesn't concern right or wrong action - these virtues don't distinguish between what the right course of action would be when in an ethical dilemma, just describe what sort of characteristics one ought to develop.  Might not be any Telos (i.e., end, results). Where will these virtues lead to? Is there a reason for the development of these virtues?  It does not give clear rules on how to act in particular situations. There is also no guidance in situations where virtues conflict and where we need rules to guide our actions  It does not adress the problem of people doing bad things who think they are acting virtuously.  Ubuntuism “Ubuntu ethics can be defined as a set of values provided an opportunity for human beings to live according to certain human and humane principles such as reciprocity, common good, peaceful relations, emphasis on human dignity and the value of human life, as well as consensus, tolerance, and mutual respect” - Philip Ogochukwu Ujomudike (2016).  Ubuntu is a classical African concept that embodies people's allegiances and empowering relations with each other.  Ubuntu is from African Bantu languages, its root being ntu, which signifies primal being.  For Ramose, the prefix “evokes the idea of be-ing in general”. Ubu specifies a one-ness, while ntu specifies a wholeness. Ubu- is oriented towards ntu as a ‘being becoming whole.’  Ubuntu: Desmond Tutu’s Definition: “…It is the essence of being human. It speaks of the fact that my humanity is caught up and is inextricably bound up in yours. I am human because I belong. It speaks about wholeness, it speaks about compassion. A person with Ubuntu is welcoming, hospitable, warm and generous, willing to share. Such people are open and available to others, willing to be vulnerable, affirming of others, do not feel threatened that others are able and good, for they have a proper self-assurance that comes from knowing that they belong in a greater whole. They know that they are diminished when others are humiliated, diminished when others are oppressed, diminished when others are treated as if they were less than who they are. The quality of Ubuntu gives people resilience, enabling them to survive and emerge still human despite all efforts to dehumanize them.” (Tutu 2004. God Has A Dream: Published by Doubleday  Nelson Mandela’s comments on Ubuntu: "In the old days when we were young, a traveller through a country would stop at a village, and he didn't have to ask for food or for water: once he stops, the people give him food, entertain him. That is one aspect of Ubuntu, but it will have various aspects. Ubuntu does not mean that people should not enrich themselves. The question therefore is, are you going to do so in order to enable the community around you, and enable it to improve? These are the important things in life. And if one can do that, you have done something very important which will be appreciated."  Meaning of Ubuntu:  open and available to others,  affirming of others,  does not feel threatened that others are able and good, for he or she has a proper self-assurance that comes from knowing that he or she belongs in a greater whole and is diminished when others are humiliated or diminished, when others are tortured or oppressed.  Principles of the ubuntu philosophy:  According to our African moral theory, actions are right roughly insofar as they are a matter of living harmoniously with others or honouring communal relationships.   apply it to several issues in both normative and empirical research into morality.  compare and contrast this African moral theory with utilitarianism and Kantianism in the context of several practical issues.  There are three 'To be human’ maxims that shape the Ubuntu philosophy:  To be human is to affirm one's humanity by recognizing the humanity of others and, on that basis, establish respectful human relations with them.'  ‘if and when one is faced with a decisive choice between wealth and the preservation of the life of another human being, then one should opt for the preservation of life'.   Ubuntu as a 'principle deeply embedded in traditional African political philosophy’ which says “that the king owed his status, including all the powers associated with it, to the will of the people under him” (Samkange 1980).  African societies are collectivist societies, community- focused with collectivist values:  A popular African proverb comes to mind here to express the African sense of community. It says: "Go the way that many people go; if you go alone, you will have reason to lament".  The African idea of security and its value depends on personal identification with and within the community.  The Extended Family:  The extended family is the most prevalent family system in African countries/societies.  Marriage is a relationship between two extended families than just between a man and a woman.  Loose Parental Possessiveness of Children:  In African societies children do not belong to parents only, but also belong to community of relatives.  The kind of parental possessiveness towards children that one finds in the Western world is very rare in African countries/societies.  