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Chapter03-PhilosophicalEthicsandBusiness
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Copyright?McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.
IMChapter3:
PhilosophicalEthicsandBusiness
ChapterObjectives
Afterreadingthischapter,youwillbeableto:
1.Explaintheethicalframeworkofutilitarianism.
2.Describehowutilitarianthinkingunderliesmucheconomicandbusinessdecision-making.
3.Explainhowthefreemarketisthoughttoservetheutilitariangoalofmaximizingtheoverall
good.
4.Explainsomechallengestoutilitariandecision-making.
5.Explainprinciple-based,orrights-based,frameworksofethics.
6.Explaintheconceptofhumanrightsandhowtheyarerelevanttobusiness.
7.Distinguishmoralrightsfromlegalrights.
8.Explainseveralchallengestoprinciple-basedethics.
9.Describeandexplainvirtue-basedframeworkforthinkingaboutethicalcharacter.
OpeningDecisionPoint
AreCEOsGettingPaidTooMuch?
ThisOpeningdecisionCaseisanupdatedcasestudyoftheissueofexecutivecompensation.Therearefewtopicsthatraiseethicalissuessocloselyconnectedtothethreemajorethicaltheoriesthatwillbeintroducedinthischapter.Anethicalanalysisofexcessivecompensationneedstolookatargumentsthatappealtoutilitarianconsiderations,rightsandduties,andvirtues.
Manyargue,onutilitariangrounds,thathighcompensationisjustifiedbecauseitprovidesstrongincentivesforperformance,orthatitisnecessarytorecruittalent.Othersarguethathighcompensationisearnedordeserved,andthereforeisamatterofrightandjustice.Or,somearguethatcompensationdecisionsisbestlefttobargainingbetweenindividualsand,thus,shouldbeamateurofrespectforindividualliberty.Incontrast,somearguethatexcessivecompensationisundeservedandunfair,andtheresultofunfaircollusionbetweenpowerfulpeoplewhoseekonlyself-interest.Stillothersarguethatexcessivecompensationresultsfromcharacterflawssuchasgreedandselfishness,andthatitworksagainstsuchvirtuesasmoderation,beneficence,humility.
Itcanbehelpfultoaskstudentstotakeasandonthisissue,“doCEOsgetpaidtoomuch?”Thenstudentscanbeaskedtolocatetheirownreasoningwithinthethreebroadcategoriesofconsequences(utilitarian),principles(rightsandduties)orvirtues.
ItcanbeagoodideatoreturntotheWellsFargocasefromChapterOneandusetheexampleoftheWellsFargoCEOpaytoexplorethisquestion.
Introduction:EthicalFrameworks:Consequences,Principles,Character
considerthereasonsthatyouorotherswouldoffertodefendorcriticizethepaymentoflargebonusestoexecutives.Thesereasonsfallintothreegeneralcategories:
Somereasonsappealtotheconsequencesofpayingthebonuses(e.g.,theyeitherwillorwillnotprovideincentivesforproducinggoodworkandbeneficialfutureconsequences).
Otherreasonsappealtocertainprinciples,suchas:oneshouldnotbreakacontractualpromise,evenifithasunpopularresults;oneshouldneverbenefitfromseriousharmsthathavebeencausedbyone’sownactions.
Otherreasonscitematersofpersonalcharacter:acceptingbonusesisgreedy,ordistasteful;payingbonusesthatweredueinthefaceofpubliccriticismwascourageousandhadtobedoneasamatterofintegrity.
Ethicsinvolveswhatisperhapsthemostsignificantquestionanyhumanbeingcanask:Howshouldweliveourlives?Everymajorphilosophical,cultural,political,andreligioustraditioninhumanhistoryhasgrappledwiththisquestion.
BarrierstoDiscussionsofPhilosophicalEthics:
Discussionsofphilosophicalethicscanappearintimidatingortooabstractanddiscussionsofethical“frameworks”oftenseemtobetootheoreticaltobeofmuchrelevancetobusiness.
