Chapter 1: Seeing the moral dimension of business 1
Shaw 3e
Moral Issues in Business
Instructor’s Manual
Table of contents
Chapter 1: Seeing the moral dimension of business 1
Chapter 2: Normative theories of ethics 21
Chapter 3: The nature of capitalism 44
Chapter 4: Corporate social responsibility and corporate governance 62
Chapter 5: The morality and ethics of consumption 78
Chapter 6: International business: Moral and ethical issues 96
Chapter 7: Environmental ethics in business 111
Chapter 8: The organisation: Ethical and moral issues 127
Chapter 9: Ethics at work 142
Chapter 10: Ethics, leadership and culture 157
Chapter 11: Putting it all together: Towards moral and ethical decision-making 172
Chapter 1
Seeing the moral dimension of business
Overview
There is often confusion among students regarding moral issues, as the everyday use of the
term often refers to tradition, law or etiquette. Similarly, there is often confusion between
moral and non-moral judgements. This book examines morality in a business context. It is
important that business students learn to understand morality, ethics and the principles
upon which moral issues are judged.
This chapter provides guidelines to these issues and examines what is meant by
‘morality’.
Many of the moral issues that arise in business are complex and difficult to answer. For
example:
How far must manufacturers go to ensure product safety?
Should manufacturers reveal everything about a product, including any possible
defects or shortcomings?
At what point does acceptable exaggeration become lying about a product or a
service?
When does aggressive marketing become consumer manipulation?
Is advertising useful and important or deceptive, misleading and socially
detrimental?
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 2
When are prices unfair or exploitative?
Are corporations obliged to help combat social problems?
What are the environmental responsibilities of business and is it living up to them?
Are pollution permits a good idea?
Is factory farming morally justifiable?
May employers screen potential employees on the basis of lifestyle, physical
appearance or personality tests?
What rights do employees have on the job?
Under what conditions may employees be disciplined or fired?
What, if anything, must business do to improve work conditions?
When are wages fair?
Do unions promote the interests of workers or infringe their rights?
When, if ever, is an employee morally required to blow the whistle?
May employees ever use their positions inside an organisation to advance their own
interests?
Is insider trading or the use of privileged information immoral?
How much loyalty do workers owe their companies?
What say should a business have over its employees’ off-the-job activities?
Do drug tests violate employees’ right to privacy?
What obligations does a worker have to outside parties, such as customers,
competitors or society in general?
These questions typify business issues with moral significance. The answers we give to
them are determined, in large part, by our moral standards – that is, by the moral principles
and values we accept.
Key terms
religion and morality spirituality ethics
moral development morality and etiquette
moral reasoning
Learning objectives
After completing this chapter, students should be able to:
define and understand ethics, including business and organisational ethics
understand the nature of morality
define and understand ethical relativism
understand the role of moral principles and individual responsibility in morality and
ethics
understand the elements that are essential for moral reasoning and ethical decision
making.
Lecture outline
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 3
Ethics
The central question of ethics is as follows: How are we to relate to each other in order to
ensure that our individual and collective well-being is enhanced? This raises additional
questions such as:
What is morally right and wrong?
What moral principles should I employ?
How can I justify my decisions and actions morally?
Business ethics is the study of what constitutes right and wrong, or good and bad;
human conduct in a business context.
Moral versus non-moral standards
The concept of ‘morality’ contains a prerequisite for human faculties and choice in order
to have meaning.
The idea of morality requires that a choice can be made and, secondly, that the actor
knows right from wrong in a moral sense when making that choice.
Not all decisions or actions are moral actions. Only those that affect, or potentially
affect, well-being are moral.
Moral standards take priority over non-moral standards.
Morality and religion
Religion
Religion seeks to explain the mysteries of life and to prescribe social behaviour.
Religion provides standards for individual and communal well-being.
Religion requires unquestioning acceptance of the word of God rather than a reliance on
rational thought. It is a ‘given’ standard of right and wrong rather than a standard based
on moral reasoning.
All major religions have a version of the Golden Rule
Spirituality
Spirituality in some sense has an impact on ethical ways of doing things.
Morality and etiquette
Etiquette is concerned with social norms of behaviour and is largely cultural rather than
moral. It is mainly concerned with ‘manners’.
Morality and law
Moral standards are universal and constant.
Law is not universal and changes frequently.
Law is what other people decide should govern behaviour; morality concerns what
behaviour ought to be. An action can therefore be illegal but moral, or legal but
immoral.
Professional codes
Professional codes fall somewhere between etiquette and law.
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 4
Codes frequently include moral prescriptions, guidance about professional etiquette and
restrictions that are intended to benefit the group’s financial interests.
Given their nature, they are neither a complete nor a reliable guide to one’s moral
obligations.
Business and organisational ethics
The idea is that moral rectitude is as important in organisational life as in one’s personal life.
Do organisations have the same moral rights and obligations as people?
