WEEK 2 ▪ Ethical Decision Making- Businesses face numerous ethical dilemmas in their day-

GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY to-day operations, such as issues related to product safety, fair labor practices,
environmental sustainability, and transparency. Ethical decision-making involves
GOOD GOVERNANCE- refers to the principles, processes, and institutions through evaluating these dilemmas in line with moral principles and making choices that
which public and private organizations are managed, directed, and regulated to align with ethical standards.
ensure accountability, transparency, equity, and efficiency in decision-making and ▪ Stakeholder Relationships- Ethical business practices prioritize fair and honest
service delivery. dealings with all stake holders, including customers, employees, suppliers,
- encompasses the mechanisms and practices that promote ethical conduct, investors, and the wider community. Maintaining trust and positive relationships
respect for the rule of law, and responsiveness to the needs and interest of with these stakeholders is crucial for long - term success.
stakeholders. ▪ Legal and Regulatory Compliance- While legal requirements set the baseline for
- is essential for fostering social cohesion, economic development and political acceptable behavior, ethical considerations often go beyond mere legality. Ethical
stability. businesses strive to comply with laws and regulations but also aim to uphold higher
- It helps build trust between government and citizens, strengthens institutions and moral standards and societal expectations.
promotes sustainable development. ▪ Fair Treatment of Employees- Ethical businesses prioritize the fair treatment of
employees, including issues as fair wages, safe working conditions, and
CHARACTERISTICS OF GOOD GOVERNANCE opportunities for professional development. This contributes to a positive
1. Transparency- Ensuring that decision, processes, and information are accessible, workplace culture and can enhance employee morale and productivity.
visible, and understandable to all stakeholders. ▪ Transparency and Accountability- Ethical businesses practices often involve
2. Accountability- Holding decision-makers and institutions responsible for their transparency in communication and accountability for actions. Open and honest
actions and decisions, including providing mechanisms for oversight and redress. communications with stakeholders, including admitting mistakes and taking
3. Rule of Law- Upholding decision-makers and institutions responsible for their responsibility for corrective actions, is a key component of ethical behavior.
actions and decisions, including providing mechanisms for oversight and redress. ▪ Sustainable Practices- Ethical considerations extend to environmental
4. Participation- Encouraging active involvement of citizens and stakeholders in sustainability. Businesses are increasingly expected to adopt eco-friendly practices
decision-making processes allowing for diverse perspectives and voices to be and contribute to the well-being of the environment, reflecting a growing
heard. awareness of the global impact of business activities.
5. Responsiveness- Being responsive to the needs, concerns, and aspirations of the
people, and taking timely actions to address them. THE MORALITY IN BUSINESS
6. Equity and Inclusiveness- Ensuring that all individuals and groups, regardless of - Refers to the application of ethical principles and
their background or status, have equal access to opportunities, resources, and values in the context of commercial activities.
services. - It involves making decisions and conducting business
7. Effectiveness and Efficiency- Achieving desired outcomes in a timely and cost- operations in a manner that aligns with moral
effective manner, while maximizing the use of resources and minimizing waste. standards, fairness, and societal expectations.

CHAPTER 1: ETHICS AND BUSINESS KEY ASPECTS OF MORALITY IN BUSINESS

What is Ethics? Ethics is derived from the greek word “ethos” which means 1. Honesty and Integrity- Morality in business emphasizes the importance of
character, custom or habit. It refers to the philosophical study of the concepts of honesty and integrity in all dealings. This includes providing accurate information
moral right and wrong and moral good and bad, to any philosophical theory of to customers, suppliers, employees, and other stakeholders. Transparent
what is morally right and wrong or morally good and bad, and to any system or communication and truthful representation of products or services contribute to
code of moral rules, principles, or values. a trustworthy business reputation.
▪ Moral ▪ Principles 2. Fair Treatment- Treating all stakeholders, including employees, customers,
▪ Integrity ▪ Honesty suppliers, and competitors, with fairness is a fundamental moral principle in
▪ Value ▪ Right business. Fair treatment extends to areas such as hiring practices, compensation,
▪ Honor ▪ Fairness and opportunities for advancement.
