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Chapter03-PhilosophicalEthicsandBusiness

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Copyright?McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.

IMChapter3:

PhilosophicalEthicsandBusiness

ChapterObjectives

Afterreadingthischapter,youwillbeableto:

1.Explaintheethicalframeworkofutilitarianism.

2.Describehowutilitarianthinkingunderliesmucheconomicandbusinessdecision-making.

3.Explainhowthefreemarketisthoughttoservetheutilitariangoalofmaximizingtheoverall

good.

4.Explainsomechallengestoutilitariandecision-making.

5.Explainprinciple-based,orrights-based,frameworksofethics.

6.Explaintheconceptofhumanrightsandhowtheyarerelevanttobusiness.

7.Distinguishmoralrightsfromlegalrights.

8.Explainseveralchallengestoprinciple-basedethics.

9.Describeandexplainvirtue-basedframeworkforthinkingaboutethicalcharacter.

OpeningDecisionPoint

AreCEOsGettingPaidTooMuch?

ThisOpeningdecisionCaseisanupdatedcasestudyoftheissueofexecutivecompensation.Therearefewtopicsthatraiseethicalissuessocloselyconnectedtothethreemajorethicaltheoriesthatwillbeintroducedinthischapter.Anethicalanalysisofexcessivecompensationneedstolookatargumentsthatappealtoutilitarianconsiderations,rightsandduties,andvirtues.

Manyargue,onutilitariangrounds,thathighcompensationisjustifiedbecauseitprovidesstrongincentivesforperformance,orthatitisnecessarytorecruittalent.Othersarguethathighcompensationisearnedordeserved,andthereforeisamatterofrightandjustice.Or,somearguethatcompensationdecisionsisbestlefttobargainingbetweenindividualsand,thus,shouldbeamateurofrespectforindividualliberty.Incontrast,somearguethatexcessivecompensationisundeservedandunfair,andtheresultofunfaircollusionbetweenpowerfulpeoplewhoseekonlyself-interest.Stillothersarguethatexcessivecompensationresultsfromcharacterflawssuchasgreedandselfishness,andthatitworksagainstsuchvirtuesasmoderation,beneficence,humility.

Itcanbehelpfultoaskstudentstotakeasandonthisissue,“doCEOsgetpaidtoomuch?”Thenstudentscanbeaskedtolocatetheirownreasoningwithinthethreebroadcategoriesofconsequences(utilitarian),principles(rightsandduties)orvirtues.

ItcanbeagoodideatoreturntotheWellsFargocasefromChapterOneandusetheexampleoftheWellsFargoCEOpaytoexplorethisquestion.

Introduction:EthicalFrameworks:Consequences,Principles,Character

considerthereasonsthatyouorotherswouldoffertodefendorcriticizethepaymentoflargebonusestoexecutives.Thesereasonsfallintothreegeneralcategories:

Somereasonsappealtotheconsequencesofpayingthebonuses(e.g.,theyeitherwillorwillnotprovideincentivesforproducinggoodworkandbeneficialfutureconsequences).

Otherreasonsappealtocertainprinciples,suchas:oneshouldnotbreakacontractualpromise,evenifithasunpopularresults;oneshouldneverbenefitfromseriousharmsthathavebeencausedbyone’sownactions.

Otherreasonscitematersofpersonalcharacter:acceptingbonusesisgreedy,ordistasteful;payingbonusesthatweredueinthefaceofpubliccriticismwascourageousandhadtobedoneasamatterofintegrity.

Ethicsinvolveswhatisperhapsthemostsignificantquestionanyhumanbeingcanask:Howshouldweliveourlives?Everymajorphilosophical,cultural,political,andreligioustraditioninhumanhistoryhasgrappledwiththisquestion.

BarrierstoDiscussionsofPhilosophicalEthics:

Discussionsofphilosophicalethicscanappearintimidatingortooabstractanddiscussionsofethical“frameworks”oftenseemtobetootheoreticaltobeofmuchrelevancetobusiness.

