LAW604:LABOUR LAW & ETHICS

ETHICS & VALUES

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 CONTENTS
1. Ethics – An Overview
2. Ethics in Context
3. What is Values?
4. What is Ethics?
5. Ethical Behavior?
6. Managerial Ethics
7. Terms in and Types of Ethical Theories
8. Procedural Fairness Vs. Distributive Justice
9. Summary & Conclusion
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 ETHICS: AN OVERVIEW
 The word "ethics" is derived from the Greek word ethos (character),
and from the Latin word mores (customs).
 Together, they combine to define how individuals choose to interact
with one another.
 In philosophy, ethics defines what is good for the individual and for
society and establishes the nature of duties that people owe
themselves and one another.
• Though law often embodies ethical principals, law and ethics are far
from co-extensive.
 Many acts that would be widely condemned as unethical are not
prohibited by law -- lying or betraying the confidence of a friend, for
example.
 And the contrary is true as well. In much that the law does it is not
simply codifying ethical norms.
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 ETHICS: AN OVERVIEW ((CONT)
 Most professions have highly detailed and enforceable codes for their
respective memberships.
 In some cases these are spoken of as "professional ethics," or in the
case of law, "legal ethics."
 For example, the American Medical Association has the Principles of
Medical Ethics and the American Bar Association has the
Model Rules of Professional Conduct.
 Other professions with codes include dentistry, social work, education,
government service, engineering, journalism, real estate, advertising,
architecture, banking, insurance, and human resources management.
Some of these codes have been incorporated into the public law.
 All are likely to have some effect on judgments about professional
conduct in litigation.
 Generally, failure to comply with a code of professional ethics may
4 result in expulsion from the profession or some lesser sanction.
 ETHICS IN CONTEXT
1. Mostly asked question: whether one’s conduct/behavior is
considered ethical/unethical?

2. Concept is subject to different interpretations/meanings

3. When do you cross the line to become unethical?

4. Ethics is best described as rules of conduct/moral principles

5. An accepted rules of behavior & conduct

6. Expected behavior for a particular class/group of people

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 WHAT IS VALUES?
• Often used concept but less understood by many

• What is one of your core Values?

• Put simply, values represent one’s basic conviction or beliefs.
• Example: honesty, respect, obedience, hard work, etc.
Individuals have different sets of values
Values reflect a person’s sense of right or wrong. Example: is
capital punishment right or wrong?
• Values lays the foundation in understanding people’s attitude
& motivation
• Attitude helps determine one’s altitude; conduct, and behaviors

• Values exert major influence on the behavior/conduct of an

individual/group
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 WHAT IS VALUES? (CONT)
Values serves as general guidelines in all situations. Example,
individual or group values, corporate values. What is one of the
corporate values in your organization?
 Theoretical definitions
 value is a concept that describes the beliefs of an individual or
culture.
 ‘A set of values may be placed into the notion of a value system’.
(Business Dictionary.com)
 values – ‘in general, important and enduring beliefs or ideals shared
by the members of a culture or group’ (Business Dictionary.com)
‘values are those things that really matter to each of us ... the ideas
and beliefs we hold as special’
Caring for others, for example, is a value. (Business
Dictionary.com)
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 WHAT IS ETHICS?
Establishing what is right or wrong (philosophical
perspective), then choosing what you believe/consider is
right
 Framework/standard rule within which to work.

Written guidelines issued by organization/professional

bodies/institutions. Example, Code of Ethics (lawyers,
medical practitioners, journalism, etc)
 Is ethics a guideline or instructions?

Theoretical Definitions
 Used with a (singular or plural verb) (I) ‘a system of moral
principles’: the ethics of a culture, (II) ‘the rules of conduct
recognized in respect to a particular ... (Dictionary of
Business)
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 WHAT IS ETHICS (CONT)
Theoretical definitions

‘a theory or a system of moral values: ‘an ethic of service is at war

with a craving for gain’ (Gregg Easterbrook)
The ... business definition for: terms ethics.. business ethics. ‘moral
principles concerning acceptable and unacceptable behavior by...
(Dictionary of Business)
Ethics – ‘the branch of philosophy that tries to determine the good and right
thing to do; choices regarding right & wrong, (Dictionary of Business)
Ethics (plural, noun): ‘the system of beliefs and rules used to judge human
action’. Example: ‘He is a very honorable person who always acts
accordingly to his ethics’ (Macquarie Dictionary, 2006:191)

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 ETHICAL BEHAVIOUR
 Formally defined, ethical behavior is behavior that is morally
accepted as good and right, as opposed to bad or wrong, in a
particular setting.

 Recent business scandal in the US involving the collapse of

giant corporations such as Enron, WorldCom and Arthur
Andersen’s operation have highlighted the importance of
ethics in managerial behavior

 In Australia, we have seen similar examples of unethical

corporate behavior, with high-profile companies such as HIH
Insurance and the telecommunications company, One. Tel both
involved in major ethics scandals

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 ETHICAL BEHAVIOUR (CONT)
 In addition, the processing and management of refugees in
Australia, the so called Pacific Solution, arising from refugee
arrival in 2001 has in ways strongly divided public opinion
regarding ethical values within Australia and acceptable
standards of ethical behavior by elected governments

Today, a trend is clear: the public is demanding that

government officials, managers, workers in general and the
organization they represent all act in accordance with high
ethical and moral standards

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 MANAGERIAL ETHICS
Ethical managerial behavior is behavior that conform not
only to the dictates of law but also to a broader moral
code that is common to society as a whole
But what exactly what moral code governs a person’s
choice is a subject of debate.
Four (4) ways of thinking about ethical behavior, based
on the works of philosophers such as John Stuart Mill,
John Locke and Thomas Jefferson, have been identified

1. The utilitarian views – ethical behaviors is that which

delivers the greatest good to the greatest number of people

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 MANAGERIAL ETHICS (CONT)
2. The individual view – ethical behavior is
best for one’s long term self interest
3. The moral rights view – ethical behavior is
that which respects the fundamental rights
shared by all human beings

4. The justice view – ethical behavior is that

which is fair and impartial in its treatment of
people
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TERMS IN AND TYPES OF ETHICAL
THEORY
1. TELEOLOGICAL - This describes an ethical theory
which judges the rightness of an action in terms of an
external goal or purpose.

