Submitted to the College Department

Bantayan Southern Institute, Inc.

Bantigue, Bantayan, Cebu

In partial fulfillment of the requirements for

GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY:

“ETHICS AND BUSINESS”

Group 1
Jamila Dawn
Rhea Angela Valencia
Maricris M. Bucog
Divina Despi
Rouie Earl Abello

1ST SEMESTER, 2019-2020

Content

The Different Normative Ethical Theories Commonly Used in

Business Decision Making

A. Kohlberg's Stages of Moral Development

B. The Machiavellian Principles
C. Utilitarianism
D. The Principles of Rights and Virtuous : The Kantian Ethics
E. John Rawls'Principles of Justice
F. The Moral Positivism of Hobbes
G. Divine Command of Ethics
H. Ethical Egoism of Ayn Rand
C. UTILITARIANISM

What is the Utilitarianism?

An ethical philosophy in which the happiness of the greatest

number of people in the society is considered the greatest good.

- Business Dictionary

According to this philosophy, an action is morally right if its

consequences lead to happiness (absence of pain), and wrong if it ends
in unhappiness (pain).

The Basic Idea of Utilitarianism

The Greatest Happiness Principle:

“ Actions are right in proportion as they tend to promote happiness,

wrong as they tend to produce the reverse of happiness ”

–John Stuart Mill

Happiness = pleasure, and the absence of pain

Unhappiness = pain, and the absence of pleasure

Background on Utilitarianism

English philosophers John Stuart Mill (1806-1873) and Jeremy Bentham

(1748-1832) were the leading proponents of what is now called “classic
utilitarianism”.

Utilitarianism is a form of Consequentialism

Consequentialism
 - the right action is understood entirely in terms of the
consequences produced.

-Whether an action is morally right or wrong depends entirely on its

consequences. An action is right if it brings about the best outcome of
the choices available. Otherwise it is wrong.

Types of Utilitarianism

Act Utilitarianism – belief that an action becomes morally right

when it produces the greatest good for the greatest number of
people.

Rule Utilitarianism - belief that the moral correctness of an

action depends on the correctness of the rules that allows it to
achieve the greatest good.

Applying Utilitarianism in Business

 Welfarism- is the understanding that the wrongness or rightness

of operations depends on society’s conceptions of welfare or
wellbeing.
 Individualism- holds that every individual, as it is human nature,
pursues happiness, thus, will engage in actions that maximize
utility.
 Aggregation- which is the notion that the wrongness or rightness of
actions depends on their ability to average the benefits brought to all
individuals.

Sources:

www.businessdictionary.com/definition/utilitarianism.html
https://www.csus.edu/indiv/g/gaskilld/ethics/utilitarianism%20not
es.htm
https://www.academicwritersbureau.com/samples/219-applying-
utilitarianism-in-business
D. The Principles of Rights and Virtuous : The Kantian Ethics

Immanuel Kant (1724-1804) – German philosopher

Kant’s system of ethics

 known as Deontology, in which duty, obligation, and good will are

of the highest importance.

Kantian Ethics – the morality of an action is determined based on

the reasons for our actions.

Kant’s Metaphysics of Morals

Two distinct parts:

 Doctrine of Rights
Kant’s definition of Right - “ the sum of the conditions under
which the choice of one can be united with the choice of another
in accordance with a universal law of freedom.”
 Doctrine of Virtue
Kant’s definition of Virtue – “the moral strength of human
being’s will in fulfilling his duty.”

Categorical Imperative

- Command you must follow regardless of your desires. Moral

obligations are derived from pure reason.
Two types:
  Hypothetical Imperative- something you must do in order to
achieve something else.
Categorical Imperative – something that you must always do, no
matter what the situation is.

The UniversaIizibility Principles

‘’ Act according to that maxim whereby you can at the same time
will that it should become a universal law’’
- Immanuel Kant
 maxim - a rule or principle of action
universal law – something that must only be done in similar
situations

Example:

According to Kant, if A is trying to murder B and A asks you where

B is, it would be wrong for you to lie to A, even if lying would save
B’s life (Kant).

The Formula of Humanity

“Act so that you treat humanity, whether in your own person or in

the person of another, always as an end and never simply as a
mere means.”
- Immanuel Kant
 mere means - use it only for your own benefit, with no
thought to the interest or benefit on the things you’re using.
E. JOHN RAWLS’PRINCIPLES OF JUSTICE

According to Rawls all citizens in this situation will agree on two

principles:

The first principle ( the principle of equal liberty),”each person

must extensive total system of equal basic liberty for all,
Consistent with a single system for all.

The basic liberties may be restricted in the name of freedom.

Freedom is in a lieable,and here is revealed Rawls liberal & close
to the enlightenment.

The second principle ( the principle of inequality)states that the

inequalities (economic and social) are justified only if attached to
positions, Jobs available to all under conditions of equal
opportunity impartial (principle of equal opportunities).

These principles are hierarchical : the principle of equal liberty

has priority over the other & the principle of equal opportunity has
priority over difference principle.

Society is not equlitarian but it is an equitable society where the

position giving the greatest benefits obtained by some also
benefit left behind.
For example , IF SOME ARE RICH ENOUGH TO AQUIRE
WORKS OF ART,HOWEVER THEY PLACE THEM IN.

MUSEUMS WHERE THE POOREST CAN ADMIRED THEME .

F. THE MORAL POSITIVISM OF HOBBES

THOMAS HOBBES (1588 – 1679) developed the social

contract theory of political institutions, employing commitment to
some form of psychological egoism.
Hobbes rejected medieval scholastic philosophy,preffering
thenew, modern ways of thinking on the rise in England and
Europe.

 He studies different forms of government.

HOBBES MAJOR WORKS IS TITLED:
 Leviathan Or The Matter Form ,& Power Of A
Commonwealth Eciesistical and Civil.
 He arqued that people are naturally wicked and could not
be trusted to govern.
He believed that an absolute monarchy was best Hobbes wants
us to consider the relations that emerge among human beings in
light of our common human nature ,Prior to there being any
society a government.

In doing this, he hopes to show

 Why we need government
 The character that government must have
  What our duties are to our goverment

ETHICAL PHILOSOPHY
 Hobbes believes that human being are selfish creature.
If men are naturally in a state of war, why do the always carry
arm sand why do they have keys to lock their door?

 The basis of all moral laws , Is LAWS OF THE STATE

o GOD
o EVIL
 Governments are created to protect people from their own
selfishness and evil.
 HOBBES wrote “ All mankind is in a perpectual and restless
desire for power that stop only death.”
“War of every man against every man “and
make life“solitary,poor,nasty,brutish and short.”

BUSINESS APPLICATION
 Business must follow laws and government regulation.
Business enterprises must create company policies to maintain
discipline and order within the organization.

G. THE DIVINE COMMAND ETHICS

Are morally good acts willed by God because they are morally
good? Or Are they morally good because they are willed by God.
The Divine Command Theory

End***