Thischapterattemptstosuggestamoreaccessibleunderstandingofethicalframeworksandshedlightonthepracticalandpragmaticapplicationofthesetheoriestoactualproblemsbusinesspeopleface.

EthicalFramework:isanattempttoprovideasystematicanswertothefundamentalethicalquestion:Howshouldhumanbeingslivetheirlives?

Ethicscanbeunderstoodasthepracticeofexaminingourdecisionsandthinkingaboutanswerstothequestion:Why?

Ethicsattemptstoprovidereasonstosupporttheanswerstothisquestion.

Ethicsalsoseekstoprovidearationaljustificationforwhyweshouldactanddecideinaparticularway.

Philosophicalandreasonedethicsmustanswerthe“why?”questionaswellbyconnectingitsprescriptionswithanunderlyingaccountofagoodandmeaningfulhumanlife.

FoundationsofEthicalViews:Manypeopleandculturesacrosstheworldwouldanswerthis“why”questioninreligioustermsandwouldbasetheirnormativejudgmentsoncertainreligiousfoundations.Ifethicsisbasedonreligion,andifdifferentcultureshavewidelydivergentreligiousbeliefs,itseemsthatethicscannotescapethepredicamentofrelativism.

DecisionPoint

WhoistoSayWhatIsRightandWrong?

ThisDecisionPointdealswithethicalrelativismandasksthequestion:Areyouanethicalrelativist?

Ethicalrelativismholdsthatethicalvaluesarerelativetoparticularpeople,culturesortimes.Relativismdeniesthattherecanbeanyrationallyjustifiedorobjectiveethicaljudgments.Whenthereareethicaldisagreementsbetweenpeopleorcultures,theethicalrelativistconcludesthatthereisnowaytoresolvethatdisputeandproveonesideisrightormorereasonablethantheother.

ConsiderAbigaleDisney’sdescriptionofCEOpay(describedintheopeningdecisioncase)as“insane.”O(jiān)rdinarily,wethinkofsuchjudgmentsaspersonal,subjectivethings.YouenjoyspicyIndianfood,whileIprefersimple,Midwesternmeatandpotatoes.Itisallamatterofpersonaltaste.Disneymayhavefoundthebonusesdistasteful,butothersfindthemwell-deserved.Ethicalrelativistsbelievethatethicalvaluesaremuchliketastesinfood;italldependson,oritisallrelativeto,one’sownbackground,culture,andpersonalopinions.

Doyoubelievethatthereisnowaytodecidewhatisethicallyrightorwrong?Imagineateacherreturnsanassignmenttoyouwithagradeof“F.”Whenyouaskforanexplanation,youaretoldthattheteacherdoesnotbelievethatpeople“l(fā)ikeyou”(e.g.,men,Christians,AfricanAmericans)arecapableofdoinggoodworkinthisfield(e.g.,science,engineering,math,finance).Whenyouobjectandsaythatthisisunfairandwrong,theteacherthenoffersarelativistexplanation.“Fairnessisamatterofpersonalopinion,”theprofessorexplains.“Whodetermineswhatisfairorunfair?”youask.Yourteacherclaimsthathisviewofwhatisfairisasvalidasanyother.Becauseeveryoneisentitledtohis/herownpersonalopinion,heisentitledtofailyoubecause,inhispersonalopinion,youdonotdeservetosucceed.

Studentsareaskedtoconsiderthefollowingquestionsrelatedtothisscenario:

Wouldyouacceptthisexplanationandbecontentwithyourfailinggrade?Ifnot,howwouldyoudefendyourown,opposingview?

Arethereanyrelevantfactsonwhichyouwouldrelyontosupportyourclaim?

Whatvaluesareinvolvedinthisdispute?

Whatalternativesareavailabletoyou?

Besidesyouandyourteacher,arethereanyotherpeoplewhoareorshouldbeinvolvedinthissituation,anyotherstakeholders?

Whatreasonswouldyouoffertothedeaninanappealtohavethegradechanged?

Whatconsequenceswouldthisprofessor’spracticehaveoneducation?

