According to LaFollette, there are two categories (styles) of ethical theory, reasoning and critical thinking which have developed the contemporary understanding of ethics: 1. consequentialism which emphasizes the consequences of our actions, and, 2. deontology which emphasizes rules and principles to follow separately of consequences. Consequentialism is defined as "choosing the available action with the best overall consequences" and deontology states that "we should act in ways circumscribed by moral rules or rights, and that these rules or rights are at least partly independent of consequences." (LaFollette, 2007)
Teleology (Greek word for "end" or "purpose") means reference to moral philosophies in which an action or behavior is considered morally right if it produces a desired outcome or result including: pleasure, knowledge, career development, the realization of self-interest, utility, wealth and fame. Teleological theories assess the moral implications of an action or behavior by looking at its consequences, and moral philosophers today consider these theories as consequentialism. Two important teleological theories that usually guide decision making in individual business decisions are egoism and utilitarianism. (Ferrell, Fraedrich, and Ferrell, 2015)
Egoism defines right and acceptable behavior in terms of the consequences for the individual. Egoists believe that they should make moral decisions that will maximize their own self-interest and worth, which is defined differently by each person. Self-interest and worth can include: physical well-being, power, pleasure, fame, a satisfying career, good family life, good social life, and wealth. From an ethical decision-making perspective, an egoist will usually choose the alternative that contributes most to his/her self-interest. Many in society and the business world believe egoistic people and companies are inherently unethical, short-term oriented and willing to take advantage of any opportunity for gain. For example, some telemarketers demonstrate egoism when they prey on elderly consumers who are usually vulnerable because of age, medical issues, loneliness and fear of losing their financial independence. Unfortunately, thousands of senior citizens fall victim to fraudulent telemarketers each year including losing their homes, real estate, cars and financial savings. (Ferrell, Fraedrich, and Ferrell, 2015)
However, enlightened egoism takes a long term focus and enables the well-being of others even though their own self-interest remains important. An example of enlightened egoism is an individual helping a turtle across a highway because if it were hurt or killed in the process the person would feel distressed. Enlightened egoists may follow professional codes of ethics, control pollution, avoid cheating on taxes, help create jobs and support community projects not because these actions not because these actions benefit others but because it helps them achieve an individual goal such as self-esteem, self-actualization or advancement within the organization. An example is an enlightened egoist could call management's attention to a co-worker who is making false accounting financial reports, but only to protect the organization's reputation and the egoist's own job security. Another example, an enlightened egoist could become a whistle-blower and report misconduct to a regulatory agency to receive an award for exposing misconduct. (Ferrell, Fraedrich, and Ferrell, 2015)
Utilitarianism is like egoism and is concerned with the consequences, however, the difference is the utilitarian seeks the greatest good for the greatest number of people. Utilitarians believe they should make decisions that result in the greatest total utility, or the greatest benefit for all those affected by a decision. For example, a utilitarian might argue for organizations that legally sell harmful products such as tobacco, guns or alcohol. It has been argued that despite their drawbacks, allowing them to be sold legally is less harmful than having them sold illegally and unregulated. This approach influenced similar forms of legislation, such as the recent laws in Colorado and Washington legalizing the regulated sale of medical marijuana. Utilitarian decision making relies on a standard systems comparison of costs and benefits to all affected parties. The US Supreme Court has made several decisions on organizational sexual harassment stating to employers that "one of the costs of doing business" is to prevent sexual harassment for the better of employees and society. Rule utilitarians believe behavior is based on principles or rules designed to promote the greatest utility, e.g., "bribery is wrong" and adhere to strict rules. Act utilitarians believe specific actions instead of specific rules promote the greatest utility. Rules such as "bribery is wrong" serve only as general principles for act utilitarians. They would agree that bribery is wrong not because there is anything inherently wrong with bribery, but because the total amount of utility decreases when one's personal interests are placed ahead of those in society. (Ferrell, Fraedrich, and Ferrell, 2015)
Deontology refers to moral philosophies that focus on the rights of individuals and the intentions associated with a certain behavior rather that consequences. Contemporary deontology has been greatly influenced by German philosopher Immanuel Kant who developed categorical imperative: "Act as if the maxim of thy action were to become by thy will a universal law of nature." This means if you feel comfortable allowing everyone in the world to see you commit an act and if your reasoning for acting in a certain manner is acceptable to become a universal principle guiding behavior, then committing the act is ethical. Fundamental to deontological theory is the idea that equal respect must be give to all persons. In contrast to utilitarians, deontologists argue that there are some things we should not do even to maximize utility. For example, deontologists would consider it wrong to kill an innocent person or commit a serious injustice against someone, no matter how much greater social utility would result from doing this, because this action would infringe on individual rights. On the other hand, a utilitarian might consider such an act acceptable if that action lead to some greater benefit. Deontologists believe individuals have certain absolute rights including: freedom of conscience, freedom of consent, freedom of privacy, freedom of speech and due process. To decide if behavior is ethical, deontologists look for conformance to moral principles. For example, if a manufacturing worker becomes ill or dies as a result of conditions in the workplace, a deontologist would argue that the organization must change its production processes to correct the condition no matter what the cost, even if it means going bankrupt and all the workers lose their jobs. However, a utilitarian would analyze all the costs and benefits of changing the production processes and make a decision on that basis. In summary, teleological philosophies consider the ends associated with an action, whereas deontological philosophies consider the means. (Ferrell, Fraedrich, and Ferrell, 2015) (MacKinnon and Fiala, 2015)
Rule deontologists believe conformance to moral principles based on logic determines ethicalness. Examples include Kant's categorical imperative and the Golden Rule of Judeo-Christian tradition: "Do unto others as you would have them do unto you." Act deontologists believe that actions are the standard basis to judge morality and ethicalness. Act deontology requires an individual to use equity, fairness and impartiality to make and enforce decisions. Past experiences are more important than rules and rules serve only as guidelines in the decision-making process. People know that certain acts are right or wrong regardless of consequences. And act deontologists consider the unique characteristics of a specific act, situation or point in time take precedence over any rule. (Ferrell, Fraedrich, and Ferrell, 2015)
References
Ferrell, O.C., Fraedrich, John, and Ferrell, Linda
(2015). Business Ethics: Ethical Decision Making and Cases (10th ed.).
Stamford, CT: Cengage Learning.
LaFollette, Hugh (2007). The Practice of Ethics.
Malden, MA: Blackwell Publishing.
MacKinnon, Barbara and Fiala, Andrew (2015).
Ethics: Theory and Contemporary Issues (8th ed.). Stamford, CT: Cengage Learning.
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