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Ethics and the conduct of business 8th by john boatright and smith 2017 chapter 3

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Ethics and the Conduct of Business

Eighth edition

Chapter 3
Ethical Theories

Copyright © 2017, 2012, 2009 Pearson Education, Inc. All Rights Reserved


Modules



Introduction: Ethical Theories



3.1: Utilitarianism



3.2: Kantian Ethics



3.3: Virtue Ethics



3.4: Rights





3.5: Justice



Conclusion: Ethical Theories

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Learning Objectives (1 of 2)


3.1: Describe the four theses of classical utilitarianism, the utilitarian approach to decision making, and
the main criticisms of the cost-benefit analysis method



3.2: Summarize the two intuitive principles of Kantian ethics and their implications for moral reasoning



3.3: Define virtue and explain how virtues and principles of virtue ethics are relevant to business



3.4: Identify the meaning and importance of rights and the types of rights that apply in different
situations


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Learning Objectives (2 of 2)


3.5: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the
contemporary principles of justice offered by Rawls and Nozick

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Introduction: Ethical Theories



Types of ethical theories



Teleological theories



Deontological theories



Virtue ethics


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Figure 3.1

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3.1: Utilitarianism
Objective: Describe the four theses of classical utilitarianism, the utilitarian approach to decision making, and the main criticisms of the cost-benefit analysis
method

3.1.1: Principle of Utility

Four these of utilitarian principle
Act- and rule-utilitarianism
Calculating utility
3.1.2: Cost-Benefit Analysis

Quantitative method for decision making
Advantage of cost-benefit analysis
Evaluation of cost-benefit analysis
Assigning monetary values

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Table 3.1: Pros and Cons of Cost-Benefit Analysis
Points


Consequences measured by monetary value in a market

Shadow pricing of nonmarket goods

Placing a value on human life and experiences

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Pros

Cons

The market price or value of goods and services can be used to

Not all costs and benefits have a discernible market value or can

compare outcomes.

be objectively valued.

Market value can be estimated by analyzing the relative worth of

Not all people are able to act or choose in accordance with their

choices suggested by actual behavior.

preferences, or make rational decisions.

Can apply cost-benefit analysis to issues such as human health


Seems cold-hearted and reductive; life, love, happiness, etc.

and safety

cannot be bought and are cheapened by assigned values


3.2: Kantian Ethics
Objective: Summarize the two intuitive principles of Kantian ethics and their implications for moral reasoning

3.2.1: Universalizability

Categorical imperative
Implications for moral reasoning
3.2.2: Respect for Persons

Features
Respect people as human beings

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3.3: Virtue Ethics
Objective: Define virtue and explain how virtues and principles of virtue ethics are relevant to business

3.3.1: What Is Virtue?

Aristotle’s idea about virtue
Characteristics of virtuous people

3.3.2: Defending the Virtues

Traits required for a good life
3.3.3: Virtue in Business

Applying virtue ethics to business

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Table 3.2: Virtues and Vices in Business
Job

Virtue

Vice

Bank loan officer

Prudence, Caution

Charity

School guidance counselor

Empathy, Enthusiasm

Indifference

Personnel manager


Resourcefulness, Impartiality

Prejudice

Corporate executive

Confidence, Focus

Arrogance

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3.4: Rights
Objective: Identify the meaning and importance of rights and the types of rights that apply in different situations

3.4.1: Meaning of Rights

Confusing claim of rights
Understanding rights as entitlements
3.4.2: Kinds of Rights

Different kinds of rights
Natural rights theory by John Locke

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3.5: Justice (1 of 2)

Objective: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by
Rawls and Nozick

3.5.1: Nature and Value of Justice 

Aristotle’s categorization of justice
3.5.2: Aristotle on Distributive Justice

Aristotle’s principle of distributive justice
Justifying features
3.5.3: Rawls's Egalitarian Theory

Rawl’s principle on justice

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3.5: Justice (2 of 2)
Objective: Explain the role of justice in business ethics, the three kinds of justice outlined by Aristotle, and the contemporary principles of justice offered by
Rawls and Nozick

3.5.4: Nozick's Entitlement Theory 

Difference between Rawls’s theory and Nozick’s theory 
Main principles of Nozick’s theory

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Conclusion: Ethical Theories




Main concepts and theories of ethics



Useful in evaluating business activities



Continue to be a source for improvement

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