Thischapterattemptstosuggestamoreaccessibleunderstandingofethicalframeworksandshedlightonthepracticalandpragmaticapplicationofthesetheoriestoactualproblemsbusinesspeopleface.
EthicalFramework:isanattempttoprovideasystematicanswertothefundamentalethicalquestion:Howshouldhumanbeingslivetheirlives?
Ethicscanbeunderstoodasthepracticeofexaminingourdecisionsandthinkingaboutanswerstothequestion:Why?
Ethicsattemptstoprovidereasonstosupporttheanswerstothisquestion.
Ethicsalsoseekstoprovidearationaljustificationforwhyweshouldactanddecideinaparticularway.
Philosophicalandreasonedethicsmustanswerthe“why?”questionaswellbyconnectingitsprescriptionswithanunderlyingaccountofagoodandmeaningfulhumanlife.
FoundationsofEthicalViews:Manypeopleandculturesacrosstheworldwouldanswerthis“why”questioninreligioustermsandwouldbasetheirnormativejudgmentsoncertainreligiousfoundations.Ifethicsisbasedonreligion,andifdifferentcultureshavewidelydivergentreligiousbeliefs,itseemsthatethicscannotescapethepredicamentofrelativism.
DecisionPoint
WhoistoSayWhatIsRightandWrong?
ThisDecisionPointdealswithethicalrelativismandasksthequestion:Areyouanethicalrelativist?
Ethicalrelativismholdsthatethicalvaluesarerelativetoparticularpeople,culturesortimes.Relativismdeniesthattherecanbeanyrationallyjustifiedorobjectiveethicaljudgments.Whenthereareethicaldisagreementsbetweenpeopleorcultures,theethicalrelativistconcludesthatthereisnowaytoresolvethatdisputeandproveonesideisrightormorereasonablethantheother.
ConsiderAbigaleDisney’sdescriptionofCEOpay(describedintheopeningdecisioncase)as“insane.”O(jiān)rdinarily,wethinkofsuchjudgmentsaspersonal,subjectivethings.YouenjoyspicyIndianfood,whileIprefersimple,Midwesternmeatandpotatoes.Itisallamatterofpersonaltaste.Disneymayhavefoundthebonusesdistasteful,butothersfindthemwell-deserved.Ethicalrelativistsbelievethatethicalvaluesaremuchliketastesinfood;italldependson,oritisallrelativeto,one’sownbackground,culture,andpersonalopinions.
Doyoubelievethatthereisnowaytodecidewhatisethicallyrightorwrong?Imagineateacherreturnsanassignmenttoyouwithagradeof“F.”Whenyouaskforanexplanation,youaretoldthattheteacherdoesnotbelievethatpeople“l(fā)ikeyou”(e.g.,men,Christians,AfricanAmericans)arecapableofdoinggoodworkinthisfield(e.g.,science,engineering,math,finance).Whenyouobjectandsaythatthisisunfairandwrong,theteacherthenoffersarelativistexplanation.“Fairnessisamatterofpersonalopinion,”theprofessorexplains.“Whodetermineswhatisfairorunfair?”youask.Yourteacherclaimsthathisviewofwhatisfairisasvalidasanyother.Becauseeveryoneisentitledtohis/herownpersonalopinion,heisentitledtofailyoubecause,inhispersonalopinion,youdonotdeservetosucceed.
Studentsareaskedtoconsiderthefollowingquestionsrelatedtothisscenario:
Wouldyouacceptthisexplanationandbecontentwithyourfailinggrade?Ifnot,howwouldyoudefendyourown,opposingview?
Arethereanyrelevantfactsonwhichyouwouldrelyontosupportyourclaim?
Whatvaluesareinvolvedinthisdispute?
Whatalternativesareavailabletoyou?
Besidesyouandyourteacher,arethereanyotherpeoplewhoareorshouldbeinvolvedinthissituation,anyotherstakeholders?
Whatreasonswouldyouoffertothedeaninanappealtohavethegradechanged?
Whatconsequenceswouldthisprofessor’spracticehaveoneducation?
