MGMT 2010 · HKUST BUSINESS SCHOOL
Business Ethics & the Individual
Lecture 5: Metaethics
Detailed Revision Notes · Compiled March 2026
1 Where Metaethics Fits in the Course
Normative ethics tells you what is right or wrong — but metaethics asks a deeper prior question: how do we even
know what "right" or "wrong" means?
T HIS L E CT URE
FOUNDAT ION N E XT
Metaethics
Normative Ethics → Where do moral standards come
→ Applied Ethics
Virtue, Duty, Consequentialism Real-world business cases
from?
Core question of metaethics: "Where do moral standards come from, and are they real?"
2 Metaphysics vs. Metaethics — Key Distinction
These two terms are closely related but not the same. Metaethics is essentially metaphysics applied to morality — the
same three sub-branches apply, just redirected at ethical questions.
BRANCH WHAT IT ST UD IE S T HRE E SUB-BRANCHE S
Metaphysics The fundamental Semantics (meaning/truth), Ontology (what exists), Epistemology (how
nature of reality we know)
Metaethics The nature and origins Semantics (what does "good" mean?), Ontology (are moral facts real?),
of ethical concepts Epistemology (how do we defend moral judgments?)
The Three Questions Metaethics Asks
SEMANTICS O N TO LO GY E P I S T E M O LO GY
"What does 'good' actually "Are moral judgments objective "How can we justify a moral
mean?" facts?" claim?"
Examines the meaning and truth Are moral truths universal and What counts as evidence or
conditions of moral language and mind-independent, or culturally reasoning to defend an ethical
concepts. constructed? position?
Exam tip: The lecture focuses mainly on ontological issues — specifically universality (are moral truths real?) and
the psychology of morals (are humans selfish or altruistic?). Keep these as your anchors.
3 The Matrix Analogy — Why Metaphysics Matters
The lecture uses The Matrix to illustrate metaphysical thinking — each question in the film maps directly onto a
philosophical sub-branch.
EPISTEMOLOGY SEMANTICS ONTOLOGY
"How do you know what is real?" "What is The Matrix?" — the "What is it like being in The
— the question of knowledge question of meaning and Matrix?" — the question of what
and justification. definition. actually exists and how.
The key insight: What you take to be morally real — universal vs. constructed — determines everything about
how you reason about right and wrong. Your metaethical commitments underpin your normative choices.
4 Ontological Question #1: Universal Truths or Social Constructs?
This is the first and most fundamental metaethical debate — the ontological question of whether moral facts exist
independently of human minds and cultures.
Side A: Universal Moral Truths Exist Side B: Morality is a Social Construct
Objective moral facts apply to all people regardless of Moral "truths" are not discovered — they are created by
culture, time, or place societies and cultures
Religion — God-given natural moral law (e.g., Nietzsche — multi-perspectivism; no single
Christian natural law tradition) objective moral standpoint exists
Philosophy — Plato's allegory of the cave; natural Foucault & postmodernism — moral norms are
law (Aristotle, Aquinas) instruments of power and control
Biology/Science — evolutionary hardwiring toward Modernist sociology — norms differ systematically
moral intuitions; mirror neurons; empathy across cultures
The "Emperor Has No Clothes" Insight
SOCIAL CONSTRUCTION OF REALITY
Reality = what we collectively see and how we interpret it
Grades, money, social status — none of these exist in nature; they are real only because we collectively agree they
are. Are grades real? Semantically: what does "grade" mean? Ontologically: do they exist independently?
Epistemologically: how do you know your grade is fair? All are social constructs — but socially very real in their
impact.
→ This is the constructionist view: moral norms are like grades — real in effect, but human-made in origin.
5 Cultural Relativism — Evidence from Research
Strong empirical evidence shows that moral perception varies significantly across cultures. The lecture draws on three
key sources.
Hofstede's Cultural Dimensions — China, HK, India, US
D IM E N S ION MAINL AND CHINA HONG KONG IND IA USA
Power Distance 80 68 77 40
Individualism 20 25 48 91
Masculinity 66 57 56 62
Uncertainty Avoidance 30 29 40 46
Long Term Orientation 87 61 51 26
Indulgence 24 17 26 68
Key insight: Asia and the US are starkly different — especially on individualism vs. collectivism, which
profoundly shapes ethical reasoning, decision-making, and what counts as "fair."
Michigan Fish Test (Nisbett & Masuda)
C R O S S - C U LT U R A L P E R C E P T I O N S T U DY
East Asians vs. Westerners see the same scene differently
East Asians tend to perceive the whole context/background of a scene first; Westerners focus on the central object.