Ifreasoningandlogicalpersuasiondonotwork,howelsecouldthisdisputeberesolved?

**TeachingNote:Examplesthatspeakdirectlytostudentsareusefultocounterthetendencytowardsrelativism.Value-ladentermssuchasfairness,deserve,justice,equaltreatment,meritareinescapablewhendiscussinggrades.Thisexamplecaneasilybetransferredintoanemploymentsituationinwhichamanagerconductsaperformanceappraisalofanemployee.Otherthanreasoningandlogicalpersuasion,whatisthemajoralternativeforresolvingconflicts?SinceatleastthetimethatThrasymachusinformedSocratesthat“justiceistheadvantageofthestronger,”themostcommonalternativeshavebeenforceandviolence.

Religiousethicsexplainshumanwell-beinginreligiousterms,whilephilosophicalethicsprovidesjustificationsthatmustbeapplicabletoallpeople,regardlessoftheirreligiousstartingpoints.

Exampleofphilosophicaljustification:“Youshouldcontributetodisasterreliefbecauseitwillreducehumansuffering.”

Exampleofreligiousjustification:“YoushouldcontributetodisasterreliefbecauseGodcommandsit,”or“becauseitwillbringyouheavenlyrewards.”

Ethicalframeworksevolvedovertimeandhavebeenrefinedanddevelopedbymanydifferentthinkers.Theinsightsofanethicalframeworkprovetobelastingbecausetheytrulydopickoutsomeimportantelementsofhumanexperience.

Thischapterwillintroduceseveralethicalframeworksthathaveproveninfluentialinthedevelopmentofbusinessethics.

Utilitarianismisanethicaltraditionthatdirectsustodecidebasedonoverallconsequencesofouract.

Principle-basedethicaltraditionsdirectustoactonthebasisofmoralprinciplessuchasrespectinghumanrights.

Virtueethicsdirectustoconsiderthemoralcharacterofindividualsandhowvariouscharactertraitscancontributeto,orserveasanobstructionto,ahappyandmeaningfulhumanlife.

Utilitarianism:MakingDecisionsBasedonEthicalConsequences

*ChapterObjective1DiscussedBelow*

Background:Utilitarianismhasitsrootsineighteenthandnineteenthcenturysocialandpoliticalphilosophy.

FundamentalInsightofUtilitarianism:Beginswiththeconvictionthatweshoulddecidewhattodobyconsideringtheconsequencesofouractions.Inthissense,utilitarianismhasbeencalledaconsequentialistapproachtoethicsandsocialpolicy.

Utilitarianismtellsusthatweshouldactinwaysthatproducebetteroverallconsequencesthanthealternativesweareconsidering.

“Better”consequencesarethosethatpromotehumanwell-being:thehappiness,health,dignity,integrity,freedom,andrespectofallthepeopleaffected.

Adecisionthatpromotesthegreatestamountofthesevaluesforthegreatestnumberofpeopleisthemostreasonabledecisionfromanethicalpointofview.

Emphasisofutilitarianismisonproducingthegreatestgoodforthegreatestnumber.Accordingtoutilitarians,theultimateethicalgoalistoproducethebestconsequencesforallpartiesaffectedbythedecisions.

Historically,utilitarianismhasprovidedstrongsupportfordemocraticinstitutionsandpoliciesandopposesthosepoliciesthataimtobenefitonlyasmallsocial,economic,orpoliticalminority.

Itcouldbesaidthattheeconomyandeconomicinstitutionsareutilitarianinthattheyexisttoprovidethehigheststandardoflivingforthegreatestnumberofpeople,notsimplytocreatewealthforafew.

Example:Injudgingtheethicsofchildlabor,utilitarianthinkingwouldadviseustoconsiderallthelikelyconsequencesofemployingyoungchildreninfactories.

Therearesomeobviouslyharmfulconsequences:childrensufferphysicalandpsychologicalharms,theyaredeniedopportunitiesforeducation,theirlowpayisnotenoughtoescapealifeofpoverty,andsoforth.

