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PROFESSIONAL ETHICS ANSWERS

CHAPTER 1: MORAL REASONING AND ETHICAL THEORY Exercise 1.1

1. Immanuel Kant believes that in a moral universe, every person has certain basic rights, as indicated below: The Right of Free Consent Treat people as they knowingly and willingly consent to be treated. The Right of Privacy In their private lives, people are free to do what they like to do and they have the right to control what they reveal about their private activities. The Right of Freedom of Conscience People normally refrain from doing something which is in conflict with their moral beliefs as long as these beliefs reflect the norms commonly accepted by the society. The Right of Freedom People are free to put forward their opinion or criticism of an organisations ethics, so long as the criticism does not jeopardize the individuals rights in the organisation. The Right of Due Process People have the right to be impartially heard if their rights are violated.

2.

The comparison should be, at least, following the points below:

Golden Rule Christian origin Basic principles are basically similar with that of Islam Jesus teaching Islamic Teaching Islamic origin Islam also follows, to a certain extent, certain Christian principles Allah and the Prophet Muhammads teaching

3.

The choice should be within the following factors: Family Influence The ethical behaviours of children are very much affected by the behaviours of their parents. Peer Influence Since children, when they grow, are interacting with their friends, they are easily influenced by their peers within their same category.

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Life Experience Life experiences have shaped many people with a variety of ethical behaviours. It is a natural process. Personal Values and Morals Ethical standards are also affected by a persons values and morals. Different people place different values and priorities in their life. Situational Factors Certain environmental factors sometimes persuade some people to act in a manner contradictory to their beliefs.

Exercise 1.2
1. For the sake of convenience, the comparison should be done using the following method:
UTILITARIANISM x Emphasis is placed on the outcome / result / consequences and not the intent of individual actions. x An act / decision is considered right if it benefits people and conversely wrong if it damages or harms people. x The greatest good for the greatest number takes precedence in this theory over the greatest good for a smaller number of people. UNIVERSALISM x Emphasis is placed on the intentions of the person making the decision or performing the act. x The moral worth of an action has to depend too much upon the intentions of a person. Good intentions normally result in beneficial outcomes. x Universalism considers others as ends and not as means for our own interest.

2.

Some of the weaknesses of the five major ethical theories are as summarized below: (a) Eternal Law No exact provisions of the revealed truth. Each religion has its own moral standards for their members. The standards differ between groups. Cannot be applied universally. (b) Utilitarianism Difficulty in justifying benefits for the great majority. No single means of determining what is right, best or proper. Impossible to balance the benefits of the majority against the sacrifices of a minority.

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(c) Universalism It relies too much on the interpretation of the intentions of a person. Difficult to measure and prioritise the duties or obligations of an individual. Difficult to treat others as ends and not as means all the time, when some of them serve as means to our personal ends. (d) Distributive Justice Theory Individual effort is ignored. Entirely depends upon an acceptance of the proposition that social cooperation provides the basis for all economic and social benefits. (e) Personal Liberty Theory Depends on a very narrow definition of liberty.

Exercise 1.3
1. Briefly, ethics are defined as the principles of morally acceptable conduct of individuals. Ethics are relative and not absolute. They are generally behaviour that conforms to normally accepted social norms. Individual ethics are formed through various influences such as: 2. Family influence Peer influence Life experience Personal values and morals Situational factors

Case Study Consult your tutor on how to analyse the case properly with the available information and how to arrive at an acceptable solution by applying the knowledge you have gained from your reading.

CHAPTER 2: MORAL AND SOCIAL RESPONSIBILITY Exercise 2.1

1. Generally it is true. Examples: cheating, killing, dishonesty, etc. are immoral and illegal. Cannot. Ignorance excuses someone only when it is nonculpable, when the person acting does not understand the nature of what is being done or cannot anticipate all the reasonably foreseeable consequences of an action.

2.

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Exercise 2.2
1. To be morally responsible for any action, a person must act intentionally and deliberately, that is, he/she must be fully aware of what he/she is doing and must act freely, without any physical or psychological coercion. Under the context of Natural Law, cooperation can be divided into material and formal cooperation.
Formal Cooperation Someone becomes a willing partner with another person in performing an intrinsically wrong act, consenting to and approving the evil done. Formal cooperation is never justified even by grave fear. Material Cooperation It means that a person is asked to do something that is morally legitimate in itself, not evil by its nature, but ultimately helps another person accomplish an act that is intrinsically wrong.

2.

