Descriptive ethical theories are based on scientific evidence describing how people tend to behave in a particular context. As such, they are bound by codes ofconduct promulgated by professional societies. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. The goal is some state of the world, or some state of human minds, that does not itself involve human actions. (See the Bioethics Center for an example of activities in the area Medical Ethics). Normative Ethics The category of normative ethics involves creating or evaluating moral standards. Normative- standard, guide: P 69—Read and note the guidelines for handling obligations, ideals, effects. Business Ethics Quarterly, Volume 8, Issue 1. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue … They include the stockholder theory, the stakeholder theory and the social-contract theory. This section will explore various concepts and problems concerned with meta- and normative ethical theories. pp. These four theories fall into one of two categories. Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior. 3.0 Business Ethics MGT503 MAIN THEORIES OF NORMATIVE ETHICS • Normative study • An investigation that attempts to reach conclusions about what things are good or bad or about what actions are right or wrong. The theories discussed in this book are normative. Having a basic understanding of the major ethical theories will help us toward an ethical resolution learning how to articulate and justify the decision. Many people engaged in business activity, including accountants andlawyers, are professionals. 254-255) from your text answer discussion question 1 (p. 255). However, on certain versions of the meta-ethical view called moral realism, moral facts are both descriptive and prescriptive at the same time. ©1998. Business Ethics Wayne Norman “Business ethics” is a concise, but in many ways misleading, label for an interdis- ... normative analyses related to trade, wealth, or what we might anachronistically call ... theory of the right or the theory of the good has priority; and virtue ethicists reject If you continue browsing the site, you agree to the use of cookies on this website. A Brief Definition of Business Ethics. 2: Using Case Study 11-1 (pp. 2 The present paper is only concerned with a narrow conception of normative ethics, and it does so only from an immanent, philosophical perspective, not from a religious, transcendent one. The first one, consequential ethics, states that outcomes determine ethical decisions. Normative assumptions (of a theory) determine the hierarchy of goods/values and, in this way, specify the normative morality. In an effort to establish some ethical guidelines for business, three normative ethical theories have evolved in Western capitalist societies. Business ethics typically follow a normative theory. person or group that can affect or is affected by a business organization 5. 2: Using Case Study 11-1 (pp. 254-255) from your text answer discussion question 1 (p. 255). Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. When learning how to resolve ethical dilemmas, it is important to be able to articulate a justifiable rationale for why we believe one decision seems right and another seems wrong. The nature of normative ethics permits individuals to rationalize the degree to which conduct, such as the silent protest by the 49ers backup quarterback, is good or bad according to standards. 19–42 THE NORMATIVE THEORIES OF BUSINESS ETHICS: A GUIDE FOR THE PERPLEXED 1 John Hasnas2 Abstract: The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the … ISSN 1052-150X. Simply stated, this theory argues that what is right and wrong can be determine by utilizing a “cost-benefit” analysis. Normative Theories of Ethics “A defensible moral judgment must be supportable by a sound moral principle”. By focusing on the outcome of each action, utilitarianism demands that you decide on what course of action based on the benefits or harm of the actions without regard to the cost of the action. An equal, opposite negative reaction which negates any positive effects positive effects appears. 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