Ifreasoningandlogicalpersuasiondonotwork,howelsecouldthisdisputeberesolved?
**TeachingNote:Examplesthatspeakdirectlytostudentsareusefultocounterthetendencytowardsrelativism.Value-ladentermssuchasfairness,deserve,justice,equaltreatment,meritareinescapablewhendiscussinggrades.Thisexamplecaneasilybetransferredintoanemploymentsituationinwhichamanagerconductsaperformanceappraisalofanemployee.Otherthanreasoningandlogicalpersuasion,whatisthemajoralternativeforresolvingconflicts?SinceatleastthetimethatThrasymachusinformedSocratesthat“justiceistheadvantageofthestronger,”themostcommonalternativeshavebeenforceandviolence.
Religiousethicsexplainshumanwell-beinginreligiousterms,whilephilosophicalethicsprovidesjustificationsthatmustbeapplicabletoallpeople,regardlessoftheirreligiousstartingpoints.
Exampleofphilosophicaljustification:“Youshouldcontributetodisasterreliefbecauseitwillreducehumansuffering.”
Exampleofreligiousjustification:“YoushouldcontributetodisasterreliefbecauseGodcommandsit,”or“becauseitwillbringyouheavenlyrewards.”
Ethicalframeworksevolvedovertimeandhavebeenrefinedanddevelopedbymanydifferentthinkers.Theinsightsofanethicalframeworkprovetobelastingbecausetheytrulydopickoutsomeimportantelementsofhumanexperience.
Thischapterwillintroduceseveralethicalframeworksthathaveproveninfluentialinthedevelopmentofbusinessethics.
Utilitarianismisanethicaltraditionthatdirectsustodecidebasedonoverallconsequencesofouract.
Principle-basedethicaltraditionsdirectustoactonthebasisofmoralprinciplessuchasrespectinghumanrights.
Virtueethicsdirectustoconsiderthemoralcharacterofindividualsandhowvariouscharactertraitscancontributeto,orserveasanobstructionto,ahappyandmeaningfulhumanlife.
Utilitarianism:MakingDecisionsBasedonEthicalConsequences
*ChapterObjective1DiscussedBelow*
Background:Utilitarianismhasitsrootsineighteenthandnineteenthcenturysocialandpoliticalphilosophy.
FundamentalInsightofUtilitarianism:Beginswiththeconvictionthatweshoulddecidewhattodobyconsideringtheconsequencesofouractions.Inthissense,utilitarianismhasbeencalledaconsequentialistapproachtoethicsandsocialpolicy.
Utilitarianismtellsusthatweshouldactinwaysthatproducebetteroverallconsequencesthanthealternativesweareconsidering.
“Better”consequencesarethosethatpromotehumanwell-being:thehappiness,health,dignity,integrity,freedom,andrespectofallthepeopleaffected.
Adecisionthatpromotesthegreatestamountofthesevaluesforthegreatestnumberofpeopleisthemostreasonabledecisionfromanethicalpointofview.
Emphasisofutilitarianismisonproducingthegreatestgoodforthegreatestnumber.Accordingtoutilitarians,theultimateethicalgoalistoproducethebestconsequencesforallpartiesaffectedbythedecisions.
Historically,utilitarianismhasprovidedstrongsupportfordemocraticinstitutionsandpoliciesandopposesthosepoliciesthataimtobenefitonlyasmallsocial,economic,orpoliticalminority.
Itcouldbesaidthattheeconomyandeconomicinstitutionsareutilitarianinthattheyexisttoprovidethehigheststandardoflivingforthegreatestnumberofpeople,notsimplytocreatewealthforafew.
Example:Injudgingtheethicsofchildlabor,utilitarianthinkingwouldadviseustoconsiderallthelikelyconsequencesofemployingyoungchildreninfactories.
Therearesomeobviouslyharmfulconsequences:childrensufferphysicalandpsychologicalharms,theyaredeniedopportunitiesforeducation,theirlowpayisnotenoughtoescapealifeofpoverty,andsoforth.