Copyright © 2017 Cengage Learning Australia Pty Limited
Shaw 3e
Moral Issues in Business
Instructor’s Manual
Table of contents
Chapter 1: Seeing the moral dimension of business 1
Chapter 2: Normative theories of ethics 21
Chapter 3: The nature of capitalism 44
Chapter 4: Corporate social responsibility and corporate governance 62
Chapter 5: The morality and ethics of consumption 78
Chapter 6: International business: Moral and ethical issues 96
Chapter 7: Environmental ethics in business 111
Chapter 8: The organisation: Ethical and moral issues 127
Chapter 9: Ethics at work 142
Chapter 10: Ethics, leadership and culture 157
Chapter 11: Putting it all together: Towards moral and ethical decision-making 172
Chapter 1
Seeing the moral dimension of business
Overview
There is often confusion among students regarding moral issues, as the everyday use of the
term often refers to tradition, law or etiquette. Similarly, there is often confusion between
moral and non-moral judgements. This book examines morality in a business context. It is
important that business students learn to understand morality, ethics and the principles
upon which moral issues are judged.
This chapter provides guidelines to these issues and examines what is meant by
‘morality’.
Many of the moral issues that arise in business are complex and difficult to answer. For
example:
How far must manufacturers go to ensure product safety?
Should manufacturers reveal everything about a product, including any possible
defects or shortcomings?
At what point does acceptable exaggeration become lying about a product or a
service?
When does aggressive marketing become consumer manipulation?
Is advertising useful and important or deceptive, misleading and socially
detrimental?
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 2
When are prices unfair or exploitative?
Are corporations obliged to help combat social problems?
What are the environmental responsibilities of business and is it living up to them?
Are pollution permits a good idea?
Is factory farming morally justifiable?
May employers screen potential employees on the basis of lifestyle, physical
appearance or personality tests?
What rights do employees have on the job?
Under what conditions may employees be disciplined or fired?
What, if anything, must business do to improve work conditions?
When are wages fair?
Do unions promote the interests of workers or infringe their rights?
When, if ever, is an employee morally required to blow the whistle?
May employees ever use their positions inside an organisation to advance their own
interests?
Is insider trading or the use of privileged information immoral?
How much loyalty do workers owe their companies?
What say should a business have over its employees’ off-the-job activities?
Do drug tests violate employees’ right to privacy?
What obligations does a worker have to outside parties, such as customers,
competitors or society in general?
These questions typify business issues with moral significance. The answers we give to
them are determined, in large part, by our moral standards – that is, by the moral principles
and values we accept.
Key terms
religion and morality spirituality ethics
moral development morality and etiquette
moral reasoning
Learning objectives
After completing this chapter, students should be able to:
define and understand ethics, including business and organisational ethics
understand the nature of morality
define and understand ethical relativism
understand the role of moral principles and individual responsibility in morality and
ethics
understand the elements that are essential for moral reasoning and ethical decision
making.
Lecture outline
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 3
Ethics
The central question of ethics is as follows: How are we to relate to each other in order to
ensure that our individual and collective well-being is enhanced? This raises additional
questions such as:
What is morally right and wrong?
What moral principles should I employ?
How can I justify my decisions and actions morally?
Business ethics is the study of what constitutes right and wrong, or good and bad;
human conduct in a business context.
Moral versus non-moral standards
The concept of ‘morality’ contains a prerequisite for human faculties and choice in order
to have meaning.
The idea of morality requires that a choice can be made and, secondly, that the actor
knows right from wrong in a moral sense when making that choice.
Not all decisions or actions are moral actions. Only those that affect, or potentially
affect, well-being are moral.
Moral standards take priority over non-moral standards.
Morality and religion
Religion
Religion seeks to explain the mysteries of life and to prescribe social behaviour.
Religion provides standards for individual and communal well-being.
Religion requires unquestioning acceptance of the word of God rather than a reliance on
rational thought. It is a ‘given’ standard of right and wrong rather than a standard based
on moral reasoning.
All major religions have a version of the Golden Rule
Spirituality
Spirituality in some sense has an impact on ethical ways of doing things.
Morality and etiquette
Etiquette is concerned with social norms of behaviour and is largely cultural rather than
moral. It is mainly concerned with ‘manners’.
Morality and law
Moral standards are universal and constant.
Law is not universal and changes frequently.
Law is what other people decide should govern behaviour; morality concerns what
behaviour ought to be. An action can therefore be illegal but moral, or legal but
immoral.
Professional codes
Professional codes fall somewhere between etiquette and law.
Copyright © 2017 Cengage Learning Australia Pty Limited
, Chapter 1: Seeing the moral dimension of business 4
Codes frequently include moral prescriptions, guidance about professional etiquette and
restrictions that are intended to benefit the group’s financial interests.
Given their nature, they are neither a complete nor a reliable guide to one’s moral
obligations.
Business and organisational ethics
The idea is that moral rectitude is as important in organisational life as in one’s personal life.
Do organisations have the same moral rights and obligations as people?
Copyright © 2017 Cengage Learning Australia Pty Limited