▪ Choice ▪ Responsibility 3. Respect for Employees- Moralities in business involves respecting the dignity and
▪ Conscience wellbeing of employees. This includes providing a safe and healthy work
What is the nature of Business? environment, fair wages, and opportunities for professional development.
- Nature of business describes the type of business it is and what its overall goals Businesses that prioritize employee well-being are more likely to build a positive
are. workplace culture.
- It describes its legal structure, industry, products or services, and everything a 4. Social Responsibility- Morally responsible businesses go beyond legal
business does to reach its goals. requirements to contribute positively to society. This can involve initiatives related
- Nature of Business means that the purpose of a business is to provide services to philanthropy, community development, environmental sustainability, and
and products to meet the needs of customers in the market. ethical sourcing of materials.
Business Ethics are principles that guide decision-making such as: 5. Customer Satisfaction- Morality in business includes a commitment to providing
▪ Be transparent quality products or services that meet customer expectations. This involves
▪ Invite feedback avoiding deceptive marketing practices, ensuring product safety, and addressing
▪ Consider impacts on employees, stakeholders, and society. customer concerns ethically.
▪ Reflect on past experiences to learn what you could have done better. 6. Ethical Decision-Making- Businesses are often faced with ethical dilemmas, and
Business Ethics are standards for morally right and wrong conduct in business. Law, moral decision-making involves considering the impact of choices on various
partially defines the conduct, but “legal” and “ethical” are not necessarily the stakeholders. Ethical decision-making frameworks help guide businesses in
same. evaluating options and choosing courses of action that align with ethical principles.
Why is Business Ethics important? 7. Legal Compliance- While morality in business goes beyond legal requirements,
▪ To carry out work the right way. adherence to laws and regulations is still a foundational aspect. Morally upright
▪ To promote moral conduct. businesses strive to comply with legal standards and also consider the spirit of the
▪ To make them dedicated to ethical decision-making. law in their operations.
8. Anti-Corruption Practices- Morality in business opposes corruption and bribery.
THE RELATIONSHIPS OF BUSINESS AND ETHICS Businesses should have policies and practices in place to prevent corruption,
▪ Corporates Social Responsibility- Businesses are increasingly expected to consider ensure fair competition, and promote ethical behavior within the organization.
their impact on society beyond financial performance. Corporate Social
Responsibility (CSR) is a concept that emphasizes a company's responsibility to 9. Environmental Stewardship- Morality in business includes a commitment to
operate ethically, contribute positively to communities, and minimize its environmental sustainability. This involves adopting eco-friendly practices,
environmental impact. minimizing environmental impact, and contributing to initiatives that promote a
healthier planet.
10. Ethical Leadership- Moral principles in business often start at the top with ▪ Moral Reasoning- Conforming to social norms and expectations is sees as “good,”
ethical leadership. Leaders who demonstrate commitment to ethical behavior set and decisions are made to maintain positive relations.
the tone for the entire organization an influence the ethical culture within the Stage 4: Maintaining Social Order (Law and Order Orientation)
company. ▪ Orientation- Maintaining the social order is important.
▪ Moral Reasoning- Respect for authority and adherence to societal rules become
crucial. Upholding the law is seen as a way to maintain social order.
WEEK #3 Level 3: Post-conventional Morality
CHAPTER 2: NORMATIVE ETHICAL THEORIES IN BUSINESS DECISION – MAKING Stage 5: Social Contract and Individual Rights (Social Contract Orientation)
Normative Ethics is a branch of moral philosophy that focusses on prescribing how ▪ Orientation- Recognition of the diversity of opinions and values.
individuals ought to behave and what actions are morally permissible, required, or ▪ Moral Reasoning- Individuals at this stage recognize the importance of social
forbidden. It is concerned with providing guidelines and principles for evaluating contracts, and decisions are made based on what is fair and just, even if it goes
the morality of human actions and character. against established laws.
