What is Ethics?

According to the Markkula Center for Applied Ethics , ethics is based on standards of

right and wrong that dictate what humans should do, usually in terms of “rights,

obligations, benefits to society, fairness, or specific virtues.”

Ethics is not the same as religion, feelings, following the law or societal expectations.

Rather, ethics encompasses:

 Refraining from wrong actions, such as theft, murder or fraud

 Human rights, such as the right to life and the right to privacy

 Virtues, such as honesty, compassion and loyalty

To makes sure you don’t end up in the same boat at Volkswagen and Uber, your

organization needs to adopt guidelines that promote ethical decision making and make

ethics a priority for all employees.

Three Ethical Frameworks for Decision Making

1. The Blanchard-Peale Framework

One of the best-known ethical frameworks is also one of the simplest. The framework,

developed by Ken Blanchard and Norman Vincent Peale, consists of three questions,

as described below. The questions first appeared in their 1988 book, “The Power of

Ethical Management.”
2. Markkula Center Framework

The Markkula Center identifies five approaches, or dimensions, that can be applied

when dealing with an ethical issue. These sources can be used to evaluate decisions

for many situations.

1. Utilitarianism says the most ethical action is the one that provides the greatest

amount of good for the largest number of people — or, in more dire

circumstances, the least amount of harm. This idea will be familiar to science

fiction fans: At a critical moment in Star Trek II, Spock says “The needs of the

many outweigh the needs of the few.”

 1. Rights approach dictates that the best decision is the one that preserves and

protects human dignity and moral rights. People “have a right to be treated as

ends, and not merely as means to other ends.”

2. Fairness or justice approach says that all humans should be treated equally. If

it’s not feasible to treat everyone equally, then there must be a standard of

fairness that applies to everyone.

3. Common good approach says that actions should promote to public life. This

approach is used to advocate for laws and public services that appeal to the

welfare of all.

4. Virtue approach is based on characteristics such as compassion and honesty.

With this approach, decision makers should ask things like “What kind of person

would I be if I take this action?”

Once you have a firm understanding of these five sources, there is a clear set of

progressive steps to consider in making an ethical decision:

1. Recognize that an issue is indeed an ethical issue.

2. Get all the facts regarding the issue.

3. Evaluate all the alternative actions. With the utilitarian approach, look at which

alternative will do the most good and the least harm. With the rights approach,

think about which alternative preserves the rights of all stakeholders. With the

justice approach, look at which option treats people most fairly. With the

common good approach, consider the alternatives that serve the entire

community. With the virtue approach, think about your own personal beliefs.

4. Make your decision. If it still makes you uneasy, reconsider all the sources and

see if you arrive at a different decision.

5. Act on the decision.

Ask yourself, “What have I learned from this experience?” This reflection will help you

make ethical decisions in the future.

1. The Issue-Contingent Model of Ethical
Decision Making

In 1991, Thomas M. Jones, a professor at the University of Washington, criticized

many of the existing models of ethical decision making at the time. He devised a new

model that improved on previous efforts by introducing a variable called moral intensity

and basing his research on social psychology.

Moral intensity considers several components: magnitude of consequences, social

consensus, probability of effect, temporal immediacy and concentration of effect.

Jones writes that two people, faced with the same ethical decision, might rightly come

to different decisions because of these components. In effect, not all decisions are the

same — a company introducing a dangerous new project has greater moral intensity

than a decision to leave someone’s name off a group project. Both are unethical

decisions, but one has a greater impact than the other.

In Jones’ model, decisions have four steps:

1. Recognize issue

2. Make judgment

3. Establish moral intent

4. Engage in behavior

All the dimensions of moral intensity must be considered at every step in the process,

as well as organizational influences on decision making, group dynamics, authority

structures and idea socialization. Decision makers must also be able to recognize their

own biases when it comes to gauging moral intensity.

While the Issue-Contingent Model is old and somewhat complex, it’s a useful

alternative for decision makers facing an ethical quandary in adaptable situations.

What are ethical frameworks?
As people in this world, and good citizens, we are concerned not only with what actions
are morally right and morally wrong, but what makes actions morally right or morally
wrong. The key is to understand the reasoning that we employ in ethical decision
making so we can become more proficient.

Ethical frameworks are perspectives useful for reasoning what course of action may
provide the most moral outcome. In many cases, a person may not use a reasoning
process but rather do what they simply feel is best at the time. Others may reflexively use
a principle they learned from their family, peers, religious teachings or own experiences.
The study of ethics has provided many principles that can aid in ethical decision making.
Some of the most common are captured in the following 5 ethical frameworks:

 Virtue ethics: What is moral is what makes us the best person we could be.
 Deontology: What is moral is what follows from absolute moral duties.
 Utilitarianism: What is morally right is what generates the best outcome for the
largest number of people.
 Rights-based Ethics : What is moral is that which is in accord with everyone's
rights.
 Care-based Ethics : What is moral is that which promotes healthy relationships
and the well-being of individuals and their interdependence.

What is Business Ethics?

Business Ethics is the application of moral principles in a business context, guiding actions
and decisions with respect to what is right and wrong. The principles are often derived
from various theoretical frameworks:
 Utilitarian Approach: Advocates actions that provide the greatest good for the
greatest number.
 Duty-Based Ethics: Highlights duties and rules regardless of outcomes.
 Rights-Based Ethics: Stresses respect for individuals’ rights.
 Virtue-Based Ethics: Focuses on developing good character traits, such as
honesty and integrity.
 Fairness-Based Approach: Advocates fairness and justice in interactions.

6 Major Ethical Business Frameworks

Business ethics should be at the forefront of every
organization’s culture. Unethical behavior can be costly from
both a legal and public relations standpoint. Learn about the
six frameworks for ethical decision making in our latest
infographic.