As an ethics keynote speaker, ethics consultant and author, it is not unusual for those in academia to ask me what types of business ethics theories I subscribe to in my teaching. Business ethics can indeed become the subject of such conversation.
As an ethics speaker, while I am always interested in expanding my knowledge base, my focus and passion is to encourage application of good ethics for the greatest corporate social responsibility. Conversely, I point out what occurs when the choices become unethical.
What are the primary types of business ethics theories?
For the sake of discussion, the models that many academicians favor are those highlighted by Penn State. According to Penn State University, there are three main business ethics theories however, even those theories are open to debate.
The three main business ethics theories are: utilitarian, deontological and virtue ethics. In application, utilitarian business ethics is when we make a decision based on the majority; deontological is when we see our duty and act on it; virtue ethics is making a decision based on the highest virtues.
Business writer Helen Akers (May 13, 2022) adds a fourth philosophy into the business ethics mix: the Norm theory, based on the work of philosopher Immanuel Kant. Norm theory may be called Kantian theory. It is described as:
“Norm theory states that certain standards of moral conduct should be followed by the entire group. The acceptable forms of conduct are typically defined for a variety of probable situations. A prime example of norm theory in the business world is the idea of employee handbooks or corporate codes of conduct.”
We can continue to split ethical hairs. For example, writer Osman Vitez (May 22, 2022) adds a “Justice theory,” or a fairness approach. Said Vitez:
“Justice as an ethical approach is where all humans are treated equally through society, regardless of rank, position, class, creed, or race. This is also known as the fairness approach in business ethics theories.”
No one is wrong, but…
In my role and life’s passion as an ethical consultant, ethics speaker and author, I can certainly support aspects of every theory. They are fine as behavioral templates, and the world would be a much better place if all humans were treated equally and the entire group did the right thing, and the majority made good decisions and we all did our duties and we were all virtuous.
However, we do not live in that world. In my work in business ethics, I can assure you that somewhere, at this very moment – and despite all of the social messaging, a business entity is intentionally polluting, a healthcare facility is committing Medicare fraud, an executive is discriminating against an employee; an employee is taking a bribe from a vendor and a manufacturer is cutting corners.
As an ethics keynote speaker who must live in the world of real-life ethical problems, I would add another dimension to the discussion of what are the primary types of business ethics theories? My contribution to the academic discussion is simply this: every choice has a consequence.
The examples I cited above are more common than we might admit, more frequent than we would like to admit, and infinitely more devastating than many would ever agree to admitting.
Business ethics theories are academically interesting, but in the light of everyday life, employees are committing fraud openly – or under cover, for the need to make money or gain power, and they rationalize for a myriad of reasons. Who commits fraud and plunges their organizations into scandals? There is no “set” age, race, orientation, religion to the unethical. “They” are “anyone.” Sometimes their decisions lead to enormous fines, bankruptcies, jail sentences and great damage.
The real world
We must live in the real world, where business ethical behavior and corporate social responsibility cannot be theorized, but taught, practiced and reinforced. We all have the choices in front of us and it is up to all of us to determine the paths we need to take.
LEAVE YOUR COMMENTS!
