Chapter 3
Crane and Matten
Business Ethics (3rd Edition)
Chapter 3
Evaluating Business Ethics:
Normative Ethical Theories
Lecture 3
Overview
• Locate the role of ethical theory
• Highlight international differences in perspectives • Provide critical overview of traditional ethical theories • Explore contemporary ethical theories
What are normative ethical theories?
• Ethical theories are the rules and principles that determine right and wrong for any given situation Crane and Matten (2010)
• Normative ethical theories are those that propose to prescribe the morally correct way of acting • As opposed to descriptive ethical theories which seek to describe how ethics decisions are actually made in business
The role of ethical theory
The role of ethical theory
• Two extreme positions (De George 1999)
• Ethical absolutism claims there are eternal, universally applicable moral principles
– Right and wrong are objective qualities, can be rationally determined
– Typically traditional ethical theories
• Ethical relativism claims morality is contextdependent and subjective
– No universal right and wrongs that can be rationally determined; depends on person making the decision
& culture in which they are located
– Typically contemporary ethical theories
Normative ethical theories
North American and European origins and differences
• Differences between Anglo-American and
European approaches based on philosophical arguments – Individual versus institutional morality
• US tend to individualistic perspective
• Europe towards wider economic and governing institutions
– Questioning versus accepting capitalism
• US tend to accept the capitalist framework
• Europe tend to question the ethical justification of capitalism
– Justifying versus applying moral norms
• US tend to focus on application of morality
• Europe focus on justification and ethical legitimation of norms
• In contrast, Asian perspectives tend to be based on religion (e.g. Islam, Buddhism)
Western
Business Ethics (3rd Edition)
Chapter 3
Evaluating Business Ethics:
Normative Ethical Theories
Lecture 3
Overview
• Locate the role of ethical theory
• Highlight international differences in perspectives • Provide critical overview of traditional ethical theories • Explore contemporary ethical theories
What are normative ethical theories?
• Ethical theories are the rules and principles that determine right and wrong for any given situation Crane and Matten (2010)
• Normative ethical theories are those that propose to prescribe the morally correct way of acting • As opposed to descriptive ethical theories which seek to describe how ethics decisions are actually made in business
The role of ethical theory
The role of ethical theory
• Two extreme positions (De George 1999)
• Ethical absolutism claims there are eternal, universally applicable moral principles
– Right and wrong are objective qualities, can be rationally determined
– Typically traditional ethical theories
• Ethical relativism claims morality is contextdependent and subjective
– No universal right and wrongs that can be rationally determined; depends on person making the decision
& culture in which they are located
– Typically contemporary ethical theories
Normative ethical theories
North American and European origins and differences
• Differences between Anglo-American and
European approaches based on philosophical arguments – Individual versus institutional morality
• US tend to individualistic perspective
• Europe towards wider economic and governing institutions
– Questioning versus accepting capitalism
• US tend to accept the capitalist framework
• Europe tend to question the ethical justification of capitalism
– Justifying versus applying moral norms
• US tend to focus on application of morality
• Europe focus on justification and ethical legitimation of norms
• In contrast, Asian perspectives tend to be based on religion (e.g. Islam, Buddhism)
Western