3) Classical Ethical Theories Flashcards
(23 cards)
What are the three classical ethical theories covered in business ethics?
Utilitarianism, Deontology, Ethical Egoism
What is the core principle of Utilitarianism?
The ethical choice is the one that produces the greatest good for the greatest number.
Who developed Utilitarianism?
Jeremy Bentham (act utilitarianism) and John Stuart Mill (rule utilitarianism)
What is the difference between act and rule utilitarianism?
Act utilitarianism judges each individual act; rule utilitarianism follows rules that generally lead to the greatest good.
Name two pros of applying Utilitarianism in business.
1) Encourages long-term thinking and social responsibility.
2) Simple to apply via cost-benefit analysis and shared human needs.
Name two cons of applying Utilitarianism in business.
1) Can justify harm to minorities if majority benefits.
2) Difficult to measure happiness or well-being objectively.
Provide a business example of utilitarian reasoning.
Laying off 100 employees to save 1000 jobs in a struggling company.
What is the core idea of Deontology (Kantian ethics)?
Ethics is about acting from duty according to universal moral laws, regardless of outcomes.
Who developed Deontological ethics?
Immanuel Kant
What are Kant’s three categorical imperatives?
1) Universalizability – act only on maxims you’d want as universal laws.
2) Humanity – never treat people as a means only.
3) Autonomy – respect freedom and rationality of all individuals.
Name two pros of applying Deontology in business.
1) Promotes fairness, justice, and consistency across cultures.
2) Protects human dignity and can form the basis of ethical codes in MNCs.
Name two cons of applying Deontology in business.
1) Ignores consequences, which can lead to harmful outcomes.
2) Assumes people always act from pure reason – unrealistic in business settings.
Provide a business example of Deontological ethics.
Refusing to use child labour in a supply chain, even if it saves costs.
What is the core idea of Ethical Egoism?
An action is morally right if it promotes the individual’s self-interest.
Who are the key thinkers behind Ethical Egoism?
Adam Smith (market-based self-interest) and Ayn Rand (moral right to pursue one’s own goals)
How does Adam Smith justify ethical egoism in markets?
Markets function best when people act in their own interest, leading to mutual benefit.
How does Ayn Rand justify ethical egoism?
Individuals must pursue rational self-interest to achieve autonomy and self-esteem. Helping others is moral only if it benefits the self.
Name two pros of applying Ethical Egoism in business.
1) Reflects real-world behaviour in capitalism and entrepreneurship.
2) Promotes innovation and responsibility for personal success.
Name two cons of applying Ethical Egoism in business.
1) Encourages greed, short-termism, and exploitation.
2) Undermines collective responsibility and social/environmental obligations.
Provide a business example of ethical egoism.
Launching a CSR initiative primarily to boost brand reputation and profit.
Compare Utilitarianism and Deontology in one sentence.
Utilitarianism focuses on the outcomes of actions, while Deontology focuses on the intention and adherence to moral duty.
Compare Ethical Egoism to Utilitarianism.
Egoism prioritises the individual’s self-interest, whereas Utilitarianism prioritises the collective happiness of the majority.
What are the main criticisms of classical ethical theories as a group?
They are often too abstract, overly rational, impersonal, and fail to account for emotions, relationships, or modern business complexity.