Stage 6: Universal Principles (Principled Conscience)
The nature of normative ethics can be understood through several key ▪ Orientation- Development of an individual’s moral principles.
characteristics: ▪ Moral Reasoning- Individuals operate based on universal ethical principles, such
1. Prescriptive Nature- It provides normative guidelines and recommendations for as justice, equality, and human rights. They are willing to disobey laws that conflict
moral behavior. It is concerned with what people should do or how they ought to with these principles.
act in various situations.
2. Objective Evaluation- Normative ethics aims to establish objective standards for CRITIQUES AND CONSIDERATIONS:
evaluating the moral quality of actions. It seeks to determine whether actions are 1. Cultural Bias- Kohlberg’s theory has been criticized for potential cultural bias, as
right or wrong, good or bad, based on a set of ethical principles or theories. it may not be universally applicable across different cultural contexts.
3. Ethical Theories- Normative ethics encompasses various ethical theories that 2. Gender Bias- Some argue that the stages were initially developed based on male
propose different principles or criteria for determining what is morally right or subjects, leading to potential gender bias in the theory.
wrong. Common ethical theories include consequentialism, deontology, virtue 3. Limited Emphasis on Action- Kohlberg’s theory focusses on moral reasoning
ethics, and contractualism. rather than moral action, which may not fully capture the complexity of moral
▪ Consequentialism- Focusses on the outcomes or consequences of actions. The behavior
morality of an action is judged based on the overall good or bad consequences it
produces. NICCOLÒ MACHIAVELLI (born May 3, 1469, Florence [Italy]—died June 21, 1527,
▪ Deontology- Emphasizes the inherent nature of actions and adherence to moral Florence)- Italian Renaissance political philosopher and statesman, secretary of the
rules or duties. Certain actions are considered inherently right or wrong, regardless Florentine republic, whose most famous work, The Prince (Il Principe), brought him
of their consequences. a reputation as an atheist and an immoral cynic.
▪ Virtue Ethics- Centers on the development of virtuous character traits. Morality - "Machiavellian principles" typically refers to the political philosophy and tactics
is seen as residing in the cultivation of virtues like honesty, courage, and associated with Niccolò Machiavelli, particularly as outlined in his seminal work,
compassion. "The Prince," written in the 16th century. Machiavelli's ideas are often
▪ Contractualism- Examines the moral principles that rational individuals would characterized by their pragmatism, focus on power dynamics, and willingness to
agree upon in forming a social contract for cooperative living. use any means necessary to achieve and maintain control.
4. Universal Principles- Normative ethics seeks universal principles that can be
applied consistently across different cultures, societies, and situations. It aspires to KEY PRINCIPLES COMMONLY ASSOCIATED WITH MACHIAVELLIANISM:
establish a common ground for evaluating moral actions. 1. Ends Justify the Means- Perhaps the most famous principle attributed to
5. Reasoning and Justification- Normative ethics involves reasoning and Machiavelli is the idea that achieving one's goals is paramount, regardless of the
justification for moral principles and rules. It aims to provide rational arguments methods used. He famously wrote, "It is better to be feared than loved, if you
for why certain actions are morally right or wrong, helping individuals navigate cannot be both."
ethical dilemmas. 2. Pragmatism over Morality- Machiavelli advised rulers to prioritize practical
6. Application to Real-Life Situations- Normative ethics is not purely theoretical but considerations over moral principles. He argued that leaders should be willing to
is meant to guide individuals in making ethical decisions in real-life situations. It set aside notions of right and wrong in pursuit of their objectives.
provides a framework from moral decision-making in various contexts. 3. Political Realism- Machiavelli emphasized a realistic understanding of politics,
7. Conflict Resolution- Given that different ethical theories may lead to conflicting grounded in the acknowledgment of human nature's flaws and the inherent
conclusions in certain situations, normative ethics also addresses how to resolve competition for power. He believed that effective rulers must be shrewd judges of
such conflicts and prioritize principles when they come into tension. character and adept at manipulating circumstances to their advantage.
4. Deception and Manipulation- Machiavelli recognized the utility of deception and
THE KOHLBERG’S STAGES OF MORAL DEVELOPMENT- Lawrence Kohlberg is a manipulation in politics. He advised rulers to master the art of deceit when
psychologist who developed a theory of moral development that outlines stages necessary, using propaganda, misinformation, and other tactics to control public
through which individuals progress as they develop their moral reasoning. opinion and undermine rivals.