This shows culture shapes even basic perception — let alone complex moral judgment.
→ If we perceive the world differently, we will naturally form different moral intuitions about it.
Yang Liu's Art — East vs. West Perception
" M E" — S ELF -P ERCEP T ION " B OS S" — AU T H OR I T Y
WEST EAST
WEST EAST
Self is large/central — Self is small within the
First among equals — Clearly elevated above
individual identity is group — identity is
horizontal leadership others — vertical hierarchy
primary relational
" D EALIN G WIT H PROB LE MS " "TRUTH"
WEST EAST
WEST EAST
Straight through — Go around — preserve
Single, objective, Multiple perspectives; truth
confront directly harmony, avoid direct
convergent view is contextual
conflict
Business implication: What counts as ethical — gift-giving, hierarchy, directness, face-saving — varies
enormously across cultures. Cultural differences are not just preferences; they affect moral reasoning itself.
6 Do Cultural Differences Apply Within a Country?
NORTHERN VS. SOUTHERN CHINA
Rice paddy vs. wheat farming — interdependence vs. independence
Even within China, moral culture is not uniform. Research shows Northern and Southern Chinese have measurably
different attitudes — shaped partly by agricultural traditions. Rice farming requires intensive cooperation (→
interdependent thinking); wheat farming is more individually manageable (→ independent thinking).
→ Reminder: never treat a culture as monolithic. Sub-cultural variation matters in applied business ethics.
7 Ontological Question #2: Are Humans Selfish or Altruistic?
The second major ontological debate: what is human nature? This has profound consequences for how we design
ethical systems, governance, and business incentives.
P OS IT ION VIE W OF HUMAN N AT URE E T HICAL IMP L ICAT ION
Egoism Humans are fundamentally self- Ethics must work with self-interest — design incentives
interested accordingly
Altruism Humans genuinely care about others Ethics can appeal to other-regarding motives — trust and
culture work
Utilitarianism Both self and others matter Maximise welfare for self and everyone — impartial
aggregation
What Determines Whether We Are Selfish or Altruistic?
CULTURE GENETICS NETWORKS
Individualist cultures (e.g., USA) Inborn sense of justice; genes People behave differently toward
promote self-interest; collectivist drive individual differences in in-group (family, colleagues) vs.
cultures (e.g., China, HK) promote prosocial behaviour. Some out-group (strangers, competitors).
group welfare and shared altruistic tendencies appear to be Social proximity shapes moral
obligation. heritable. concern.
Mirror Neurons — We Are Hard-Wired to Be Prosocial
Mirror neurons fire both when we perform an action and when we observe someone else do it — the
neurological basis of empathy
They encode not just movement but intention — we instinctively understand what others feel and why
People on the autism spectrum may have a less active mirror neuron network, affecting the intuitive empathic
response
This suggests some degree of altruism is biologically innate — not purely culturally constructed
Implication: purely egoistic models of human nature are empirically incomplete
8 Why Metaethics Matters for Business
Metaethics is not abstract philosophy — your metaethical commitments directly shape how you run a business,
manage people, and operate across cultures.
IF: U NIV ERSAL MORA L T R U T HS I F: M OR AL IT Y IS CONST R U CT ED
You expect the same ethical standards from all You adapt ethical standards to local norms ("when in
business partners globally — local customs are no Rome…") — cultural context shapes what counts as
excuse for rights violations. right behaviour.
IF: H UMA NS A RE SELF ISH I F: HU M AN S AR E A LT R UI ST I C
You design incentive systems, contracts, and You invest in culture, trust, and intrinsic motivation —
governance structures that align self-interest with people will do the right thing without purely external
organisational goals. rewards.
Key tension in international business: When does cultural sensitivity become moral relativism? When should
universal standards override local norms? Metaethics frames this question but does not resolve it — you must
reason through it with normative tools.
9 Metaethics and the Normative Frameworks
Metaethics underpins all three normative theories — each one makes implicit metaethical assumptions that can be
challenged.
N OR M AT I VE
ME TAE T HICAL ASSUMPT ION
T HE ORY
Virtue Ethics There are universal human excellences (eudaimonia) — leans toward moral universalism and a
fixed human nature
Deontology Rational moral law is universal and applies to all rational beings — strong moral universalism
(Kant) derived from reason alone
Consequentialism Utility/happiness is measurable and comparable across people — assumes some objective
standard by which welfare can be aggregated
All three frameworks presuppose that moral reasoning is meaningful — which is exactly what metaethics tries
to justify. If morality is entirely relative, none of the normative theories get off the ground.
