MANAGERIAL ETHICS AND GOVERNANCE

CQD7007
SEM 1, SESSION 2018/19

Morality & Ethics

 Learning Objectives
• After reading this chapter, you will be able to:
• Define the meaning of ethics & legality
• Define the meaning. Of ethics & morality
• Discuss the differences between ethics and
morality.
• Explore the origin of ethics
• Discuss the antecedents factors of EDM
 What is the difference between
Morality and Ethics?

• More often, morality is used interchangeably with

the term ethics.
• However, many scholars proposed clear differences
between the two terms.
• Ethics, in contrast, is the ‘study of moral standards
whose explicit purpose is to determine, as far as
possible, whether a given moral standard or
judgement based on that standard is more or less
correct’ (Velaquez, 2006).
• This therefore demands for analytical thought
and application of reason to define specific
rules, principles or ethical theories that
determine right or wrong for a given situation.
• In addition, ‘these rules and principles must
give an account of the rights or entitlements
we have and what is just or fair’ (Boatright,
2007).
 1 2
Ethics and morals relate to “right” and
“wrong” conduct. While they are
sometimes used interchangeably, they
are different: Ethics refer to rules
provided by an external source, e.g.,
codes of conduct in workplaces or
principles in religions. Morals refer to
an individual's own principles regarding
right and wrong.
Both morality and ethics loosely have
to do with distinguishing the difference
between “good and bad” or “right and
wrong.” Many people think of morality
as something that’s personal and
normative, whereas ethics is the
standards of “good and bad”
distinguished by a certain community
or social setting.
• Ethicists today, however, use the terms
interchangeably. If they do want to
differentiate morality from ethics, the onus is
on the ethicist to state the definitions of both
terms. Ultimately, the distinction between the
two is as substantial as a line drawn in the sand.
 • ‘It comes from our inner feelings which subsequently
translate into our moral behaviour’ (Khalidah et al.,
2012 ).
• Ethics thus begins with each one of us.
• According to Shaw (2011), rationally, we learn and adapt
to the ethics and moral principles through our:
The Origin of  upbringing
 socialisation (i.e. the behaviour around those
Ethics around us)
 experiences and our critical reflections on those
experiences
 the explicit and implicit standards of our culture
AN ETHICAL DECISION-MAKING
How you make your
PROCESS:
decision?
Antecedent Factors
 EDM
Theories
EDM Process Model
Determine the facts

Identify the ethical issues involved

Identify stakeholders and consider the situation from their point of view

Consider the available alternatives – also called “moral imagination”

Consider how a decision affects stakeholders, comparing and weighing the

alternatives, based on:
• Consequences
• Duties, rights, principles
• Implications for personal integrity and character

Make a decision

Monitor and learn from the outcomes

Kohlberg's Stages of Moral Development
Rest’s Ethical Decision Making
Jone’s Ethical
Decision
Making
• Law is a system of rules
and guidelines which are
enforced through social
institutions to govern
behavior.
The Contrast Between Ethics and Legality

• Complying to laws, rules and regulations is part of ethics.

• However, ethical behaviour requires more than having to
comply with policies, laws, rules and regulations.
• It reflects people’s relations with others.
• It requires a sincere self-conscience on how we should treat
others and the impact of our actions on others.
• It boils down to a person’s commitment and responsibility
towards others as he or she fulfils personal needs and
interests.
Ethics is above the law.

• Ethical behaviour therefore ‘rests upon one’s

full conscience and accountability to do good
deeds as a social responsibility under all
circumstances’ (Khalidah et al., 2012).
 But how do we then develop one’s full
conscience, commitment and accountability
to do good deeds as a social responsibility
under all circumstances?
Ethical
Behavior
This issue is largely at debate as it involves
religion as one factor that influences ethical
values.
 Ethics is also developed and internalized
from religious teachings.

All religions provide its believers with a

The Role of worldview and strong composition of
conduct, values and commitments based
Religion on instructions that have to be strictly
followed without compromise.

All religions teach their followers good

ethics to lead rewarding lives.
Religion and ethics

• Religion is one of the critical factors

influencing an individual’s ethical
values.

