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Chapter 1:

What are the differences between immoral and amoral management (Carroll, 2001)? Immoral management refers to decisions and actions made by manager are considered as unethical. Decisions in this model are usually in conflict with what is accepted and valued in ethical principles. Hence, active contrary (opposite) of what is moral is implied. Immoral manager tends to be selfish therefore, care for their own or their organisation’s gain only which result in neglecting other stakeholders. Hence, legal standards are seen as barriers that must be overcome and strategy is to exploit opportunities for personal or organisational gain. In general, immoral management refers to managerial personnel who lack of ethical knowledge and therefore, does not practice ethic. They are also known as unethical leader who are neither a moral person nor a moral manager. For instance, Enron management consist of immoral manager hence, lead to the rise of unethical behaviours within itself and later whistle blowing of its unethical behaviour. On the other hand, amoral management refers to managerial level personnel who possess the knowledge of ethic but do not practice it. Within amoral management, it consists of two types namely intentional and unintentional. Intentionally amoral manager feel that ethics and business should not mix. Hence, they do not factor ethical consideration into their decision making and actions since they find a concern for ethics is inappropriate for the tough competitive world of business. In additional, deception within the business is not considered as unethical as it is just part of the game. Next, unintentionally amoral manager do not think about business activity in ethical term due to the lack of ethical perception, sensitivity or ethical awareness. They are simply causal or careless about ethical consideration in business. They are also inattentive to the fact of that their activity may have serious effect on others. Unintentionally amoral manager maybe ethically unconscious at times, but they will comply with the law to the extent of their awareness and do a little more than what is expected of them. As a result, they think themselves as ethical person.

Finally, within moral management, decision maker conform to high ethical standards of ethical behaviour for both personal and organisational (ethical decision making). Moral manager is also known as ethical leader who are both moral person and manager. They possess ethical knowledge and practice ethical behaviours at all times. During decision making, they will usually take consideration into the wider community of stakeholders while pursuing goal that are ethical as well as within the boundaries of legal agreement. Legal standards are seen as an ethical minimum hence, moral manager tends to operate well above it. At the same time, they are always on the cutting edge of searching for ethical problems that are likely to arise and proactively addressing them with respect to all stakeholders.

Chapter 2:

Explain the difference between a consequential (teleological) and a non-consequential (deontological) theory of ethics.

Normative theories consists of the following two types namely consequential and nonconsequential theories. These theories aids by providing alternative approaches to each individual on what we should/ought to do in order to solve ethical problem based on moral philosophy (knowledge). Consequential theories define good in terms of its consequences (based on outcome to determine ethical) while non-consequential define good not by its consequences, but by its intrinsic values, regardless of whether its obedience produces undesirable outcomes (based on agent’s motives and intentions to determine ethical).

Within consequential theory, it consists of egoism, utilitarianism and virtue ethics theories.

Egoism view that an act is morally right if and only it promotes self-interest. People should make decision that maximise their self-interest by emphasising on “I”. For instance, a CEO (agent) may recommend a “lousy” director with the self-interest that latter will give him some benefit such as pay rise for long term. Advantages of egoism were simple argument and it suits the notion of self-interest by emphasising on only “I”. On the other hand, its disadvantages of being too egoistic without allowing other to pursue their self-interests, cannot be universalised and, assumes that we live among strangers and we do not care for anyone or anything (ignores wrongs). Utilitarianism is concern with making decision that promotes the greatest overall amount of good in the world. Ethical decision is one that maximise good consequence over bad consequence for the greatest number of people by emphasising on “Majority” (Majority happy). Best decision is made when one yield the greatest net benefit. Advantages of utilitarianism is that it is a simple and straightforward decision making – cost benefit analysis, provides an objective and attractive way of solving conflict of self-interest by emphasising on majority, fit into people’s intuitive (inborn/natural) criteria for deciding moral problem and making ethical decisions based on the greatest good for the greatest

number of people seems to have a logical basis. On the other hand, its disadvantage were that it maybe bias as the decision make to gain greatest benefit on ethical ends maybe at the costs of any random minority and ignore the moral consideration of the mean (focus too much on ethical end may lead to ignoring the moral consideration of the means), consist of low measurability of consequence where some evaluation is hard to make such identifying stakeholders, rights of some stakeholders such as supplier are ignored during decision making of company closure and lack of fairness as there is a lack of freedom of speech among stakeholder such as employees during retrenchment. Virtue ethics Virtue Ethics reflects the disposition (being / character) that is valued as part of an individual character. A moral virtue is some values that are internalized in a person’s character or could be said as values that are based on an individual character. In other words, it focuses on the integrity of the moral actor rather than the act. It considers actor’s character, intentions and motives rather than consequence of the act. Thus, it is often argued that virtue ethics are under non-consequential theory because it is based on morally or internally of a person rather than an act. A good human being possesses 2 core virtues: 1) integrity and 2) consistency. A good virtue person carries integrity that is consistent in all events. Kantianism (right theory) focus on doing what is ‘right’ rather than what will maximise societal welfare (utilitarianism). Decision is usually made through honesty, promise keeping,

fairness justice

and respect.