- Lawrence Kohlberg is an American psychologist and educator known for his 5. Maintaining Power- Machiavelli stressed the importance of maintaining power
theory of moral development. and stability in a ruler's domain. He argued that rulers should prioritize strategies
- Kohlberg’s stages of moral development build upon the earlier work of Jean that secure their authority and prevent internal discord or external threats.
Piaget and expand on the cognitive aspects of moral decision-making. 6. Flexibility and Adaptability- Machiavelli emphasized the importance of flexibility
- Jean Piaget is a psychologist who developed a theory of cognitive development in political strategy, advising rulers to adapt their tactics to changing
focused on intellectual development of children. circumstances. He cautioned against rigid adherence to fixed principles that could
become liabilities.
KOHLBERG’S MODEL OF DEVELOPMENT 7. Divide and Conquer- Machiavelli advocated for strategies that exploit divisions
Level 1: Pre-conventional Morality among opponents, weakening their collective strength and making them easier to
Stage 1: Obedience and Punishment Orientation (Pre-Moral) defeat or control.
▪ Orientation- Children at this stage focus on avoiding punishment. 8. The Illusion of Virtue- Machiavelli recognized the value of appearing virtuous and
▪ Moral Reasoning- They follow rules to avoid punishment and obedience is moral while privately pursuing self-interested goals. He advised rulers to cultivate
motivated by the threat of punishment. a public image of integrity and benevolence, even if their actions were motivated
Stage 2: Individualism and Exchange (Instrumental Purpose and Exchange) by self-interest.
▪ Orientation- Individuals consider their own interests.
▪ Moral Reasoning- They recognize that different individuals have different
interests, and they make decision based on reciprocity and equal exchange.
Level 2: Conventional Morality
Stage3: Interpersonal Relationships (Good Boy- Nice Girl Orientation)
▪ Orientation- Individuals seek permission from others.
WEEK #4 commitment to moral duty and the rational pursuit of moral principles, rather than
Jeremy Bentham mere inclination or self-interest.
was a British philosopher and jurist who is best known for developing the ethical
theory of utilitarianism. Utilitarianism is a consequentialist ethical theory that John Rawls
asserts that the moral worth of an action is determined solely by its consequences. an American philosopher, is best known for his work on political philosophy,
According to Bentham, the principle of utility should guide individuals and societies particularly his theory of justice as fairness. In his seminal work, "A Theory of
in making decisions, aiming to maximize overall happiness or pleasure and Justice," Rawls presents a framework for determining principles of justice that
minimize overall suffering or pain would govern the basic structure of a just society

Here are some key aspects if Bentham’s utilitarianism: Key principles of justice according to John Rawls:

1. Principle of Utility: Bentham's utilitarianism is grounded in the principle of utility, 1.The Two Principles of Justice: Rawls proposes two principles of justice that he
which states that the right action is the one that produces the greatest argues would be chosen by individuals in a hypothetical "original position" behind
happiness for the greatest number of people. Utility, in this context, refers to the a veil of ignorance. This veil prevents individuals from knowing their own place in
balance of pleasure over pain. society, including their social status, wealth, talents, or abilities. Under these
conditions, Rawls suggests that individuals would choose the following principles:
2. Hedonistic Calculus: Bentham proposed a method called the "hedonistic
calculus" to measure the amount of pleasure and pain generated by different a. The First Principle of Justice (The Principle of Equal Basic Liberties): This
actions. He identified several factors that should be considered in this calculus, principle states that each person is to have an equal right to the most extensive
including intensity, duration, certainty, propinquity, fecundity, purity, and extent basic liberties compatible with similar liberties for others. These basic liberties
include political liberties (e.g., freedom of speech, assembly, and conscience) and
3. Quantitative Approach: Bentham's utilitarianism is often characterized by its personal freedoms (e.g., freedom from arbitrary arrest, freedom of religion).
