universalism theory in business ethics

This principle is related to universalism. consent of Rice University. But it becomes dangerous when people use it to blind themselves to the reality around them, reinforce hardened positions even in the face of contradictory evidence, and shirk their responsibility as moral beings. Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices.19 Howard Schultz, founder of Starbucks; cofounder Jim Sinegal at Costco; Sheryl Sandberg, chief operating officer of Facebook; and Ursula M. Burns, previous chairperson and CEO of Xerox have demonstrated setting effective ethical tones at the top of organizations. Some limitations when using this principle are (1) it can be used to disguise and manipulate selfish and unjust political interests, (2) it is difficult to determine who deserves what when both parties are right, and (3) individuals can exaggerate certain entitlements at the expense of others. Download for free at http://cnx.org/contents/aa9071d5-2ea4-4db3-b476-be94bb9d5ef9@5. At the individual level, then, principles and values offer a source of stability and self-control while also affecting job satisfaction and performance. 0000015844 00000 n WebUniversalism in ethics may be identified with claims about the form, scope or content of ethical principles, or with the very idea that ethical judgment appeals to principles, rather than to particular cases. In the ideal case, the organizations culture never allows the latter, because scandals not only damage reputations but they make companies and countries much less attractive to investors. Ethical systems, whether utilitarian, rights based, or based on natural law and virtue ethics, are attempts to translate absolute values like these into workable solutions for people. As a theory for justifying moral practices and beliefs, ethical relativism fails to recognize that some societies have better reasons for holding their views than others. An action is morally right if the net benefits over costs are greatest for all affected compared with the net benefits of all other possible choices. Diversity and Inclusion in the Workforce, 28. Society and Business Anthology by Various Authors is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. The UN Convention Against Corruption has called corruption an insidious plague that exists everywhere and hurts the poor disproportionately by diverting funds intended for development, undermining a Governments ability to provide basic services, feeding inequality and injustice and discouraging foreign aid and investment.27 are not subject to the Creative Commons license and may not be reproduced without the prior and express written 138 0 obj Although Universalism has appeared at various times in Christian history, most notably in the works of Origen of There are programs that do this, such as Giving Voice to Values at the Darden School of Business at the University of Virginia.35 Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. Corruption is expensive: According to the World Economic Forum, no less than $2 trillion is lost each year worldwide as a result of corruption, a staggering waste not just of resources but of credibility for business in general.28. One alternative is to put the humanities into business. Normative business ethics should address systemic issues such as oversight and transparency as well as the character of individuals who make up the organization. : The damage done to an organizations or governments reputation due to scandal can be enormous and long lasting. Moral (and human) rights, on the other hand, are universal and based on norms in every society, for example, the right not to be enslaved and the right to work. This book explores the reasons why grappling with universality and ethics endobj The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. So, although the work of national, regional, and international organizations can limit corruption through enforcement and the prosecution of cases (as was the case with the revelation of the so-called Panama Papers), corruption will not be reduced in any significant way unless efforts have been made to form individual conscience and teach practical ways to act on it. It is interesting to reflect on how many corporate disasters and crises might have been prevented had the leaders and those involved taken such questions seriously before proceeding with decisions. Limitations here also show that using this principle may not always prove realistic or practical in all situations. <>/Border[0 0 0]/Contents( \n h t t p s : / / s c h o l a r . This is especially the case when facts are not available and there is no objective external jurisdiction of the state or federal government. Sexual Identification and Orientation, 31. As you read these, ask yourself which principles characterize and underlie your own values, beliefs, behaviors, and actions. The society, on the other hand, perceives business ethics as the right or wrongs that occur as a result of organizations operating in the community. Only the individuals self-interest and values are relevant for judging his or her behavior. Corporations and Politics: After Citizens United, 14. The social and natural sciences provide data to make better ethical choices, but science cannot tell people what they ought to do (nor should it). FAQ grramire. WebView CONCEPTS & THEORIES OF BUSINESS ETHICS.ppt from MBA 2 at School of Law, Christ University, Bangalore. For example, the following precautionary actions might have prevented the disaster: updating the equipment and machinery that failed in the BP and the Exxon Valdez oil crises and investment banks and lending institutions following rules not to sell subprime mortgages that could not and would not be paid, actions that led to the near collapse of the global economy. WebIt has these characteristics: (1) universality, because it applies to all acts of human behavior, even those that appear to be done from altruistic motives; (2) objectivity, meaning it operates beyond individual thought, desire, and perspective; (3) rationality, because it is not based in metaphysics or theology; and (4) quantifiability in its Followers of this principle can become absolutists and true believersmany times believing and following their own ideology and beliefs. 