Buttheconsequencesmustbecomparedtotheconsequencesofalternativedecisions,suchasifchildreninpoorregionsaredeniedfactoryjobs?Thesechildrenwouldstillbedeniedopportunitiesforeducation;theywouldbeinworsepoverty;andtheywouldhavelessmoneyforfoodandfamilysupport.Inmanycases,theonlyalternativesforobtainingincomemightincludecrime,drugs,andprostitution.
Weshouldalsoconsidertheconsequencesfortheentiresociety.Childlaborcanhavebeneficialresultsforbringingforeigninvestmentandmoneyintoapoorcountry.Thus,somewouldarguethatallowingchildrentoworkforpenniesadayundersweatshopconditionsproducesbetteroverallconsequencesthantheavailablealternatives.
Onemightargueonutilitariangroundsthatsuchlaborpracticesareethicallypermissiblebecausetheyproducebetteroverallconsequencesthanthealternatives.
Utilitarianstendtobeverypragmaticthinkers.Theydecideonthebasisofconsequencesandtheybelievethattheconsequencesofouractionswilldependonthespecificfactsofeachsituation.
AccordingtoUtilitarianism:Noactiseverabsolutelyrightorwronginallcasesineverysituation;itwillalwaysdependontheconsequences.
Forexample,lyingisneitherrightnorwronginitself,accordingtoutilitarians.Theremightbesituationsinwhichlyingwillproducegreateroverallgoodthantellingthetruth.Insuchasituation,itwouldbeethicallyjustifiedtotellalie.
Utilitarianreasoningalsousuallysuppliessomesupportforeachcompetingavailablealternative(e.g.,wecanbanchildlaborasharmfultotheoverallgoodorallowchildlaborascontributingtotheoverallgood).
EthicalLegitimacy:Decidingontheethicallegitimacyofalternativedecisionsrequiresthatwemakejudgmentsaboutthelikelyconsequencesofouractions.Howdowedothis?
Withintheutilitariantradition,thereisastronginclinationtoturntosocialscienceforhelpinmakingsuchpredictions,sinceitstudiescausesandconsequencesofindividualandsocialactions.
Ingeneral,theutilitarianpositionisthathappinessistheultimategood,theonlythingthatisandcanbevaluedforitsownsake.
TheGoalofEthics:Bothindividuallyandasamatterofpublicpolicy,thegoalofethicsshouldbetomaximizetheoverallhappiness.
*Reference:“RealityCheck-IsUtilitarianismEgoistic?”*
Studentsoftenhavedifficultydistinguishingegoismfromutilitarianism.Thedifferenceisbetweenseekingtomaximizepersonalhappinessandseekingtomaximizeoverallhappiness.Tocomplicatematters,economictheorymightsuggestthatthemostefficientmeanstoaccomplishingthelatteristopursuetheformer.Utilitarianismjudgesactionsbytheirconsequencesforthegeneralandoverallgoodandtakesintoconsiderationthewell-beingofeachandeveryindividualaffectedbyanaction.Thus,utilitarianismservestheimpartialpromotionofhumanwell-being,whileegoismservestomaximizeonlyindividualhappiness.
III. UtilitarianismandBusiness
*ChapterObjective2AddressedBelow*
Utilitarianism’sgreatestcontributiontophilosophicalthoughthascomethroughitsinfluenceineconomics.WithrootsinAdamSmith,theethicswhichunderliesmuchoftwentiethcenturyeconomics—essentiallywhatwethinkofasthefreemarket—isdecidedlyutilitarian.Inthisway,utilitarianismcontinuestohaveaverystrongimpactonbusinessandbusinessethics.
Utilitarianismanswersthefundamentalquestionofethics:“Whatshouldwedo?”byreferringtothefollowingrule:maximizetheoverallgood.Thisissimilartothefinancialpracticeofconductingacost-benefitanalysisandmakingadecisionbasedonmaximizingthenetbenefitsovercosts.