quantitative approach to ethics. He believed that pleasure and pain could be b. The Second Principle of Justice (The Difference Principle): This principle
measured and compared mathematically, allowing individuals to calculate which concerns social and economic inequalities. It states that social and economic
action would produce the greatest overall utility. inequalities are permissible only if they benefit the least advantaged members of
society. In other words, inequalities in wealth, income, and social status are
4. Universalism: Bentham argued that the principle of utility should be applied justified only if they improve the situation of the least well-off individuals in society.
universally, without favoritism or bias toward particular individuals or groups. This
universalistic approach aims to promote the greatest good for all members of 2. The Original Position and the Veil of Ignorance: Rawls uses the concept of the
society. original position and the veil of ignorance as a thought experiment to determine
the principles of justice. In this hypothetical scenario, individuals are rational, self-
5. Legal and Political Theory: Bentham applied utilitarian principles to various areas interested, and unaware of their personal characteristics. Rawls argues that behind
of law and governance, advocating for social and legal reforms that would the veil of ignorance, individuals would choose principles of justice that are fair
maximize utility. He believed that laws and institutions should be designed to and impartial, as they would not know which position they would occupy in society.
promote the happiness and well-being of society as a whole
3. Fair Equality of Opportunity: Rawls also emphasizes the importance of fair
Immanuel Kant – 1724 to 1804 equality of opportunity as a fundamental aspect of justice. This principle requires
was a German philosopher who is widely regarded as one of the most influential that social and economic opportunities be equally available to all individuals,
figures in modern philosophy. His ethical theory, often referred to as Kantian ethics regardless of their social background or circumstances of birth. It aims to ensure
or deontological ethics, is based on the idea that morality is grounded in rationality that everyone has a fair chance to pursue their life plans and aspirations.
and the concept of duty. Kant's ethical framework provides an alternative approach
to ethics compared to consequentialist theories like utilitarianism. 4. The Priority of Liberty: Rawls assigns priority to the first principle of justice (the
principle of equal basic liberties) over the second principle (the difference
Here are some key aspects of Kantian ethics principle). This means that restrictions on individual liberties can only be justified
if they are necessary to protect or preserve those same liberties for others.
1. Categorical Imperative: Kant's central ethical principle is the concept of the
categorical imperative, which he formulates in several ways. One formulation is: Thomas Hobbes
"Act only according to that maxim whereby you can at the same time will that it was a prominent English philosopher best known for his political and moral
should become a universal law." This means that moral actions are those that can philosophy, particularly expounded in his famous work "Leviathan." While Hobbes
be consistently willed as universal laws applicable to all rational beings. is not typically associated with legal positivism in the modern sense, his views on
law, authority, and political sovereignty do bear some resemblance to certain
2. Autonomy and Rationality: Kant emphasizes the importance of autonomy and aspects of legal positivism.
rationality in moral decision making. He argues that individuals have inherent
worth and dignity as rational agents and should be treated as ends in themselves, Here are some key elements of Hobbes' political and legal philosophy that align
rather than merely as means to an end with aspects of legal positivism:

3. Duty and Obligation: According to Kant, moral actions are those that are 1. Law as Sovereign Command: Hobbes famously argued that the foundation of
performed out of a sense of duty, as determined by the categorical imperative. political authority lies in a social contract where individuals surrender certain rights
Moral duties are derived from rational principles that apply universally, regardless to a sovereign ruler or government in exchange for security and order. In this
of personal desires or consequences. framework, laws derive their legitimacy from the authority of the sovereign, who
has the power to enforce them. This perspective resonates with legal positivism's
4. Universalizability: Kantian ethics emphasizes the universalizability of moral emphasis on law as the product of human will or authority rather than moral
principles. Actions are morally permissible only if their maxims can be consistently considerations.
applied as universal laws without contradiction. This criterion helps individuals
evaluate the moral permissibility of their actions. 2. Artificial Person of the State: Hobbes conceptualized the state as an "artificial
person" created by the social contract, with the sovereign serving as the
5. Respect for Persons: Kantian ethics requires individuals to respect the inherent representative of this entity. From this perspective, laws are the commands of this
dignity and autonomy of all rational beings. This entails treating others with dignity, artificial person, binding on individuals by virtue of their membership in the
fairness, and honesty, and refraining from using them merely as means to achieve political community. This understanding parallels legal positivism's focus on the
personal ends. role of human institutions in creating and enforcing legal norms.