Relationships:  At the African grassroots, relationships take precedence over all other things.  There are several sex taboos which attempt to regulate moral life in Africa.  The sanctity of life makes it an abomination for anyone, under any circumstances to take his own life.  In traditional African societies, suicide was never permitted. Punishment for it was such that the person was not buried since his corpse was also believed to be abominable to mother earth.  Africans prize life above every other thing. The Igbo saying/name for boys = Nduka (i.e., life is supreme/great) express the African regard for life.  Any form of materialism which ultimately leads to the destruction of life is alien and destructive of the African culture and concept of human life and should be avoided.  Ubuntuism: African Moral Theory  Key principle: “Umuntu ngumuntu ngabantu” (literally means that a person is a person through other people).  According to our African moral theory, actions are right roughly insofar as they are a matter of living harmoniously with others or honouring communal relationships.  Thus, ubuntu ethics can be defined as a set of values which provide an opportunity for human beings to live according to certain human principles i.e., reciprocity, common good, peaceful relations, human dignity and the value of human life, as well as consensus, tolerance, and mutual respect.  Ubuntuism, therefore, represents an African conception of human beings and their relationship with the community that embodies the ethics defining Africans.  The notion of Ubuntu is against the following challenges some African countries are experiencing: 1) Ongoing hatred and intolerance i.e., xenophobia in South Africa, religious and ethnic conflicts, wars, etc. 2) Abuse of human rights and dehumanization i.e., unfair and politically- motivated arrests of journalists, opposition political leaders, lack of freedom of expression, etc. 3) Exploitation and authoritarianism i.e., the rich getting richer, government officials enriching themselves, natural resources benefiting a few elite, nepotism and favoritism, etc. 4) Poverty and oppression: the poor getting poorer, economic policies favoring the rich and elite, lack of proper medical facilities, etc. "Lord have mercy, mercy, mercy; hospitals no medication, dem loot; ghetto youths no jobs, dem loot; no water to drink in townships, dem loot” – Song lyrics by journalist Hopewell Chin'ono.  In your view, what is Ubuntu ethics? Do you think the values and principles upheld by Ubuntu are important to contemporary African societies? 2. Moral issues in Entrepreneurship Ethics What are the major moral issues in Entrepreneurship Ethics?  Competition, advertising and fair business practices  Although most companies have a legitimate code of conduct, ethical issues still pose challenges.  Answers may depend on business conditions, circumstances, and moral positions. What one person considers unethical may be regarded as standard practice by another.  For instance:  If your company is holding a sales contest, do you reschedule orders or try to convince clients to order more than they need to increase your chances of winning?  Do you go a step further and suggest a price increase soon to achieve your goal? Some may consider such behavior unethical, while others may see it as part of the “game” and within their usual remit as salespeople and “winners.” Individual and business ethics are, of course, difficult to define.  In business, advertising is important because it:  Encourages businesses to develop new products and improve services.  Enhances consumer choice i.e., ore companies in a market increase options for consumers.  Encourages lower prices i.e., competition can lead to better pricing strategies for consumers.  Communicates the value of offerings to potential customers.  Establishes brand identity and recognition in the marketplace.  Provides essential information about product features and benefits.  Clearly, advertising is important!  Based on fair business practices, the following are important:  Truthfulness in advertising i.e., claims must be accurate and not misleading.  Fair competition i.e., competing based on merit rather than unethical practices.  Respect for consumer rights i.e., upholding consumer rights and providing quality products/services.  Challenges in competition and advertising include:  Misleading advertising i.e., false claims can lead to consumer distrust and legal consequences.  Ethical dilemmas i.e., balancing profit motives with ethical responsibilities to consumers.  Based on fair business practices, the following are important:  Truthfulness in advertising i.e., claims must be accurate and not misleading.  Fair competition i.e., competing based on merit rather than unethical practices.  Respect for consumer rights i.e., upholding consumer rights and providing quality products/services.  Challenges in competition and advertising include:  Misleading advertising i.e., false claims can lead to consumer distrust and legal consequences.  