Howdoweachievethisgoal?Whatisthebestmeansforattainingtheutilitariangoalofmaximizingtheoverallgood?Twoversionsofutilitarianpolicyhaveemerged:oneinvolvesfree,competitivemarketsandtheotherinvolvesadministration.
*ChapterObjective3AddressedBelow*
FreeMarkets:OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,andclaimsthatfreeandcompetitivemarketsarethebestmeansforattainingutilitariangoals.
Thisversionwouldpromotepoliciesthatderegulateprivateindustry,protectpropertyrights,allowforfreeexchanges,andencouragecompetition.
Insuchsituations,decisionsofrationallyself-interestedindividualswillresult,asifledby“aninvisiblehand,”inAdamSmith’sterms,tothemaximumsatisfactionofindividualhappiness.
Inclassicfreemarketeconomics,economicactivityaimstosatisfyconsumerdemand.Sincepeoplearemadehappy,andhumanwelfare/well-beingincreases,whenpeoplegetwhattheydesire,overallhumanhappinessisincreasedwhentheoverallsatisfactionofconsumerdemandincreases.
Thegoaloffreemarketeconomicsistomaximizethesatisfactionofwants(happiness).Freemarketsaccomplishthisgoalmostefficientlybyallowingindividualstodecidewhattheymostwantandthenbargainforthesegoodsinafreeandcompetitivemarket.
Thisrequiresthatbusinessmanagers,inturn,shouldseektomaximizeprofits.Bypursuingprofits,businessensuresthatscarceresourcesgotothosewhomostvaluethemandtherebyensuresthatresourceswillprovideoptimalsatisfaction.Competitivemarketsareseenasthemostefficientmeanstotheutilitarianendofmaximizinghappiness.
Asecondinfluentialversionofutilitarianpolicyturnstopolicyexpertswhocanpredicttheoutcomeofvariouspoliciesandcarryoutpoliciesthatwillattainutilitarianends.
Becauseutilitarianreasoningdetermineswhattodoonthebasisofconsequences,reasonablejudgmentsmusttakeintoaccountthelikelyconsequencesofouractions.
Policyexperts,usuallytrainedinthesocialsciencessuchaseconomics,politicalscience,andpublicpolicy,arefamiliarwiththespecificsofhowsocietyworks,andtheythereforeareinapositiontodeterminewhichpolicywillmaximizetheoverallgood.
*Reference:“RealityCheck-UtilitarianExpertsinPractice”*
Thisapproachtopublicpolicyunderliesonetheoryoftheentireadministrativeandbureaucraticsideofgovernmentandorganizations.Fromthisview,thelegislativebody(fromCongresstolocalcitycouncils)establishesthepublicgoalsthatweassumewillmaximizeoverallhappiness.
Theadministrativeside(presidents,governors,mayors)executes(administers)policiestofulfillthesegoals.
Peopleworkingwithintheadministrationknowhowthesocialandpoliticalsystemworksandusethisknowledgetocarryoutthemandateofthelegislature.
Thisapproachwouldbesympatheticwithgovernmentregulationofbusiness,onthegroundsthatsuchregulationwillensurethatbusinessactivitiesdocontributetotheoverallgood.
DisputeBetweenVersionsofUtilitarianPolicy:Thedisputebetweenwhatwemightcallthe“administrative”andthe“market”versionsofutilitarianism,characterizemanydisputesinbusinessethics.
Oneexampleconcernsregulationofunsafeorriskyproducts:
Onesidearguesthatquestionsofsafetyandriskshouldbedeterminedbyexpertswhothenestablishstandardsthatbusinessisrequiredtomeet.Governmentregulators(forexample,theConsumerProductsSafetyCommission)arethenchargedwithenforcingsafetystandardsinthemarketplace.
Theothersidearguesthatthebestjudgesofacceptableriskandsafetyareconsumersthemselves.Afreeandcompetitiveconsumermarketwillensurethatpeoplewillgetthelevelofsafetythattheywant.Individualscalculatewhatriskstheywishtotakeandwhattrade-offstheyarewillingtomakeinordertoattainsafety.Market-basedsolutionswillprovebestatoptimallysatisfyingthesevariousandcompetinginterestsandwilltherebyservetheoverallgood.
