Concepts & Terms
As a foundation for discussion, it will be advantageous to establish a commonality of language. The following terminology shall be used throughout this blog:
- Ethics - A system which allows one to distinguish between right and wrong. Another definition is presented by Reilly and Kyj: "Ethics is behavior that promotes human welfare as defined in both individual and societal terms."
- Ethics of Personal Advantage - "Self-interested, outcome-oriented, individualism." (Mitchell & Scott)
- Moral (or Morality) - For purposes of this blog, behavior which is deemed proper or appropriate in accordance with religious/cultural premises; as compared to ethical behavior, which shall be used herein as universal and non-sectarian.
- Circularity - Use of a principle to prove itself.
- Infinite Regression - Use of one unproven principle to prove another principle.
- Dogmatism - Insistence that a principle is right without justification or proof; dictatorial.
- Types of Rules:
- Propriety - Includes concepts such as honor, dignity, manners, etiquette; involves face-to-face interaction with another person.
- Legal - Views individuals as citizens of a political body ("laws"); does not generally transcend boundaries.
- Procedural - Steps required to achieve an objective, e.g., recipes, plans, assembly instructions, etc.
- Ethical - Applies to a person as a human being (universal).
- Utilitarian (or "Greatest Happiness") Principle - "...holds that actions are right in proportion as they tend to promote happiness; wrong as they tend to produce the reverse of happiness. By happiness is intended pleasure and the absence of pain; by unhappiness, pain and the privation of pleasure." (John Stuart Mill)
The Basic Writings of John Stuart Mill: On Liberty, the Subjection of Women and Utilitarianism
- "Veil of Ignorance" - Assumes that parties do not know how various alternatives might affect their own particular case, and are therefore obliged to evaluate principles solely on the basis of general considerations. Used for equitable establishment of rules, with no partisanship or conflicts of interest. (John Rawls) A Theory of Justice
- Classical Approach - Suggests a distribution of pleasures times the number of people affected (e.g., P*N). This method tends to promote a lower quality of life due to unequal distributions.
- Average Approach - Recommends a distribution of total pleasures among a number of people (e.g. , P/N). This method tends to encourage a minimum standard of living or quality of life.
- Deontological (Contract) Ethics - Based on the assumption the "end" result cannot violate basic societal agreements or ethical principles.
- Consequential Ethics - Presumes the "end justifies the means," and allows that a principle can be changed if it is for the "good" of society.
- Hedonism - The pursuit of pleasure as a way of life.
- Egalitarian - Advocating full political and social equality for all people.
- Six Permutations of Ethical Behavior.
- Self-Destructive - Harming one's self while harming others.
- Egoistic - Benefiting one's self while doing harm to others.
- Libertarian - Benefiting one's self while not harming others.
- Reciprocal - Benefiting one's self while benefiting others.
- Altruistic - Benefiting others while not harming one's self.
- Self-Sacrificial - Benefiting others while harming one's self.
- "Original Position" - A principle which assumes free and rational persons concerned to further their own interests would accept an initial position of equality as defining the fundamental terms of their associates.
- "Greatest Liberty Principle" - Presumes each person is to have an equal right to the most extensive basic liberty compatible with a similar liberty for others. Social and economic inequalities are arranged so they are:
- reasonably expected to be to everyone's advantage, and
- attached to positions and offices open to all.
- Organizational Culture - The set of values, often taken for granted, that helps people in an organization understand which actions are considered acceptable and which are considered unacceptable. (Griffin and Moorhead) Organizational Behavior - Managing People and Organizations By Griffin & Moorhead (8th, Eighth Edition)
- Special Interest Group - Individuals or organizations who have something of value to be gained by either maintaining the status quo or seeking changes.
- Levels of Ethical Business Conduct:
- Corporate - Ethics as practiced by the corporation in external relationships. At this level, wemust be concerned with such things as environmental and safety considerations, human rights,
social responsibility, plant closures and regulatory and government compliance.
- Intercorporate - Ethics as practiced by corporations among themselves, external to the corporation. At this level we must concern ourselves with such things as mergers and acquisitions, disclosures (financial and otherwise), insider information, stock manipulation and antitrust.
- Intracorporate - Ethics within the corporation. At this level, matters of concern include conflictof interest, financial benefit, buying and selling relationships and testing and reporting.
- Professional - Patterns of behavior which are common to professional groups [CPAs, attorneys,etc.]. Of concern in this case might be the potential for conflict between policies of thecompany and requirements of ethics codes imposed upon members of professional groups.
- Personal - Ethics practiced by individuals. At this level, the most basic principles are integrity and fairness. Also included within the meaning of integrity are honesty, candor and protection of confidential information. Fairness involves the assurance that the decision process and theend result are proper for all parties (a 'win-win' situation), or in other terminology, reciprocalethics. We should view personal standards as the "bedrock" of ethical conduct, because all corporations are made up of people.
Attributions to original sources are indicated (linked), if known. Please e-mail suggestions or corrections to improve this blog.