10 Key Terms to Know
Metaethics Branch of ethics examining the nature, meaning, and origins of ethical concepts —
the "meta" level above normative ethics
Metaphysics Branch of philosophy examining the fundamental nature of reality — metaethics is
metaphysics applied to morality
Semantics Study of meaning and truth — in metaethics: what does "good" or "right" actually
mean?
Ontology Study of being and existence — in metaethics: are moral facts real and mind-
independent?
Epistemology Study of knowledge — in metaethics: how do we justify or defend a moral claim?
Moral Universalism Belief that objective moral truths exist independently of culture, time, or place
Moral Relativism Belief that moral "truths" are created by societies and cultures — no universal
standard exists
Egoism View that humans are fundamentally self-interested; ethics must work with, not
against, self-interest
Altruism View that humans genuinely care about the welfare of others — other-regarding
motives are real
Mirror Neurons Brain cells that fire both when acting and when observing others — the biological
basis of empathy and prosocial behaviour
Cultural Relativism The view that moral norms are culturally specific and cannot be judged by outside
universal standards
Hofstede's Dimensions Framework for comparing cultural values: power distance, individualism,
masculinity, uncertainty avoidance, long-term orientation, indulgence
11 Quick Revision Checklist
Can you define metaethics and distinguish it from metaphysics?
Can you explain semantics, ontology, and epistemology — and give one ethical example of each?
Can you explain the debate between universal moral truths vs. social constructs, with examples from both sides?
Can you explain what social construction of reality means with an example (e.g., grades, money)?
Can you explain how culture shapes moral perception — Michigan Fish Test, Hofstede, Yang Liu?
Can you explain egoism vs. altruism and their implications for business ethics design?
Can you explain what mirror neurons tell us about human moral nature?
Can you connect metaethics back to the three normative frameworks (virtue, deontology, consequentialism)?
Exam strategy: The most likely exam application is to take a cross-cultural business scenario and analyse it through
the metaethical lens — identify whether the parties hold universalist or constructivist assumptions, whether human
nature assumptions are egoistic or altruistic, and how those assumptions lead to different ethical conclusions.
Business Ethics & the Individual
Lecture 5: Metaethics
Detailed Revision Notes · Compiled March 2026
1 Where Metaethics Fits in the Course
Normative ethics tells you what is right or wrong — but metaethics asks a deeper prior question: how do we even
know what "right" or "wrong" means?
T HIS L E CT URE
FOUNDAT ION N E XT
Metaethics
Normative Ethics → Where do moral standards come
→ Applied Ethics
Virtue, Duty, Consequentialism Real-world business cases
from?
Core question of metaethics: "Where do moral standards come from, and are they real?"
2 Metaphysics vs. Metaethics — Key Distinction
These two terms are closely related but not the same. Metaethics is essentially metaphysics applied to morality — the
same three sub-branches apply, just redirected at ethical questions.
BRANCH WHAT IT ST UD IE S T HRE E SUB-BRANCHE S
Metaphysics The fundamental Semantics (meaning/truth), Ontology (what exists), Epistemology (how
nature of reality we know)
Metaethics The nature and origins Semantics (what does "good" mean?), Ontology (are moral facts real?),
of ethical concepts Epistemology (how do we defend moral judgments?)
The Three Questions Metaethics Asks
SEMANTICS O N TO LO GY E P I S T E M O LO GY
"What does 'good' actually "Are moral judgments objective "How can we justify a moral
mean?" facts?" claim?"
Examines the meaning and truth Are moral truths universal and What counts as evidence or
conditions of moral language and mind-independent, or culturally reasoning to defend an ethical
concepts. constructed? position?
Exam tip: The lecture focuses mainly on ontological issues — specifically universality (are moral truths real?) and
the psychology of morals (are humans selfish or altruistic?). Keep these as your anchors.
3 The Matrix Analogy — Why Metaphysics Matters
The lecture uses The Matrix to illustrate metaphysical thinking — each question in the film maps directly onto a
philosophical sub-branch.
EPISTEMOLOGY SEMANTICS ONTOLOGY
"How do you know what is real?" "What is The Matrix?" — the "What is it like being in The
— the question of knowledge question of meaning and Matrix?" — the question of what
and justification. definition. actually exists and how.