Thefollowingdecisionpointasksstudentstothinkthroughthetrade-offsthathappenonadailybasisingovernmentregulatorydecisions.Thisdemonstratestheutilitariannatureofsuchdecisions,butalsocanraisethequestionsofwhetherornotsomevalues,suchassafety,shouldbeexemptfromutilitariantrade-offandbalancing.
DecisionPoint
IsRegulationMakingCarstooSafe?
TheNorthAmericanautoindustryisheavilyregulated.Fuelefficiencyis,ofcourse,regulated(bytheEnvironmentalProtectionAgencyintheUnitedStates,andbyTransportCanadainCanada),asaretailpipeemissions.ButevenmoresignificantarethesafetyregulationstowhichthemodernNorthAmericanvehicleissubject.Safetystandardscovereverythingfromthedesignofseatbeltstotheperformanceofbrakingsystems,thepresenceandfunctioningofairbags,andtheabilityoffrontandrearbumperstosurvivelow-speedcollisions.AllofthesethingshavemadethecarsdrivenbyNorthAmericans(andEuropeans)vastlysafer—bothunder“normal”drivingconditionsandduringemergencies—thantheywere,say,fiftyyearsago.
EconomistandbloggerAlexTabarrokpointsoutthatinordertofullyevaluatetheoutcomesofsafetyregulations,weneedtolookathowthoseregulationsaffectpeople’sdecisions.*Onewaytheyaffectconsumerdecisionmakingisthroughtheirimpactonprices.Safetyfeatureshaveinevitablydrivenupthepriceofcars.Thishasmadecarsunaffordabletosomeconsumers,withsomeconsumersinsteadoptingtodrivemotorcycles.Motorcycles,afterall,aremuchlessexpensive.Asjustoneexample,inNorthAmericaabasicHondamotorcyclecostslessthanone-thirdasmuchasHonda’scheapestmodelofcar,theHondaFit.
Butmotorcyclesarenotonlylessexpensivethancars—theyarelesssafe,too.(TheU.S.NationalHighwayTrafficSafetyAdministrationsaysthatpermiletraveled,motorcyclesaretwenty-sixtimesmoredeadlythancars.?)Asweallknow,airbagshavemadecarssafer,butalsomoreexpensive.AndasTabarrokpointsout,motorcyclesdon’thaveairbags.Sowhatistheneteffectofregulationsthatincreasethesafetyofcardrivers,butthatalsopushsomedriverstobuymotorcyclesinstead?It’snotclearthatanyoneknowstheanswertothat.
1.Ifcarefulstudyshowedthatmorepeoplewerebeingkilledbyautomotivesafetyrequirementsthansaved,wouldyoubeinfavorofregulationsthatallowedmanufacturerstomakeatleastsomecarsthatarelesssafe?
2.Ifasinglepotentialcarbuyeroptstobuyamotorcyclebecausecarsarenowtooexpensiveforher,andifshediesorisinjuredinamotorcycleaccident,shouldweblameregulators?
3.Ifregulatorsdidn’tforcecarmakerstoinstallsafetyequipment,wouldconsumerdemandbeenoughtogetcarmakerstodosoanyway?Orwouldcarmakersabusethefactthatmostconsumersdon’tknowwhichsafetyfeaturesarereallymostworthpayingfor?
**TeachingNote:“Lettingthemarketdecide”isacommonapproachinseveralareasofbusinessethics.Intermsofthelogicalstructureandethicalvalues,disputesaboutconsumerproductsafety,workplacehealthandsafety,andenvironmentalprotectionraiseidenticalquestions.Ausefulstudyquestionorassignmentforawritingexerciseorexamwouldaskstudentstotracethelogicofthisperspectiveacrosssuchissuesasproductsafety,workplacesafety,andenvironmentalprotection.
