normative Ethical theory - CIPD

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Normative Ethical Theory 35Core ideas of this philosophy include (Brooks and Brooks, 1998):●●●●●●●●●●●●a belief in the principle of reciprocity and the golden rulean understanding of humanity’s fundamental interconnectedness and the fact that ouractions have an impact both in immediate and in far-reaching ways, often not easily seenvaluing the ‘middle path’ – this may take the form of practising moderation, such astaking only calculated risks in business; it also includes the need for balance betweenself-interest and altruismvaluing character and virtue of the individual and the organisation more highly thanpersonal gain or corporate profits – this principle is the most difficult, but nonethelesscan have positive effects on the success of the business, as noted abovethe importance of constant learning and growth – improvement by learning (kaizen) isseen as central to the nature of humanity, once more requiring that all views of theory,fact or value should be testeda preference for simplicity – this is linked to a belief that the elegance of simplicity ismore likely to bring us into harmony with others and with the planet.This provides a clear framework for practice.conclusionIn this chapter we have introduced some of the major tools that help us to develop an ethicalmap. First, we looked at two core rational theories of ethics. Both were seen as importantbut could not be the only way of deciding what was right. Second, we looked at non-rationaltheories. These go beyond the rational theories and look to the wider relationships involvedin any ethical decision and with that to the development of character and virtue. Againthese cannot act as the exclusive bases for ethics but are necessary in developing ethicalpractice. Third, we looked at worldviews and how they inform ethics. These too have to becritically examined to ensure that they do not lead to negative ends, but can provide majorethical values for business practice.From this we conclude that the most effective ethics, in the sense of both determiningwhat is right in any particular situation, and what is the basis of the overall good, is one thatuses all these aspects – principles (based in critical worldviews), a study of consequences(based on the past as well as the future), a concern for character and virtues, and a concernfor the involvement of all parties in working through the ethical response (ethics asessentially not isolated but social). The case of big bonuses shows how theories have to beengaged and tested, and ultimately worked through into the philosophy and practice of theorganisation.This approach to ethics is one of balance, between:●●●●●●●●●●individual and group ethical decisions – personal ethics and professional ethicslocal and global. It is important to have ethics based in the community of practice, butsome things – like human rights and justice – apply globally (see Chapter 13)rational, affective (to do with emotions and identity) and social. Ethics is more thanindividual and rationalWest and East: the division between West and East is often characterised as betweenthe rational individual and the collective and affective community. The two worlds areequally important in ethicstheory, value and practice. The three work together in ethics. There are no value-freetheories, and no values that do not have a theory to give them meaning. They test eachother, and are tested by practice.The overall conclusion is that understanding ethical theory matters to business practice andthe study of business practice:●●Kyosei, as quoted by Canon, reminds us that business has an ethical identity in society,
36Business Ethics in Practice●●like any of the major professions who have developed core moral codes. Evidence ofethical thinking is a key part of developing trust with stakeholders.Business people take on the role of ethical agents every day. Consider the following scenefrom an actual board meeting of a university.Theory in practiceThe CSR director is arguing for an ethical investment policy that ensures long-term investment inappropriate firms. The finance director replies that this is not possible because the foundationrules state the need to have any investment monies available at short notice. The CSR directorargues that ethical investment is key to the CSR policy. The finance director then replies thatperhaps they cannot afford to be ethical.In fact, the first position is built around principles and the second is built around awarenessof consequences and the need to sustain the institution. Both involve key ethical theories. Thediscussion moved on to accept the need for both perspectives and for developing ways in whichthey could be honoured, such as through ethical investment consultants.The more business practitioners understand the ethics they are talking about, the better – andmore ethical – decisions will be.●●●●●●Business people, especially leaders and managers influence and develop ethical positionswhatever they do. It is important to understand both how they are doing this and how tohandle ethical challenges that come from inside and outside the organisation. The betterthe grasp of theory, the better the business will able to react, acknowledging the ethicalforce of any argument and being able to critique that argument.The better the grasp of ethical theory and how it informs practice, the better the businessperson will be able to develop practice that does not end in disasters, such as happenedto the News of the World or Enron.Faced by complex ethical cases, a grasp of ethical theory will enable managers effectivelyto manage the substantive ethical issues and the ethical perspectives of the stakeholders.A good example in terms of complexity and the ways in which to handle it is the case ofchild labour (see Chapter 7), which seems at first to be based on a simple principle butrequires careful reflection about values and context.Alongside any views of theory, then, comes the process of how we make ethical decisionsand plan from an ethical perspective. This is examined in the next chapter.NEWSexplore furtherBooksBeauchamp, T., Bowie, N. and Arnold, D. (2012) Ethical Theory and Business.London: Pearson Education.Thompson, M. (2005) Ethical Theory. London: Hodder & Stoughton.DVDsTouching the Void (2004 MGM). A film about the ethics of mountaineering.
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