1999-2023, Rice University. 0000002618 00000 n In addition, we are sometimes faced with the question, Who has the moral authority to punish to pay compensation to whom? Still, as with the other principles discussed here, justice stands as a necessary and invaluable building block of democracies and freedom. But It focuses on the type of person we ought to be, not on specific actions that should be taken. (credit: Love Is All You Need Signage by Jacqueline Smith/Pexels, CC0), article Panama Papers FAQ: All You Need to Know About The 2016 Investigation on the Panama Papers and how journalists might hold the corporate world to account in cases of fraud and corruption, article on the LIBOR scandal and the consequences, https://openstax.org/books/business-ethics/pages/1-introduction, https://openstax.org/books/business-ethics/pages/5-4-are-the-values-central-to-business-ethics-universal, Creative Commons Attribution 4.0 International License, Explain the difference between relative and absolute ethical values, Discuss the degree to which compliance is linked with organizational responsibility and personal values, Identify the criteria for a system of normative business ethics. in the circumstance that telling the truth leads to death, objectivism could require we lie endobj The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. Should business ethics be grounded only on more concrete tenets? Some limitations of this principle suggest that it does not consider individuals, and there is no agreement on the definition of good for all concerned. In addition, it is difficult to measure costs and benefits. This is one of the most widely used principles by corporations, institutions, nations, and individuals, given the limitations that accompany it. Moral theories remain a topic of interest, not just to moral philosophers, but increasingly in business circles as well, thanks to a tainted reputation that urges more awareness in this regard. At the organizational level, principled and values-based leadership influences cultures that inspire and motivate ethical behavior and performance. 2 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. WebUniversalism in Ethics. The Worlds Most Ethical Companies also provides examples of workforce and workplace legal and moral rights. My Account Countries and cultures that follow this orientation can result in dictatorships and absolutist regimes that practice different forms of slavery and abuse to large numbers of people. WebUniversal ethics refer to a moral system that applies to the entire humanity, transcending personal whims, and culture in the process. Until that time, international firms doing business in South Africa were expected to abide by the apartheid policy and its underlying values. Other names for this doctrine are universal restoration, universal WebUniversalism. The film The Post, based on fact, portrays how the daughter of the founder of the famed newspaper, the Washington Post, inherited the role of CEO and was forced to make a decision between publishing a whistle-blowers classified government documents of then top-level generals and officials or keep silent and protect the newspaper. So, universalist ethical principles may present difficulties when used in complex situations, but such principles can also save lives, protect the integrity of a nation, and stop meaningless destruction. The main principles of business ethics are based in academia and on academic writings on proper business operations. Business ethics motivates managers to (1) meet legal and industry governing and reporting requirements and (2) shape corporate culture so that corrupt practices such as bribery, embezzlement, and fraud have no place in the organization. This book uses the Bias also rewards those who support and nurture the best elements of a culture, whether corporate, social, or political. Contributing to a Positive Work Atmosphere, 26. That policy lasted until the 1990s, when several parties negotiated its demisewith the help of Nelson Mandela (www.history.com/topics/apartheid). Ethical relativism is really not a principle to be followed or modeled. In the United States, companies spend more than $70 billion annually on ethics training; worldwide, the figure is more than double that.30 In the case of LIBOR, the United Kingdoms Serious Fraud Office determined there were inadequate systems of oversight in the setting of rates and that individual executives encouraged rate fixing, which led to the conviction of several traders, at least one of whom still maintains his innocence.33 What are major ethical principles that can be used by individuals and organizations? 