Ethical dilemmas i.e., balancing profit motives with ethical responsibilities to consumers. Customer relations and marketing  In marketing/advertising, customer relations are vital.  According to Santa Clara University (2024): “Customer relationship marketing (CRM) focuses on building long- term relationships with customers to increase Customer Lifetime Value (CLV), engagement, loyalty, and customer alignment while reducing costs for bigger ROI. Compared to traditional marketing, which is focused primarily on immediate sales, CRM focuses on creating a customer profile, understanding customer needs and wants, and providing a superior level of customer service that delivers value to the customer on an ongoing basis. The goal of customer retention isn't just to have people engage with your business or brand once. Instead, it’s to create relationships you keep and can continue to capitalize on, over and over. Reflecting this, your CRR rate should be as high as possible. Healthy businesses tend to aim for a CRR that exceeds 85%”  Customer relations refers to the practice of managing interactions with current and potential customers.  Its benefits:  Strong relationships lead to repeat business.  Satisfied customers promote brand advocacy.  Engaged customers provide valuable insights for improvement.  To build strong customer relationships, it is important to:  Tailor experiences based on customer preferences and behavior.  Keep customers informed and engaged through various channels.  Provide timely and helpful assistance to enhance satisfaction.  Employee relationships and the  Employee relationshipsworkplace. refer to the dynamic interactions and connections between employees and their employers, as well as among employees themselves, within a workplace setting.  These relationships are essential for fostering a positive work environment, enhancing employee satisfaction, and promoting organizational effectiveness.  The key components include:  Maintaining open and transparent communication channels between management and employees.  Building mutual trust and respect is crucial for strong employee relationships.  Addressing and resolving conflicts constructively to maintain a harmonious workplace.  i.e., Implementing policies and procedures to manage disputes effectively.  Involving employees in decision-making processes and seeking their input.  Fostering teamwork and collaboration among employees to achieve common goals.  i.e., Encouraging diversity and inclusion to enrich workplace relationships.  Supporting employees in maintaining a healthy work-life balance.  Sustainability and social impact (Corporate Social Responsibility) Sustainability refers to the ability to meet present needs without compromising the ability of future generations to meet their own needs. It encompasses environmental stewardship, social equity, and economic viability. Social impact relates to the measurable effects that an organization’s actions have on society and the environment. Implementing eco-friendly practices such as reducing waste, conserving energy, and using sustainable materials. Ethical business practices i.e., commitment to integrity, transparency, and fairness in all business dealings.  According to Investopedia: “Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.”  Corporate social responsibility can help improve society and promote a positive brand image for companies.  Corporate social responsibility includes four categories:  Ethical responsibility i.e., moral/fair to others & environment  Legal responsibility i.e., obey laws and regulations  philanthropic endeavors i.e., donates profit to charities, etc.  and financial responsibilities i.e., financial investments in programs, etc.  3. Moral dilemmas and decision-making frameworks/processes What is a Moral dilemma? Can you share any decision-making frameworks/processes you know? A moral dilemma is a situation in which a person faces a choice between two or more conflicting moral principles/ethical obligations.  These dilemmas often involve difficult choices where adhering to one moral principle may lead to violating another. Examples:  Deciding whether to pull a lever to divert a runaway trolley onto a track where it will kill one person instead of five.  A therapist may face a dilemma between maintaining a client's confidentiality and reporting a threat to someone's safety.  Analyzing moral dilemmas in business (in general):  Step 1: Clarify the Dilemma  Clearly articulate the conflicting choices.  Example: “Should I report a colleague for unethical behavior, knowing it could harm their career?”  Step 2: Identify Stakeholders  Who will be affected by the decision?  Analyze how each stakeholder might view the dilemma.  Step 3: Evaluate the Options  List all potential courses of action.  Assess the outcomes of each option for all stakeholders.  Step 4: Apply Ethical Frameworks  i.e., Utilitarianism: Which option maximizes overall happiness?  i.e., Deontological Ethics: Which option aligns with moral duties or rules?  Step 5: Make a Decision  Based on your analysis, select the most ethically sound choice.  