Exercise 2.3
1. There have been three turning points in the evolution of thinking about social responsibility as elaborated below: (a) The Entrepreneurial Era Occurred during the late 1800s. A period when captains of industries were accumulating fortunes. Prior to this era, virtually all industries were small. (b) The Depression Era This era came into picture in the early 1900s. By this time, large organisations had come to dominate the US economy. The public criticised these organisations for irresponsible financial practices that led to the stock market crash in 1929. (c) The Social Era Came into existence in the 1960s and characterised by social unrest. Big business organisations were accused of promoting the Vietnam war. Four consumer rights were proclaimed by President John Kennedy during this era. 2. Both arguments are summarised below:
Arguments For x Help problematic business x Corporations are also citizens x Business resources often help to solve problems x Social responsibility can enhance profits Arguments Against x Profit is one of the objectives of business x Involvement in social programmes gives business too much power x A possibility of conflict of interest x Inadequate business expertise to manage social programmes

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3.

Normally, governments influence organisations in two ways:

(a) Direct Regulation Introducing and enforcing laws and regulations for organisations to obey. To implement these regulations the government creates special agencies to monitor and control certain aspects of activity. Government indirectly influences organisations in matters related to how organisations should spend their money. The influence comes through taxation, either in the form of incentives or subsidies.

(b) Indirect Regulation

Various ways how organisations influence government. Some of them are:

Personal contact Personal contacts and networks offer one method of influence. It is an attempt to influence legislation by individuals or groups. Organisations created to solicit and then distribute the money to political candidates for their campaign. Depend on favours to gain support.

Lobbying

Political Action Committee

Favours

4.

The formal methods that organisations can use to manage social responsibility are:
Legal compliance Organisations should comply with federal, state, local or even international laws. Members of the organisation should follow basic ethical standards of behaviour accepted by the society. Awarding or donating funds to charitable programmes as part of the organisations contribution to the public.

Ethical compliance

Philanthropic giving

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CHAPTER 3: THE NATURE OF ETHICS IN MODERN BUSINESS Exercise 3.1

1. Ethical problems are also managerial problems. Ethical problems exist in management due to the conflict between an organisations economic and social performance. Reducing the number of employees for saving costs and eventually increasing profit will have a great impact on unemployment. Students are encouraged to provide their own example and find the solution for the conflict. 2. The key features of ethical problems are summarised below: (a) Most Ethical Decisions have Extended Consequences The results of managerial decisions/actions extend throughout the society. For example, unsafe products affect individual lives. (b) Most Ethical Decisions have Multiple Alternatives Multiple alternatives have to be developed in making ethical decisions or choices. (c) Most Ethical Decisions have Mixed Outcomes Social benefits and costs as well as financial revenues and expenses are associated with almost all the alternatives in ethical choices. (d) Most Ethical Decisions have Uncertain Consequences It is not always clear what consequences will follow from most ethical decisions or choices. (e) Most Ethical Decisions have Personal Implications Individual benefits and costs as well as financial and social benefits and costs are associated with most of the alternatives in ethical decisions.

Exercise 3.2
1. Three mechanisms are normally employed in analysing ethical problems in management: (a) Economic Analysis Microeconomics/macroeconomics theories which rely on an open-market operation and supply and demand forces should be able, to a certain extent, to help solve some ethical problems. (b) Legal Analysis Should ethical problems become major problems, a law can be passed to deal with the situation. (c) Ethical Analysis Under the normative philosophy, if everybody is rational in a society and acts on the same principles, members of that society would be treated as fairly as possible.

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2.

There are lot of ethical problems in management that students can choose from. Some of them are as listed below:

Pricing Level Fluctuation in price level is purely an economic problem, but has some impact on society. Advertising Messages Varying degrees of truthfulness and deception in advertising should be analysed in order to remove any doubt in the minds of the public. Product Promotions These are part of advertising agenda. The public should not be negatively influenced by the promotional message of any advertisement. Working Conditions Working environment should be conducive to employees in their workplace. Customer Service Customers should be given priority in any business transaction.

x x

Exercise 3.3
1. A good example is retrenchment. It is an economic problem which has great impact on the members of public affected. Students should be able to view retrenchment as one of the ways companies normally resort to in order to reduce costs and maximise profit. But retrenchment causes inconvenience to the society because it contributes to the increasing level of unemployment. 2. You should elaborate on the complexities of ethical problems by detailing the following consequences: Extended consequences Multiple alternatives Mixed outcomes Uncertain occurrences Personal implications

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