For

instance,

always treat

humanity

(humankind/people), yourself and others with as an end in itself rather than as a mere means with ethics of respect. Often, doing what is right is ethical if you feel comfortable allowing everyone in the world to see you committing that act and yours rational is suitable to become a universal guides. Advantage of using Kantianism theory is that it is intuitive where it fit into one’s sense of morality by doing things that are right as a universal guide along with respecting others. Furthermore, it also helps to produce universal moral guidelines such as honesty for people to determine whether their motive is honest and ethic. Disadvantage is that it focuses too much on motive instead of the outcome which may lead to unethical behaviour such as bribery to be acceptable. Hence, it is often argued that Kantianism should be considered in conjunction with utilitarianism thinking. In additional, it is said to involve emotions which can lead to wrong intention done. Difficulty in determining

which rule to follow due to the contradicting guideline given. For instance, Kantianism may indicate that freedom of speech is “good”, but privacy of others is also “good”. Justice theory emphasizes on having fair treatment and due rewards in accordance with ethical or legal standards. For instance, manager adopting this theory will provide fairness in providing and treating employees who are in the same level of skills and responsibility with the same rate of pay instead of showing favouritism/bias. Furthermore, this theory also helps to protect the interest of the stakeholders who may be under-represented or lack power. There are three types of justice theories namely distributive, procedural and interaction. Distributive is a form of reward based on evaluation of outcomes or results (benefits derived will be rewarded equally). Procedural refers to the processes or activities such as decision making process that produce the outcome or results. Interaction is based on evaluation of one’s perception of whether he/she is treated fairly through communication process.

*Must

know

the

strength

and

weakness

of

each

normative

theories

Chapter 3: Is moral awareness the most important step in Ethical Decision Making (EDM)? PYQ

Yes, if u do not have moral awareness, you cannot have moral judgement. Within ethical decision making, it consist four steps namely moral awareness, moral judgement, intent and moral behaviour. Moral awareness is the most important and initial step in ethical decision making because it helps each individual (moral agent) to determine if the issue or situation requires ethical concerns / helps to identify moral issues. Three ways people tends to be more ethically aware of moral issue is when individual believe that their peers will consider the issue to be ethically problematic, ethical language is used to present the situation to the decision maker and the decision is seen as having potential to produce serious harm to others / decision is seen to be having serious harm to others. If moral awareness is absent , one will not be able to engage in ethical judgement process which leads to ethical decision making. After identifying the moral issue, agent will engages in some form of moral reasoning to arrive at moral judgment. In moral judgement stage, each judgment made will differ as agent at each different six stages of Kohlberg cognitive moral development theory will behave differently. Furthermore, various factors such as individual characteristics, moral intensity of the issue, locus of control and situational influences will also affect moral judgement made. After which, agent will establish moral intent and decides which moral action to take. Lastly, moral behaviour is the stage where agent translates their intent into action.

For instance, moral awareness occurs when you saw your colleague (co-worker) stealing company resource such as pen, pencil, paper for personal use (stationery) regularly.

Subsequently, you will go into moral judgement stage where it tells you that by stealing company resources (stationery) are wrong. Next, in the intent stage, you decide to tell your colleague (co-worker) that it is wrong to do so. If your colleague is not willing to change, then you will decide to inform your supervisor.

Lastly, moral behaviour is when your intent is translates into your behaviour by telling your colleague or informing your supervisor. Explain what Kohlberg meant by cognitive moral development (CMD). What did Kohlberg mean by conventional, pre-conventional, and post-conventional levels of CMD? What are some limitations of Kohlberg’s theory? Kohlberg’s CMD is a process of stages through which ppl progress in their development of moral thought. It consist a total of six stages with two stages fall within each of the three levels mentioned. The higher stage each individual reaches, the more ethical the decision is made. 1. Punishment and obedience. For example, an individual defines right as obedience to rules and authority / what is right as obedience to rules and authority and what is wrong will be punished (view ethical rules as imposed from outside the self through rewards and punishment as guide to what is right and wrong [ethical anot is not determine by self but outside factor such as rewards and punishment]).



Emphasis / focus on “I” and self-centred/interest.



*if punishment is insignificant, one may tend to behave wrongly/do what is wrong.

For instance, I do according to what I was told to do despite it was consider as unethical by me because I do not wish to be punish.

2. Fairness to oneself. An individual defines right as that which serves his or her own needs. (individual is concern with personal rewards and satisfaction in addition to reciprocity approach where “you scratch my back and I’ll scratch yours”)



- Emphasis / focus on “I” and self-centred/interest.



Engage in behaviour that they know will yield/give possible favours in return or when they feel obliged/indebted to repay a debt/favour that ppl once did for them.