 So, according to a teleological theory, consequences

always play some part, be it small or large, in the
determination of what one should or should not do.
 Not all teleological theories are consequentialist.

 John Rawls' theory of justice is teleological, but not

consequentialist because it claims that consequences are
only part of what must be considered when determining
what policy is morally just. (Rawls)
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 THEORY
2. CONSEQUENTIALIST - Under a consequentialist theory,
the consequences of an action determine its moral value.

 A key question in consequentialist theory is how to measure the

moral worth of the consequences.
 Consequences can be good, neutral, or evil.
 Another relevant question is which consequences count (intended or
actual).

 If only actual consequences count, then do all consequences count?

 Consequences can be distinguished by direct/indirect,

individuals/objects affected, influence of complicating factors, etc.

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 TERMS IN AND TYPES OF ETHICAL THEORY
(CONT)
3. DEONTOLOGICAL - This type of theory claims that there
are features within the actions themselves which determine
whether or not they are right.
 These features define the extent to which the actions conform
with recognized moral duties. For example, driving while
drunk violates the duty to “above all do no harm.”

 The duties derive from various sources, such as religion,

biology, psychology, metaphysics, culture, language, etc.

 Depending on the deontological theory, these duties may be

absolute (no exceptions), prima facie (can only be overridden
by a more important duty), or conditional (only hold under
specified circumstances).
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 TERMS IN AND TYPES OF ETHICAL THEORY
(CONT)
4. RELATIVISM/SUBJECTIVISM - This type of theory
denies that there is any uniquely right moral theory,
standard, or value.

 Everything is subjective. For example, Jean Paul Sartre

claimed that each individual creates his or her own
morality based solely on one's own decisions about what
is valuable.

 There are no moral standards to turn to that have any more

authority than those that you create.

 Things (including other people) only have value because

17 you gave them value. (Sartre)
 TERMS IN AND TYPES OF ETHICAL THEORY
(CONT)
5. VIRTUE BASED THEORIES - Teleological theories
consider the goals of actions.

 Deontological theories focus on acting in accordance with

moral duties and obligations.

 Virtue based theories focus on the character of the person.

 According to virtue based theories, ethics is about what

sort of person one should strive to become.

 The qualities that one should develop in oneself are called

virtues (ex. honesty, fairness, kindness, faithfulness,
18 generosity, prudence, integrity, bravery, etc.).
 PROCEDURAL JUSTICE/FAIRNESS
In organizations, two (2) aspects of the justice view are
considered especially important to managers
The first is procedural justice/fairness, which is the degree
to which the rules and procedures specified by policies are
properly followed in all cases in which the policy is applied
The second is distributive justice, which is the degree to
which all people are treated the same under the same
policy; regardless of race, ethnicity, gender, age, or any
other demographic characteristics
In a workplace sexual harassment case, for example, this
may mean that a case filed by a man against a woman
receives the same treatment/hearing as does one filed by a
19 woman against a man
 SUMMARY & CONCLUSION
1. Values are in inborn within individuals – embedded in
individuals

2. Values differs amongst individuals

3. Individual values do change temporarily due largely to

external influences/forces

4. Ethics is build on good work practices & what is right; (ii)

Ethics provides general guidelines on good behavior/conduct
of individuals, group, organization as a whole.

5. Ethics determiners what is right or wrong and choosing what

is right
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 SUMMARY & CONCLUSION (CONT)

6. Ethics governs the behavior and conduct of

individuals/groups in the workplace.

7. Ethics is one of the hallmarks of a well run Company.

8. Ethics can re assure investors/stakeholders about the

Company’s approach to its non financial risks.

9. Ethics also help to protect/enhance Corporate/business

reputation. Example, corporate image/branding,)

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 REFERENCES
 Aristotle. The Nicomachean Ethics, Welldon, J. trans. Prometheus Books
(Buffalo, NY: 1987).
 Bentham, J. Introduction to the Principles of Morals and Legislation in Warnock,
M ed. Utilitarianism, On Liberty, Essay on Bentham: together with selected
writings of Jeremy Bentham and John Austin, Meridian/New American Library
(New York, NY: 1974).
 Hume, D. A Treatise of Human Nature, Penguin Books Ltd. (London: 1969).

 Kant, I. Fundamental Principle sof the Metaphysic of Morals, tr. by T. K. Abbott,

Prometheus Books (Buffalo, NY:1987).
• Mill, J. S. Utilitarianism in Warnock, M ed. Utilitarianism, On Liberty, Essay on
Bentham: together with selected writings of Jeremy Bentham and John Austin,
Meridian/New American Library (New York, NY: 1974).
• Rawls, J. A Theory of Justice, The Belknap Press of Harvard University Press
(Cambridge, MA:1971)
• Sartre, J. Existentialism and Humanism, Mairet, P. Trans. & Intro. Eyre Methuen
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Ltd. (London, UK: 1973).
 QUESTIONS

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