1 - An Overview of Business Ethics

Summary

This overview chapter introduces philosophical tools that can be used to aid managers in making decisions in situations which go beyond simple cost/benefit analyses. Value terms such as right, wrong, fair, justice, beneficence, responsibility, eco-consciousness, and discrimination are discussed and illustrated using real-world examples. Starting with the world’s worst industrial disaster in Bhopal, India and the contemporary aftermath, it examines the complexities such situations present and assesses the usefulness of creating a theoretical framework that can lead to principled and defensible policies and actions. The challenges of exclusive self-interest and ethical relativism are examined, where morality simply echoes personal preference. Immediate profit maximization is compared to a more subtle long-term and more encompassing stakeholder approach. Reliance on the law is shown to be an insufficient ethical guide, while principle-based approaches that can be applied across a wide range of cases are more successful in working out what we should do in novel and difficult situations.