6. The Good Will: Kant identifies the good will as the highest moral good, 3. Absence of Natural Law: Hobbes famously rejected the existence of natural law
irrespective of the consequences of actions. A good will is characterized by a in the sense of moral principles or rights inherent in human nature. Instead, he
argued that moral and legal norms derive their authority from positive laws
enacted by the sovereign. This rejection of natural law aligns with the positivist 4. Non-Aggression Principle: While Rand advocates for the pursuit of self-interest,
view that law is distinct from morality and does not depend on moral she also emphasizes the importance of respecting the rights and autonomy of
considerations for its validity. others. Ethical egoism, as Rand conceives it, does not entail exploiting or harming
others for one's own gain. Instead, it involves voluntary interactions and exchanges
Divine Command Theory that respect the rights of all parties involved.
Divine command ethics, also known as divine command theory, is a moral theory
that posits that ethical principles or moral obligations are dependent on the 5. Capitalism and Individual Rights: Rand's ethical egoism is closely aligned with
commands or will of a divine being or deity. In other words, actions are morally her advocacy for laissez-faire capitalism and individual rights. She argues that a
right or wrong because they are commanded or prohibited by God. This social system based on individual rights, private property, and free markets is the
perspective asserts that morality is ultimately grounded in the nature and will of a most conducive to human flourishing and the pursuit of self-interest. In her view,
higher power capitalism provides individuals with the freedom to pursue their own goals and
values without coercion or interference from others.
Key aspects of divine command ethics include:

1. Divine Authority: According to divine command theory, moral principles derive WEEK #6
their authority from the commands or decrees of a divine being, such as God.
These commands are considered the ultimate source of moral guidance and Chapter 3: Good Governance & Code of Ethics
authority, superseding human reasoning or societal norms. Governance is the process of making and enforcing decisions within an
organization or society. It encompasses decision-making, rule-setting, and
2. Objective Morality: Divine command theorists typically argue for an objective enforcement mechanisms to guide the functioning of an organization or society.
basis of morality, wherein moral truths exist independently of human opinions or Code of Ethics- A set of rules and principles designed to encourage ethical
cultural conventions. Morality is understood as being rooted in the nature and conduct among a group of professionals.
character of God, and the divine commands serve as the objective standard by Ethics and values play a crucial role in shaping the moral dimensions of
which moral judgments are made. governance. Here's how they intersect:

3. Obligation and Duty: Divine command ethics emphasizes the idea of moral Ethics in Governance:
obligation or duty to obey God's commands. Actions are deemed morally right or 1. Integrity in Decision-Making: Ethical governance involves making decisions
wrong based on whether they conform to or violate divine commands. Thus, based on moral principles rather than personal interests or biases. Leaders and
individuals are obligated to act in accordance with God's will, regardless of decision-makers should act with integrity and honesty, prioritizing the common
personal desires or consequences. good over individual gain.
2. Transparency and Accountability: Ethical governance requires transparency in
4. Interpretation and Revelation: One challenge within divine command theory is decision-making processes and accountability for actions taken. When decisions
the interpretation of divine commands. Given that humans may differ in their are made openly and stakeholders have access to information, trust in
understanding of religious texts or revelations, there can be disagreements about governance institutions is enhanced.
the content and interpretation of God's commands. Additionally, believers may 3. Fairness and Equity: Ethical governance emphasizes fairness and equity in the
differ in their views on how to discern divine will, leading to diversity within distribution of resources, opportunities, and benefits. Policies and practices
religious communities. should be designed to minimize disparities and promote social justice.