Buttheconsequencesmustbecomparedtotheconsequencesofalternativedecisions,suchasifchildreninpoorregionsaredeniedfactoryjobs?Thesechildrenwouldstillbedeniedopportunitiesforeducation;theywouldbeinworsepoverty;andtheywouldhavelessmoneyforfoodandfamilysupport.Inmanycases,theonlyalternativesforobtainingincomemightincludecrime,drugs,andprostitution.

Weshouldalsoconsidertheconsequencesfortheentiresociety.Childlaborcanhavebeneficialresultsforbringingforeigninvestmentandmoneyintoapoorcountry.Thus,somewouldarguethatallowingchildrentoworkforpenniesadayundersweatshopconditionsproducesbetteroverallconsequencesthantheavailablealternatives.

Onemightargueonutilitariangroundsthatsuchlaborpracticesareethicallypermissiblebecausetheyproducebetteroverallconsequencesthanthealternatives.

Utilitarianstendtobeverypragmaticthinkers.Theydecideonthebasisofconsequencesandtheybelievethattheconsequencesofouractionswilldependonthespecificfactsofeachsituation.

AccordingtoUtilitarianism:Noactiseverabsolutelyrightorwronginallcasesineverysituation;itwillalwaysdependontheconsequences.

Forexample,lyingisneitherrightnorwronginitself,accordingtoutilitarians.Theremightbesituationsinwhichlyingwillproducegreateroverallgoodthantellingthetruth.Insuchasituation,itwouldbeethicallyjustifiedtotellalie.

Utilitarianreasoningalsousuallysuppliessomesupportforeachcompetingavailablealternative(e.g.,wecanbanchildlaborasharmfultotheoverallgoodorallowchildlaborascontributingtotheoverallgood).

EthicalLegitimacy:Decidingontheethicallegitimacyofalternativedecisionsrequiresthatwemakejudgmentsaboutthelikelyconsequencesofouractions.Howdowedothis?

Withintheutilitariantradition,thereisastronginclinationtoturntosocialscienceforhelpinmakingsuchpredictions,sinceitstudiescausesandconsequencesofindividualandsocialactions.

Ingeneral,theutilitarianpositionisthathappinessistheultimategood,theonlythingthatisandcanbevaluedforitsownsake.

TheGoalofEthics:Bothindividuallyandasamatterofpublicpolicy,thegoalofethicsshouldbetomaximizetheoverallhappiness.

*Reference:“RealityCheck-IsUtilitarianismEgoistic?”*

Studentsoftenhavedifficultydistinguishingegoismfromutilitarianism.Thedifferenceisbetweenseekingtomaximizepersonalhappinessandseekingtomaximizeoverallhappiness.Tocomplicatematters,economictheorymightsuggestthatthemostefficientmeanstoaccomplishingthelatteristopursuetheformer.Utilitarianismjudgesactionsbytheirconsequencesforthegeneralandoverallgoodandtakesintoconsiderationthewell-beingofeachandeveryindividualaffectedbyanaction.Thus,utilitarianismservestheimpartialpromotionofhumanwell-being,whileegoismservestomaximizeonlyindividualhappiness.

III. UtilitarianismandBusiness

*ChapterObjective2AddressedBelow*

Utilitarianism’sgreatestcontributiontophilosophicalthoughthascomethroughitsinfluenceineconomics.WithrootsinAdamSmith,theethicswhichunderliesmuchoftwentiethcenturyeconomics—essentiallywhatwethinkofasthefreemarket—isdecidedlyutilitarian.Inthisway,utilitarianismcontinuestohaveaverystrongimpactonbusinessandbusinessethics.

Utilitarianismanswersthefundamentalquestionofethics:“Whatshouldwedo?”byreferringtothefollowingrule:maximizetheoverallgood.Thisissimilartothefinancialpracticeofconductingacost-benefitanalysisandmakingadecisionbasedonmaximizingthenetbenefitsovercosts.

