Classical Philosophies and

Business Ethics
Business Ethics and Social Responsibility | Sir Jerome Alan L.
Natividad
Three Distinct Ethical Theories
 Virtue Ethics
 Deontological Ethics
 Consequentialism
Virtue Ethics
 Emphasizes virtuous or moral character.
 It focuses on the desirable characteristics that a virtuous person
should embody.
 One’s action is a mere reflection of one’s inner morality.
Deontological Ethics
 Often referred to as duty ethics.
 Emphasizes on adhering to ethical principles or duties and obedience
to some higher moral absolute.
 It assumes the existence of moral absolutes that make an action moral
regardless of circumstances.
Consequentialism
 Bases the morality of an action upon the consequences of the
outcome.
 The main contention of this branch is what outcomes can be
identified as objectively desirable.
 John Stuart Mill asserts that the desirability of an action determines
the net amount of happiness it brings.
Socrates (470 BCE – 399 BCE)
 He believed that philosophy should achieve practical results for the
greater good of society.
 He attempted to establish an ethical system based on human reason.
 He pointed out that choices are motivated by the person’s desire for
happiness and that ultimate wisdom comes from knowing oneself.
 The more a person knows, the greater his ability to reason and make
choices that brings happiness.
Plato (428 BCE – 348 BCE)
 An enthusiastic student of Socrates.
 He explored the concepts of justice, beauty, and equality.
 According to him, one can be taught z virtue or qualities every
persons should have.
 Education teaches appropriate virtues, produces the ideal
government, and brings forth morality.
Aristotle (348 BCE – 322 BCE)
 As a philosopher, Aristotle believed that knowledge could be obtained by interacting
with objects.
 He recognized the human interpretation and personal associations play roles in
understanding objects.
 According to him, virtue ethics is a character based ethics.
 A virtuous person embodies a virtue through and through.
 Rather than looking at ethical duties and rulers or the consequences of a particular
action, one looks at the moral character of the person carrying out an action.
 Virtue ethics deals not only with right or wrong, but provides guidance as to the
characteristics and behaviors a good person will seek to achieve.
Confucius (551 BCE – 479 BCE)
 One of the wisest Chinese scholar and philosopher.
 He envisioned a better society where moral principles are based on
the Golden Rule, “What you do not wish for yourself, do not do to
others.”
 His reciprocity ethics were based on the concept of self-discipline.
 A leader must set a positive example, remain humble, and treat his
people with compassion.
 People must live with integrity, diligence, and obedience.
Classical Philosophies in the Business Setting
 In business, virtue ethics provides the organization a set of desirable
characteristics for each member to follow.
 Business ethics makes specific judgments on what is right and wrong.
 The attention is focused on duties and compliance.
 Ethical questions in an organizational context:
– Am I behaving in a virtuous way?
– How can we allow members to develop full potential for the good of the whole.
– How can the organization provide an environment that is conducive to each
employee’s growth and, ultimately, happiness?
– Does the distribution of monetary gain preserve the happiness of the community?
Classical Philosophies in the Business Setting
 While the philosophers cannot answer these questions, they provide
a space for corporate leaders to engage in ethical analysis and find a
range of right actions in exercising business judgment.
 Ethics and behavior at work can help or break a company because
virtues help maintain order and assist the business in operating
smoothly, thereby affecting the company’s profitability.