Introduction to Business Ethics 1: Introduction

1. Introduction to Business Ethics1: Introduction Santi Martínez, 2013

2. Let’sstart with a story… Introduction to Business Ethics 2013 – Santi Martínez

3. Today’s agenda • Presentation and introduction • Contents of the course and learning objectives • Practical issues • Paradox • What is Ethics? • The main schools in normative ethics (I) Introduction to Business Ethics 2013 – Santi Martínez

4. Introduction: me • M. Soc. Sciences (Univ. of Helsinki) ja MBA (HSE) • Partner and trainer at Providentia Oy • www.hyvejohtajuus.fi Introduction: you • Expectations on this course Introduction to Business Ethics 2013 – Santi Martínez

5. Learning objectives • Learn the basic theories and concepts of Business Ethics. • Get the sensibility to grasp the presence of ethicaldimensions. • Get the capabilitytoanalysecoherently and constructivelyethicaltheories and ethicalchallenges in business. • Get the abilityto discussethicalchallenges and dilemmas. • Get the abilityto make the rightdecisionsin real life underpreassure. Introduction to Business Ethics 2013 – Santi Martínez

6. Description of the course • Introduction. Main schools of normativeethics (I) • Corporate Social Responsibility (I) • CorporateSocial Responsibility (II) • Main schools of normativeethics (II) • Ethicalexcellence at business (I): managerial and subordinateskills • Ethicalexcellence at business (II): decisionmaking & communication Introduction to Business Ethics 2013 – Santi Martínez

7. Completion of the course • Lectures 18 h • Active participation max1 extrapoint to the finalmark (0-5) • Essays(2 pcs) • ”Reactionpaper” on twowell-knownarticles • Final ”reflexionessay” • Minimumrequirement: 1 pointfromeachessay Introduction to Business Ethics 2013 – Santi Martínez

8. Lectures • 3 h = 9 – 12 1. Monday 11.3. 2. Monday18.3. 3. Monday8.4. 4. Monday 15.4. 5. Monday22.4. 6. Monday29.4. Introduction to Business Ethics 2013 – Santi Martínez

9. Instructions for the essays • Essay1: Friday 18.4 (by 23.55) • Essay2: Monday 16.5 (by23.55) • Reccomendedlength: approx. 4-5 pages • Delivery: • Hard copy during the lectures • Sentby e-mail to santi.martinez@providentia.fi Introduction to Business Ethics 2013 – Santi Martínez

10. Paradox: Basic Question • Wheredoesunethicalbehaviourcomefrom? • The desire to obtain a benefit at the expense of others • Human weakness and humanfreedom • Wrongincentives and preassure to getresults • Deformedvalues • Moralillness Introduction to Business Ethics 2013 – Santi Martínez

11. Paradox: Basic StartingChallenges • ”Business is a game” • ”Business relations are a special category of human relationships. Their basic elements are competition, profit maximization and personal success.” • “Business is therefore a kind of game, like football or boxing.” • “In games, you don’t follow general moral principles, but the rules of the game.” • “Therefore, in business you don’t follow general moral principles, but the rules of business, which are competition,profit maximization and personal success.” Introduction to Business Ethics 2013 – Santi Martínez

12. Paradox: Basic StartingChallenges Introduction to Business Ethics 2013 – Santi Martínez

13. Paradox: StartingChallenges vs. • Cases: Enron, Arthur Andersen… Introduction to Business Ethics 2013 – Santi Martínez

14. Paradox: StartingChallenges Introduction to Business Ethics 2013 – Santi Martínez

15. What is Ethicsallabout? • Whatdid the storytellyou? http://www.justiceharvard.org/ Introduction to Business Ethics 2013 – Santi Martínez

16. What is Ethicsallabout? • Ethics -> greek ”ethos” (costume, habit) • Morals -> latin ”mos-moris” A part of philosophythatstudies the behaviour of man, from the point of view of whetherit is goodorevil, rightorwrong.  INDIVIDUAL Introduction to Business Ethics 2013 – Santi Martínez