Howdoweachievethisgoal?Whatisthebestmeansforattainingtheutilitariangoalofmaximizingtheoverallgood?Twoversionsofutilitarianpolicyhaveemerged:oneinvolvesfree,competitivemarketsandtheotherinvolvesadministration.

*ChapterObjective3AddressedBelow*

FreeMarkets:OnemovementwithinutilitarianthinkinginvokesthetraditionofAdamSmith,andclaimsthatfreeandcompetitivemarketsarethebestmeansforattainingutilitariangoals.

Thisversionwouldpromotepoliciesthatderegulateprivateindustry,protectpropertyrights,allowforfreeexchanges,andencouragecompetition.

Insuchsituations,decisionsofrationallyself-interestedindividualswillresult,asifledby“aninvisiblehand,”inAdamSmith’sterms,tothemaximumsatisfactionofindividualhappiness.

Inclassicfreemarketeconomics,economicactivityaimstosatisfyconsumerdemand.Sincepeoplearemadehappy,andhumanwelfare/well-beingincreases,whenpeoplegetwhattheydesire,overallhumanhappinessisincreasedwhentheoverallsatisfactionofconsumerdemandincreases.

Thegoaloffreemarketeconomicsistomaximizethesatisfactionofwants(happiness).Freemarketsaccomplishthisgoalmostefficientlybyallowingindividualstodecidewhattheymostwantandthenbargainforthesegoodsinafreeandcompetitivemarket.

Thisrequiresthatbusinessmanagers,inturn,shouldseektomaximizeprofits.Bypursuingprofits,businessensuresthatscarceresourcesgotothosewhomostvaluethemandtherebyensuresthatresourceswillprovideoptimalsatisfaction.Competitivemarketsareseenasthemostefficientmeanstotheutilitarianendofmaximizinghappiness.

Asecondinfluentialversionofutilitarianpolicyturnstopolicyexpertswhocanpredicttheoutcomeofvariouspoliciesandcarryoutpoliciesthatwillattainutilitarianends.

Becauseutilitarianreasoningdetermineswhattodoonthebasisofconsequences,reasonablejudgmentsmusttakeintoaccountthelikelyconsequencesofouractions.

Policyexperts,usuallytrainedinthesocialsciencessuchaseconomics,politicalscience,andpublicpolicy,arefamiliarwiththespecificsofhowsocietyworks,andtheythereforeareinapositiontodeterminewhichpolicywillmaximizetheoverallgood.

*Reference:“RealityCheck-UtilitarianExpertsinPractice”*

Thisapproachtopublicpolicyunderliesonetheoryoftheentireadministrativeandbureaucraticsideofgovernmentandorganizations.Fromthisview,thelegislativebody(fromCongresstolocalcitycouncils)establishesthepublicgoalsthatweassumewillmaximizeoverallhappiness.

Theadministrativeside(presidents,governors,mayors)executes(administers)policiestofulfillthesegoals.

Peopleworkingwithintheadministrationknowhowthesocialandpoliticalsystemworksandusethisknowledgetocarryoutthemandateofthelegislature.

Thisapproachwouldbesympatheticwithgovernmentregulationofbusiness,onthegroundsthatsuchregulationwillensurethatbusinessactivitiesdocontributetotheoverallgood.

DisputeBetweenVersionsofUtilitarianPolicy:Thedisputebetweenwhatwemightcallthe“administrative”andthe“market”versionsofutilitarianism,characterizemanydisputesinbusinessethics.

Oneexampleconcernsregulationofunsafeorriskyproducts:

Onesidearguesthatquestionsofsafetyandriskshouldbedeterminedbyexpertswhothenestablishstandardsthatbusinessisrequiredtomeet.Governmentregulators(forexample,theConsumerProductsSafetyCommission)arethenchargedwithenforcingsafetystandardsinthemarketplace.

Theothersidearguesthatthebestjudgesofacceptableriskandsafetyareconsumersthemselves.Afreeandcompetitiveconsumermarketwillensurethatpeoplewillgetthelevelofsafetythattheywant.Individualscalculatewhatriskstheywishtotakeandwhattrade-offstheyarewillingtomakeinordertoattainsafety.Market-basedsolutionswillprovebestatoptimallysatisfyingthesevariousandcompetinginterestsandwilltherebyservetheoverallgood.