4. Respect for Human Rights: Ethical governance upholds the principles of human
5. Critiques and Challenges: Divine command ethics has faced various criticisms. rights, dignity, and equality. Policies and actions should respect and protect the
Some critics argue that it can lead to moral relativism or arbitrariness, as moral rights of all individuals, regardless of their background or status.
principles become contingent on the particular commands of a deity. Others 5. Responsiveness to Stakeholders: Ethical governance involves listening to and
question the coherence of grounding morality solely in divine commands, as it may addressing the needs and concerns of stakeholders. Decision-makers should be
not provide a satisfactory explanation for why certain actions are deemed morally responsive to the voices of citizens, communities, and other affected parties.
right or wrong.
Values in Governance:
Ethical Egoism 1. Public Service: Governance guided by values prioritizes public service and the
as espoused by Ayn Rand, is a moral philosophy that asserts individuals ought to well-being of society as a whole. Public officials and institutions are entrusted
act in their own rational self-interest as their highest ethical duty. Ayn Rand, a with serving the interests of the people they represent.
Russian-American philosopher and novelist, articulated her philosophy of 2. Integrity: Values such as honesty, transparency, and accountability are
Objectivism, which encompasses ethical egoism as one of its key principles. Here foundational to effective governance. Upholding integrity in all actions and
are the main tenets of Ayn Rand's ethical egoism: decisions helps to build trust and credibility in governance institutions.
3. Justice and Equity: Governance driven by values seeks to achieve justice and
Here are the main tenets of Ayn Rand's ethical egoism: equity in the distribution of resources and opportunities. Policies should aim to
reduce inequalities and promote inclusive development.
1. Self-Interest as the Ultimate Moral Principle: Ethical egoism holds that 4. Rule of Law: Values such as respect for the rule of law ensure that governance
individuals should pursue their own self-interest as their primary moral obligation. processes are conducted within a framework of established norms and principles.
According to Rand, self-interest is not to be equated with selfishness or narrow Upholding the rule of law safeguards against arbitrary exercise of power and
self-centeredness but rather with rational self-interest, which involves pursuing promotes stability and predictability.
one's long-term well-being, happiness, and flourishing. 5. Ethical Leadership: Governance values emphasize the importance of ethical
leadership, characterized by integrity, empathy, and a commitment to serving the
2. Rationality and Individualism: Rand emphasizes the importance of reason as the public good. Ethical leaders set a positive example for others and inspire trust
primary means of survival and flourishing for individuals. She argues that and confidence in governance institutions.
individuals have the capacity for rational thought and should use it to guide their
actions in pursuit of their values and goals. Ethical egoism is grounded in the idea Ethics and Values provide the moral foundation for governance, guiding decision-
that individuals are ends in themselves and have the right to pursue their ow making processes and shaping the behavior of leaders and institutions. When
n happiness without sacrificing it for the sake of others. governance is guided by ethical principles and values, it is more likely to promote
justice, fairness, and the common good, fostering trust and legitimacy among
3. Virtue of Selfishness: Rand advocates for a virtue of selfishness, arguing that citizens. Individual influences on ethical behavior are diverse and can be shaped
individuals should prioritize their own rational self-interest over the interests of by a combination of personal characteristics, social factors, cultural norms, and
others. She rejects altruism, the idea that individuals have a moral obligation to situational contexts.
sacrifice themselves for the sake of others, and instead promotes the idea that self-
interest and the pursuit of one's own values are morally virtuous. Here are some key factors that influence ethical behavior at the individual level:
1. Personal Values and Beliefs: Individuals' ethical behavior is often influenced by and behaviors of their social groups, especially if they perceive pressure to fit in
their personal values, beliefs, and principles. These values may be shaped by or fear social rejection or ostracism.
upbringing, education, religious or philosophical beliefs, and life experiences. For 7. Incentive Structures: Organizational incentive structures, such as performance
example, someone who values honesty highly is more likely to behave ethically in targets, bonuses, or rewards, can influence individuals' ethical decision-making.
situations where honesty is required. When incentives are tied to specific outcomes or metrics without sufficient
2. Moral Development: Moral development theory suggests that individuals go regard for ethical considerations, individuals may prioritize achieving goals over
through different stages of moral reasoning and understanding as they mature. ethical behavior.