ChallengestoUtilitarianEthics
*ChapterObjective4AddressedBelow*
Reviewingsomechallengestoutilitarianismcanguideusinevaluatinglaterapplicationsofutilitariandecisionmaking.
Counting,Measuring,ComparingandQuantifyingConsequences:Ifutilitarianismadvisesthatwemakedecisionsbycomparingtheconsequencesofalternativeactions,thenwemusthaveamethodformakingsuchcomparisons.
Inprinciple,utilitarianismtellsusthattheinterestsofallstakeholderswhowillbeaffectedbyadecisionoughttobeincludedincalculatingtheconsequencesofadecision.But,thereisnoconsensusamongutilitariansonhowtomeasureanddeterminetheoverallgood.
Forexample:Imaginetryingtocalculatetheconsequencesofadecisiontoinvestinconstructionofanuclearpowerplantwhosewastesremaintoxicfortensofthousandsofyears.
Asecondchallengerelatestoutilitarianism’srelianceonconsequences.
Ethicalandunethicalactsaredeterminedbytheirconsequences.Inshort,theendjustifiesthemeans.Butthisseemstodenyoneoftheearliestethicalprinciplesthatmanyofhavelearned:theendsdonotjustifythemeans.
Whenwesaythattheendsdonotjustifythemeans,whatwearesayingisthattherearecertaindecisionsweshouldmakeorcertainrulesweshouldfollownomatterwhattheconsequences.Wehavecertaindutiesorresponsibilitiesthatweoughttoobey,evenwhendoingsodoesnotproduceanetincreaseinoverallhappiness.
Examplesofsuchdutiesarethoserequiredbysuchprinciplesasjustice,loyalty,andrespect,aswellastheresponsibilitieswhichflowfromourrolesasparent,spouse,friend,citizen,employee,orprofessional.
Sinceutilitarianismfocusesontheoverallconsequences,utilitarianismseemswillingtosacrificethegoodofindividualsforthegreateroverallgood.
Forexample,itmightturnoutthattheoverallhappinesswouldbeincreasedifchildrenwereheldasslavelabor.Utilitarianswouldobjecttoslaveryortochildlabor,notasamatterofprinciple,butonlyifandtothedegreethatitdetractsfromtheoverallgood.
Ifitturnsoutthatslaveryandchildlaborincreasesthenetoverallhappiness,thenutilitarianismwouldhavetosupportthesepractices.Inthejudgmentofmanypeople,suchadecisionwouldviolatefundamentalethicalprinciplesofjustice,equality,andrespect.
Rightsfunctiontoprotectindividualsfrombeingsacrificedforthegreateroverallhappiness.Forexample,itisoftenarguedthatchildlaborisethicallywronginprinciple,evenifitcontributestotheoverallsocialhappiness.
Asimilarexamplecitesthoseprinciplesthatarisefromcommitmentsthatweallmakeandthedutiesthatflowfromthem.
Forexample,asparentsweloveourchildrenandhavecertaindutiestothem.Violatingsuchcommitmentsanddutieswouldrequireindividualstosacrificetheirownintegrityforthecommongood.
Commitmentsanddutiesplayalargeroleinbusinesslife.Contractsandpromisesareexactlythecommitmentsthatoneoughttohonoreveniftheconsequencesturnoutunfavorably.Thedutiesthatonetakesonaspartofaprofessionalrolefunctioninasimilarway:
WellsFargomightdefendtheirpaymentoflargebonusestoexecutives,citingthecontractualdutytopaythem.
ArthurAndersen’sauditorsshouldnothaveviolatedtheirprofessionaldutiessimplytoproducegreateroverallbeneficialconsequences.
Lawyershaveadutynottohelptheirclientsfindwaystoviolatethelaw,eveniftheyareofferedahighsalarytodoso.
Teachersshouldnotviolatetheirprofessionaldutiesbyfailingstudentswhomtheydonotlike.
Theaccountant/managerinChapterTwo’sopeningdecisionpoint,likewisehasprofessionaldutiesofconfidentialityandobedience.
**Te
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