For example, I should support my manager decision so that she might also support my suggestion the next time I propose it. OR For example, I should lend money to help my friend when they are in difficulty, so that next time they will help me back if I encounter financial difficulty too.

Both stage 1 and 2 refers to the pre-conventional level of Kohlberg cognitive moral development theory. Focus on self-interest, therefore, they usually refer to egoism theory found within consequential theory of normative theories for their moral reasoning. 3. Emphasizes others rather than themselves. This is where an individual become less self-centred and focus on others (community) (What is ethically right is by living up to the expectation and roles of relevant others (peer pressure/ family –ppl close to you)).

For instance, by following what the group (relevant others) do is right and ethical such as giving up seat to elderly or pregnant women. 4. Right is determined by considering one’s duty to society. An individual determines what is right by considering his or her duty to society, not just to other specific ppl. (Follow rules and laws that are designed to promote the common good.)



Focus on others (community), less self-centred/interest



Believe that rules and laws exist for good reason

Both stage 3 and 4 refers to the conventional level of Kohlberg cognitive moral development theory. In this level, the individual moves from self-interest to the community. What is right is conforming to the expectations of good behaviour held by society at large (being a rule-follower) or some significant reference group. Majority falls in this group usually uses utilitarianism theory and virtue

theory under the consequential theory within the normative theory for their moral reasoning. 5. Just rules determined by consensus. An individual is concerned with upholding the basic rights, values, and legal contracts of society. (Follow the rules and laws but will question it to consider changing them for better socially purpose)



Focus on universal

For example, complying with existing rules that shareholders should be given full annual report. But will question the need for all shareholder to have full annual report, since not all shareholders need full annual report, hence, summary annual report is given instead nowadays with request for full annual report if necessary.

6. Universal ethical principles. A person believes that right is determined by universal ethical principles (such as justice and equity). that everyone should follow. (concern with societal ethical issue and not rely on business organisation for ethical direction)



Focus on universal

For example, if a product is unsafe to consume or cause death, discontinue it is right. Company profits will not be a justification for continued sales.

Both stage 5 and 6 refers to the post-conventional level of Kohlberg cognitive moral development theory. The focus is on universal principles. At this level, moral judgement is independent of any external influence. Ethical decisions are made without influence from authority, rules, consequences, or group. Rarely anyone has rise to this group usually uses justice and Kantianism theory under the nonconsequential theory within the normative theory for their moral reasoning.

Some limitations of Kohlberg’s theory are: theory believes that with time (as time goes by), education and experience, each individual may change their values and behaviour but this is not true as some people tend to remain the same (same value and ethical behaviour) despite the changes. Adult may act like a child and vice versa Stability in human behaviour does not exist.

1. Different cultures and societies might rank and constitute has higher stages differently. For example, stage 3 of Kohlberg’s model (emphasizing others) can be regarded as stage 5 (just rules by consensus) by Asian counties/culture. By emphasizing others, one may feel the need to be far (stage 5) and such needs can be decided based on consensus. – not culturally sensitive enough. (Refer to eg given)

2. Kohlberg’s research has limited validity as it is only tested on American boys and men which might make his model not workable in other counties.

– may be bias and not be applicable to others gender or different age segment as it is only tested on United States male child aged 10-16.

3. Research by Gilligan proved that women rarely rise above Kohlberg’s stage 3. Therefore Kohlberg’s model will be gender specific too. - Research by Gilligan shown that women tend to think differently and rarely surpasses Kohlberg’s stage 3. Hence, Kohlberg’s model may be gender bias.

4. Kohlberg model believes that one that acts in a morally high way will has to have high stage of moral reasoning. However, this may not be true as various factors such as situational influences may affect the way one behave in a moral way.

Some Strengths of Kohlberg’s theory are: 1. The

level

of

moral

development

will

directly

influence

how

an

employee/professional will respond to a problem.

–help to determine how each individual in each level of the Kohlberg model will respond to problem.

2. Satisfying professional responsibilities such as integrity and objectivity requires principled reasoning. 3. With each successive stage, the professional become less dependent on outside influences. 4. Professional do not process the moral maturity to make independent decisions, thus, using such a model helps.

*Strength and weakness; six stages of CMD

*PYQ = Past Year Qns

Chapter 5: What is Corporate Social Responsibility? Corporate Social Responsibility is about doing good and refers to the process of integrating social values (humanity) and mission within business decision-making, to achieve positive and sustainable outcomes towards business, environment and the community at large. Differences between Friedman vs Carroll OR Freeman theory: Friedman care about profits, but he did not agree for profits at all cost (unethical way). His idea is to make profits for shareholders while following to the law and ethical custom Individual (eg: business executives) to be responsible for CSR. Whereas both Carroll and Freeman theory argue for making profits too but for more people, like employees and suppliers (Stakeholder). Idea of making profits is benefit to stakeholder other than shareholders. Since, CSR does not necessarily only help shareholders. Corporation as a whole needs to be responsible for ...