The key insight: What you take to be morally real — universal vs. constructed — determines everything about
how you reason about right and wrong. Your metaethical commitments underpin your normative choices.
4 Ontological Question #1: Universal Truths or Social Constructs?
This is the first and most fundamental metaethical debate — the ontological question of whether moral facts exist
independently of human minds and cultures.
Side A: Universal Moral Truths Exist Side B: Morality is a Social Construct
Objective moral facts apply to all people regardless of Moral "truths" are not discovered — they are created by
culture, time, or place societies and cultures
Religion — God-given natural moral law (e.g., Nietzsche — multi-perspectivism; no single
Christian natural law tradition) objective moral standpoint exists
Philosophy — Plato's allegory of the cave; natural Foucault & postmodernism — moral norms are
law (Aristotle, Aquinas) instruments of power and control
Biology/Science — evolutionary hardwiring toward Modernist sociology — norms differ systematically
moral intuitions; mirror neurons; empathy across cultures
The "Emperor Has No Clothes" Insight
SOCIAL CONSTRUCTION OF REALITY
Reality = what we collectively see and how we interpret it
Grades, money, social status — none of these exist in nature; they are real only because we collectively agree they
are. Are grades real? Semantically: what does "grade" mean? Ontologically: do they exist independently?
Epistemologically: how do you know your grade is fair? All are social constructs — but socially very real in their
impact.
→ This is the constructionist view: moral norms are like grades — real in effect, but human-made in origin.
5 Cultural Relativism — Evidence from Research
Strong empirical evidence shows that moral perception varies significantly across cultures. The lecture draws on three
key sources.
Hofstede's Cultural Dimensions — China, HK, India, US
D IM E N S ION MAINL AND CHINA HONG KONG IND IA USA
Power Distance 80 68 77 40
Individualism 20 25 48 91
Masculinity 66 57 56 62
Uncertainty Avoidance 30 29 40 46
Long Term Orientation 87 61 51 26
Indulgence 24 17 26 68
Key insight: Asia and the US are starkly different — especially on individualism vs. collectivism, which
profoundly shapes ethical reasoning, decision-making, and what counts as "fair."
Michigan Fish Test (Nisbett & Masuda)
C R O S S - C U LT U R A L P E R C E P T I O N S T U DY
East Asians vs. Westerners see the same scene differently
East Asians tend to perceive the whole context/background of a scene first; Westerners focus on the central object.
This shows culture shapes even basic perception — let alone complex moral judgment.
→ If we perceive the world differently, we will naturally form different moral intuitions about it.
Yang Liu's Art — East vs. West Perception
" M E" — S ELF -P ERCEP T ION " B OS S" — AU T H OR I T Y
WEST EAST
WEST EAST
Self is large/central — Self is small within the
First among equals — Clearly elevated above
individual identity is group — identity is
horizontal leadership others — vertical hierarchy
primary relational
" D EALIN G WIT H PROB LE MS " "TRUTH"
WEST EAST
WEST EAST
Straight through — Go around — preserve
Single, objective, Multiple perspectives; truth
confront directly harmony, avoid direct
convergent view is contextual
conflict
Business implication: What counts as ethical — gift-giving, hierarchy, directness, face-saving — varies
enormously across cultures. Cultural differences are not just preferences; they affect moral reasoning itself.
6 Do Cultural Differences Apply Within a Country?
NORTHERN VS. SOUTHERN CHINA
Rice paddy vs. wheat farming — interdependence vs. independence
Even within China, moral culture is not uniform. Research shows Northern and Southern Chinese have measurably
different attitudes — shaped partly by agricultural traditions. Rice farming requires intensive cooperation (→
interdependent thinking); wheat farming is more individually manageable (→ independent thinking).
→ Reminder: never treat a culture as monolithic. Sub-cultural variation matters in applied business ethics.
7 Ontological Question #2: Are Humans Selfish or Altruistic?
The second major ontological debate: what is human nature? This has profound consequences for how we design
ethical systems, governance, and business incentives.
P OS IT ION VIE W OF HUMAN N AT URE E T HICAL IMP L ICAT ION
Egoism Humans are fundamentally self- Ethics must work with self-interest — design incentives
interested accordingly
Altruism Humans genuinely care about others Ethics can appeal to other-regarding motives — trust and
culture work
Utilitarianism Both self and others matter Maximise welfare for self and everyone — impartial
aggregation
What Determines Whether We Are Selfish or Altruistic?