Justify your choice/explain your reasoning.  Step 6: Reflect on the Outcome  After making a decision, consider how it will be carried out.  After the situation unfolds, reflect on the decision’s impact and what you learned.  Examples of business situations where ethical frameworks can be applied to resolve moral dilemmas:  1. Outsourcing Jobs  Situation: A company considers outsourcing its production to reduce costs.  Ethical Considerations:  Deontology: Is it a violation of the company's duty to its employees to outsource jobs?  Utilitarianism: Will the cost savings benefit the majority of stakeholders, or will the job losses have a greater negative impact?  Ubuntu: How does this decision affect the community and relationships with employees?  Virtue Ethics: Is this decision aligned with the company’s values of fairness and compassion?  2. Product Safety  Situation: A manufacturer discovers that a product has a safety defect but considers delaying a recall to avoid financial loss.  Ethical Considerations:  Deontology: The duty to ensure consumer safety must take precedence over profit.  Utilitarianism: A recall may incur costs, but preventing harm to consumers maximizes overall well-being.  Ubuntu: The decision should consider the welfare of all stakeholders, including customers and employees.  Virtue Ethics: A responsible and honest company would prioritize customer safety over financial gain.  3. Marketing Practices  Situation: A company is tempted to exaggerate the benefits of a product in its advertising.  Ethical Considerations:  Deontology: Truthfulness in advertising is a moral obligation.  Utilitarianism: Misleading marketing could lead to short-term profits but long-term damage to customer trust.  Ubuntu: Respect for customers means providing honest information about products.  Virtue Ethics: Integrity and honesty are essential virtues that should guide marketing practices.  4. Environmental Responsibility  Situation: A company has the option to dispose of waste in an environmentally harmful way to save costs.  Ethical Considerations:  Deontology: There is a moral duty to protect the environment and follow regulations.  Utilitarianism: Consider the long-term consequences of harming the environment versus short-term savings.  Ubuntu: The company has a responsibility to the community and future generations.  Virtue Ethics: Acting as a responsible steward of the environment reflects the virtue of sustainability.  4. Leadership, Ethics and Entrepreneurship. What is the link between ethics and leadership? ----- What is ethical leadership?  According to Harvard Business School (2024): “Ethical leadership is the practice of making decisions that balance stakeholders’ best interests with your company’s financial health, and empowering others to do the same. As a leader, you have ethical responsibilities to four stakeholder groups—customers, employees, investors, and society—which Leadership, Ethics, and Corporate Accountability breaks down.”  Responsibilities to customers and employees:  Well-being: What’s ultimately good for the person  Rights: Entitlement to receive certain treatment  Duties: A moral obligation to behave in a specific way  Best practices: Aspirational standards not required by law or cultural norms  In addition to creating value for your business, you’re responsible for making a positive, or at least neutral, impact on society and the environment.  One framework to conceptualize this is the triple bottom line, also called the “three P’s”:  Profit: Your business’s responsibility to make a profit.  People: Your business’s responsibility to positively impact society by creating jobs, supporting charities, or promoting well-being initiatives.  The planet: Your business’s responsibility to positively impact the natural environment, or at least not damage it.  The above framework is known as Triple bottom line theory  According to the Universities of Wisconsin (2024): “Triple bottom line theory expands conventional business success metrics to include an organization's contributions to social well- being, environmental health, and a just economy. These bottom line categories are often referred to as the three “P's”: people, planet, and prosperity.”  It evaluates decisions based on social, environmental, and economic impacts: 1) Step 1: Assess the social impact (people). 2) Step 2: Evaluate the environmental impact (planet). 3) Step 3: Consider the economic impact (profit). 4) Step 4: Make a decision that balances these three dimensions.  “Ethical Leadership is when business leaders demonstrate appropriate conduct - in accordance with recognized principles and values - both inside and outside of the office. Through their words and actions, ethical leadership is about demonstrating strong moral principles that will point out wrongdoings (even when it may not benefit their business) and showing what’s right at the core of being an ethical leader. Ethical leaders set the example for the rest of the company and expect their actions and words to be respected and followed with the same convictions from their staff” (Thomas 2024)