• ‘Most religions embody the idea of a

Transcendent Reality which has some
bearing on the purpose and meaning
of life, how one lives on earth, and
what lies beyond this finite mortal
existence’ (Chandra Muzaffar, 2009).
 • Most religions have an ethical component. The
Golden Rule of Life, ‘do to others what you want
others to do to you’, is found in all religions.
‘Unfortunately, the international community has yet
to recognize and appreciate the significance of this
rule’ (Chandra Muzaffar, 2005:2).

Religion and
• In fact, according to Simon Blackburn in his book,
Ethics Ethics: A Very Short Introduction: ‘For many people,
ethics is not only tied up with religion, but is
completely settled by it. Such people do not think
too much about ethics, because there is an
authoritative code of instructions, a handbook of
how to live’ (Blackburn, 2001:9).
Religion and Ethics (continued): The Five Pillars of Islam
• The Five Pillars of Islam forms the foundation of Muslim life.

Faith or belief in the Oneness of God and the finality of the prophethood of
Muhammad (Shahadah)

Establishment of the daily prayers 5 times a day (solat)

Self-purification through fasting in the month of Ramadhan

Concern for and almsgiving to the needy (zakat)

The pilgrimage to Mecca for those who are able (Hajj).

Religion and Ethics (continued): The Six Pillars of Iman
• Iman is faith or belief.

Belief in Allah

Belief in angels

Belief in the revealed books

Belief in commissioned Messenger (peace be upon them)

Belief in the resurrection and the event of Qiyamah

Belief in the predestination by Allah if all things, both the (seemingly) good
and the (seemingly) bad
Religion and Ethics (continued): Taqwa
• Taqwa is a comprehensive word found in the Quran that
carries the meaning of fear, respect and reverence for God.
• An individual with taqwa will sincerely obey the rules of Allah
and be grateful to Him.
• To carry out responsibilities, we must know what is right and
what is wrong.
• We must consciously accept the existence of Allah and must
be in a state of remembrance of Allah.
• In Islam, it must be enlightened obedience; not blind
obedience.
Noble Eightfold Path of
Buddhist Ethics
Right
Right Views or Concentration
Right
Preliminary or Mind
Acts
Understanding Right Development
Effort

Right Right Samadhi,

Right Speech leading to full
Aims or Right
Enlightenment
Motives Livelihood
 • There are apparent differences on how the West and East
perceive ethics.
Eastern and • The West has somewhat compromised religion as a factor
Western influencing ethics in support of secularism and universalism. The
East still sees religion as an important contributing factor to
shape one’s ethical values.
Perspectives
• The West has placed emphasis on secularism and universalism
on Ethics as ideologies to shape not only individual ethical values but to
construct the state. These form the foundation of human rights,
freedom of thought and rational thinking of the West.
• In resolving ethical issues, the East has been
seen to fall back more on religious and cultural
principles, much as the East respects the
‘liberal/universalistic’ views of the West.
• Man-made ethical theories and principles which
are practically based on rational thinking and
objectivity seem to be applied more by the West
compared to the East.
The Golden
Rule
 Immanuel Kant’s
The Golden Rule Categorical
Imperative

The Golden
Rule Descartes’ Rule of
Utilitarian Principle
Ethical Change

Principles
Risk Aversion Ethical ‘no free lunch’
Principle Rule
Universally Good Values Bad Values
Compassion Cheating
Accepted Courage Cowardice

Moral Values Honesty

Integrity
Cruelty
Deceit
Respect for human life Greed
Self-control Lying
Selfishness
Rukun Negara/
National Principles of Malaysia

• Malaysia’s Rukun Negara/ National Principles

directly state the belief in God as a doctrine to
be followed by all Malaysians, irrespective of
religious and cultural differences.
 Issues…

Normative myopia Inattentional blindness Change blindness Moral Imagination

 WHY DO “GOOD” PEOPLE ENGAGE IN “BAD” ACTS?

• There are many ways in which responsible decision making can go wrong:
• People can simply choose to do something unethical.
• Well-intentioned people fail to choose ethically.
• Stumbling blocks to responsible decision-making and behavior
• Cognitive or intellectual.