CULTURE GENETICS NETWORKS
Individualist cultures (e.g., USA) Inborn sense of justice; genes People behave differently toward
promote self-interest; collectivist drive individual differences in in-group (family, colleagues) vs.
cultures (e.g., China, HK) promote prosocial behaviour. Some out-group (strangers, competitors).
group welfare and shared altruistic tendencies appear to be Social proximity shapes moral
obligation. heritable. concern.
Mirror Neurons — We Are Hard-Wired to Be Prosocial
Mirror neurons fire both when we perform an action and when we observe someone else do it — the
neurological basis of empathy
They encode not just movement but intention — we instinctively understand what others feel and why
People on the autism spectrum may have a less active mirror neuron network, affecting the intuitive empathic
response
This suggests some degree of altruism is biologically innate — not purely culturally constructed
Implication: purely egoistic models of human nature are empirically incomplete
8 Why Metaethics Matters for Business
Metaethics is not abstract philosophy — your metaethical commitments directly shape how you run a business,
manage people, and operate across cultures.
IF: U NIV ERSAL MORA L T R U T HS I F: M OR AL IT Y IS CONST R U CT ED
You expect the same ethical standards from all You adapt ethical standards to local norms ("when in
business partners globally — local customs are no Rome…") — cultural context shapes what counts as
excuse for rights violations. right behaviour.
IF: H UMA NS A RE SELF ISH I F: HU M AN S AR E A LT R UI ST I C
You design incentive systems, contracts, and You invest in culture, trust, and intrinsic motivation —
governance structures that align self-interest with people will do the right thing without purely external
organisational goals. rewards.
Key tension in international business: When does cultural sensitivity become moral relativism? When should
universal standards override local norms? Metaethics frames this question but does not resolve it — you must
reason through it with normative tools.
9 Metaethics and the Normative Frameworks
Metaethics underpins all three normative theories — each one makes implicit metaethical assumptions that can be
challenged.
N OR M AT I VE
ME TAE T HICAL ASSUMPT ION
T HE ORY
Virtue Ethics There are universal human excellences (eudaimonia) — leans toward moral universalism and a
fixed human nature
Deontology Rational moral law is universal and applies to all rational beings — strong moral universalism
(Kant) derived from reason alone
Consequentialism Utility/happiness is measurable and comparable across people — assumes some objective
standard by which welfare can be aggregated
All three frameworks presuppose that moral reasoning is meaningful — which is exactly what metaethics tries
to justify. If morality is entirely relative, none of the normative theories get off the ground.
10 Key Terms to Know
Metaethics Branch of ethics examining the nature, meaning, and origins of ethical concepts —
the "meta" level above normative ethics
Metaphysics Branch of philosophy examining the fundamental nature of reality — metaethics is
metaphysics applied to morality
Semantics Study of meaning and truth — in metaethics: what does "good" or "right" actually
mean?
Ontology Study of being and existence — in metaethics: are moral facts real and mind-
independent?
Epistemology Study of knowledge — in metaethics: how do we justify or defend a moral claim?
Moral Universalism Belief that objective moral truths exist independently of culture, time, or place
Moral Relativism Belief that moral "truths" are created by societies and cultures — no universal
standard exists
Egoism View that humans are fundamentally self-interested; ethics must work with, not
against, self-interest
Altruism View that humans genuinely care about the welfare of others — other-regarding
motives are real
Mirror Neurons Brain cells that fire both when acting and when observing others — the biological
basis of empathy and prosocial behaviour
Cultural Relativism The view that moral norms are culturally specific and cannot be judged by outside
universal standards
Hofstede's Dimensions Framework for comparing cultural values: power distance, individualism,
masculinity, uncertainty avoidance, long-term orientation, indulgence
11 Quick Revision Checklist
Can you define metaethics and distinguish it from metaphysics?
Can you explain semantics, ontology, and epistemology — and give one ethical example of each?
Can you explain the debate between universal moral truths vs. social constructs, with examples from both sides?
Can you explain what social construction of reality means with an example (e.g., grades, money)?
Can you explain how culture shapes moral perception — Michigan Fish Test, Hofstede, Yang Liu?
Can you explain egoism vs. altruism and their implications for business ethics design?
Can you explain what mirror neurons tell us about human moral nature?
Can you connect metaethics back to the three normative frameworks (virtue, deontology, consequentialism)?
Exam strategy: The most likely exam application is to take a cross-cultural business scenario and analyse it through
the metaethical lens — identify whether the parties hold universalist or constructivist assumptions, whether human
nature assumptions are egoistic or altruistic, and how those assumptions lead to different ethical conclusions.
