MNO 2707 Business Ethics: Introduction & Class 1 Prescriptive Approaches

In this course led by Anjier Chen at the NUS Business School, the primary focus is on understanding business ethics through various approaches. The first class outlines the structure of the course and highlights key prescriptive approaches to ethics.

Today's Agenda

Class overview and structure
Prescriptive approaches to ethics

Three essential prescriptive approaches
A decision-making framework based on these approaches

The Trolley Problem

An ethical dilemma often discussed in philosophy is illustrated with the trolley problem: imagine a scenario where a technician faces a train heading towards five individuals on the tracks. The technician can pull a lever to redirect the train towards another track, where it will kill one person instead. This raises a critical ethical question: should one action that results in the least harm be taken, or is it inherently wrong to act in a manner that causes death?

Class Exercise: Downsizing Decision

To engage students, a scenario is presented where they must decide whether to downsize a café chain in distress due to economic challenges. The exercise includes the following steps:

Immediate emotional reactions.
Careful contemplation of the decision's rationale.
Discussion with classmates to refine thoughts.

Variations of the Scenario

Students are prompted to consider additional factors, such as the context of the employees (such as disabilities) and the ethical implications of downsizing. Clearly, multiple dimensions of the ethical problem need consideration.

Prescriptive vs. Descriptive Approaches

The course distinguishes between prescriptive and descriptive approaches to ethics:

Prescriptive Approach: Seeks to determine what is ethically right or wrong.
Descriptive Approach: Examines the influences on people and organizations in making ethical or unethical decisions.

The primary aim is to equip students with the tools to analyze and manage HR ethics in the workplace effectively.

Understanding Ethics

Ethics is formally defined as the principles, norms, and standards of conduct that govern individual or group behavior. It relates directly to what society considers right or wrong, particularly in business.

Ethics vs. Law

While ethics and law may intersect, they do not fully overlap. Examples illustrate scenarios that are legal but deemed unethical. For instance, corporate practices that meet minimum wage requirements may ethically feel inadequate compared to the employees' capabilities.

Conversely, there are cases where ethical actions may be illegal, exemplified by whistleblower Frances Haugen’s testimony against Facebook regarding harmful practices.

Three Major Prescriptive Approaches to Ethics

The class then explores three primary approaches to understanding ethics, each with its nuances:

Consequentialism: Focuses on the outcomes of actions, emphasizing the greatest benefit for the greatest number.
Deontology: Centers on adherence to moral rules or duties, advocating for ethical principles such as honesty and fairness.
Virtue Ethics: Concentrates on the character of the decision-maker rather than the act itself, considering intentions and motivations.

Application of Consequentialism

Using the café downsizing scenario, students analyze the potential costs and benefits of each action, weighing the consequences for stakeholders, including employees and the community.

Application of Deontology

Using deontological principles, student responses involve applying universal moral rules that emphasize fairness and respect for the employees, leading to questions about how decisions would be perceived if roles were reversed.

Application of Virtue Ethics

This approach prompts students to reflect on their moral character and ask how their decisions align with the highest ethical standards expected by their communities or ethical role models.

Integrative Decision-Making Framework

The class outlines a structured framework for ethical decision-making:

Conduct preliminary research and identify relevant facts.
Define the ethical issues involved.
Identify affected parties.
Assess potential consequences.
Recognize obligations based on principles and values.
Consider one's character and integrity.
Explore creative solutions that incorporate different approaches.
Trust your instincts regarding the ethicality of potential solutions.

Team Exercise: Forgery Scenario

A practical exercise presents a dilemma involving an employee who forged a document to expedite a loan process during a personal crisis. Students are tasked with determining conflicting values and proposing possible actions using the three previous ethical approaches.

Key Takeaways

The class concludes with the reminder that ethical decision-making requires multiple perspectives and encourages creativity in integrating these views.

Assignments and Readings

Students are directed to read "Pinto Fires Part 1" and complete Assignment 1 on Canvas before the second class.

MNO 2707 Business Ethics: Class 1 Overview and Prescriptive Approaches

MNO 2707 Business Ethics: Class 1 Overview and Prescriptive Approaches