Factors such as cognitive development, socialization, and exposure to diverse 8. Legal and Regulatory Framework: The legal and regulatory environment in
perspectives can influence how individuals perceive ethical issues and make which individuals operate can shape their ethical behavior by defining
moral judgments. permissible actions and setting standards for conduct. Compliance with legal
3. Psychological Factors: Psychological traits and characteristics, such as empathy, requirements may influence individuals' perceptions of what is ethically
conscientiousness, moral identity, and ethical sensitivity, can influence acceptable, although legal compliance does not always align with ethical
individuals' inclination to engage in ethical behavior. For instance, individuals with behavior.
high levels of empathy may be more likely to consider the impact of their actions 9. Perceived Consequences: Individuals' perceptions of the potential
on others and act in ways that minimize harm. consequences of their actions can influence their ethical decision-making. Factors
4. Ethical Leadership: Leaders and role models within organizations and such as perceived risks, benefits, and likelihood of detection may affect
communities can significantly influence the ethical behavior of individuals. Ethical individuals' willingness to engage in unethical behavior.
leaders who demonstrate integrity, fairness, and accountability set a positive 10. Ethical Guidance and Support: The availability of ethical guidance, support,
example and inspire others to follow suit. Conversely, unethical behavior by and resources within an organization can influence individuals' ethical behavior.
leaders can undermine ethical norms and encourage misconduct among Clear ethical guidelines, training programs, and access to ethical advisors or
followers. mentors can help individuals navigate ethical dilemmas and make principled
5. Social Norms and Peer Influence: Social norms and peer pressure play a decisions.
significant role in shaping individual behavior, including ethical conduct. People
often conform to the ethical standards and expectations of their social groups,
seeking acceptance and approval from peers. This influence can either reinforce
ethical behavior or lead individuals to compromise their values to fit in with the
group.
6. Organizational Culture and Climate: The culture and climate within
organizations can impact employees' ethical behavior. Organizations that
prioritize ethics, promote transparency, and provide clear guidelines for ethical
conduct are more likely to foster a culture of integrity and ethical decision-
making. Conversely, a toxic or unethical organizational culture can create
pressures that lead individuals to engage in unethical behavior.
7. Situational Factors: Ethical behavior can also be influenced by the specific
circumstances or context in which individuals find themselves. Factors such as
time pressure, resource constraints, perceived consequences, and the presence
of authority figures can affect individuals' ethical decision-making processes. In
some situations, individuals may face ethical dilemmas where competing values
or interests must be balanced.

WEEK #7
Situational Influences on Ethical Behavior
Situational influences on ethical behavior refer to the external factors and
circumstances that can impact individuals' ethical decision-making and behavior
in specific situations. These influences can shape how individuals perceive ethical
dilemmas, the choices they make, and their actions.

Here are several situational factors that can influence ethical behavior:
1. Time Pressure: When individuals face time constraints or deadlines, they may
feel pressure to make quick decisions, potentially leading them to overlook
ethical considerations or take shortcuts to save time.
2. Resource Constraints: Limited resources, such as budgetary constraints or
insufficient manpower, can create ethical dilemmas where individuals may be
tempted to compromise ethical standards to achieve desired outcomes or meet
organizational goals.
3. Ambiguity and Uncertainty: Situations characterized by ambiguity or
uncertainty can make it challenging for individuals to discern the ethical course of
action. In such cases, individuals may rely on heuristics or default to familiar
patterns of behavior rather than carefully considering ethical implications.
4. Organizational Culture: The culture and climate within an organization can
exert significant influence on ethical behavior. A culture that prioritizes integrity,
transparency, and ethical decision-making is more likely to promote ethical
behavior among employees, while a toxic or unethical culture may normalize
unethical conduct.
5. Leadership Behavior: The behavior and actions of leaders within an
organization can set the tone for ethical behavior among employees. Ethical
leaders who demonstrate integrity, fairness, and accountability are more likely to
inspire ethical conduct among their followers, whereas unethical leadership may
undermine ethical norms and encourage misconduct.
6. Peer Pressure: Social influences from peers and coworkers can affect
individuals' ethical behavior. Employees may conform to the ethical standards