Thefollowingdecisionpointasksstudentstothinkthroughthetrade-offsthathappenonadailybasisingovernmentregulatorydecisions.Thisdemonstratestheutilitariannatureofsuchdecisions,butalsocanraisethequestionsofwhetherornotsomevalues,suchassafety,shouldbeexemptfromutilitariantrade-offandbalancing.

DecisionPoint

IsRegulationMakingCarstooSafe?

TheNorthAmericanautoindustryisheavilyregulated.Fuelefficiencyis,ofcourse,regulated(bytheEnvironmentalProtectionAgencyintheUnitedStates,andbyTransportCanadainCanada),asaretailpipeemissions.ButevenmoresignificantarethesafetyregulationstowhichthemodernNorthAmericanvehicleissubject.Safetystandardscovereverythingfromthedesignofseatbeltstotheperformanceofbrakingsystems,thepresenceandfunctioningofairbags,andtheabilityoffrontandrearbumperstosurvivelow-speedcollisions.AllofthesethingshavemadethecarsdrivenbyNorthAmericans(andEuropeans)vastlysafer—bothunder“normal”drivingconditionsandduringemergencies—thantheywere,say,fiftyyearsago.

EconomistandbloggerAlexTabarrokpointsoutthatinordertofullyevaluatetheoutcomesofsafetyregulations,weneedtolookathowthoseregulationsaffectpeople’sdecisions.*Onewaytheyaffectconsumerdecisionmakingisthroughtheirimpactonprices.Safetyfeatureshaveinevitablydrivenupthepriceofcars.Thishasmadecarsunaffordabletosomeconsumers,withsomeconsumersinsteadoptingtodrivemotorcycles.Motorcycles,afterall,aremuchlessexpensive.Asjustoneexample,inNorthAmericaabasicHondamotorcyclecostslessthanone-thirdasmuchasHonda’scheapestmodelofcar,theHondaFit.

Butmotorcyclesarenotonlylessexpensivethancars—theyarelesssafe,too.(TheU.S.NationalHighwayTrafficSafetyAdministrationsaysthatpermiletraveled,motorcyclesaretwenty-sixtimesmoredeadlythancars.?)Asweallknow,airbagshavemadecarssafer,butalsomoreexpensive.AndasTabarrokpointsout,motorcyclesdon’thaveairbags.Sowhatistheneteffectofregulationsthatincreasethesafetyofcardrivers,butthatalsopushsomedriverstobuymotorcyclesinstead?It’snotclearthatanyoneknowstheanswertothat.

1.Ifcarefulstudyshowedthatmorepeoplewerebeingkilledbyautomotivesafetyrequirementsthansaved,wouldyoubeinfavorofregulationsthatallowedmanufacturerstomakeatleastsomecarsthatarelesssafe?

2.Ifasinglepotentialcarbuyeroptstobuyamotorcyclebecausecarsarenowtooexpensiveforher,andifshediesorisinjuredinamotorcycleaccident,shouldweblameregulators?

3.Ifregulatorsdidn’tforcecarmakerstoinstallsafetyequipment,wouldconsumerdemandbeenoughtogetcarmakerstodosoanyway?Orwouldcarmakersabusethefactthatmostconsumersdon’tknowwhichsafetyfeaturesarereallymostworthpayingfor?

**TeachingNote:“Lettingthemarketdecide”isacommonapproachinseveralareasofbusinessethics.Intermsofthelogicalstructureandethicalvalues,disputesaboutconsumerproductsafety,workplacehealthandsafety,andenvironmentalprotectionraiseidenticalquestions.Ausefulstudyquestionorassignmentforawritingexerciseorexamwouldaskstudentstotracethelogicofthisperspectiveacrosssuchissuesasproductsafety,workplacesafety,andenvironmentalprotection.