17. What is Ethicsallabout? GOOD NORMS THEORY PRACTICE Introduction to Business Ethics 2013 – Santi Martínez

18. What is Ethicsallabout? GOOD NORMS THEORY PRACTICE Part of philosophythatteacheshowmancanreach a good life. Introduction to Business Ethics 2013 – Santi Martínez

19. How Business and Ethicsarelinkedtogether? • The triple ”E” of excellence Efficiency Efficacy Ethics Introduction to Business Ethics 2013 – Santi Martínez

20. WhyBusiness Ethics? TRUST Introduction to Business Ethics 2013 – Santi Martínez

21. Teleology: consequentialism(telos = end, purpose) GOOD NORMS THEORY PRACTICE Introduction to Business Ethics 2013 – Santi Martínez

22. Teleology: consequentialism • JeremyBentham (1748-1832) • An Introduction to the Principles of Morals and Legislation (1789) • Consequentialism: The moralvalue of an action depends on itsconsequences. Introduction to Business Ethics 2013 – Santi Martínez

23. Teleology: utilitarianism • John Stuart Mill (1806-1873) • Utilitarianism (1861) UTILITY: HAPPINESS ”Itis better to be a human being dissatisfied than a pig satisfied; better to beSocrates dissatisfied than a fool satisfied.” Introduction to Business Ethics 2013 – Santi Martínez

24. Teleology: consequentialism and utilitarianism • The objective of morals is the promotion of the good of society. • The good of society is the sum of itsindividuals’ happiness. • A moralpriciple is ideallyvalidif, and onlyif, itmaximises the good of society. UTILITY BASED THINKING Introduction to Business Ethics 2013 – Santi Martínez

25. Teleology: consequentialism and utilitarianism • Utilitarianismstronglypresent in: • The planning of the welfarepolitics • Cost-benefit-analysis Introduction to Business Ethics 2013 – Santi Martínez

26. Teleology: a criticism of consequentialism • Difficult to define and measureutility and happiness. • Whatshouldbedone? • Consequentialismdoesnotmake a differencebetweendesired and foreseenconsequences. • The moralvalue of anychoice/action is knownonlyafterit is made/done. • ”I donotlearn as long as I am lucky.” • Itallowshypocracy. Introduction to Business Ethics 2013 – Santi Martínez

27. Deontology: rule –basedethics(deon = obligation) GOOD NORMS THEORY PRACTICE Introduction to Business Ethics 2013 – Santi Martínez

28. Deontology: rule –basedethics • Immanuel Kant (1724-1804) • Critique of Pure Reason (1781) • Groundwork of the Metaphysic of Morals(1785) • Critique of PracticalReason (1788) • Metaphysics of Morals (1797) Introduction to Business Ethics 2013 – Santi Martínez

29. Deontology: rule –basedethics • An inconditionalobligationthatbindsallrationalbeings. CATEGORICAL IMPERATIVE For an action to havemoralvalue, itmustbedone for the sake of duty. Introduction to Business Ethics 2013 – Santi Martínez

30. Deontology: rule –basedethics • “Always act according to that maxim whose universality as a law you can at the same time will.” • “The rational being must be trated as an end in itself.” • “Act as if your maxims should serve at the same time as the universal law.” Introduction to Business Ethics 2013 – Santi Martínez

31. Deontology: rule –basedethics • Deontologystronglypresent in: • Human rightsrelatedissues • Issuesrelated to distributivejustice. Introduction to Business Ethics 2013 – Santi Martínez

32. Deontology: a critic of rule–basedethics • Law is goodbecauseitobliges: duty is good. • What is the foundation of absoluteprinciples? • ”I don’tcare as long as I don’tgetcaught”: rulesare outside me. Introduction to Business Ethics 2013 – Santi Martínez