34 terms. Creative Commons Attribution License Business can mean an activity of exchange. (2) Is it right? Altruism is also part of character-based virtue ethics. When we present the specifics and facts of a situation, this and the other principles begin to make sense, although judgement is still required. Ethical relativism is really not a principle to be In addition, using this principle can require sacrifice of human lifethat is, giving ones life to help or save otherswhich may seem contrary to the principle. Moreover, moral standards, according to this principle, vary from one culture to another. consent of Rice University. The classified documents contained information proving that generals and other top-level government administrators were lying to the public about the actual status of the United States in the Vietnam War. Cooper, Santora, and Sarros wrote, Universalism is the outward expression of leadership character and is made manifest by respectfulness for others, fairness, cooperativeness, compassion, spiritual respect, and humility. Corporate leaders in the Worlds Most Ethical Companies strive to set a tone at the top to exemplify and embody universal principles in their business practices. When seen from Bubers perspective, however, love is not an idyllic feeling but a driving force for justice and care. In the conclusive section, some suggestions and recommendations are presented. If require any missing data; then choose suitably. 0000016028 00000 n However, no amount of rationalization of the fear of job loss, financial pressure, desire to please a supervisor, and the rest, can justify such behavior, because it diminishes moral agency, the self-awareness, freedom, and ability to make choices based on our perception of right and wrong. Dec 12, 2022 OpenStax. Obvious limitations of relativism include following ones blind spots or self-interests that can interfere with facts and reality. What, then, is missing from humanistic business? Ethical business strategies Typically arise from managers with strong moral characters. GRILL3BB. 0000009193 00000 n Abstaining from cheating customers, defrauding clients, lying, and murder are fairly objective ethical values; the reason for making any exceptions must be carefully laid out. The search for a universally applied set of ethics always comes back to it. We might argue that it is not the business of business to form people in their conscience, but the result of not doing so has become expensive for everyone concerned.32. At the same time, each one has a logic. Creative Commons Attribution License Why or why not? 131 0 obj The Journal of Values-Based Leadership: Vol. A&P I Autonomic Bonus Activity. JN9u4 0-FR1.ke4 nzG q57:6H*U*N5"T] t@L0fCf%gUc !` HpT!e0IyF'Xd)W8>dn>DR()p0^. She chose, with the support of and pressure from her editorial staff, to release the classified documents to the public. Without a relationship of trust, there can be no exchange of goods or services upon which economies are built. e d u / j v b l / v o l 8 / i s s 2 / 3)/Rect[128.1963 131.7406 312.7275 143.4594]/StructParent 7/Subtype/Link/Type/Annot>> Finally, in the same vein, ethics is not science. Chapter 5 - The Universalist Approach and Kant in Business Ethics from Normative Approaches Published online by Cambridge University Press: 10 November CONCEPTS & THEORIES OF BUSINESS ETHICS VALUES Basic convictions that a specific mode of (Classical) Maximalism: A right action produces the greatest good consequences and the least bad. Dec 12, 2022 OpenStax. Ultimately, the theory of universalism in business ethics helps to promote ethical behavior and responsibility in the business world, and can serve as a powerful tool 0000003514 00000 n It focuses on the type of person we ought to be, not on specific actions that should be taken. <>stream endobj One entity (e.g., a person, a firm) does business with another when it exchanges a good or service for valuable consideration, i.e., a benefit such as money. These principles can be, and are, used in combination; different principles are also used in different situations.18 The principles that we will cover are utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches. Moreover, moral standards, according to this principle, vary from one culture to another. Immanuel Kant, a German philosopher, calls the 94 terms. It first provides a summary of the major sources for ethical thinking, and then presents a framework for decision-making. Principles help inform and influence values. In the United States, the Constitution and Declaration of Independence are the basis for citizens legal rights, for example, the right to life, liberty, and the pursuit of happiness and the right to freedom of speech. WebUniversal ethical egoism is occasionally seized upon by popular writers, including amateur historians, sociologists, and philosophers, who proclaim that it is the obvious answer to This, as with all these principles and approaches, is broad in nature and seemingly rather abstract. endobj The use of these tools is often backed by social science research in consumer behavior, behavioral finance, and cognitive studies. These disagreements can be clarified, and perhaps in part resolved, by distinguishing a number of different conceptions of universalism in ethics. Someones principle is a moral principle if he or she is willing to universalize it and if not it is then the other way round. Those documents revealed that there were doubts the war could be won while thousands of young Americans continued to die fighting. grramire. We recommend using a (3) Who gets hurt? According to the Union Internationale des Avocats, an international, nongovernmental association of legal professionals, corruption corrodes the democratic principles of accountability, equality, and transparency.