ChallengestoUtilitarianEthics

*ChapterObjective4AddressedBelow*

Reviewingsomechallengestoutilitarianismcanguideusinevaluatinglaterapplicationsofutilitariandecisionmaking.

Counting,Measuring,ComparingandQuantifyingConsequences:Ifutilitarianismadvisesthatwemakedecisionsbycomparingtheconsequencesofalternativeactions,thenwemusthaveamethodformakingsuchcomparisons.

Inprinciple,utilitarianismtellsusthattheinterestsofallstakeholderswhowillbeaffectedbyadecisionoughttobeincludedincalculatingtheconsequencesofadecision.But,thereisnoconsensusamongutilitariansonhowtomeasureanddeterminetheoverallgood.

Forexample:Imaginetryingtocalculatetheconsequencesofadecisiontoinvestinconstructionofanuclearpowerplantwhosewastesremaintoxicfortensofthousandsofyears.

Asecondchallengerelatestoutilitarianism’srelianceonconsequences.

Ethicalandunethicalactsaredeterminedbytheirconsequences.Inshort,theendjustifiesthemeans.Butthisseemstodenyoneoftheearliestethicalprinciplesthatmanyofhavelearned:theendsdonotjustifythemeans.

Whenwesaythattheendsdonotjustifythemeans,whatwearesayingisthattherearecertaindecisionsweshouldmakeorcertainrulesweshouldfollownomatterwhattheconsequences.Wehavecertaindutiesorresponsibilitiesthatweoughttoobey,evenwhendoingsodoesnotproduceanetincreaseinoverallhappiness.

Examplesofsuchdutiesarethoserequiredbysuchprinciplesasjustice,loyalty,andrespect,aswellastheresponsibilitieswhichflowfromourrolesasparent,spouse,friend,citizen,employee,orprofessional.

Sinceutilitarianismfocusesontheoverallconsequences,utilitarianismseemswillingtosacrificethegoodofindividualsforthegreateroverallgood.

Forexample,itmightturnoutthattheoverallhappinesswouldbeincreasedifchildrenwereheldasslavelabor.Utilitarianswouldobjecttoslaveryortochildlabor,notasamatterofprinciple,butonlyifandtothedegreethatitdetractsfromtheoverallgood.

Ifitturnsoutthatslaveryandchildlaborincreasesthenetoverallhappiness,thenutilitarianismwouldhavetosupportthesepractices.Inthejudgmentofmanypeople,suchadecisionwouldviolatefundamentalethicalprinciplesofjustice,equality,andrespect.

Rightsfunctiontoprotectindividualsfrombeingsacrificedforthegreateroverallhappiness.Forexample,itisoftenarguedthatchildlaborisethicallywronginprinciple,evenifitcontributestotheoverallsocialhappiness.

Asimilarexamplecitesthoseprinciplesthatarisefromcommitmentsthatweallmakeandthedutiesthatflowfromthem.

Forexample,asparentsweloveourchildrenandhavecertaindutiestothem.Violatingsuchcommitmentsanddutieswouldrequireindividualstosacrificetheirownintegrityforthecommongood.

Commitmentsanddutiesplayalargeroleinbusinesslife.Contractsandpromisesareexactlythecommitmentsthatoneoughttohonoreveniftheconsequencesturnoutunfavorably.Thedutiesthatonetakesonaspartofaprofessionalrolefunctioninasimilarway:

WellsFargomightdefendtheirpaymentoflargebonusestoexecutives,citingthecontractualdutytopaythem.

ArthurAndersen’sauditorsshouldnothaveviolatedtheirprofessionaldutiessimplytoproducegreateroverallbeneficialconsequences.

Lawyershaveadutynottohelptheirclientsfindwaystoviolatethelaw,eveniftheyareofferedahighsalarytodoso.

Teachersshouldnotviolatetheirprofessionaldutiesbyfailingstudentswhomtheydonotlike.

Theaccountant/managerinChapterTwo’sopeningdecisionpoint,likewisehasprofessionaldutiesofconfidentialityandobedience.

**Te

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